News Alert

Canada Imposes 25% Surtax on Imports of 7 Steel Products

Toronto, October 23, 2018

Effective October 25, 2018, a 25% safeguard surtax is applicable to the following imported steel goods that exceed a new tariff rate quota (TRQ) for each class of goods set out in the Order.

• Heavy plate
• Concrete reinforcing bar
• Energy tubular products
• Hot-rolled sheet
• Pre-painted steel
• Stainless steel wire
• Wire rod

Please refer to Global Affairs Notice to Importers of October 11, 2018 which identifies import TRQ quantities, i.e. the amount of the above noted steel products which may enter Canada without the 25% surtax as along as an import permit has been obtained.

There are seven provisional TRQs.  The commodity goods (HS Codes) covered by each TRQ are set out in the Commodity Codes Handbook.

The TRQs will be administered in four consecutive periods of fifty days, as follows:

• October 25 to December 13, 2018
• December 14, 2018 to February 1, 2019
• February 2 to March 23, 2019
• March 24 to May 12, 2019

The Order applies to certain steel goods imported from all countries except for the exclusions listed below:

• The Order does not apply to goods originating in and imported from the U.S., Chile and Israel or another CIFTA beneficiary.
• For goods originating in and imported from Mexico, this Order only applies to energy tubular products and wire rod.
• Additionally, the Order does not apply to goods originating in and imported from developing countries which are beneficiaries to the General Preferential Tariff (GPT) with one exception: concrete reinforcing bar originating in and imported from Vietnam are not exempt.  A list of GPT beneficiaries is included in Appendix A.

Note: Goods eligible for these exemptions must both originate in and be imported from the same country.

Origin of the goods is determined in accordance with the rules of origin set out in the Determination of Country of Origin for the Purposes of Marking Goods (NAFTA Countries) Regulations or the Determination of Country of Origin for the Purpose of Marking Goods (Non-NAFTA Countries) Regulations, as the case may be.

Importers may request shipment-specific import permits (specific permits) from Global Affairs Canada, which will be valid for 14 days.  Goods for which an importer obtained a specific permit, valid at the time of accounting, are exempt from the applicable safeguard surtax.  Imports of goods that do not have a specific permit, or are in excess of the quantity of an import permit at the time of accounting, are subject to the safeguard surtax.

If the above applies to your imported goods, please contact our office in order to ensure you have an Import Permit File Number activated with Global Affairs and to discuss how Universal Logistics will obtain the necessary import permits on your behalf with applicable shipment documentation.

For more information please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.