⚙️ 1. Scope & Quotas
- Steel Categories Covered: Flat, long, pipe & tube, semi‑finished, stainless steel from countries without an FTA with Canada.
- Annual TRQ set at 2.6 million tonnes, divided into quarterly quotas. Unused quota rolls over each quarter; per‑country share limits apply (e.g., flat steel 36%, stainless 91%).
🧾 2. Permits & Accounting
- Importers must obtain shipment‑specific TRQ permits via GAC’s Import Control List Item 82 when importing to avoid surtax.
- Canadian Automated Import Portal (CARM): Surtax amounts and codes entered in CAD field 85; self‑declare or automatically applied if no permit is present.
- Retroactive permits may be requested for surtax refunds.
🎯 3. Surtax Codes & Application
Code | Use Case |
---|---|
25148A | Quota exceeded or no permit – 50% surtax applies |
25148B | Quota available + valid permit – no surtax |
25148C | Quota available + permit + origin = China – 25% China surtax applies; quota code used |
25148D | Quota exceeded + China origin – Combo: 50% TRQ + 25% China = 75% surtax |
🇨🇳 4. China‑Origin Goods
- Under Customs Notice CN 24‑36 (effective Oct 22, 2024), many steel/aluminium goods from China are hit with a 25% surtax
- When combined with CN 25‑24, China-origin steel imported above quota triggers 75% total surtax (50% TRQ + 25% China) .
📊 5. Surtax Calculation Examples (per CN 25‑24)
- Non‑China, no duties:
- VFD = $1,000 → 50% → surtax = $500
- Non‑China, 5% MFN + $34 ADD:
- Surtax = $500; customs duty = $50; GST = $79.20; total = $663.20
- China, no duties:
- 50% + 25% = $500 + $250 = $750 surtax; GST calculated thereafter
- China, 5% MFN + $34 ADD:
- Total surtax = $750; customs/ADD = $84; GST based on summed value
✅ 6. Exceptions & Compliance
- Exemptions:
- China goods in transit before Oct 22, 2024 (CN 24‑36), or June 27, 2025 (CN 25‑24) with proof.
- Goods under Schedule 2 or Chapter 98 tariff items; casual goods; duty-drawback programs continue to apply.
- Record Keeping:
- Proof of origin mandatory; CBSA may audit and recalculate surtax owing.
📋 7. Importer Action Checklist
- Apply for shipment‑specific TRQ permit before import.
- Regularly monitor GAC online TRQ utilization.
- Use correct 25148A–D codes in CARM’s CAD field 85.
- Calculate total surtax for China-origin extra-quota imports.
- Keep documentation to support origin, permit, and timing.
- Submit retroactive permit requests/refund claims where eligible.