On October 11, 2018, the Canada Border Services Agency (CBSA) gave notice of an Order Imposing a Surtax on the Importation of Certain Steel Goods. The notice states that beginning October 25, 2018, imports of seven steel products from all countries will be subject to a 25 per cent surtax where the level of imports from trading partners exceeds historical norms. Exclusions from the surtax are provided below.
Concurrently on October 11, the Department of Finance, and Global Affairs Canada (GAC) provided additional details on the administration of the provisional safeguard measures. These provisional safeguards are intended to provide Canadian steel producers and workers relief from the harm caused by excessive imports of steel products into Canada
The Seven classes of steel goods named under the order and inquiry include: (1) energy tubular; (2) heavy plate; (3) hot-rolled sheet; (4) pre-painted steel; (5) concrete reinforcing bar; (6) wire rod; and (7) stainless steel wire.
Product definitions including HS classification numbers are available in the Department of Finance Backgrounder. Note that the HS Classification numbers are provided for reference only as the surtax is based on the definitions of subject goods.
Exclusions
The Provisional Safeguard Surtax will be imposed on the seven steel products above from all countries excluding the following:
- Goods originating in and imported from the U.S., Chile, and Israel or another CIFTA beneficiary.
- For steel goods originating in and imported from Mexico – the Order only applies to energy tubular products and wire rod.
- Goods originating in and imported from developing countries which are beneficiaries to the General Preferential Tariff (GPT), with one exception; the provisional surtax will apply to concrete reinforcing bar originating in and imported from Vietnam.
The full list of developing countries not subject to the surtax is found in Appendix A of Customs Notice 18-17.
As a result of the order, the Canadian International Trade Tribunal (CITT) was directed to initiate an Inquiry and Report on the importation of the seven classes of steel products to determine whether any of the goods are being imported into Canada in such increased quantities and under such conditions as to be a principal cause of serious injury or threat thereof to Canadian producers of like or directly competitive goods.
The Order, 2018-1275, “Order Referring to the Canadian International Trade Tribunal, for Inquiry into and Reporting on, the Matter of the Importation of Certain Steel Goods” is available on the Government of Canada website.
The CITT safeguard reference on certain steel goods provides further direction, an inquiry schedule and a links to questionnaires for domestic producers, importers, and foreign producers of each class of goods.
Replies to questionnaires must be filed with the CITT no later than October 31, 2018.
Each party or counsel wishing to make submissions to the Tribunal must file a Notice of Participation with the CITT on or before October 29, 2018.
Each counsel who intends to represent a party in the inquiry must file a Notice of Representation, as well as a Declaration and Undertaking, with the CITT on or before October 29, 2018. The CITT will conduct a conference call with parties who have filed notices, to explain the case management procedures for this inquiry.
Additional Information
The provisional safeguards will be in place for 200 days pending the CITT’s findings.
Global Affairs Canada and the CBSA will be responsible for administering the provisional safeguards.
Information concerning the Tariff Rate Quota and permits is available in the Global Affairs Canada Notice to Importers.
Additional details on the administration of these measures are found in Customs Notice CN 18-17 Provisional Safeguard Measures Imposed on the Importation of Certain Steel Goods issued (Oct 11th) Customs Notice 18-17.
Correspondence and questions regarding the CITT Notice of Inquiry should be sent to:
The Registrar, Secretariat to the Canadian International Trade Tribunal
15th Floor, 333 Laurier Avenue West
Ottawa, Ontario K1A 0G7
Telephone: 613-993-3595 – or North American Toll free at 1-844-503-3562
E-mail: citt-tcce@tribunal.gc.ca
Additional information will be posted to Livingston Trade News Website as it becomes available. /trade-news/