Remission of Steel Derivatives Surtax

Summary#

The Steel Derivative Goods Surtax Remission Order gives relief from the 25% surtax that Canada put on certain imported steel-derivative products. It lets many public health, public safety, national security and specified industrial imports avoid that surtax. The Order came into force on February 24, 2026.

What it does#

• Remits (refunds or waives) surtaxes charged under the Steel Derivative Goods Surtax Order for goods imported for use by a list of public bodies involved in health, safety, defence or security.
• Remits surtaxes for goods imported for medically necessary health care, including at hospitals, clinics, medical/dental laboratories and long-term care facilities, and for some blood, tissue and organ-related services and health authorities.
• Remits surtaxes for utility wind towers and tower sections that are either:
  • imported for installation on an offshore energy project, or
  • covered by a purchase order signed before December 26, 2025 that specifies price and quantity.
• Remits surtaxes for the many specific items listed in the Order’s Schedule. That list includes small structural and fastening parts, building components, some prefabricated buildings and other goods that are captured under the tariff headings covered by the surtax.
• Sets two conditions for remission: no other legal claim for surtax relief has been granted for the same goods, and the importer must claim remission within two years after the import date.

Who's affected#

• Public health and health-care providers and systems, such as hospitals, clinics, long-term care facilities, diagnostic labs, and federal/provincial/Indigenous health authorities.
• Public safety and security organizations, including ambulance and emergency response services, firefighting services, law enforcement agencies, federal or provincial correctional services, the Department of National Defence, the Canadian Forces, and the Canadian Security Intelligence Service.
• Wind project developers and suppliers, especially projects with pre-existing purchase orders signed before December 26, 2025 or offshore wind projects.
• Importers and businesses that bring in the specific goods listed in the Order’s Schedule — for example, certain doors, panels, fasteners, bolts, prefabricated buildings and other steel-derived or tariff-classified items.
• The Canada Border Services Agency, which will process remission and refund claims under the Order.

Why it matters#

• It prevents sudden added costs from the 25% surtax for health, safety and national security users. That reduces the risk of higher prices, delayed projects or compromised services where those imports are needed.
• It protects some wind projects from unexpected surtax bills when procurement contracts were signed before the surtax took effect. That can matter for projects with fixed-price contracts.
• It addresses situations where goods are not made in Canada or are in short supply domestically, so businesses that rely on imports can keep operating without an added surtax.
• There are limits: an importer must not have already received other relief for the same goods, and must apply for remission within two years of importation. Claims are handled by the Canada Border Services Agency, which aims to process refunds in about 90 days, depending on volume and complexity.