CustomsCanadaUnited States
CBSA Revises Chapter 98/99 Exemption Wording for Canada's Surtax on US Goods
The CBSA updated paragraph 7 of Customs Notice 26-23 on 23 October 2026. Chapter 98 or 99 goods now owe Canada's surtax on US goods only if the tariff item is in Schedule 4 and the goods are also classifiable under Schedules 1, 2 or 3; no effective date is given.
What changed
The Canada Border Services Agency (CBSA) updated paragraph 7 of Customs Notice 26-23 on the United States Surtax Order (2026) on 23 October 2026. Since 8 September 2026, certain US-origin goods have paid a surtax of 15%, 25% or 50% of the value for duty.
The earlier paragraph 7 said Chapter 98 and 99 goods were exempt from the surtax unless the Chapter 98 or 99 tariff item was listed in Schedule 4. It added that the exemption applied "even where the goods' otherwise applicable tariff classification is listed in Schedule 1, 2 or 3 to the Order."
The updated paragraph reads: "Goods classified under Chapters 98 and 99 are exempted from the surtax, unless the applicable Chapter 98 or 99 tariff item is specifically listed in Schedule 4 to the Order and the good is also otherwise classifiable under a tariff item listed in Schedule 1, 2 or 3 to the Order." The sentence about the exemption applying even where the goods are listed in Schedules 1, 2 or 3 has been removed.
Effective date
The CBSA does not give an effective date for the revised paragraph 7.
Who it affects
Importers of US-origin goods into Canada that classify goods under Chapter 98 or 99, and their customs brokers.
What importers should do
- Check whether your Chapter 98 or 99 tariff item is in Schedule 4 to the Order.
- Check whether the goods are also classifiable under a tariff item in Schedules 1, 2 or 3.
- Contact the CBSA, or ask for an advance ruling, if unsure.
Source: CBSA, Customs Notice 26-23: United States Surtax Order (2026), updated 23 October 2026.
