Order Amending the Surtax on Imports of Certain Steel Goods Remission Order, 2025: SOR/2026-70

Canada Gazette, Part II, Volume 160, Number 9

Registration
SOR/2026-70 April 16, 2026

CUSTOMS TARIFF

P.C. 2026-334 April 16, 2026

Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, makes the annexed Order Amending the Surtax on Imports of Certain Steel Goods Remission Order, 2025 under section 115footnote a of the Customs Tariff footnote b.

Order Amending the Surtax on Imports of Certain Steel Goods Remission Order, 2025

Amendments

1 (1) Subsection 1(1) of the Surtax on Imports of Certain Steel Goods Remission Order, 2025 footnote 1 is replaced by the following:

Remission — goods in transit

1 (1) Subject to subsection (2), remission is granted of the surtax, or any portion of the surtax, paid or payable under subsections 2(1) and (1.1) of the Order Imposing a Surtax on the Importation of Certain Steel Goods in respect of any goods referred to in that Order that are in transit to Canada

(2) Paragraph 1(2)(a) of the Order is replaced by the following:

2 The schedule to the Order is amended by adding the following after item 8:
Item

Column 1

Class of Goods

Column 2

Description of Goods
9 Hot-Rolled Bar Round, square or flat bar, that has a thickness of less than 2.75 inches, of alloy containing 11% to 15% manganese
10 Structural Steel Angle, shape or section of an alloy containing 11% to 15% manganese
11 Hot-Rolled Bar Hot-rolled bar, quenched and tempered pre-hardened tool steel, of proprietary grade Toolox 33, Toolox 44 or Toolox 46 of a hardness of 30 to 60 HRC, that has a thickness of less than 2.75 inches
12 Carbon Steel Ingots Ingots, quenched and tempered pre-hardened tool steel, of a hardness of 30 to 60 HRC and of proprietary grade Toolox 33, Toolox 44 or Toolox 46
13 Hot-Rolled Bar Cold work tool steel, hot-rolled bar, of proprietary grade DC53 of a hardness of 60 to 64 HRC, that has a thickness of less than 2.75 inches
14 Cold Finished Bars Cold work tool steel, cold finished bars, of proprietary grade DC53 of a hardness of 60 to 64 HRC, that have a thickness of less than 2.75 inches
15 Steel Plate Cold work tool steel, plate, of proprietary grade DC53 of a hardness of 60 to 64 HRC
16 Hot-Rolled Bar Cold work tool steel, hot-rolled bar, of proprietary grade DCMX of a hardness of 60 to 62 HRC, that has a thickness of less than 2.75 inches
17 Cold Finished Bars Cold work tool steel, cold finished bars, of proprietary grade DCMX of a hardness of 60 to 62 HRC, that have a thickness of less than 2.75 inches
18 Steel Plate Cold work tool steel, plate, of proprietary grade DCMX of a hardness of 60 to 62 HRC
19 Hot-Rolled Bar Hot work tool steel, hot-rolled bar, that has a thickness of less than 2.75 inches and of proprietary grade DH31-EX
20 Steel Plate Hot work tool steel, plate, of proprietary grade DH31-EX, that has a width of less than 6 inches
21 Hot-Rolled Bar Pre-hardened tool steel, hot-rolled bar, that has a thickness of less than 2.75 inches, of a hardness of 40 to 43 HRC and of proprietary grade NAK55
22 Steel Plate Pre-hardened tool steel, plate, of a hardness of 40 to 43 HRC and of proprietary grade NAK55
23 Coated Steel Sheet Galvanized flat-rolled steel of Grade DX51D, as defined under EN 10346, or equivalent, of a thickness of 0.14 mm
24 Pre-Painted Pre-painted steel sheet, in coils, of specification ASTM A755 or A792, of proprietary grade GLX
25 Coated Steel Sheet Flat-rolled steel, coated, of proprietary grade CeramicSteel, with white satin gloss 6100S
26 Pre-Painted Pre-painted steel, colaminated with polyester film with high-gloss finish
