Buying Cargo, Utility or Semi-Trailers for Your Business? Check the Landed Cost First

This is for Canadian fleets, carriers and trailer dealers buying cargo, utility, flatbed, van or other semi-trailers outside Canada to use in the business or resell. It is not a personal trailer guide. Before you sign the purchase order, check three things: what the trailer is classified as, where it was made, and what paperwork comes with each unit. Those three decide whether the border bill is just 5% GST or something much larger.

The short answer: A U.S.-made trailer for hauling goods may qualify for duty-free treatment under CUSMA (the Canada–U.S.–Mexico trade agreement) when its origin is supported. But since September 8, 2026, finished goods-transport trailers that originate in the United States and fall under the Canadian tariff items 8716.39.10, .20, .30 or .90 carry a 25% Canadian surtax (an extra charge on top of duty) on their value. GST is then charged on the value plus that surtax. The same trailer made in Mexico or Canada does not pay this U.S. surtax. Not every trailer type is on the list, so check each unit.

Update, November 9, 2026: From December 1, 2026, U.S.-origin trailers classified under 8716.39.10, .20, .30 and .90 are listed in Schedule 7 of the Remission List. Section 3 horizontal remission — the end-use relief for goods used in manufacturing or processing — is not available for those trailers if they are imported on or after that date. That path was already a poor fit for a finished trailer bought for a fleet or for resale; Finance case-by-case remission remains possible. See US Surtax Remission.

Quick checklist before you buy

• Classify each unit. Van, platform, lowbed, tanker, farm or logging trailer each have their own tariff item or statistical suffix (see below).
• Confirm country of origin. Where it was built for marking purposes, not where the dealer or auction is.
• Get the origin paperwork. A CUSMA certification of origin (completed by the exporter, producer or importer, with supporting documents) if you are claiming the duty-free rate.
• Price the surtax if the unit is U.S.-origin and on Schedule 2 of the United States Surtax Order (2026).
• Add GST on value for duty + duty + surtax. GST-registered businesses can usually recover it as an input tax credit, but you still pay it up front.
• Plan Transport Canada steps per unit. A trailer under 15 years old that was sold at retail in the U.S. and certified to U.S. safety standards goes through the Registrar of Imported Vehicles (RIV): a Vehicle Import Form (Form 1), the RIV fee and an RIV inspection. New, Canadian-compliant trailers bought directly from the manufacturer (never retail-sold) do not enter RIV. They come in under Transport Canada's Appendix F program (if your company is a listed importer, no Form 1 needed) or Appendix G program (if the manufacturer and trailer class are listed, Form 1 still required), or by Transport Canada case-by-case authorization. A trailer built outside North America cannot use RIV at all. Trailers 15 years or older are exempt from RIV but are still declared on a Form 1.
• Line up your import account and release. Business Number with an RM (import) program account, CARM Client Portal set up, and a bond if you want release before payment.

Landed cost: how the numbers add up

Here is a simple example using a value for duty of $60,000 CAD for one new 53-foot dry van (tariff item 8716.39.30, statistical suffix for van-type). These are example numbers for illustration, not a quote.

	U.S.-built, CUSMA origin supported	Mexican-built, CUSMA origin supported	Built outside North America, no trade-agreement preference (MFN)
Regular duty	$0	$0	9.5% MFN = $5,700
U.S. surtax (25%)	$15,000	$0	$0
GST 5% (on value + duty + surtax)	$3,750	$3,000	$3,285
Paid at the border	$18,750	$3,000	$8,985

These are non-binding estimates.

Trailers from countries with a Canadian free trade agreement (for example the EU, U.K., Japan or South Korea) may qualify for a Free rate with proof of origin. A trailer under 15 years old built outside North America also can't use the RIV program; it has to be built to Canadian safety standards and come in under Transport Canada's Appendix F, Appendix G or case-by-case route (see the Transport Canada step below).

Add the RIV fee for each unit that enters the RIV program ($325 plus GST/HST, or GST and QST in Quebec, per Transport Canada's RIV), your customs brokerage fee, and provincial registration costs. Our duty calculator gives a quick estimate for your own numbers.

What this means for a fleet order: on ten U.S.-origin vans at that value, the surtax alone is about $150,000. Origin is now a purchasing decision, not just a customs detail.

Which trailer types the surtax hits

Canada's surtax list names tariff items, not trailer brands. In the current consolidation of the United States Surtax Order (2026), Schedule 2 (25%) includes these goods-transport trailer items when they originate in the U.S.:

• 8716.39.10 – aluminum construction drop-centre livestock trailers (large units)
• 8716.39.20 – farm, logging or freight wagons, and trailers for logging trucks
• 8716.39.30 – trailers and semi-trailers for road tractors or trucks: van-type, lowbed, platform and other commercial goods trailers
• 8716.39.90 – other goods-transport trailers, including non-commercial utility, boat or horse trailers

Not on those schedules in the same consolidation: tanker trailers (8716.31.00) and other trailers and semi-trailers (8716.40.00). A U.S.-origin unit correctly classified there does not pick up this surtax. Classification has to follow the actual trailer, not the sales description, and a wrong code can lead to a re-determination, with interest and possible penalties.

Tractors are separate. A road tractor and its trailer are classified separately even when they cross together (Customs Tariff Chapter 87, statistical note 1). Trailers with permanently built-on machinery are classified by the machinery, not as trailers of heading 87.16 (statistical note 2).

