Effective , certain steel goods imported into Canada are subject to a surtax in the amount of 50% of the value for duty in accordance with the Order Imposing a Surtax on the Importation of Certain Steel Goods. The value for duty is determined in accordance with sections 47 to 55 of the Customs Act. Schedule 1 to the Order Imposing a Surtax on the Importation of Certain Steel Goods (Schedule 1) contains a complete list of goods subject to the surtax.
The Order imposes temporary trade measures in the form of separate tariff rate quotas (TRQ) for one year on imports of flat, long, pipe and tube, semi-finished, and stainless steel products from non-free trade agreement countries. Imports above these volumes for each of the five classes of steel goods will be subject to a surtax in the amount of 50% of the value for duty in accordance with the Order.
The annual quota is divided into quarterly periods, with any unused quantity from previous periods being carried forward into the following period. The quota available in each quarter is also subject to a quantity limit per country of origin. Any volumes imported above the quota will be subject to a 50% surtax.
Surtax will apply to steel imports if:
- the quantity of goods of the same class imported during the same quarterly period exceeds the total set out in column 2 of Schedule 1 for that class; or
- the quantity of goods of the same class that originate in the same country and are imported during the same quarterly period exceeds the quantity determined by multiplying the percentage set out in column 3 of Schedule 1 by the total set out in column 2 of Schedule 1 for that class.
Importers must have a shipment-specific permit to declare the importation is under the TRQ and is not subject to the surtax. Importers may apply for a shipment-specific import permit under item 82 of the Import Control List in accordance with subsection 8(1) of the Export and Import Permits Act. Import permits will not be issued once the quantities indicated in Schedule 1 to the Order have been reached. Goods may continue to be imported under General Import Permit No. 80 or 81, as applicable, in excess of the limits set out in the Order, but will be subject to the surtax. The shipment-specific permit must apply to steel goods listed in item 82 of the Import Control List and must be valid at the time the goods are accounted for under the Customs Act.
GAC monitors quota utilization for item 82 on an ongoing basis. Importers are responsible for consulting GAC‘s online utilization reports to track quota availability. The surtax will apply automatically to goods imported without a shipment-specific permit, regardless of whether a permit is pending or unavailable at the time of entry. Importers may obtain permits retroactively, if eligible. Upon applying for and receiving a permit from GAC, importers may make a request to the CBSA for a refund of the amount of surtax paid on shipments imported without a permit.
The country of origin used to determined surtax applicability shall be determined in accordance with the Determination of Country of Origin for the Purposes of Marking Goods (Non-CUSMA Countries) Regulations and Determination of Country of Origin for the Purpose of Marking Goods (CUSMA Countries) Regulations.
The surtax will apply to steel goods imported for commercial purposes.
Steel goods originating in a country not listed in Schedule 2 to the Order Imposing a Surtax on the Importation of Certain Steel Goods are subject to surtax, even when exported from a country listed in Schedule 2.
The surtax applies to goods otherwise classifiable under a tariff item set out in Schedule 1 to the Order Imposing a Surtax on the Importation of Certain Steel Goods but that are classified under a tariff item of Chapter 99 of the Schedule to Canada’s Customs Tariff. Chapter 99 includes tariff items that would allow goods to receive a duty free rate or reduced duty rate.
Canada’s Duties Relief and Duty Drawback Programs will be available to importers for surtax paid or owed by Canadian businesses, subject to the provisions of the Canada-United States-Mexico Agreement (CUSMA).
The CBSA may conduct a verification to verify importers possess a valid GAC-issued shipment-specific import permit. In instances where the importer does not possess valid documentation, the CBSA may re-calculate the amount of surtax owing.