27 Hot-Rolled Bar Alloy steel bar, hot-rolled, that has a thickness of less than 2.75 inches, of aircraft quality or military specification, of grade 4130 MIL-S-6758, E-4340 MIL-S-5000, 9310 AMS 6265/MIL-S-7393, ES2100 MIL-S-7420, 300M MIL-S-8844 or Nitriding 135 MIL-S-6709
28 Cold Finished Bars Alloy steel bars, cold-finished, that have a thickness of less than 2.75 inches, of aircraft quality or military specification, of grade 4130 MIL-S-6758, E-4340 MIL-S-5000, 9310 AMS 6265/MIL-S-7393, ES2100 MIL-S-7420, 300M MIL-S-8844 or Nitriding 135 MIL-S-670
29 Cold Finished Bars Free-machining hexagonal bars with diameter sizes of up to 2 inches of grades AISI 4140QT, 1215, 1215 heat-treated or 12L14
30 Standard Pipe Welded stainless steel pipe
31 Line Pipe Longitudinally submerged arc welded emulsion pipe that has an outside diameter not exceeding 610 mm, of grade 359 (X-52) to grade 448 (X-65), has a nominal length of 18 m, is used for Steam-Assisted Gravity Drainage (SAGD) applications or Cyclic Steam Simulation (CSS) steam distribution and is certified with the Elevated Temperature Tension Test (ETTT)
32 Line Pipe Longitudinally submerged arc welded pipe that has an outside diameter not exceeding 610 mm, is of any API grade, is used for Steam-Assisted Gravity Drainage (SAGD) applications or Cyclic Steam Simulation (CSS) steam distribution and is certified with the Elevated Temperature Tension Test (ETTT)
33 Oil Country Tubular Goods Seemless pipes, of martensitic stainless steel, of proprietary grade SM13CRS-110
34 Oil Country Tubular Goods Seemless pipes of proprietary grade SM2535-110 (nickel alloy)
35 Oil Country Tubular Goods Seemless pipes of proprietary grade SM25CRW-125 (duplex stainless steel)
36 Standard Pipe Tubes drawn over mandrel
37 Line Pipe Carbon hot-finished seamless mechanical tubing, of any grade other than ASTM A106 and A333, that has a wall thickness of at least 0.5 inch but not exceeding 6 inches
38 Standard Pipe U-Tubes, of grade SA-688 TP304L, that have an outer welded diameter of 0.75 inch or 0.625 inch
39 Structural Steel Steel bulb flats in shipbuilding grades
40 Steel Plate Steel plate, heat-treated, of grade A514, that has a thickness of more than 70 mm
41 Steel Plate Steel plate, heat-treated, abrasion resistant, with a Brinell Hardness Number (BHN) of 360 to 477, that has a thickness of more than 70 mm
42 Steel Plate Steel plate, heat-treated, abrasion resistant, with a Brinell Hardness Number (BHN) of 477 to 545, that has a thickness of more than 31.75 mm
43 Steel Plate Steel plate, heat-treated, abrasion resistant, with a Brinell Hardness Number (BHN) over 545
44 Steel Plate Flat-rolled steel, of an alloy containing 11% to 15% manganese, that has a thickness of at least 0.5 inch but not exceeding 0.75 inch
45 Steel Plate Flat-rolled steel, of proprietary grade Hardox 600 with a Brinell Hardness Number (BHN) of 550 to 640, that has a thickness of at least 5 mm but not exceeding 10 mm
46 Large Diameter Line Pipe Longitudinally submerged arc welded line pipe, of a nominal pipe size of 36 inches or 42 inches, certified to CSA Z245.1:22 Grade 483, Category II
47 Cold Finished Bars Flat bars, cold-formed or cold-finished, of specification ASTM A108, that have a width of 0.25 inch to 12 inches and a thickness of 0.125 inch to 4 inches
48 Cold Finished Bars Bars, cold-formed or cold-finished, of specification AISI 1018, that have a square dimension of 0.125 inch to 7 inches
49 Cold Finished Bars Bars and rods of free cutting steel, cold-formed or cold-finished, of grade AISI 12L14, that have a square dimension of 0.125 inch to 7 inches
50 Cold Finished Bars Bars and rods of free cutting steel, cold-formed or cold-finished, of grade AISI 12L14, that have a width of 0.25 inch to 12 inches and that have a thickness of 0.125 inch to 4 inches
