Current Updates on the Steel Tariffs & Safeguards

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Here at JORI International Ltd., we strive to keep you informed with the latest news.  It important to know the following changes on the horizon for the imposed steel tariffs and safeguards. However, keep in mind that there has been a lot of confusing and misleading information circulating surrounding the information regarding the steel tariffs and safeguards. Thus, we always encourage to contact your JORI representative for any questions or clarifications that you may have.

As reported by the Canadian Society of Customs Brokers (CSCB) on May 1st, 2019:

The Order Amending the United States Surtax Order (Other Goods) was approved and registered earlier this week (registration #SOR/2019-111). This Order amends the United States Surtax Order (Other Goods) to remove boats (tariff items 8903.10.00, 8903.91.00, 8903.92.00 and 8903.99.90) from the list of goods subject to Canada’s countermeasures against certain imports from the U.S., effective April 30, 2019. As such, all boats imported on or after April 30, 2019, are no longer subject to surtaxes on a forward basis.

The change is reflected on the Department of Finance website: https://www.fin.gc.ca/access/tt-it/cacsap-cmpcaa-1-eng.asp

Furthermore, there is provisional surtax refunds on 5 classes of goods as stated below between the Canadian Society of Customs Brokers (CSCB) &Canada Border Services Agency (CBSA):

CSCB has received a response from CBSA, after following up with them regarding refunds on provisional surtax. Members are aware that Finance Canada announced that the 25% provisional surtax imposed October 2018 on concrete reinforcing bar, energy tubular products, hot-rolled sheet, pre-painted steel and wire rod ended on Sunday April 28th, 2019

Following are some questions and answers that will be helpful to members.

CSCB: Has the CBSA made any decisions regarding the process of refunding the provisional surtax collected between October 2018 and April 2019?

CBSA: In order to commence the refund process of the provisional surtax, an Order In Council must be issued and we expect this OIC to be published within the coming weeks.  Once it is received, we expect the OIC will reflect the refund process that exists under the Special Import Measures Act (SIMA) and the provisional surtax will be automatically refunded to the importer.

CSCB: Will this process require the filing of a B2?

CBSA: Provisional duties are typically refunded without benefit of a B2 and we do not anticipate a change of the existing process. 

CSCB will provide more information as it becomes available.

Take note of the Notice to Importers No. 944 as of April 29, 2019:

Global Affairs Canada has posted Notice to Importers No. 944. This notice informs 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).

From April 29, 2019  until the end of the provisional safeguard period on May 12, 2019 there are two provisional TRQs that remain in force.  This notice address these two provisional TRQs.

In addition, it was reported on April 26, 2019 by the CBC that:

Only two kinds of foreign steel imports, heavy plate and stainless steel wire, will continue to face trade remedies to protect Canada's steel industry, Finance Minister Bill Morneau announced Friday.

His decision on final safeguards follows the advice of the Canadian International Trade Tribunal, which earlier this month found no justification to continue a surtax on five other products that have also been subject to a provisional 25 per cent surtax since last October.  That provisional surtax on concrete reinforcing bar, energy tubular products, hot-rolled sheet, pre-painted steel and wire rod ends on Sunday. The surtax was triggered only when import volumes exceeded historical averages. 

Friday's release from the Finance Department did not specify what form the final safeguard action against these two products would take. Morneau's office said that would be announced "in the coming days."

To read the full story, https://www.cbc.ca/news/politics/morneau-steel-safeguards-friday-1.5112152

For any questions or concerns, please contact your JORI Representative or our Customs Manager directly at elaine@jori.ca.