Canada Revises Steel Import Tariff-Rate Quotas and Permits

Trade Update • Sept. 9, 2025

Key Points

• Canada introduced quarterly tariff-rate quotas (TRQs) limiting steel imports from most countries, excluding, the U.S. and Mexico (CUSMA partners), effective August 1, 2025.
• Imports exceeding quota limits face a 50% surtax protecting Canadian steel producers from unfair competition.
• Shipment-specific permits are mandatory and valid for 30 days around shipment entry, starting September 11, 2025.
• TRQs cover 23 steel product categories with country-specific maximum shares to ensure fair access.
• The Import Control List (ICL) was amended to enforce TRQs, and permit management is handled by Global Affairs Canada.

On August 1, 2025, Canada issued a notice to importers outlining the management of TRQs for steel goods listed under Item 82 of the Import Control List (ICL). The TRQs aim to control steel imports from non-CUSMA FTA and non-FTA countries, protecting the Canadian market from unfair trade and trade diversion triggered by U.S. tariff actions.

On September 9, 2025, this Notice was revised to clarify the administration of the TRQs. As of that date, the following updates and details apply to the management of the quotas and import permits.

Scope and Timeline

• TRQs apply to steel goods from all steel-exporting FTA and non-FTA partners except the U.S. and Mexico.
• Goods in transit and those classified under Chapter 98 tariff items are excluded.
• The TRQ regime is active from August 1, 2025, through June 26, 2026.
• Transitional quotas adjust for shipments entered between June 27 and July 31, 2025.
• Quotas are prorated for certain FTA countries during the first quota period ending September 25, 2025.

Quota Details

• TRQs are divided into four periods:
  
  • Period 1: Aug 1 – Sept 25, 2025 (transitional)
  • Quarter 2: Sept 26 – Dec 25, 2025
  • Quarter 3: Dec 26, 2025 – Mar 26, 2026
  • Quarter 4: Mar 27 – Jun 26, 2026
    
• Specific volumes are set for 23 steel products, with limits on maximum shares allowed for single countries in each period.
• Unused quotas do not carry over to future periods.
• When a country reaches its quota limit, shipment-specific permits for that country’s goods are paused for the current period.
• Importantly, the quota application period for the second quarter will open on September 11, 2025, at 12:00 a.m. (EDT).

Complete quota tables and country share limits are detailed in section 3.4 of the notice.

Import Permits

Shipment-Specific Permits

• Mandatory to import steel under the TRQs without surtax.
• Applications accepted up to 15 days before the shipment’s expected entry through Global Affairs Canada’s NEICS system.
• Permit validity extended to 30 days from September 11, 2025 (valid 5 days before and 24 days after entry).
• Permits require declaration of country of melt and pour and must align with customs documentation.
• Extensions may be granted for unforeseen shipment delays, but require timely proof and notification.
• Retroactive permits can be issued for already accounted shipments.

General Import Permits

• Shipments without valid shipment-specific permits or exceeding quotas enter under General Import Permits (GIP) No. 80 or 81, subject to the 50% surtax without quantity limits.

Application Process and Support

• Details for applying, fees, amendments, and cancellations are available on Global Affairs Canada’s permit website.
• Permit cancellations require a formal cancellation form plus supporting documents such as commercial invoices and bills of lading.
• Contact information for the Steel Controls Unit and Assistance Desk is found here.

Additional Surtax on Chinese Content Steel

• Effective July 31, 2025, a 25% surtax applies to steel (and aluminum) goods containing steel melted and poured or aluminum smelted and cast in China, regardless of export origin.
• Importers must provide certificates or evidence proving non-Chinese origin to avoid the surtax.
• Failure to provide documentation results in the 25% surtax being applied based on duty value.
• This measure complements the 50% surtax on imports exceeding TRQ limits, addressing market distortions linked to Chinese investment in steel and aluminum.

Important Notes

• Goods classified under tariff Chapter 98 and goods in transit are excluded from the TRQs and surtaxes.
• The overall surtax rate is capped at 50%, even when combined with antidumping or countervailing duties.
• The TRQs are temporary and subject to change as economic and trade conditions evolve.

Important Actions for Importers

• Apply for shipment-specific permits up to 15 days before the expected arrival date of their steel shipments to avoid delays.
• Accurately declare the country of melt and pour on permits and customs documentation.
• Monitor quota periods and plan imports to avoid exceeding country-specific and product quotas.
• Keep documentation ready to substantiate any permit extensions or retroactive permit requests.
• Use General Import Permits (GIP) No. 80 or 81 only when imports exceed quotas, and be prepared to pay the 50% surtax.
• Contact the Steel Controls Unit promptly for any questions or compliance support.

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