Canada Updates China Surtax Remission List and Extends Eligibility to 2026

If you import steel or aluminum goods subject to the China surtaxes, confirm your HS classification against the updated schedules to see if surtax remission may apply.

The Government of Canada has published the Order Amending the China Surtax Remission Order (2024), No. 2 (SOR/2026-14), which expands the list of eligible goods and extends the remission period for the China surtaxes.

The Order was registered on January 30, 2026, and came into force the same day.

The China surtax measures cover a 100% surtax on Chinese-made electric vehicles (effective October 1, 2024), and a 25% surtax on certain Chinese-made steel and aluminum products (effective October 22, 2024).

This amendment focuses on updates to remission eligibility for specific steel and aluminum tariff items listed in Schedules 1 and 2.

The China Surtax Remission Order came into effect on January 31, 2025, and was amended in March, June, and October 2025, before this latest update.

How surtax remission works

Remission is granted only where the Government has determined that one of the following criteria applies:

• Short supply
• Pre-existing contractual obligations
• Other exceptional circumstances

Schedule 1 reflects goods approved on a short-supply basis because they are not reasonably available domestically or from alternative global suppliers.

Schedule 2 reflects company-specific approvals tied to the applicant’s circumstances, including contractual obligations or other exceptional circumstances.

For eligible imports, remission is claimed by entering the applicable remission authorization code on the relevant customs documentation at the time of accounting.

The updated Order allows refund requests for surtaxes paid before the coming-into-force date, provided that the importer can support the claim with the required documentation.

What’s changing

1. Remission extended to December 31, 2026

This amendment extends the remission period to end on December 31, 2026, for goods covered under:

• Schedule 1, for all goods, and
• Schedule 2, for the following:
  • Items 1, 1.1, and 1.2 (tariff item 7217.90.00 only)
  • Items 2 through 4.1
  • Item 5.1
  • Items 8 through 9.01
  • Items 9.2 through 23
  • Items 24.01, 24.2, and 26

2. Schedule 1 to include additional product items

The amending Order adds nine new items to Schedule 1, as follows:

Note that item 25.21 is a new entry under item 25 and after the existing item 25.2.

3. Schedule 1 descriptions updated

The amending Order updates the wording for four existing Schedule 1 entries to clarify what qualifies for surtax remission. These updates cover:

• Item 22: Unfinished seamless carbon or alloy steel mother tubes used to produce seamless line pipes
• Item 38.2: Aluminum plates in sheets and strips, manufactured from non-alloyed aluminum
• Item 38.4: Aluminum foil in rolls
• Item 39(b): Aluminum foil in pre-cut sheets

4. Schedule 2 descriptions updated

For Schedule 2, the amendment updates certain product descriptions and makes one correction. This covers:

• Item 4: Spiral-welded steel piles used as temporary piles
• Item 5.1:
  • 7305.39.00.20: Welded tubes from non-alloy steel used as single-wall steel casing in drilling foundation piles
  • 7305.31.00.19: Longitudinally welded tubes from non-alloy steel
• Item 24: A correction to the English text to have December 31, 2025, as the end date

At Cole International, we offer trade consulting and customs brokerage services to help Canadian businesses navigate evolving trade regulations and requirements.

Reach out to one of our trade professionals to confirm your eligibility for a surtax remission under the updated China Surtax Remission Order.