Steel Derivative Goods Surtax Amendment

Summary#

This is an order that changes the Steel Derivative Goods Surtax Order. It clarifies how the origin of goods is decided, expands some temporary exemptions for certain vehicle and aircraft-related imports until July 1, 2027, and adds an exemption for goods that originate in Canada. The order was registered on June 22, 2026, and some parts are treated as having come into force on December 26, 2025.

What it does#

• Adds a definition that the origin of goods must be determined using the Determination of Country of Origin for the Purpose of Marking Goods (CUSMA Countries) Regulations.
• Replaces two exemption rules so that goods imported before July 1, 2027 for use in:
  • making motor vehicles, vehicle chassis, parts or accessories for vehicles; and
  • use in aircraft, ground flying trainers or spacecraft or their parts, are covered by the temporary exemption.
• Adds a new exemption for goods that originate in Canada.
• Sets the order to come into force on the day it was registered (registration date June 22, 2026), while Section 1 and the provision adding the Canadian-origin exemption are treated as if they came into force on December 26, 2025.

Who's affected#

• Importers and customs brokers who handle steel derivative goods.
• Manufacturers and suppliers in the motor vehicle sector (cars, chassis, parts, accessories).
• Aerospace and aircraft parts makers and users (including ground flying trainers and spacecraft sectors).
• Businesses importing goods that are claimed to “originate in Canada.”
• If you are unsure whether a particular product is covered, the precise list of goods and the surtax rules are in the original Steel Derivative Goods Surtax Order and related regulations.

Why it matters#

• The change can mean some imports used to make vehicles or aircraft will not face the surtax if they arrive before July 1, 2027.
• Making “Canadian origin” explicitly exempt clarifies that domestically originating steel derivative goods are not subject to the surtax, which matters for Canadian suppliers and buyers.
• Using the CUSMA origin rules gives a clear standard for deciding which goods count as Canadian-origin under this exemption.
• Because parts of the order are treated as retroactive to December 26, 2025, some imports handled since that date may be affected; businesses should check their past shipments if the surtax was charged.