CBSA Provides Details on Final Safeguard Measures on Heavy Plate and Stainless Steel Wire

On May 10, 2019, the Canada Border Services Agency (CBSA) published Customs Notice 19-08 to announce an Order Amending the Order Imposing a Surtax on the Importation of Certain Steel Goods (Final Safeguards).  The Final Safeguards amend SOR/2018/206, which came into force October 25, 2018.

Effective May 13, 2019, the new order replaces the provisional safeguard measures on heavy plate and stainless steel wire.

Key changes from the Provisional to the Final safeguard measures include:

  • Additional exceptions based on Country of Origin
  • A graduated decrease in surtax rates applicable to imported goods that exceed the tariff rate quota (TRQ) for each class of goods
  • A new surtax rate of 20% on heavy plate that exceeds the TRQ during the first one-year period beginning May 13, 2019
  • Established Quota Allocation periods as contained in the Notice to Importers – Steel Goods (Item 82 on the import Control List), effective May 13, 2019*.

The Final Safeguards apply to Heavy Plate and Stainless Steel Wire (goods) imported from all countries except for:

  1. goods originating in Canada;
  2. goods originating in Chile, Columbia, Mexico, Panama, Peru, the Republic of Korea, the United States or Israel or another CIFTA beneficiary; and
  3. goods originating in a World Trade Organization (WTO) Member country that is a beneficiary of the General Preferential Tariff (GPT), as long as the share of imports from such a country does not exceed 3% of total imports of each good, provided that imports from countries accounting for less than 3% of import share do not collectively account for more than 9% of total imports of each good.

The list of WTO member GPT beneficiary countries that qualify for this exception is provided in Appendix A of CN 19-08.

The origin of the goods continues to be determined in accordance with the rules of origin set out in the Determination of Country of Origin for the Purposes of Marking Goods Regulations, NAFTA, or non-NAFTA countries, as the case may be.

The description of goods, exclusions, and HS classifications provided in the Customs Notice remain the same as those provided in the original order.

Applications for a quota allocation will be accepted by Global Affairs Canada between May 10 and May 24, 2019. Said quota allocation, if granted, may be used between June 3, 2019 and January 31, 2020.   *Applications must be submitted by May 24, 2019.

Information on TRQ allocation applications and conditions to satisfy when requesting specific permits, are found on the Global Affairs Canada website.

Details on subject goods, exceptions, the schedule of rates, and links to additional information are found in CN 19-08.

Please contact your Livingston account representative should you have any questions.