Tax & Trade Blog

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SURTAX ON STEEL DERIVATIVE GOODS

BUSINESSES AND CONSUMERS TO FEEL FINANCIAL IMPACT OF NEW SURTAX

During the Christmas holiday season, the Federal Government of Canada quietly adjusted its trade policy QUITE significantly.  A significant development on this front is likely Canada’s enactment of the Steel Derivative Goods Surtax Order (the “Steel Derivative Surtax”) through an Order in Council.

We report below on the application of the Steel Derivative Surtax, and the particular goods targeted by these measures, and potential financial relief that may be available for businesses.

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CBSA INVESTIGATING FORGED GRINDING MEDIA

ALLEGED DUMPING OF FORGED GRINDING MEDIA FROM CHINA

On January 9, 2026, the Canada Border Services Agency (“CBSA”) issued a Notice of Initiation of Investigation under the Special Import Measures Act (“SIMA”) in respect of the alleged dumping of forged grinding media originating in or exported from the Peoples’s Republic of China (“China”).  This investigation was prompted by a complaint filed by Moly-Cop Canada.

The investigation continues a trend by the CBSA of scrutinizing imports from China, which continues to be the jurisdiction with highest number of Anti-Dumping and Countervailing duty orders.

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A CUSTOMS YEAR-END REVIEW

THE TRADE WAR & NOTABLE CASES IN 2025 YOU SHOULD KNOW ABOUT

What just happened to me!   That is probably the sentiment of most people in customs and trade in Canada, after a frenetic 2025.

We present a year-in-review below, starting quite understandably with a high-point review of the Canada-US Trade War (the “Trade War”), followed by some other major developments that dominated customs in the Canadian context.

THE GREAT TRADE WAR OF 2025

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CUSTOMS 101: NO PROOF, NO FREIGHT DEDUCTION?

CITT TIGHTENS EVIDENTIARY REQUIREMENTS FOR FREIGHT DEDUCTIONS

Transaction value has traditionally been used to value imported goods to Canada in approximately 95% of cases.  An important deduction available to importers when using transaction value is for transportation costs incurred from the place of direct shipment to Canada.

In Korhani of Canada Inc. v. CBSA (AP-2022-030), the Canadian International Trade Tribunal (“CITT”) serves notice that it supports the CBSA’s position that transportation cost deductions must be supported by objective documentation evidencing the actual transportation costs, such as payment records or shipping invoices.

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CBSA COMPLIANCE VERIFICATION PRIORITIES

CONTINUED FOCUS ON U.S. & CHINESE SURTAXES

The Canada Border Services Agency (“CBSA”) has released its January 2026 update to its compliance and verification priorities.  This update is part of the CBSA’s semi-annual process of resetting its verification priorities, which occurs in January and July of each year.

In this January 2026 update, new priorities include certain global surtaxes, amongst other items. Enforcement of Surtaxes Orders on Chinese and U.S. goods also remain a prominent holdover from previous rounds.  We provide a detailed breakdown of these priorities below.