Canada Imposes 25% Surtax on Certain Wood Cabinets and Vanities

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Effective July 31, 2026, the Government of Canada has introduced a provisional safeguard measure imposing a 25% surtax on certain wood cabinets, vanities, and related subassemblies imported into Canada. The measure is intended to address injury or the threat of serious injury to Canadian producers while the Canadian International Trade Tribunal (CITT) completes its safeguard inquiry.

Duration of the Measure

The surtax will apply for up to 200 days beginning July 31, 2026. Following the provisional safeguard period, the measure will continue to apply only to goods that the CITT determines are being imported under conditions that cause or threaten serious injury to Canadian producers. Should the CITT determine that no goods meet this standard, the surtax will cease as of the date of its finding.

Goods Subject to the Surtax

The 25% surtax applies to commercial imports of wood cabinets and vanities intended for permanent installation, as well as their subassemblies, when classified under the following tariff classification numbers: Covered subassemblies may include: The measure applies whether the goods are made from solid wood, engineered wood, plywood, particle board, fibreboard, bamboo, or other wood products. It may also apply regardless of whether the goods: For purposes of the Order, permanent installation means installation in a fixed location as an integral part of a building or structure, even when the cabinet or vanity can later be removed, relocated, or replaced. The surtax also applies when covered goods are classified under Chapter 99 but would otherwise be classifiable under one of the listed tariff items.

Key Exceptions

The surtax does not apply to goods originating in: Country of origin is determined under Canada’s marking rules for CUSMA and non-CUSMA countries. Importers should ensure that appropriate proof of origin is available to support any exemption claimed. Other exceptions include: Importers claiming the in-transit exception must retain evidence showing that the goods were bound for Canada and under carrier control when the measure came into force. Supporting documents may include bills of lading, cargo control documents, and report of entry records.

Surtax Calculation

The surtax is calculated at 25% of the goods’ value for duty and is payable in addition to any other applicable customs duties, anti-dumping or countervailing duties, and taxes. For example, goods with a value for duty of $1,000 would be subject to a surtax of $250. The surtax and any other applicable duties are included when calculating the value for GST purposes. The value for duty must be determined in accordance with sections 47 to 55 of the Customs Act.

Accounting Requirements

Importers must identify covered goods as subject to a safeguard when submitting the Commercial Accounting Declaration through the CARM Client Portal, Electronic Data Interchange, or Application Programming Interface. The applicable safeguard code is: 26169A The safeguard amount must be entered in field 87, “Safeguard,” of the Commercial Accounting Declaration. It should not be entered in field 85, which is used for standard surtaxes. When using CARM’s self-declaration option, the importer is responsible for calculating and entering the safeguard amount. Goods that qualify for an exception, and that are not subject to another surtax, must be declared as not subject to the safeguard at the time of accounting.

Documentation and Compliance

The Canada Border Services Agency may examine imported goods or conduct post-release verifications to confirm: Importers may be required to provide commercial invoices, origin certifications, transportation records, technical product information, or other supporting documentation. Where sufficient documentation is not available, the CBSA may reassess the amount of surtax owing. Penalties and interest may also apply in cases of non-compliance. Importers that identify an incorrect declaration or an improperly assessed safeguard may submit an adjustment through the CARM Client Portal or through EDI or API channels, as applicable.

Duty Relief and Drawback

Canada’s Duties Relief and Duty Drawback Programs may be available for surtax paid or owing by Canadian businesses, subject to the applicable program requirements and the provisions of CUSMA. Goods of United States or Mexican origin are not subject to CUSMA’s “lesser of two duties” limitation and may qualify for full relief when all applicable criteria are met.

Recommended Actions for Importers

Importers of wood cabinets, vanities, and related components should:
  1. Review current and planned imports against the affected tariff classification numbers.
  2. Confirm whether the goods are intended for permanent installation.
  3. Verify the country of origin under the applicable Canadian marking rules.
  4. Collect and retain documentation supporting any exemption or in-transit claim.
  5. Review landed-cost calculations to account for the additional 25% surtax and related GST impact.
  6. Ensure the safeguard is correctly declared in CARM using code 26169A and field 87.
  7. Review previously accounted entries and submit adjustments where the safeguard was incorrectly assessed or omitted.
Buckland can assist you in reviewing affected products, confirming accounting requirements, and identifying the documentation needed to support applicable exceptions. Please contact your Buckland representative for additional information or support. Sources: Customs Notice 26-17: Certain Wood Cabinet and Vanity Goods Surtax Order PC Number: 2026-0727
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