Provisional Safeguard Surtax on Certain Imported Steel

On October 25, 2018, the Department of Finance Canada applied a provisional safeguard surtax on steel products in seven product categories. The purpose of the surtax is to prevent the diversion of foreign steel products into Canada.

The Order Imposing a Surtax on the Importation of Certain Steel Goods (Surtax Order) will be applicable to imports from all countries, with the exception of:

  • United States
  • Chile
  • Mexico, other than energy tubular products and wire rod originating in and imported from Mexico
  • Israel or another CIFTA beneficiary
  • A country benefiting from GPT, other than concrete reinforcing bar originating in and imported from Vietnam

How the Surtax Works

The 25% surtax is payable at time of importation into Canada unless an import permit has been obtained and is in addition to any regular customs duties, and/or SIMA applications.

The quantity of goods allowed for each import permit are quota-specific on a first come, first served basis. In addition, the import permit is good for only 14 days, after which time they become obsolete.

The surtax applies to the following seven (7) categories of steel products: 

  • Heavy plate
  • Concrete reinforcing bar
  • Energy tubular products
  • Hot-rolled sheet
  • Pre-painted steel
  • Stainless steel wire
  • Wire rod

The following sites provide more details on the Surtax Order:

Global Affairs Canada – Notice to Importers: Item 82 – Steel Goods

Global Affairs Canada – Frequently Asked Questions: Steel Goods Tariff Rate Quotas

Finance Canada – Backgrounder: Support for Canadian Steel Producers Through Provisional Safeguards on Certain Steel Imports

United States Remission Order

The United States is not open to quotas and the 25% and 10% surtaxes are still in effect.

Certain steel and aluminum goods may be eligible for relief of the surtaxes paid or payable. Relief has been granted on some goods effective July 1, 2018 for an indefinite period while others for a limited period from July 1, 2018 to December 31, 2018.

Further details on the United States Remission Order may be found at:

Canada Border Services Agency – Customs Notice 18-16: United States Surtax Remission Order

We Can Help

We highly recommend you obtain an Advance Ruling on your products to ensure proper assessment at time of importation. 

If you have any questions regarding Canada‚Äôs retaliatory surtaxes, please contact our Customs Consulting Department or your nearest PF Collins office.

We offer a full range of Customs Brokerage and Customs Consulting services to assist with all your importing and exporting needs.

 

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