51 Cold Finished Bars Bars, cold-formed or cold-finished, of alloy steel SAE/AISI 4140, of specification ASTM A108-18, subcritically annealed prior to drawing, that have a width of 0.25 inch to 12 inches and that have a thickness of 0.125 inch to 4 inches
52 Oil Country Tubular Goods Casings or tubings of proprietary grades JFE-13Cr95, HP2-13Cr95/95M/110/110M, JFE-UHP-15Cr125, JFE-UHP-17Cr110/125, SM13CRS95/110, SM25CRU80, SM22CR110/125, SM25CR-110/125 or SM25CRW-80/125
53 Large Diameter Line Pipe Electric resistance welded emulsion pipe, of CSA Z245.1 Grade 359 up to Grade 448, that is used in Steam-Assisted Gravity Drainage (SAGD) applications or Cyclic Steam Simulation (CSS) processes and is certified with the Elevated Temperature Tension Test (ETTT) in accordance with ASTM E21
54 Line Pipe Electric resistance welded emulsion pipe, of CSA Z245.1 Grade 359 up to Grade 448, that is used in Steam-Assisted Gravity Drainage (SAGD) applications or Cyclic Steam Simulation (CSS) processes and is certified with the Elevated Temperature Tension Test (ETTT) in accordance with ASTM E21
55 Oil Country Tubular Goods Seamless alloyed tubings that have an outside diameter of less than 88.9 mm or more than 114.3 mm
56 Oil Country Tubular Goods Electric resistance welded alloyed tubings, that have an outside diameter of less than 88.9 mm or more than 114.3 mm
57 Oil Country Tubular Goods Oil country tubular goods, of grades API 5CT C90, C110 or T95, that have an outside diameter of 244.6 mm to 298.5 mm, for mild sour service
58 Standard Pipe Pipe, that has an outer diameter exceeding 60.3 mm but less than 254 mm, meeting specification ASTM A106 or equivalent
59 Pre-Painted Flat-rolled steel, chrome-plated and film-laminated
60 Steel Plate Hot-rolled carbon steel plate manufactured to ASME SA-516/SA-516M or ASTM A-516/A-516M, ASME SA-285/SA-285M or ASTM A-285/A-285M, ASME SA-299/SA-299M or ASTM A-299/A-299M, ASME SA-537/SA-537M or ASTM A-537/A-537M, ASME SA-515/SA-515M or ASTM A-515/A-515M, that is normalized (heat-treated) where the plate thickness is greater than 3.28 inches
61 Steel Plate Hot-rolled carbon steel plate and high-strength low-alloy plate, made to any steel specification or grade, that has a thickness of more than 4.5 inches and a width of more than 96 inches
62 Steel Plate Steel plate with a yield strength of 100 ksi that has a thickness of more than 70 mm
63 Cold-rolled Sheet Flat-rolled product of iron or non-alloy steel, cold-rolled, not clad, that has a width of 1,829 mm or more and a thickness of 0.32 mm or less or of 3.5 mm or more
64 Hollow Structural Sections Small-diameter thick-walled steel pipes that have a thickness-to-outside-diameter ratio exceeding 18%
65 Large Diameter Line Pipe ASME SA 672 or ASME SA 691 electric-fusion welded steel pipe as certified under the ASME Boiler and Pressure Vessel Code rules (and stenciled with at least one of the above-mentioned standards), is of a length not exceeding 15 feet, is for use other than in a CSA Z662 pipeline application and is imported with authorized inspection certificates and applicable ASME Partial Data Reports
66 Large Diameter Line Pipe Line pipe, regardless of grade, outside diameter and wall thickness, single stenciled as "DNV-OS-F101" for exclusive use in offshore applications and marked "For Offshore Applications Only"
67 Large Diameter Line Pipe Longitudinal submerged arc welded line pipe, regardless of grade, outside diameter and wall thickness, in lengths of 60 feet, with no girth welds, for exclusive use in slurry or tailings piping systems in oil sands projects and marked "For Use as Slurry/Tailings Pipe Only"; for greater certainty, this does not include use in a pipeline meeting specification CSA Z662 or use as pressure piping meeting CSA B51 Code
