Surtax Imposed on Certain Products Originating in the United States Update

On June 29, 2018 the Government of Canada announced its measures in response to U.S. tariffs on Canadian steel and aluminum from the United States effective of July 1, 2018. The updated list of tariff items covered under the countermeasures to the 25% steel tariff and 10% on aluminum goods was also released. The updated list of products is listed in Table 1, 2, and 3 accordingly.  Goods from Table 1 will be subject to 25 per cent surtax. Goods from Tables 2 and 3 will be subject to 10 per cent surtax.

The Government of Canada will also make funding available up to $2 billion and to support, defend and protect the interests of Canadian workers and businesses in the steel, aluminum and manufacturing industries. This includes a comprehensive set of measures.

Canada Border Services Agency (CBSA) has issued Customs Notice 18-08 in regards to the US Surtax Order for Steel and Aluminum. The surtax applies to goods as of effective July 1, 2018. It does not apply to goods that are in transit before midnight June 30. Importers must have proof that such goods were in transit to Canada prior to July 1, 2018.

These countermeasures will only apply to goods originating from the U.S., which shall be considered as those goods eligible to be marked as a good of the U.S. in accordance with the Determination of Country of Origin for the Purposes of Marking Goods (NAFTA Countries) Regulations.

These countermeasures effective on July 1, 2018 and will remain in place until the U.S. eliminates trade-restrictive measures against Canadian steel and aluminum products.  The countermeasures will not apply to U.S. goods that are in transit to Canada on the day on which these countermeasures come into force.

The list of products in Tables 1, 2 and 3 should be read in conjunction with the Schedule to Canada’s Customs Tariff.

Customs D-Memorandum D16-1-1 Information pertaining to the application, collection sand adjustment of surtax provides additional information concerning the administration and enforcement of the surtax orders.