Update: Surtax on the Importation of Certain Steel Goods

Update: Surtax on the Import of Certain Steel Goods

Global Affairs Canada has published a new Notice to Importers, which reflects amendments to the Order Imposing a Surtax on the Importation of Certain Steel Goods.

NOTE: This notice has no impact on tariffs for steel and aluminum products originating in and imported from the United States.

Canada Announces Provisional Safeguard Surtax on Imported Steel

Provisional safeguards were removed on the import of certain steel goods. For example, concrete reinforcing bar, energy tubular products, hot-rolled sheet, pre-painted steel, and wire rod.

Final safeguards – in the form of tariff rate quotas (TRQ) – were placed on heavy plate and stainless steel wire, effective May 13, 2019.

The quota volumes are divided into the following pools:

1. An allocation pool, available for importers based on their import history of the subject goods between July 1, 2017 and June 30, 2018, and

2. A residual pool, available for those that do not hold allocations on a first-come, first served basis.

Importers who are eligible to apply for an allocation have received communication from PF Collins regarding the application process. All other importers will continue to require a shipment-specific import permit to remove the surtax from imports of heavy plate and stainless steel wire.

Surtax on Certain Steel Goods

The following surtax rates will apply to heavy plate and stainless steel wire imported without a shipment-specific import permit:

Heavy plate: 20% surtax rate from May 13, 2019 to May 12, 2020, inclusive.

May 13, 2020, the surtax rate is reduced to 15%
May 13, 2021, the surtax rate is reduced to 10%
October 25, 2021, the surtax expires (i.e. no longer applies)

Stainless steel wire: 25% surtax rate from May 13, 2019 to May 12, 2020, inclusive.

May 13, 2020, the surtax rate is reduced to 15%
May 13, 2021, the surtax rate is reduced to 5%
October 25, 2021, the surtax expires (i.e. no longer applies)

Import permits are issued on a first come, first served basis. Furthermore, if a quota is filled, the surtax applies to the quantity of goods that exceed the amount on the permit.

Permits can be obtained up to five (5) days in advance of the shipment’s arrival. However, the import permit is only valid for fourteen calendar days. Unused, expired permits are automatically cancelled.

To read the full notice, visit the following link: Notice to Importers – Steel Goods

Update: Surtax on the Import of Certain Steel Goods

Surtax on Certain Steel Goods

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