Notice to Importers – Steel Goods (Item 82 on the Import Control List)

Serial No. 945
Date: May 10, 2019

1.0 Purpose, Coverage and Duration

1.1 The purpose of this Notice is to inform importers of the procedures governing the administration of safeguards, in the form of tariff rate quotas (TRQ), for certain steel goods that are listed in item 82 on the Import Control List (ICL).

1.2 These goods are included on the ICL to implement the Order Amending the Order Imposing a Surtax on the Importation of Certain Steel Goods (Surtax Order). The Surtax Order establishes safeguards in the form of TRQs for steel goods matching the product descriptions specified in column 2 of the Schedule to the Surtax Order, above which a surtax will apply. The TRQs and surtax rates vary annually. Details regarding the TRQs and surtax rates applicable in each given period can be found in Customs Notice 19-08 – Final Safeguard Measures Imposed on the Importation of Certain Steel Goods from the Canada Border Services Agency (CBSA).

1.3 This Notice applies to steel goods other than those originating in:

• Canada;
• Chile;
• Colombia;
• Israel or another CIFTA beneficiary;
• Korea;
• Mexico;
• Panama;
• Peru;
• the United States; and
• a World Trade Organization Member country benefiting from the General Preferential Tariff.

1.4 This Notice does not apply to imports of steel products that do not meet the product descriptions specified in column 2 of the Schedule to the Surtax Order.

1.5 Goods that are not subject to the Surtax Order may continue to be imported under General Import Permit 80 or General Import Permit 81, as the case may be. 

1.6 The TRQs will be administered by way of shipment-specific import permits. The application period for shipment-specific import permits will open at 4:00 a.m. EST on May 13, 2019. The TRQs will be administered until the Surtax Order is amended or repealed by the Governor in Council, or ceases to have effect pursuant to section 56 of the Customs Tariff. 

1.7 This Notice will remain in effect until January 31, 2020, unless superseded by a further Notice or otherwise repealed.

2.0 Authority

2.1 Steel goods subject to the Surtax Order were placed on the ICL on October 25, 2018 under the authority of subsection 5(6) and section 6 of the Export and Import Permits Act (EIPA).

3.0 Method of Administration

3.1 There are two TRQs: one for stainless steel wire, and one for heavy plate. The commodity goods covered by each TRQ are set out in the Commodity Codes Handbook.

3.2 In order to facilitate the proper administration of the TRQs, the issuance of shipment-specific import permits will be divided into the following phases:

• May 13, 2019 to June 2, 2019: The TRQ will be administered on a first-come, first-served basis. Importers will be invited to submit applications for allocations during this period.
• June 3, 2019 to January 31, 2020: The TRQ will be administered on an allocated basis, based on the methodology set out in this Notice. In summer 2019, the Department will launch public consultations seeking stakeholder input on the allocation and administration of the steel safeguard TRQs after February 1, 2020.
• February 1, 2020 to October 24, 2021: The Government’s approach to TRQ administration will be informed by public consultations.

3.3 Between May 13 and June 2, 2019, shipment-specific import permits will be issued on a first-come, first-served basis.

3.4 During the period between May 13 and June 2, 2019, the quantity of goods that may be imported under each TRQ is as follows: for stainless steel wire, 161,000 kg; for heavy plate, 5,738,000 kg. This quantity is equal to the prorated TRQ for the first period as set out in the Schedule to the Surtax Order.

3.5 During the period between June 3, 2019 and January 31, 2020, the quantity of goods that may be imported under each TRQ is as follows: for stainless steel wire, 1,866,667 kg; for heavy plate, 66,666,667 kg. This quantity is equal to the prorated TRQ for the first period as set out in the Schedule to the Surtax Order.

3.6 The quota volumes noted in section 3.5 will be divided into two pools: an allocation pool, available for eligible applicants based on their import history during the reference period, and a residual pool, available on a first-come, first served basis to those who do not hold allocations.

