Posts Tagged ‘steel’


 

Canada Imposes Provisional Safeguard Surtax On Seven Steel Products

Steel Surtax

On October 25, 2018, the Government of Canada imposed a provisional safeguard surtax of 25% on imports of certain steel products.

What Steel Products Are Affected By The Surtax?

  1. Heavy plate
  2. Concrete reinforcing bar (rebar)
  3. Energy tubular products
  4. Hot-rolled sheet
  5. Pre-painted steel
  6. Stainless steel wire
  7. Wire rod

A complete description of the products that are subject and their tariff classifications is found on the Department of Finances website.

What Countries Are Exempt From The Surtax?

  • United States
  • Chile
  • Israel or other beneficiary of the Canada-Israel Free Trade Agreement
  • Mexico
    • However, energy tubular products and wire rod imported from Mexico are subject to the provisional safeguard.
  • Developing countries
    • With the exception of imports of rebar from Vietnam, which are subject to the provisional safeguards.

What Are The Exceptions To The Surtax?

There is a specified quantity of these products that can be imported from each country, free from the safeguard surtax, under Tariff Rate Quotas administered by Global Affairs Canada (GAC). A shipment specific import permit must be obtained from GAC prior to final accounting of the Customs entry (within 5 days of customs release). Global Affairs has a Notice to Importers which includes detailed information about tariff rate quota and permits.

Quota will be issued to importers on a first come, first served, shipment-specific basis. Once the quota runs out, permit applications will be rejected and surtax will be applicable to imports of these products.

What Steps Should An Importer Take?

Review Your Steel Products

Review the steel products you import and compare them to the list on the Department of Finance website. Based on tariff, description and origin, are your steel products subject to the provisional safeguards?

If the products you import are subject to the provisional safeguards, you must advise your customs broker which products fall within the scope, in order to potentially reduce surtaxes by way of Tariff Rate Quotas.

For imports of any subject goods, we recommend copies of your Customs documents are provided a minimum of 48 hours in advance but no more than 5 days in advance of Customs clearance with a request for an import permit. Your Customs documents should include the statement “Goods Subject to Provisional Safeguards” and an indication of which items are subject.

Obtain Your Export and Imports Permits Act File Number

Ensure your companies Export and Import Permits Act File Number with GAC is open and active, then you are able to apply for a Tariff Rate Quota permits. You can check directly with GAC to determine the status of your file number. Once you have confirmation your file number is active, you can send your customs broker the number to add to your account information.

If the products you import are classified under the tariffs listed and originate in a subject Country but are NOT of the specifications listed, ensure your Customs documents include a detailed description and the statement “Goods Not Subject to Provisional Safeguards.”

If your Customs documents do not contain enough information to confirm if the products are subject or exempt, contact your customs broker to verify this information prior to final accounting.

Also, if surtaxes are not paid on subject goods at the time of import, CBSA can issue Detailed Adjustment Statements for the additional amounts and interest, as well as fines for non-payment.

Trade Advice You Can Trust

If you would like assistance verifying if your products fall within the scope of this order, Pacific  Customs Brokers expert Trade Advisors would be happy to assist you. Connect with an experienced Trade Advisor today to get your edge in the world of trade.

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Canadian Steel And Aluminum Importers Can Receive U.S. Surtax Relief At Time Of Import

Steel Railroad

You learned in Are You Eligible To Request Remission Of Canada’s New U.S. Surtaxes? how an importer can receive a refund on surtax paid in special circumstances of steel and aluminum imports. But as an importer of steel or aluminum, what if you could avoid paying the surtax at the time of import?

On October 11th, 2018, Canada Border Services Agency published the United States Surtax Remission Order. The Order notes that certain commodities can be relieved of paying the surtax at the time of import. To be relieved of surtaxes the items must be classified under the tariffs and be of the same description listed in Schedule 1 and Schedule 2 of the remission order. A description of the conditions these products must meet are listed below:

What Steel and Aluminum Commodities are Relieved of U.S. Surtax?