68 Large Diameter Line Pipe Longitudinal submerged arc welded line pipe, regardless of outside diameter, wall thickness and length, for exclusive use in high-temperature steam distribution pipelines, marked "For Steam Distribution Only", certified to CSA Z662-15 Clause 14 or Annex I and certified to have proven fatigue/creep test properties described in sections I.2.3.2 and I.3.2.1 of CSA Z662-15 as established by means of a creep test of no less than 10,000 hours carried out in accordance with ASTM E139
69 Large Diameter Line Pipe Longitudinal submerged arc welded line pipe with a double submerged arc weld, stenciled with Grade API 2B whether or not stenciled to any other grade, regardless of outside diameter, with a wall thicknesses of more than 1 inch for exclusive use in production of debarker rotors and marked "For Use in Production of Debarker Rotor Only"
70 Large Diameter Line Pipe Longitudinal submerged arc welded line pipe, with a double submerged arc weld, certified to CSA Z245.1 (Grade 483 or higher), regardless of outside diameter or wall thickness with fracture propagation resistance of CSA Category II M45C or equivalent and marked (by stenciling or otherwise) as "Station Pipe" and for the following exclusive uses: (i) above-ground applications; (ii) above-ground facility or fabricated assembly; and (iii) below-ground applications within and for up to a distance of 100 meters from any facility or assembly
71 Rebar Alloy steel bar, of special bar quality (SBQ), that has a diameter of less than 0.75 inch or more than 4.0625 inches
72 Hot-Rolled Bar Alloy steel bar, of special bar quality (SBQ), that has a diameter of less than 0.75 inch or more than 4.0625 inches
73 Hot-Rolled Bar Carbon steel bar, of special bar quality (SBQ), that has a diameter of more than 4.0625 inches
74 Line Pipe Welded line pipe having a nominal outside diameter from and including 18 inches to 24 inches (with all dimensions having approximately the same allowable tolerances contained in the applicable standards), regardless of grade and wall thickness, with a manganese content of no less than 16% by weight, for exclusive use in slurry, tailings, and pressure piping systems in oil sands projects, and marked "Not for CSA Z662 Applications"; For greater certainty, this does not include use in a pipeline meeting CSA Z662
75 Line Pipe Longitudinal submerged arc welded line pipe, regardless of grade, having a nominal outside diameter from and including 18 inches to 24 inches (with all dimensions having approximately the same allowable tolerances contained in the applicable standards), with a wall thickness of 0.5 inch or more, in lengths of 60 feet, with no girth welds, for exclusive use in slurry or tailings piping systems in oils sands projects and marked "For Use as Slurry/Tailings Pipe Only" and having an accompanying mill test report indicating that the pipe is certified for use in slurry or tailings applications only; for greater certainty, this does not include use in a pipeline meeting CSA Z662 or as pressure piping meeting CSA B51 Code
76 Steel Wire Alloy or non-alloy steel wire, degassed, of grade SAE 15B36, AISI 1025 or SCM435
77 Line Pipe Pipe, certified to meet CSA, ASTM A333 and ASTM A106 standards simultaneously, of external diameter exceeding 219.075 mm
78 Steel Plate Steel plate manufactured to specification ASME SA-387 Grade 11
79 Oil Country Tubular Goods Coupling stocks, seamless, of API 5CT grade C110, J55, K55, L80, P110 or T95, that have an outside diameter exceeding 2.875 inches
