Canada Introduces Steel Derivative Goods Surtax Remission Order

On February 24, 2026, the Government of Canada released the Steel Derivative Goods Surtax Remission Order.

This order provides broad remission to several categories of goods effected by the Steel Derivative Surtax to address situations where goods cannot be sourced domestically, or where other exceptional circumstances could have adverse impacts on the Canadian economy.

 

Background: What is Steel Derivative Surtax?

Introduced in December of 2025, the 25% Steel Derivative Surtax applies to a broad range of manufactured articles from all countries of origin, where steel may constitute a significant portion of the product’s value. The list of goods includes, but is not limited to, metal fasteners, furniture, lighting parts, prefabricated buildings, structural components, chains, wires, fencing and various forged or cast items. Applicability is determined by a product’s HS tariff classification.

New Steel Derivative Remission Order

Importers must determine whether their goods are eligible under the conditions set out in the order, which is divided into the following four general categories:

• Public health services, safety, medical research and national security

• Health care

• Wind towers

• Goods classified under a tariff item listed in the Schedule to the Order and meeting the associated description.

Goods listed in the Schedule to the Order were identified to be in short supply, and/or as goods that are may not themselves be steel products but classified under the same tariff item as a steel product that would be otherwise subject to surtax. Some goods are identified by broader tariff items and descriptions, while for others, remission eligibility will depend on factors such as size, material, grade of steel, or specific function.

General categories of goods that may qualify for remission include, but are not limited to, window hardware, drapery hardware, metal-framed seating, furniture parts, lighting parts, and metal prefabricated buildings. Eligibility for goods such as structural components and fasteners will depend on specific products characteristics and descriptions provided in the Order.

Claiming Remission

Where applicable, remission is claimed by declaring the appropriate Order-in-Council (OIC) number under the Special Authority field on the CAD (Customs Accounting Declaration) at the time of accounting in CARM. This remission is available retroactively for all transactions that have been subject to the derivative surtax since December 26th, 2026.

If surtax was already paid on eligible goods, importers may request an adjustment with supporting documentation demonstrating that the goods meet the conditions set out in the remission order.

For R&R customs brokerage clients, we have conducted a preliminary review of all transactions we have processed with steel derivative surtax payable. If we identified transactions that we believe may qualify for remission and be financially worthwhile for you, we have reached out proactively to begin the adjustment process. If you do believe that we may have missed a transaction, please reach out so we can review potential savings opportunities!