In this Notice, CBSA states “Remission is granted for those goods described in Schedule 1 and Schedule 2 attached to the remission order under the following conditions:

  • (a) the good listed in the schedule was imported into Canada on or after July 1, 2018 and subject to surtaxes;
  • (b) no other claim for relief of the surtax has been granted under the Customs Tariff in respect of the good;
  • (c) the importer makes a claim for remission to the Minister of Public Safety and Emergency Preparedness within two years after the date of importation.
  • (d) the importer files, on request, the evidence or information that the Canada Border Services Agency requires to determine eligibility for remission;
  • (e) the importer agrees that it is subject, at any time, including after the remission, to review by the Canada Border Services Agency for the purpose of determining whether the information supplied by the importer under paragraph (c) or (d) is accurate and complete and whether the facts on which the Canada Border Services Agency relied or intends to rely to determine the eligibility for remission remain unchanged in all material respects; and
  • (f) at the time when the Canada Border Services Agency conducts the review referred to in paragraph (e), the Canada Border Services Agency must be able to conclude that the information supplied remains accurate and complete and that the facts remain unchanged in all material respects.
  • (g) goods described in Schedule 2 must be imported into Canada no later than December 31, 2018.” Canada border Services Customs Notice 18-16, october 11, 2018.

Proof in meeting these criteria must be provided.

What Other Commodities are Relieved of the U.S. Surtax?

Remission is granted for goods classified under tariff item No. 8903.10.00, 8903.91.00, 8903.92.00 or 8903.99.90 in the List of Tariff Provisions set out in the schedule to the Customs Tariff, excluding those that have been exported from Canada and then subsequently re-imported into Canada. Remission for these goods is granted under the following conditions as stated in the Notice:

  • (a) the good was imported into Canada on or after July 1, 2018 and subject to surtaxes;
  • (b) the good was both purchased under contract and sold under contract prior to May 31, 2018;
  • (c) no other claim for relief of the surtax has been granted under the Customs Tariff in respect of the good;
  • (d) the importer makes a claim for remission to the Minister of Public Safety and Emergency Preparedness within two years after the date of importation;
  • (e) the importer files, on request, the evidence or information that the Canada Border Services Agency requires to determine eligibility for remission;
  • (f) the importer agrees that it is subject, at any time, including after the remission, to review by the Canada Border Services Agency for the purpose of determining whether the information supplied by the importer under paragraph (d) or (e) is accurate and complete and whether the facts on which the Canada Border Services Agency relied or intends to rely to determine the eligibility for remission remain unchanged in all material respects; and
  • (g) at the time when the Canada Border Services Agency conducts the review referred to in paragraph (f), the Canada Border Services Agency must be able to conclude that the information supplied remains accurate and complete and that the facts remain unchanged in all material respects.” Canada border Services Customs Notice 18-16, october 11, 2018.

CBSA further states that the remittance will only be granted if they were correctly classified under tariff item No. 8903.10.00, 8903.91.00, 8903.92.00 or 8903.99.90. The item could not have been exported from Canada and then re-imported, unless temporarily imported for repair, alteration or storage. Proof of meeting all criteria must be provided.

Are Goods Temporarily Imported Into Canada Relieved of U.S. Surtax?

Yes, if they were imported for repair, alteration, or storage and the following criteria are met as outlined by the Notice.

  • (a) the goods are exported immediately after having been repaired, altered or removed from storage, whichever occurs last, but no later than twelve months after the date on which the imported goods were released; and
  • (b) no other claim for relief of the surtax has been granted under the Customs Tariff in respect of the goods.
  • (c) the importer makes a claim for remission to the Minister of Public Safety and Emergency Preparedness within two years after the date of importation;
  • (d) the importer files, on request, the evidence or information that the Canada Border Services Agency requires to determine eligibility for remission;
  • (e) the importer agrees that it is subject, at any time, including after the remission, to review by the Canada Border Services Agency for the purpose of determining whether the information supplied by the importer under paragraph (c) or (d) is true, accurate and complete and whether the facts on which the Canada Border Services Agency relied or intends to rely to determine the eligibility for remission remain unchanged in all material respects; and
  • (f) at the time when the Canada Border Services Agency conducts the review referred to in paragraph (e), the Canada Border Services Agency must be able to conclude that the information supplied remains true, accurate and complete and that the facts remain unchanged in all material respects.” Canada border Services Customs Notice 18-16, october 11, 2018.

In order to be eligible for any of these above noted exemptions, the products must both be of a tariff item and description listed in the Department of Finance notice found here: List of Goods Subject to Remission of Countermeasures on Certain Steel and Aluminum Goods from the U.S.

You must also provide proof of meeting these criteria to CBSA. If working with a Customs Broker, you will need to provide supporting documentation to them in order to receive these exemptions.

What If You Already Paid the U.S. Surtax?

If you have already paid surtax on items listed in this post, and would like for us to submit a claim for remission of the surtaxes paid, please provide documentation and/or product literature which proves your product is one of those listed in the linked document above for each import transaction. The CBSA will require this proof in order to review and process the claim for refund of the surtaxes paid. Note: Additional charges will apply for preparing and submitting the request for the refund.

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