80 Large Diameter Line Pipe Longitudinal submerged arc welded line pipe, of a nominal pipe size of 18 inches to 36 inches, of specification CSA Z245.1 Grade 550, Category II, thermo-mechanical control processed, for elevated-temperature Steam-Assisted Gravity Drainage (SAGD) steam service
81 Line Pipe Longitudinal submerged arc welded line pipe, of a nominal pipe size of 18 inches to 36 inches, of specification CSA Z245.1 Grade 550, Category II, thermo-mechanical control processed, for elevated-temperature Steam-Assisted Gravity Drainage (SAGD) steam service
82 Line Pipe Seamless pipe, of a nominal pipe size of 6 inches to 16 inches, of specification CSA Z245.1 Grade 550, Category II, quenched and tempered, for elevated-temperature Steam-Assisted Gravity Drainage (SAGD) steam service
83 Large Diameter Line Pipe Steam Assisted Gravity Drainage-produced emulsion pipe, of a nominal pipe size 30 inches to 36 inches, of CSA Z245.1 Grade 448, Category II, thermo-mechanical control processed
84 Steel Plate Steel plate manufactured to specification ASTM A514 Grade Q or ASTM A709 Grade 100, that has a thickness of 6.35 mm to 101.6 mm
85 Coated Steel Sheet Cold-rolled galvannealed steel, that has a thickness of 2.6 mm and coil widths of 767 mm or 823 mm, is pre-phosphated with a minimum tensile strength of 270 MPa and has a coating weight of 45 g/m2per side
86 Coated Steel Sheet Cold-rolled galvannealed steel, that has a thickness of 1.6 mm, coil widths of 743 mm or 1,357 mm, a tensile strength of 1,180 MPa and a coating weight of 45 g/m2per side
87 Line Pipe Longitudinal submerged arc welded line pipe, having a nominal outside diameter from and including 18 inches to 24 inches (with all dimensions having approximately the same allowable tolerances contained in the applicable standards), regardless of wall thickness and length, for the exclusive end use of high-temperature steam distribution in Steam-Assisted Gravity Drainage (SAGD) or Cyclic Steam Stimulation (CSS) processes, marked "For Steam Distribution Only (in SAGD or CSS End Uses Only)", certified to CSA Z662.19 Clause 14 or Annex I and certified to have proven fatigue/creep test properties described in sections I.2.3.2 and I.3.2.1 of CSA Z662:19 as established by means of a creep test of no less than 10,000 hours carried out in accordance with ASTM E139 and having an accompanying mill test report indicating that the pipe is certified for use in high-temperature steam distribution in SAGD or CSS processes only
88 Line Pipe Line pipe for use in low-temperature services, dual certified as meeting CSA Z245.1 Grade 359, Category II, and ASTM/ASME A/SA333 Grade 6 composite standard or triple certified as meeting CSA Z245.1 Grade 359, Category II, ASTM/ASME A/SA333 Grade 6 and ASTM/ASME A/SA106 Grade B composite standard, excluding line pipe of a diameter of 4 inches and 6 inches
89 Oil Country Tubular Goods Seamless casings manufactured to API 5CT Grades T95 and C100/110 that have an outside diameter of more than 250.8 mm
90 Steel Billets and Blooms Semi-finished products containing more than 2% of carbon by weight, with a circular cross-section of 1 inch to 30 inches in diameter, that meet specification ASTM A48 Class 40, or ASTM A536 Grades 60-40-18, 65-45-18, 80-55-06 or 100-70-02
91 Steel Billets and Blooms Semi-finished products containing more than 2% of carbon by weight, with a rectangular (other than square) cross-section of 2 square inches to 630 square inches, that meet specification ASTM A48 Class 40, or ASTM A536 Grades 60-40-18, 65-45-18, 80-55-06 or 100-70-02
92 Steel Billets and Blooms Semi-finished products containing more than 2% of carbon by weight, with a rectangular (including square) cross-section of 1 square inch to 26 square inches, that meet specification ASTM A48 Class 40, or ASTM A536 Grades 60-40-18, 65-45-18, 80-55-06 or 100-70-02