Origin: where most surprises come from

• For the surtax, a trailer "originates in the United States" if it can be marked as a U.S. good under Canada's CUSMA marking rules. Buying from a U.S. dealer does not make a Mexican-built trailer U.S.-origin, and the reverse is also true.
• For regular duty, you need a valid CUSMA certification of origin to get the Free rate. Without it, MFN duty applies: 9.5% for most commercial goods trailers under 8716.39.30, 9.5% for tankers and 8716.40, and 6.5% under 8716.39.90.
• CUSMA does not cancel the surtax. Duty-free under CUSMA and surtax-free are two different questions.
• Used trailers coming back to Canada. A Canadian-built trailer is generally not U.S.-origin for the surtax, because origin follows the marking rules, not where you bought it. If it was made in Canada and returns without being improved, upgraded or combined with other goods abroad, it may qualify for tariff item 9813.00.00 (Free). A trailer previously imported into Canada and accounted for may qualify for 9814.00.00 on the same condition, even if it was U.S.-built. Goods correctly classified under those Chapter 98 items are outside the U.S. surtax. Repairs, rebuilds or added equipment in the U.S. change the answer, so ask us to review the unit's history before you buy.

Documents to collect for each unit

• Commercial invoice or bill of sale showing the price, VIN and seller
• U.S. title, or the manufacturer's certificate/statement of origin for a new unit
• A CUSMA certification of origin (completed by the exporter, producer or importer, with supporting documents) if you are claiming the duty-free rate
• Build or spec sheet showing trailer type and dimensions (it supports classification)
• Transport Canada Form 1 (or RIV e-Form 1) for each unit (Appendix G entries can list several units on one Form 1 with a consolidation sheet), unless your company is a listed Appendix F importer bringing in new Canadian-compliant units
• For RIV units: a legible U.S. compliance label, a valid 17-digit VIN and a recall clearance letter
• Your Business Number and RM import account, and access in the CARM Client Portal so the accounting and payment can be done on time

The steps on the U.S. side, the RIV inspection and provincial plating are in our trailer import guide.

Can you get the surtax back?

Sometimes, but do not count on it when you price the deal. The U.S. surtax remission rules mostly cover specific situations, such as inputs used in Canadian manufacturing. A finished trailer bought for a fleet often does not fit them. From December 1, 2026, U.S.-origin trailers under 8716.39.10, .20, .30 and .90 are also listed in Schedule 7 of the Remission List, so they cannot get section 3 horizontal remission even if they were used in manufacturing or processing. The Department of Finance still reviews case-by-case remission requests from businesses registered in Canada. Goods already in transit to Canada on September 8, 2026, under carrier control, were excepted, with proof.

Where a customs broker helps

A broker confirms classification for each unit, checks origin documents before you commit, works out the duty, surtax and GST, sets up the release and the accounting declaration on time, and keeps the file in order in case CBSA verifies it later. For trailer and vehicle entries, see our vehicle import broker service. If you need release before payment, see customs bonds.

FAQ

Do U.S. trailers pay duty coming into Canada?
They may qualify for duty-free treatment under CUSMA if origin is supported. But many U.S.-origin goods-transport trailers now pay a 25% surtax, plus GST on the higher total.

Is a used U.S. semi-trailer also hit by the surtax?
Yes, if it originates in the U.S. and is under a listed tariff item. The surtax applies to new and used units alike. The exception is a unit that was previously imported into Canada and accounted for, and is returning unchanged. It may qualify for duty- and surtax-free re-entry under Chapter 98.

Are tanker trailers on the surtax list?
Not in the current consolidation. Tankers are under 8716.31.00, which is not on the schedules. Confirm the classification for your unit.

Does buying from a Mexican plant through a U.S. dealer avoid the surtax?
If the trailer is Mexican-origin under the marking rules, the U.S. surtax does not apply. Keep the origin documents.

Who pays the duty, surtax and GST?
The importer of record, usually your company, accounts for and pays them through the CBSA's CARM system. Your broker can prepare and submit the accounting for you.

How long do we have to get the RIV inspection done?
45 days from the date of import, for units that enter the RIV program. New Canadian-compliant units brought in under Appendix F or G do not go through RIV.

Technical detail and sources

• United States Surtax Order (2026), SOR/2026-186: s. 1 (15/25/50% rates; origin by CUSMA marking rules), s. 2 (exceptions, including Chapter 98/99 items not in Schedule 4 and goods in transit), Schedule 2 (8716.39.10/.20/.30/.90). Current to 2026-10-19.
• CBSA Customs Notice 26-23: how the surtax is declared on the Commercial Accounting Declaration (CAD) and calculated.
• Customs Tariff 2026, Chapter 87: MFN rates for 8716.31.00 (9.5%), 8716.39.10 (Free), 8716.39.20 (5%), 8716.39.30 (9.5%), 8716.39.90 (6.5%), 8716.40.00 (9.5%); UST/MXT Free; statistical notes 1 and 2.
• Steel Derivative Goods Surtax Order, SOR/2025-267: heading 87.16 is not on its schedule.
• Transport Canada: commercial importers (Appendix F and G) and RIV.
• CBSA Memorandum D16-1-1 on surtax administration.

Buying trailers for your fleet or lot? J.W. Smith Customs Broker Ltd is a family-owned licensed customs broker in Brampton, clearing commercial imports since 1974, with over a million shipments cleared. Send us the spec sheet and origin papers before you buy and we will price the border cost. Request a quote or call (905) 542-7327.