• 3.7 Applications for a quota allocation will be accepted by Global Affairs Canada between May 10 and May 24, 2019. Said quota allocation, if granted, may be used between June 3, 2019 and January 31, 2020. Applications must be submitted by May 24, 2019. Applications Form 3145 must be submitted by e-mail to steel-acier@international.gc.ca.
• 3.8 Applications from all importers will be accepted. However, an allocation will only be issued to importers that accounted for at least 0.5% of import share during the 12-month reference period from July 1, 2017 to June 30, 2018.
• 3.9 Eligible allocation applicants may be allocated, from the allocation pool, the lesser of: 1) the maximum possible allocation, as determined by their historical imports, or 2) the requested amount in their application.
• 3.10 Any remaining unallocated portions, including quota that went unused during the period between May 13 and June 2, 2019, will then form the residual pool. Permits will be issued from the residual pool on a first-come, first-served basis to applicants that did not receive an allocation.
• 3.11 Importers that have used the entirety of their allocation will be able to access the residual pool starting December 2, 2019.
• 3.12 In order to maximize TRQ utilization, allocation holders that do not intend to use their entire allocation are asked to return their remaining allocation quantity by December 2, 2019. Returned quantities will be added to the residual pool.
• 3.13 The Department will launch public consultations during the summer of 2019 seeking stakeholder input on allocation and administration of the steel safeguard TRQs as of February 1, 2020.

4.0 Import Permits

4.1. Types of Permits

4.1.1 An import permit issued by Global Affairs Canada is required for shipments of steel goods covered by this Notice.

4.1.2 Importers may either present a shipment-specific permit or invoke the appropriate General Import Permit (GIP).

4.2. Shipment-Specific Permits

4.2.1. Shipment-specific permits are issued on demand for shipments of steel goods under the TRQs covered by this Notice. Importers may apply for an import permit up to five days in advance of, and no later than, the shipment’s arrival.

4.2.2. For shipment-specific permit applications, all quantities must be requested in kilograms. All permit applications submitted in metric tonnes will be rejected.

4.2.3 Shipment-specific import permits are valid for thirty calendar days.

4.2.4. For a shipment to be free of the surtax, the importer must present a valid shipment-specific import permit to the Canada Border Services Agency (CBSA) at the time of final accounting.

4.2.5. Unused expired permits may be automatically cancelled by Global Affairs Canada.

4.2.6. For a shipment-specific import permit to be considered valid, the name on the permit must match the name of the importer on the B3-3 Canada Customs Coding Form and related documents at time of final accounting. It is incumbent on the party granted the permit to ensure that a permit application is made in the name of the importer of record and includes the correct quantity. Quantities of a shipment that exceed the amount on the permit will be subject to the surtax. For information on how customs entry documents should be completed, refer to CBSA Customs Notice 19-08.

4.3. General Import Permits

4.3.1 Goods imported without a valid shipment-specific permit must be imported under the authority of General Import Permit 80 or General Import Permit 81, as the case may be. There is no limit to the quantities of steel that may enter Canada under the General Import Permits, but such imports will be subject to the surtax.

4.4. How to Apply for a Permit

4.4.1. Information about the permit application process, the monthly billing system, information required from applicants, and the permit application form, is available on the Global Affairs Canada website: Applying for an Import Permit.

4.4.2. Applications submitted without a broker must be sent to Global Affairs Canada at the Export Import Controls System (EICS) Help Desk.

4.4.3. Detailed information on permit fees can be found on the Global Affairs Canada website: Import and Export Permits and Certificate Fees.

4.5. Permit Amendments and Cancellations

4.5.1 Importers who have been issued a shipment-specific permit should immediately inform Global Affairs Canada in writing if the permit will not be utilized.

4.5.2 To amend a permit, an importer must submit a Cancellation Form: Application for Cancellation of Permit.

4.5.3 Cancellation forms must be accompanied with the following supporting documentation:

• CBSA Form B3 commercial invoice;
• Bill of Lading; and
• Canada Customs Invoice.

5.0 Contact Us

5.1 Contact details for the Steel Controls Unit and the Help Desk are available on the Global Affairs website: Contact Us.