Coming into Force

3 This Order comes into force on the day on which it is registered.

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Order.)

Issues

The Government of Canada established tariff rate quotas (TRQs) for imports of certain steel mill products starting on June 27, 2025, which were amended on August 1 and December 26, 2025. A surtax of 50% applies to imports that exceed the TRQ thresholds to address the risk of trade diversion stemming from global excess capacity in steel supply and the restrictive trade measures taken by the United States (U.S.) through its imposition of tariffs under section 232 of the U.S. Trade Expansion Act of 1962 on steel imports.

To reduce potential undue and adverse impacts on importers, the scope of the TRQs only covers specific steel products that are produced in Canada. The scope of covered products is set out in Schedules 1 and 2 of the Order Imposing a Surtax on the Importation of Certain Steel Goods (TRQ Surtax Order) using the most precise tariff classification possible. However, stakeholders have noted concerns that there are certain steel products included within the tariff classifications set out in the TRQ Surtax Order that are not domestically produced, such as products with specific characteristics (e.g. thickness, grade).

In addition, concerns were also raised by importers regarding the application of the amended TRQs to steel goods that were already in transit when the TRQs were last amended on December 26, 2025. Specifically, stakeholders indicated that shipments were made based on the frameworks in force prior to the amendment, which reduced the TRQ volumes for imports and adjusted the product categories and thus exposed them to unexpected and unavoidable surtax charges.

Background

On June 27, 2025, the Government of Canada implemented TRQs, under which a 50% surtax is applied to imports of covered steel products (flat, long, pipe and tube, semi-finished and stainless) from non-free trade agreement (FTA) partners that exceed a quota equivalent to 100% of 2024 imports (see the Order Imposing a Surtax on the Importation of Certain Steel Goods [SOR/2025-148]).

On August 1, 2025, the Government of Canada further strengthened the TRQs for steel products. The measures included the following key changes (see the Order Amending the Order Imposing a Surtax on the Importation of Certain Steel Goods [SOR/2025-155]):

On December 26, 2025, the Government of Canada further amended the TRQs for steel products, namely to reduce TRQ levels for imports originating from non-FTA partners to 20% from 50% of 2024 levels, and for imports originating from non-CUSMA FTA partners to 75% from 100% of 2024 levels (see Order Amending the Order Imposing a Surtax on the Importation of Certain Steel Goods [SOR/2025-266]):

The TRQs are intended to help stabilize the Canadian market and prevent harmful diversion of foreign steel from third countries into Canada while minimizing impacts on Canadian importers and downstream users.

On December 19, 2025, the Government of Canada issued the Surtax on Imports of Certain Steel Goods Remission Order, 2025 (the Remission Order) [SOR/2025-287]. The Remission Order provides remission of the 50% surtax on subject steel goods that meet specific descriptions and for which there are no domestically produced alternatives, such as steel plates that have a thickness of more than five inches. In addition, the Remission Order granted remission of the 50% surtax on subject steel goods imported into Canada on or after August 1, 2025, from countries without an FTA in force with Canada that were in transit on or before August 1, 2025.

Global Affairs Canada is responsible for administering the TRQs through the issuance of shipment-specific import permits. To allow the issuance of permits according to the Export and Import Permits Act (EIPA), the subject products were added to the Import Control List (ICL). Importations made without a specific import permit are assessed the 50% surtax by the Canada Border Services Agency (CBSA).

Objective

Description

Pursuant to section 115 of the Customs Tariff, the Order Amending the Surtax on Imports of Certain Steel Goods Remission Order, 2025, amends the Remission Order in the following manner:

This Order does not change the conditions set out in the Remission Order for granting remission, including that the requesting importer makes a claim to the Minister of Public Safety and Emergency Preparedness within two years after the date of importation, and that no other claim for relief of the surtax has been granted under the Customs Tariff in respect of that good.

Goods eligible for remission remain technically subject to the TRQs. Importers may avoid the 50% surtax by claiming remission or obtaining a shipment-specific import permit if there is available volume in the specific quotas.

Regulatory development

Consultation

Requests for remission of the 50% surtax on products claimed not to be made in Canada were submitted proactively to the Department of Finance by interested parties, including importers and end users of imported goods. Targeted consultations were conducted with Canadian steel producers, including through the Canadian Steel Producers Association, to validate claims of domestic short supply based on the product descriptions received through the remission requests. The Government will continue to monitor requests for remission and will adopt a similar consultation process in the future. In this regard, the Remission Order may be amended in the future, such as for the inclusion of additional products for which there is a verified lack of domestic production capability, or the removal of products from the Schedule of the Order where new domestic production capabilities materialize.

Indigenous engagement, consultation and modern treaty obligations

Following the completion of the assessment of modern treaty implications, no adverse impacts on potential or established Indigenous or treaty rights, which are recognized and affirmed in section 35 of the Constitution Act, 1982, were identified.

Instrument choice

Section 115 of the Customs Tariff provides the authority for the Governor in Council to remit surtaxes on the recommendation of the Minister of Finance.

