Is my business subject to surcharges on steel and aluminum imports?
Recently, the Trump Administration decided to lift Canada’s exemption from surcharges on certain steel and aluminum products originating in Canada. It is important to note that the terms “originating in a country” refer to the country of manufacture and not the country of origin. Today, the only countries still benefiting from this exemption are Argentina, Brazil and South Korea.
The 25% and 10% surcharges imposed on certain steel and aluminum products affect several Canadian companies. Many of you are wondering if your business is affected by these surcharges. Here are some tips to guide your questioning.
Review affected tariff items
As a first step, we suggest that you carefully analyze the tariff items that are affected by these surcharges. These amend the Sub-chapter III of Chapter 99 of the ‘’Harmonized tariffs Schedule of the United States’’ (HTSUS) and affect the following tariff items for steel (25% surcharge):
- 7206.10 through 7216.50;
- 7216.99 through 7301.10;
- 7302.10, 7302.40 through 7302.90;
- 7304.10 through 7306.90.
And the following tariff items for aluminum (10% surcharge):
- 7601 -Unwrought aluminum;
- 7604 -Aluminum bars, rods, and profiles;
- 7605 -Aluminum wire;
- 7606 and 7607 -Aluminum plate, sheet, strip, and foil (flat rolled products);
- 7608 and 7609 -Aluminum tubes and pipes and tube and pipe fitting;
- 7616.99.51.60 and 7616.99.51.70 -Aluminum castings and forgings.
Take the time to properly classify your products
Then ask yourself the following questions: Are our goods properly classified? Are they in the right product category? For example, forged products could easily be classified in Chapters 72 or 73 and be affected by the 25% surcharge, but if these are designed specifically to be used in the making of something like an aircraft, their classification could be different, and these products could be exempt from the surcharge.
For more information, do not hesitate to contact our consultation service by email at consultations@w2c.ca, or by calling us: 514-268-2637, option 2.