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

Serial No. 970
Date: August 21, 2019

1.0 Purpose, Coverage and Duration

1.1 The purpose of this Notice is to inform importers of amendments to the steel import monitoring program. A reporting and record keeping requirement has been added as a term and condition to the General Import Permits (GIPs) No. 80 and 81 for importing certain steel goods that are listed in items 80 and 81 of the Import Control List (ICL).

1.2 The steel import monitoring program, covering items 80 (Carbon Steel) and 81 (Specialty Steel) of the ICL, runs until November 1, 2020.

1.3 Carbon steel products (ICL item 80) include semi-finished products (ingots, blooms, billets, slabs and sheet bars), plate, sheets and strip, wire rods, wire and wire products, railway-type products, bars, structural shapes and units, pipes and tubes made of carbon steel. These items are covered by Harmonized System (HS) headings 7206-7229.

1.4 Specialty steel products (ICL item 81) include stainless steel flat-rolled products (sheet, strip and plate), stainless steel bar, stainless steel pipe and tube, stainless steel wire and wire products, alloy tool steel, mold steel and high-speed steel. These items are covered by HS headings 7301-7302, 7304-7306, 7308, 7312-7313 and 7317.

1.5 The steel import monitoring program does not limit the quantity of carbon and specialty steel products that may be imported into Canada.

1.6 The use of GIP Nos. 80 and 81 now includes certain reporting requirements on importers, if requested by Global Affairs Canada. The purpose of these obligations is to facilitate the collection of import data, by requiring importers to provide, upon request, documents and records for the purpose of identifying any errors in import data and determining the source of any inconsistencies in a targeted manner.

1.7 This Notice applies to all steel goods imported under the authority of GIPs No. 80 and 81.

1.8 This Notice supersedes previous notices to importers concerning the steel import monitoring program and should be read in conjunction with the Export and Import Permits Act (EIPA) and the EIPA Regulations.

1.9 This Notice will remain in effect, unless superseded by a further Notice or otherwise repealed.

2.0 Authority

2.1 The steel import monitoring program is conducted under the authority of subsection 5.1(1) and section 6 of the EIPA. Subsection 5.1(1) provides that monitoring may be initiated when steel is being traded in circumstances of world surplus supply and depressed prices and where a significant proportion of world trade is subject to control through the use of non-tariff barriers. Pursuant to the provisions of section 6, the Governor in Council has the discretion to revoke, amend, vary or re-establish the ICL.

2.2 The GIPs are amended under the authority of subsections 8(1.1) and 10(1) of the EIPA.

3.0 Background 

3.1 Monitoring of imports of steel products began on September 1, 1986, when carbon steel products were added to the ICL to gather information concerning the importation of such 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 was added to the ICL on June 1, 1987.

3.2 As the abovementioned conditions in steel markets continued, the steel import monitoring program was renewed in 1989, 1990, 1992, 1996, 1999, 2002, 2005, 2008, 2011, 2014 and 2017.

4.0 Import requirements and procedures

4.1 Pursuant to the provisions of subsection 8(1.1) of the EIPA, a GIP has been established for each of these items, GIP No. 80 (Carbon Steel) and GIP No. 81 (Specialty Steel). The import documentation for each shipment of carbon and specialty steel products must state that it is being imported under the authority of GIP No. 80 or 81. This requirement applies to all steel products with Harmonized System headings: 7206-7302, 7304-7306, 7308, 7312-13 and 7317.

4.2 Customs brokers and importers utilizing these Permits must comply with the requirements of the GIPs. They are requested to ensure that 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 given correctly, if necessary by amending the import documentation. Only Canadian residents may utilize the GIPs. Customs brokers and importers utilizing these Permits are urged to cooperate fully with the Trade and Export Controls Bureau of Global Affairs Canada, as administrators of the monitoring program. Such cooperation and the provision of complete and accurate information in their customs declaration forms will enhance the reliability of the data and reduce the burden of post-clearance auditing.

4.3 Failure to cite the required GIP or not complying with the terms and conditions of the Permits may lead to 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. Importers may also face prosecution under the EIPA for contravening a provision of the Act or its regulations (section 19). Compliance is monitored by the CBSA and Global Affairs Canada.

5.0 Terms and Conditions

5.1 If requested by Global Affairs Canada, a resident of Canada who imports goods under the authority of these Permits must within 10 days after receipt of a request provide the documents and records referred to in section 5.3 in respect of any import made during the period specified in the request.

5.2 After receipt of such a request, the importer must at all reasonable times make the documents and records referred to in section 5.3 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 carbon steel products or specialty steel products, within the specified time period.

5.3 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.

6.0 Permit fees

6.1 No fees are payable.

7.0 Contact Us

7.1 Enquiries may be addressed to:

Steel Unit | L’Unité de l’acier
Trade and Export Controls Bureau | Direction générale de la réglementation commerciale et contrôles à l’exportation
Global Affairs Canada | Affaires mondiales Canada
111 Sussex Drive, Ottawa, Ontario K1A 0G2
E-mail: steel-acier@international.gc.ca