Canada imposes a surcharge on certain foreign steel products

The Canadian government has put in place provisional safeguard measures on certain steel imports. Since October 25, 2018, a new 25% surcharge has been imposed by the Canadian government on certain steel products. It will be in effect for 200 days pending the Canadian International Trade Tribunal’s inquiry to determine whether final safeguard measures are warranted. It should be recalled that the purpose of this new surcharge is to help Canadian steel manufacturers and to stop dumping.

It is important to note that the surcharge on certain foreign steel products is imposed in excess of a defined quantity of imports. Global Affairs Canada will be responsible for administering import quotas for products not subject to the surcharge through the issuance of import permits.

What steel products are covered by this new surcharge?

The following seven products are subject to the new surcharge:

• heavy plate
• concrete reinforcing bar (rebar)
• energy tubular products
• hot-rolled sheet
• pre-painted steel
• stainless steel wire
• wire rod

An appendix on the Department of Finance website provides a detailed description of the products covered and the associated tariff items. You will also find an annex of the tariff quota volumes for the steel products concerned.

To which countries does the new surcharge apply?

As mentioned on the Department of Finance website, the new surcharge applies to steel products imported from all countries, except for steel products from :

• U.S.: Imports of all product categories are exempt, as they were determined not to contribute importantly to serious injury, or threat of serious injury, given Canada’s imposition of a 25-per-cent surtax on certain steel imports from the U.S. since July 1, 2018.
• Chile, and Israel or other beneficiary of the Canada-Israel Free Trade Agreement: Imports of all product categories are exempt, as they do not account for a substantial share of total imports.
• Mexico: Imports of heavy plate, rebar, hot-rolled sheet, pre-painted steel and stainless steel wire are exempt, as imports from Mexico of these products do not account for a substantial share of total imports for those products. However, energy tubular products and wire rod imported from Mexico are subject to the provisional safeguard.
• Developing countries: Imports of all product categories from beneficiaries of the General Preferential Tariff are exempt, as they do not account for a substantial share of total imports, with the exception of imports of rebar from Vietnam, which are subject to the provisional safeguards.

For any additional information, our consultation service remains at your disposal at consultations@w2c.ca or by telephone at 514 368-2637, option 2.