Notice to Importers – Steel General Import Permits No. 80 and 81 – Carbon and Specialty Steel Products – Serial No. 1032

Date: October 23, 2020

1.0 Purpose, coverage and duration

1.1 The purpose of this Notice is to inform importers that, effective November 2, 2020, item 80 (Carbon Steel Products) and item 81 (Specialty Steel Products) of the Import Control List (ICL), which may be imported under the authority of General Import Permit No. 80 – Carbon Steel (GIP No. 80) and General Import Permit No. 81 – Specialty Steel Products (GIP No. 81), respectively, have been re-added to the ICL, following their deemed removal on November 1, 2020. The Harmonized System (HS) codes associated with each of these items have also been amended.

1.2 The addition of these items to the ICL enables the administration of the Steel Import Monitoring Program. The purpose of this Program is to enable Global Affairs Canada to monitor imports of carbon steel and specialty steel products and facilitate the collection of import data.

1.3 Carbon steel products (ICL item 80) include semi-finished products (ingots, blooms, billets, slabs and sheet bars), plate, sheet and strip, wire rods, wire and wire products, railway-type products, bars, structural shapes and units, pipes and tubes, but excludes the specialty steel products referred to in item 81. These items are covered by HS headings 7206-7217, 7225-7229, 7302, 7304-7306.

1.4 Specialty steel products (ICL item 81) is stainless steel flat-rolled products (sheet, strip and plate), stainless steel bar, stainless steel pipe and tube, stainless steel wire and wire products, stainless steel in ingots or other primary forms, semi-finished products of stainless steel, alloy tool steel, mold steel and high-speed steel. These items are covered by HS headings 7218-7224, 7301, 7308, 7312-7313, and 7317.

1.5 The new items 80 and 81 of the ICL do not have a deemed removal date.

1.6 These changes do not limit the quantity of carbon and specialty steel products that may be imported into Canada.

1.7 This Notice applies to all products imported under the authority of GIP No. 80 and GIP No. 81.

1.8 Effective November 2, 2020, this Notice supersedes any previous notices to importers concerning carbon and specialty steel products and should be read in conjunction with the Export and Import Permits Act (EIPA) and its regulations.

1.9 This Notice remains in effect unless superseded by a further notice or otherwise repealed.

2.0 Authority

2.1 Items 80 and 81 are being added to the ICL pursuant to paragraph 5(1)(e) and section 6 of the EIPA. Paragraph 5(1)(e) of the EIPA provides the Governor in Council with the authority to add to the ICL any article deemed necessary to control for import for the purpose of implementing an intergovernmental arrangement or commitment. Section 6 provides the Governor in Council with the authority to revoke, amend, vary or re-establish the ICL.

3.0 Background 

3.1 Monitoring of imports of steel products began on September 1, 1986, when carbon steel products were initially added to the ICL to gather information concerning the importation of these goods. This action was taken as a result of an inquiry conducted by the Canadian Import Tribunal. The inquiry determined that excess capacity, subsidization and dumping were prevalent and threatened injury to the domestic industry. The Tribunal recommended import monitoring in these circumstances. Specialty steel products were initially added to the ICL on June 1, 1987.

3.2 As the above-mentioned conditions in steel markets continued, carbon and specialty steel products were added to the ICL under the authority of subsection  5.1(1) of the EIPA, following their deemed removal, in 1989, 1990, 1992, 1996, 1999, 2002, 2005, 2008, 2011, 2014 and 2017.

3.3 On May 17, 2019, Canada and the United issued the Joint Statement by Canada and the United States on Section 232 Duties on Steel and Aluminum, including the understanding that the United States and Canada would establish an agreed-upon process for monitoring aluminum and steel trade between them.  

4.0 Import requirements and procedures

4.1 Customs brokers and importers using GIP No. 80 or GIP No. 81 must comply with the provisions of the EIPA and its regulations, including GIP No. 80 and GIP No. 81, as well as any applicable customs legislation.

4.2 Only Canadian residents may use GIP No. 80 and GIP No. 81.

4.3 The import customs documentation for each shipment of products covered by item 80 or item 81 must state that it is being imported under the authority of GIP No. 80 or GIP No. 81, as applicable. This requirement applies to all products under the following HS headings: 7206-7302, 7304-7306, 7308, 7312-13 and 7317.

4.4 Customs brokers and importers using GIP No. 80 and GIP No. 81 must ensure that the quantity (in kilograms), value (in Canadian dollars and excluding freight costs), product classification, country of origin, U.S. state of export (if applicable), supplier name and address and importer name are provided correctly in any customs declaration form. Any such incorrect or inaccurate information must be amended through the appropriate customs documentation. Providing complete and accurate information in customs declaration forms will enhance the reliability of the data and reduce the burden of post-clearance auditing.

4.5 A resident of Canada who imports goods under these Permits must retain, for a period of six years after the year in which the import is made, documents and records containing the following information:

• the name and the address of the importer or consignee;
• proof of Canadian residency;
• the date of entry of the goods into Canada;
• the quantity, expressed in kilograms, of the goods;
• the country from which the goods are imported;
• the country of origin of the goods;
• the shipping document with freight and other transportation costs indicated separately;
• the tariff classification of the goods indicated in the List of Tariff Provisions set out in the schedule to the Customs Tariff;
• the import value in Canadian dollars; and
• a detailed description of the goods.

4.6 Failure to cite the applicable GIP, to retain documents and records as prescribed, to comply with the terms and conditions of the GIP, or to provide correct information may lead to prosecution for offences under the EIPA and/or the levying of penalties by the Canada Border Services Agency (CBSA) under the Administrative Monetary Penalty System, which authorizes the CBSA to assess monetary penalties for non-compliance with customs legislative, regulatory and program requirements. Compliance is monitored by the CBSA and Global Affairs Canada.

5.0 Terms and conditions

5.1 Customs brokers and importers using GIP No. 80 or GIP No. 81 must, within 10 days after receipt of a request, provide to Global Affairs Canada the documents and records referred to in section 4.5 in respect of any import made during the period specified in the request. After receipt of a request, customs brokers and importers using GIP No. 80 or GIP No. 81 must make the documents and records referred to in section 4.5 available for inspection by any authorized persons, provide all reasonable assistance to facilitate the inspection, and provide any documents and records necessary for making a determination on the country of origin, import value or quantity of the imported products, within the specified time period.

6.0 Permit fees

6.1 No fees are payable.

7.0 Contact us

7.1 Enquiries may be addressed to:

Steel Unit
Non-supply Managed Trade Controls Division
Global Affairs Canada
111 Sussex Drive, Ottawa, Ontario K1A 0G2
E-mail: steel-acier@international.gc.ca