customs brokerage, freight forwarding and truck transportation

Steel Safeguard Duties – Canada

: General

Client Advisory - Steel Safeguard Duties – Canada 2018-10-22

Dear Valued Customer,

Canada is set to impose a provisional 25% safeguard surtax on 7 categories of imported steel products, beginning October 25th, 2018. The safeguard surtax will be in place for 200 days, pending the findings and recommendations of an investigation by the Canadian International Trade Tribunal.
 
The 7 categories of steel products are:
  • Heavy plate
  • Concrete reinforcing bar
  • Energy tubular products
  • Hot-rolled sheet
  • Pre-painted steel
  • Stainless steel wire
  • Wire rod
The safeguard surtax will apply to subject goods that originate in all countries except:
  • U.S.A. (These goods may already be subject to the 25% retaliatory tariffs imposed on certain US-origin goods as of July 1, 2018).
  • Chile, and Israel or other CIFTA beneficiary
  • Mexico: Imports of heavy plate, rebar, hot-rolled sheet, pre-painted steel and stainless steel wire are exempt. Energy tubular products and wire rod from Mexico are subject.
  • Imports of all categories from GPT beneficiary countries are exempt, except imports of rebar from Vietnam, which are subject.
 
Please carefully review this notice from the Department of Finance, which includes the definitions of the goods subject to the surtax and identifies goods that are excluded.  
 
Importers must look to the product definitions to determine whether or not the goods are subject. Not all goods classified in the listed HS codes meet the definition, and other goods may be classified elsewhere than the listed HS codes but meet the product definition, and are therefore subject.
 
As indicated in the Notice, the provisional safeguards will be in the form of a tariff-rate quota (TRQ), with a 25% surtax applied to imports of subject goods that exceed the specified quantity threshold. Quota is allocated in four 50-day periods. The quota is expected to be depleted quickly.
 
For a shipment to be free of this new steel surtax the importer must obtain a shipment specific import permit from Global Affairs Canada, which will be issued on a first-come, first-served basis until the quota is fully utilized.  Permit applications can be submitted no earlier than 5 days in advance of the shipment’s arrival, and remain valid for only 14 calendar days.
 
If a specific import permit is not obtained, or is no longer valid at the time of accounting, the 25% surtax will be applicable.
 
You must advise Milgram/C.H. Robinson whether your goods are subject to the surtax and whether a permit application should be filed on a shipment by shipment basis. Milgram/C.H. Robinson cannot determine whether or not the goods are subject based on the import documentation alone.
 
Milgram/C.H. Robinson can apply for a specific import permit on behalf of the importer. When advised that the goods are subject to the surtax, Milgram/C.H. Robinson will submit the permit application once we are notified by the carrier that the shipment is due to arrive within 5 days.
 
Please contact Amy Rose or Rick da Silva with any questions or concerns.

Thank you for being our Valued Customer. If you have any questions, please do not hesitate to contact Milgram-C.H. Robinson for further information.
 


Our information is compiled from a number of sources that to the best of our knowledge are accurate and correct. It is always the intent of our company to present accurate information. C.H. Robinson accepts no liability or responsibility for the information published herein.
www.chrobinson.com 
© 2018 C.H. Robinson Worldwide Inc. All Rights Reserved.

 

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Milgram has developed a reputation for providing the highest level of service in the fields of Customs Brokerage, International Freight Forwarding and Ground Transportation.

We strive to make things simple for our clients by doing them better, and work hard to meet and exceed our clients expectations.

Montréal514-288-2161Dorval514-695-3585Toronto905-673-1568Toronto Warehouse905-677-3997Vancouver604-821-1677Toll-Free1-888-MILGRAM (645-4726)
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