Canadian steel firms pay $19M to settle years-long duty evasion case
Two Canadian steel firms and their president have agreed to pay $19 million to settle claims of duty evasion. The case involves false declarations about the origin of imported steel over several years. Authorities allege the companies avoided tariffs by misrepresenting where the steel was made.
Farjess Inc. and Royal Canadian Steel Inc., alongside part-owner Feroz Jessani, are accused of falsely labelling steel imports from May 2019 to January 2025. The steel was actually produced in China, Indonesia, Italy, Turkey, or Vietnam—countries subject to U.S. tariffs. By claiming the steel came from Canada, the firms avoided paying duties.
The scheme coincided with U.S. President Donald Trump’s tariffs on steel imports. In February 2025, he raised the duty rate from 25 per cent to 50 per cent. During this period, steel imports compliant with the Canada-U.S.-Mexico Agreement faced no such charges. The $19 million settlement resolves allegations that the companies deliberately misrepresented the steel’s origin. The false declarations allowed them to bypass tariffs on foreign-made steel for nearly six years.
The settlement closes a long-running investigation into duty evasion by the two firms. The $19 million payment reflects the scale of the alleged misconduct. Steel imports from the listed countries will now face stricter scrutiny under U.S. trade rules.
