Notice to Importers

Item 82 – Steel Goods

Serial No.936
Date: February 1, 2019

Table of Contents

• 1.0 Purpose, Coverage, Duration
• 2.0 Authority
• 3.0 Method of Administration
• 4.0 Import Permits
• 5.0 Contact Us

1.0 Purpose, Coverage and Duration

1.1 The purpose of this Notice is to inform importers of the procedures governing the administration of provisional 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 were added to the ICL to implement the Order Imposing a Surtax on the Importation of Certain Steel Goods (Surtax Order). The Surtax Order establishes provisional safeguards in the form of TRQs for steel goods matching the product descriptions specified in the column 2 of the Schedules to the Surtax Order, above which a twenty-five percent surtax will apply.

1.3 This Notice does not apply to goods of Canadian origin. This Notice applies to steel goods of non-Canadian origin imported from all countries other than those originating in and imported from:

• the United States;
• Chile;
• Mexico, other than energy tubular products and wire rod originating in and imported from Mexico;
• Israel or another CIFTA beneficiary; and
• a country benefiting from the General Preferential Tariff, other than concrete reinforcing bar originating in and imported from Vietnam.

1.4 This Notice does not apply to imports of steel products that do not meet the product definitions. 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. 

1.5 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 October 25, 2018. The TRQs will be administered until the Surtax Order is amended or repealed by the Governor in Council, or ceases to have effect pursuant to section 56 of the Customs Tariff. 

1.6 This Notice will remain in effect until further notice.

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

3.2 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; and
• March 24 to May 12, 2019.

3.3 The quantity of goods that may be imported under each TRQ in each fifty-day period for all countries other than energy tubular products and wire rod of Mexican origin is as follows:

Product	Quota for each 50-day period (kilograms)	Maximum amount of total 200-day quota for any single country (kilograms)
Heavy plate	12,918,000 KG	11,884,560 KG
Concrete reinforcing bar	35,332,000 KG	32,505,440 KG
Energy tubular products	53,542,657 KG	60,209,700 KG
Hot-rolled sheet	15,299,000 KG	22,642,520 KG
Pre-painted steel	11,635,000 KG	16,289,000 KG
Stainless steel wire	467,000 KG	467,000 KG
Wire rod	7,319,000 KG	27,797,590 KG

The quantity of energy tubular products and wire rod of Mexican origin that may be imported under each TRQ for the full 200-day period (October 25, 2018 to May 12, 2019) is as follows:

• Energy tubular products: 72,820,000 KG
• Wire rod: 16,776,000 KG.

3.4 Quantities that remain unutilized in any one period will be added to the quantities in the following period.

3.5 The TRQs are administered by way of shipment-specific import permits issued on a first-come, first-served basis. See section 4.3.1for information on importing goods outside of or above the TRQs.

3.6 Once imports originating in any one country account for a specific percentage of a TRQ, as set out above, shipment-specific import permits will no longer be issued for imports originating in that country. Goods that originate in that country may continue to enter Canada under General Import Permit 80 or General Import Permit 81, as the case may be.

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 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 fourteen calendar days. The permit may be extended only if the shipment is delayed due to exceptional and unforeseen circumstances. In this case, it is incumbent on the importer to notify Global Affairs Canada immediately and to provide substantiating documentation. Otherwise, the permit will be cancelled upon expiration.

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 will be automatically cancelled.

4.2.6. Shipment-specific import permits will normally not be issued retroactively for shipments that have already been accounted for with the CBSA.

4.2.7. 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 safeguard surtax. Questions on how to fill out customs entry documents should be addressed to the CBSA.

4.3. General Import Permits

4.3.1 Goods imported without a valid shipment-specific permit, or outside of the TRQs, or above the quantities established for the respective TRQs 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
• 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.