Regulatory analysis

Benefits and costs

In the baseline scenario, after quota levels are exceeded, importers are required to pay a 50% surtax in certain cases that do not align with the policy intent. First, importers made decisions in accordance with the TRQ regime amended on August 1, 2025. Therefore, they had shipments that were already in transit to Canada but were imported on or after December 26, 2025, when the applicable TRQ volumes were reduced. Second, importers importing products that are not domestically produced (e.g. specialized products meeting specific descriptions) are required to pay for the surtax should the applicable TRQ be filled.

In the regulatory scenario, with the changes made by this Order, importers will be provided relief from paying the 50% surtax in the aforementioned cases. Requiring importers to pay the 50% surtax in these cases does not align with the policy intent of preventing trade diversion and protecting the Canadian steel industry, as importers would nevertheless need to import those steel goods. Therefore, importers may face undue adverse impacts in the baseline scenario, which could increase production costs for downstream users and consumers. In either scenario, remission is expected to have minimal effect on the Canadian steel industry and its workers, as it mainly applies to goods for which there is no domestic production capability and import volumes are expected to be low. However, if importers of products that are eligible for a remission who would have applied for and received an import quota in the baseline scenario decide not to use import quotas, this may result in an increased supply of quotas for domestically available products than otherwise would have been the case. Import volumes and remission claims will continue to be monitored on an ongoing basis to ensure the effectiveness of the measure.

The administrative costs for Canadian businesses to claim remission of the surtaxes are expected to be limited. Remission claims for imports after the entry-into-force date of this Remission Order will be made for each applicable importation as part of the process of filling existing customs documentation requirements. The importer will be required to include one extra code on their usual import document. The importer must also maintain records supporting their importation (e.g. related to tariff classification, entitlement to a tariff preference, and entitlement to the remission), but this is the usual process and does not represent an additional cost. There will be minimal incremental costs for the Government to process the claims.

Importers requesting a refund for goods imported prior to the entry into force of this Order will submit forms to the CBSA, accompanied by supporting documentation, establishing that the imported goods qualify for remission. There will be minimal incremental costs for importers to supply the documentation and for the CBSA to process the claims.

Small business lens

Analysis under the small business lens concluded that this Order will impact small businesses. Some of the importers meet the definition of “small business” in the Policy on Limiting Regulatory Burden on Business, and the process to claim remission of duties paid meets the definition of “administrative burden” set out in the Policy. No additional flexibility is available for small businesses claiming remission, as all eligible importers already possess the original customs forms required to justify remission and will benefit from the remitted funds.

One-for-one rule

This Order relates to tax administration and is exempt from the requirement to offset administrative burden and regulatory titles under the one-for-one rule. The requirement for Canadian importers to submit claims for remission meets the Red Tape Reduction Act definition of “administrative burden” on businesses. However, duties are considered to be “taxes” for the purpose of the one-for-one rule and have been exempted from the offset requirement.

Regulatory cooperation and alignment

This Order is not related to a work plan or commitment under a formal regulatory cooperation forum.

Effects on the environment

In accordance with the Cabinet Directive on Strategic Environmental and Economic Assessment, a preliminary scan concluded that this Order will not have positive or negative effects on the environment. Therefore, a strategic environmental and economic assessment is not required.

Gender-based analysis plus

No impacts based on gender and other identity factors have been identified for this Order.

Implementation, compliance and enforcement, and service standards

This Order will come into force on the day on which it is registered.

The CBSA will assess any requests for remission made pursuant to the Remission Order and will ensure compliance with its terms and conditions in the normal course of its administration of customs and tariff-related legislation and regulations. In doing so, the existing administrative framework will be leveraged to ensure that costs can be managed within existing resources.

Remission will be granted automatically and immediately at the initial Commercial Accounting Declaration submission on a go forward basis from the date this Order enters into force, specifically for goods added to the Schedule of the Remission Order.

Remission will also be granted for eligible goods retroactive to the date the TRQs were first imposed on June 27, 2025 (i.e. importers may obtain refunds of surtaxes paid). Any refunds issued pursuant to the Remission Order will be administered by the CBSA. Depending on the volume and complexity of refund submissions, the CBSA strives to achieve a 90-day processing standard.

Contact

Alan Ho
International Trade Policy Division
Department of Finance Canada
Ottawa, Ontario
K1A 0G5
Email: remissions-trq-derivatives-remises-ct-produitsderives@fin.gc.ca