The Department of Finance Canada has announced a new provisional surtax on certain wood goods. Beginning July 31, 2026, and for a maximum of 200 days, certain wood cabinets and vanities will be subject to a 25 percent surtax.

The Department of Finance Canada News Release on the subject can be found here. 

Full details and the Order in Council can be found here. 

The following is a recap of the new requirements.

Affected Commodities: Shipments of certain wood cabinets and vanities, as well as their subassemblies intended for permanent installation.

Provisional Safeguard Surtax Details:

• The measure will remain active while the Canadian International Trade Tribunal safeguard inquiry is ongoing
• The Tribunal is expected to conclude its work by January 15, 2027
• If the Tribunal makes no injury finding, the provisional safeguard measure will immediately cease to apply as of the date of the finding
• The surtax applies to the following HS codes: 
  
  •    9403.40.00.10
  •    9403.60.10.31
  •    9403.60.10.39
  •    9403.91.00.90

Exceptions

The full list of exceptions includes the following: 

• Goods that originate in the United States, Mexico, Chile or Israel or another Canada-Israel Free Trade Agreement (CIFTA) beneficiary;
• Goods that originate in a developing country or territory set out in Schedule 2;
• Goods that are casual goods, as defined in section 2 of the Persons Authorized to Account for Casual Goods Regulations;
• Goods that are classified under a tariff item of Chapter 98 of the List of Tariff Provisions, even if the goods are otherwise classifiable under a tariff item set out in Schedule 1;
• Freestanding furniture, including office furniture and retail display fixtures, not designed for permanent installation in kitchens, bathrooms or closets;
• The following goods, if they are imported separately from a wood cabinet or vanity:
  
  • Aftermarket accessory items that:
    
    • Are intended to be added to or installed in the interior of a cabinet or vanity,
    • Are not structural or core components of a wood cabinet or vanity,
    • Are made of wood, metal, plastic, composite material or a combination of those materials, and
    • Are intended to be used for organizational or accessibility purposes in the interior of a cabinet or vanity, such as
      
      • Inserts or dividers that are placed into drawer boxes to organize or divide the internal portion of a drawer into multiple areas for the purpose of containing smaller items such as cutlery, utensils and bathroom essentials, and
      • Round or oblong inserts that rotate internally in a cabinet or vanity for the purpose of improving access to its contents,
      • Solid wood accessories, including corbels and rosettes, the primary purpose of which is decoration and personalization, and
      • Non-wood cabinet or vanity hardware components, including metal hinges, brackets, catches, locks, drawer slides, fasteners, handles and knobs;
• Medicine cabinets that
  
  • Are intended to be wall-mounted,
  • Have at least one mirror,
  • Are assembled and packaged for retail sale when they are imported, and
  • Have a maximum depth of 17.78 cm (7 inches); and
• Goods that are in transit to Canada on the day on which this Order comes into force.

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