Recover Your Steel Derivative Surtax
Canada’s Steel Derivative Goods Surtax Remission Order (effective February 24, 2026) provides a formal pathway to claim surtax relief at import or recover amounts already paid, but you have a two-year window to act.
Background
What Is the Steel Derivative Goods Surtax?
On December 26, 2025, the Government of Canada imposed a 25% surtax on the full value for duty of certain steel derivative goods imported from all countries. This surtax applies in addition to applicable customs duties and is calculated on the value for duty of the imported good.
Examples of impacted categories include:
- Prefabricated structural steel and building components.
- Steel wire, cables, and chains used in industrial applications.
- Fasteners, springs, fittings, and similar industrial hardware.
- Metal frames, furniture, and other manufactured goods containing steel derivatives.
Time-sensitive: To qualify for remission under the Steel Derivative Goods Surtax Remission Order, importers must file their claim with the Minister of Public Safety and Emergency Preparedness within two years of the date the goods were imported. Waiting to review entries or gather documentation can mean missing the chance to recover significant surtax paid.
Who Qualifies
Who Can Claim Remission?
Relief applies when certain conditions are met. The following categories of importers and goods are eligible under the Steel Derivative Goods Surtax Remission Order.
Important condition: No other surtax relief for the same goods should have already been granted. Claims must be submitted within two years of the date of importation.
Public health, safety & national security
Goods imported by or on behalf of entities operating in public health, public safety, or national security sectors.
Health care sector
Goods imported for use in the delivery of health care services or by health care organizations.
Schedule-listed goods
Specific products listed in the Schedule to the Order for which surtax relief is provided, even if they might otherwise be subject to surtax.
Utility wind towers
Wind towers with supply orders signed before the surtax took effect (December 26, 2025), or wind towers imported for offshore projects.
Process Guide
How to Claim Relief or Recover Surtax
Relief can be claimed at the time of import or recovered after the fact through a post-entry process using Canada’s CARM system.
1. At the time of import.
Claim relief on the CAD
Relief can be claimed when accounting for goods in the CBSA Assessment and Revenue Management (CARM) system. Use the correct special authorization (remission) code on the Commercial Accounting Declaration (CAD) to ensure surtax is adjusted at import rather than overpaid.
Remission codes for the CAD:
- 26-0145A – Public Health, Safety & National Security
- 26-0145B – Health Care
- 26-0145C – Schedule-listed goods
- 26-0145D – Utility wind towers
2. After payment has been made.
Post-entry recovery options
If the appropriate remission code was not applied at import, you can still recover surtax through the post-entry process in CARM:
Before payment due date — CAD correction:
- R5-00-COT: Adjust the surtax owed before due date
After payment due date — CAD adjustment:
- R2-74-1-GR-53: Request a refund of surtax already paid
All claims require complete supporting documentation: invoices, purchase orders, commercial accounting documents, and proof that goods meet eligibility criteria under the Remission Order.
Pre-Import Planning
Advance Rulings for Commercial Importations
Importers can request advance rulings from the CBSA before importation to determine tariff classification, origin, valuation, or marking. CBSA Advance Rulings and National Customs Rulings are binding for commercial goods.
National Customs Rulings, for origin and valuation determinations.
Advance Rulings for tariff classification, binding determinations before import.
What to Watch For
Common Issues That Delay Claims
Most delays or denials trace back to a handful of avoidable mistakes. Here is what to watch for when preparing your remission or refund claim.
How GHY Can Help
GHY Trade Services
GHY International’s Trade Services team works with Canadian and U.S. importers to navigate surtax relief and duty recovery processes end-to-end.
Don’t Miss Out
Why It Matters for Your Business
Given that around 80%–90% of Canadian companies overpay customs duties or miss out on available refunds, duty and surtax costs can quietly erode margins. The Steel Derivative Goods Surtax Remission Order provides an opportunity to recover or reduce the 25% surtax on certain steel derivative imports when the goods qualify.
Additionally, with the Government of Canada planning to collect $7.7 billion in customs import duties by 2027–28, up from about $6.5 billion in 2023–24, importers will face materially higher costs if recovery opportunities are overlooked.
Questions & Answers
Frequently Asked Questions
Answers to the most common questions about the Steel Derivative Goods Surtax Remission Order.
No Obligation Review
Don’t Let the Deadline Pass – Act Now
With 80–90% of Canadian companies overpaying customs duties and a hard two-year filing window, a review of your steel derivative imports could materially reduce your landed costs.
Two-year filing window runs from each import date. Entries from December 26, 2025 onward are already subject to the clock.
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