Certain Exclusions from the Heavy Plate and Stainless Steel Wire Safeguard Measures

On August 23, 2019, the Department of Finance, in its continuing efforts to strengthen Canada’s ability to protect steel and aluminum industries, issued the following news release concerning the Safeguard Provisions for Heavy Plate and Stainless Steel Wire:

Exclusions from Steel Safeguards

Canadian steel producers of heavy plate and stainless steel wire also continue to be protected by safeguard measures imposed on those two product categories in October 2018. The Government is now excluding certain specific products from these measures (seven exclusions for heavy plate, one for stainless steel wire), following the recommendations made by the Canadian International Trade Tribunal (CITT) in the exclusion inquiry that concluded on July 15, 2019. The exclusions aim to ensure that Canadian companies have access to surtax-free sources of supply of the products concerned, given that the CITT determined that they are not available in Canada. The Government will also remit safeguard surtaxes paid on imports of the excluded products since October 2018.

This means that specific types of heavy plate and stainless steel wire are no longer subject to the Safeguard Provisions and are outside the requirements of an import permit, quota and surtax application as of August 23, 2019.

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

  1. a) goods originating in Canada;
  2. b) goods originating in Chile, Columbia, Mexico, Panama, Peru, the Republic of Korea, the United States or Israel or another CIFTA beneficiary; and
  3. c) 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 8 specific products which the CITT has recommended be excluded from the measures are identified here.

Safeguard Surtaxes that have been paid on the newly exclude items since October 25,2018 may be refunded by the CBSA.

Where an overpayment of safeguard surtax has been identified, a Form B2– Adjustment Request may be filed requesting a refund of the overpaid amount under section 74(1)(g) of the Customs Act.

In addition to Form B2, importers must provide product literature and technical specifications and/or any other document to substantiate whether the goods correspond to the exclusions eligible for the Surtax Exclusions Remission Order.

Customs Notice 19-08 – Final Safeguard Measures Imposed on the Importation of Certain Steel Goods has been revised to provide information on both the newly excluded items from the Surtax order and Surtax Remission Order SOR/2019-315. The notice includes a list of the excluded products as well as the process for applying for refund under the Surtax Remission order.

Revised Customs Notice 19-08 is found here.

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