CBSA Updates Steel Derivative Surtax Rules for Automotive and Aerospace Imports
The updated CBSA guidance confirms continued surtax relief for qualifying automotive and aerospace imports through June 30, 2027.
The Canada Border Services Agency (CBSA) has updated its guidance on the steel derivative surtax, including exemptions affecting automotive and aerospace imports and a revised exception for Canadian-origin goods.
Customs Notice 25-33 now reflects an amendment that exempts steel derivative goods originating in Canada, effective December 26, 2025.
The notice also reflects the previously announced extension of exemptions for qualifying automotive and aerospace goods until June 30, 2027.
Steel derivative goods imported before July 1, 2027, for use in manufacturing motor vehicles, motor vehicle chassis, or their parts and accessories are not subject to the 25% surtax.
The same exemption applies to qualifying goods imported for use in aircraft, ground flying trainers, spacecraft, or their parts. The exemptions were previously scheduled to expire June 30, 2026.
The extension maintains surtax relief for qualifying automotive and aerospace imports for an additional year.
Importers that paid surtax on goods now eligible for an exemption may seek a refund by submitting a correction or adjustment to their Commercial Accounting Declaration (CAD).
The amending Order exempts steel derivative goods originating in Canada, effective December 26, 2025.
The revised notice also confirms that the surtax does not apply to goods that were in transit to Canada on the date the surtax came into force.
For goods relying on the in-transit exception, importers must retain evidence showing that the goods were already bound for Canada and under the control of a carrier.
Supporting documents may include shipping documents such as bills of lading, report of entry documents, and cargo control documents.
The 25% steel derivative surtax otherwise remains in effect for specified commercial imports.
Importers must continue to use surtax code 25267A, with any surtax owing entered in field 85 of the CAD.
Cole International provides trade consulting and customs brokerage services to help Canadian businesses understand surtax requirements and determine whether available exemptions apply.
If your business handles automotive and aerospace imports or other steel derivative goods, reach out to one of our trade professionals to discuss how the updated requirements may apply to your shipments.