Background: Public consultations on the Government of Canada’s administration of the tariff-rate quotas for certain steel goods listed in item 82 of the Import Control List
On June 27, 2025, the Government of Canada implemented tariff-rate quotas (TRQs) on imports of certain steel goods listed in item 82 of the Import Control List (ICL), which were adjusted on August 1, 2025, December 26, 2025, and again on June 28, 2026. The Government committed to reviewing the measure on an ongoing basis and has indicated that further adjustments, including potential extensions could be made when warranted.
Following the extension of the TRQs for an additional year (to June 27, 2027), Global Affairs Canada is holding public consultations to obtain stakeholder views on TRQ administration.
An online questionnaire is available for interested stakeholders to provide comments. Topics include general TRQs administration and allocation-specific methodologies, eligibility criteria and utilization policies.
Before completing the questionnaire, please review this background information. It is arranged to match the order of the questions. Definitions for TRQs-related terms that are used in the questionnaire can be found in the glossary below and are sorted in alphabetical order.
Tariff-rate quota definition
A TRQ establishes a limit on the quantity of a product that may be imported at no duty or a lower rate of duty (within-access) but places no limit on the amount of product that may be imported at a higher rate of duty (over-access).
Canada’s current administration methodology
TRQs for certain steel goods listed under item 82 of the ICL were implemented on June 27, 2025, further to the Order Imposing a Surtax on the Importation of Certain Steel Goods (SOR/2025-148).
The TRQs are administered under consecutive quarterly periods (of approximately 3 months each), by way of shipment-specific import permits that are issued on a first-come, first-served (FCFS) basis. Importers wishing to import covered steel goods without the application of the 50% surtax may apply for a shipment-specific permit through Global Affairs Canada.
Goods imported under the TRQs that originate from a single country cannot exceed the percentage of the total quantity available for a product class during a given quarter as specified in the Order Imposing a Surtax on the Importation of Certain Steel Goods, as amended. Shipment-specific permits are issued until a quota has been filled, or once imports originating from any single country reach the specified percentage of a quota in a quarterly period.
The products covered under the TRQs are divided into 23 product classes and the TRQ regime applies to goods originating all sources with the exception of goods originating from Canada, the United States and Mexico.
Complete details about the current administration methodology are available in the Notice to importers: Item 82 – Steel goods – Serial No. 1163.
Administration methodologies of TRQs
Administration methodologies vary from commodity to commodity. The following are some examples:
First-come, first-served (FCFS): No portion of the established quota volumes are allocated in advance to individual importers.
- Shipment specific import permits are issued exclusively in the order of submitted applications (first-come, first served), provided they are complete, without errors and that sufficient quota amounts remain available to cover the requested quantity for the applicable product class and quota period.
- The quantity applied to each issued permit is deducted from the remaining total quota volume for the quota period.
- Once a quota is fully utilized, no further shipment-specific permits are issued.
- Imports made without shipment-specific import permits, including quantities above the established quota volumes, are automatically subject to the applicable surtax (over-access rate of duty).
Allocations: An allocation refers to a specific share of a quota volume that is granted to and reserved for an eligible applicant, which may be used exclusively by that applicant to import covered steel goods at the within-access rate of duty.
- Shipment-specific import permits may be requested until the allocated volume is exhausted, or the allocation‑period ends.
- Allocations can be used at any point throughout the allocation period, expire at the end of the allocation period and cannot be carried forward to subsequent periods.
- An allocation does not constitute a property right, and under the Export and Import Permits Act (EIPA) the Minister may amend, suspend, cancel or reinstate an allocation at any time.
Combined approach: Certain TRQs are administered entirely under FCFS, while others are administered under an allocation system.
Allocation methodologies
Allocation methodologies are systematic approaches used to distribute quota volume amongst eligible applicants. The following are examples:
Historical allocations: A quota volume that is allocated on a proportional basis according to each eligible applicant’s share of the total imported volume of covered goods during the applicable historical reference period, scaled to the established quota volumes.
Equal share allocations: A quota volume is allocated evenly among all eligible applicants. Each applicant receives an identical share of the total available quantity, regardless of their historical import levels.
Glossary
Active importer: An importer who has imported a specified quantity of covered products into Canada at one point or for a certain duration of time during a reference period.
Allocation application period: This is the period of time during which all applicants can submit a form to apply for a share of the total volume to be allocated. The application period opens and closes before the relevant allocation period begins. Details, including application dates and instructions, are communicated to importers in a Notice to importers.
Allocation holder: An eligible applicant, who is a resident of Canada and has a valid EIPA file number, who has received an allocation share at the start of an allocation period.
Eligibility criteria: Eligibility criteria vary by commodity and are used to determine which applicants may obtain an allocation or a permit to import controlled goods under the EIPA. At a minimum, an applicant must be a resident of Canada, consistent with the EIPA’s requirement that only residents may receive an import allocation.
- For an individual, this means ordinarily residing in Canada.
- For a corporation, this means maintaining a head office in Canada or operating a branch office in Canada.
Additional eligibility requirements may apply depending on the commodity and the applicable framework. These may include, for example, having imported a certain amount of covered goods in the past or demonstrating active importer status at the time of application for an allocation.
New entrant: An applicant who does not have the historical import activity or allocation history required to qualify for an allocation under the standard TRQ allocation methodology (i.e. be an allocation holder) and is therefore eligible for consideration under any new entrant provisions established for the TRQ.
Reference period: A defined period during which the eligibility and activity of the requesting applicant is assessed in order to determine whether to grant an allocation and the allocation size. A historical reference period precedes the date on which the TRQs were first implemented.
Reserve pool: A portion of a TRQ’s quota volume that is set aside and not immediately allocated at the start of an allocation period.
Residual pool: A pool containing quota amounts that are left unallocated at the start of an allocation period including any allocation shares that are later returned under a return policy. Residual quantities may be granted on a FCFS basis or re-allocated, depending on the applicable policy.
Return policy: A provision that allows allocation holders who expect to be unable to fully utilize their allocations by the end of the quota period to return all, or part of, that allocation by a set deadline.
A return policy is intended to maximize quota utilization. Any returned amounts can then be made available again for use by other eligible applicants. Any portion of an allocation that is returned by the deadline is considered as having been utilized for the purposes of administering the under-utilization policy.
Quantities that are not returned and remain unutilized at the end of the allocation year may result in an under-utilization penalty being applied to the allocation holder in the following quota period.
Total quota volume: The total quantity of a covered product class that is allowed under a TRQ, within-access rate, over a given period.
Quota period: The period of time (e.g. quarter, half-year, year) during which quota amounts are made available by way of shipment-specific import permits to importers, as part of the administration of a TRQs regime.
Under-utilization penalty: A penalty applied to allocation holders that do not utilize their full allocations, and do not return unused allocation shares consistent with the return policy. In such cases, an allocation holder’s allocation in the next quota period is adjusted downward in proportion to the amount that remains unutilized at the end of the quota period. The threshold considered under-utilized varies by commodity. In some commodities, allocation holders that have utilized 90% or more of their respective allocations are considered to have fully utilized them and will not be subject to an under-utilization penalty in the following year. In other commodities, the threshold may be as high as 95 or 100%.
Waiting period: Applies to TRQs which feature a reserve and/or a residual pool. The waiting period is a defined amount of time that allocation holders must wait before they can submit permit applications to access quantities in these pools.
- Date modified:
