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Canada To Impose Surtax On Import Of Certain Steel Goods

By Pacific Customs Brokers, Pacific Customs Brokers Oct 12, 2018

The Government of Canada has Ordered a surtax on the importation of certain steel goods to come into force on October 25th, 2018.

The surtax will not affect all steel goods being imported, only certain steel goods coming into Canada. The types of steel imports the Order will affect are:

  • Steel Plate
  • Concrete Reinforcing Bar
  • Energy Tubular Products
  • Hot-Rolled Sheet
  • Pre-Painted Steel
  • Stainless Steel Wire
  • Wire Rod

Exemptions From The Steel Surtax

The Order applies to all countries except the U.S., Chile, Israel, Mexico, and General Preferential Tariff countries. Below is more detail on how it affects each of these countries.

The U.S., Chile and Israel

The Order does not apply to steel goods originating in and importing from the U.S., Chile, and Israel, as well as any other beneficiary from the Canada-Israel Free Trade Agreement.

Mexico

For Mexico, the Order only applies to energy tubular products and wire rod.

General Preferential Tariff, Except Vietnam

The Order also does not apply to many developing countries who are beneficiaries of the General Preferential Tariff. The one exception is for Vietnam, concrete reinforcing bar from Vietnam will not be exempt from the Order.

It is important to note all of the certain steel goods eligible for the exemption must both originate in and be imported from the same country. Therefore a steel plate originating from Finland but being imported from the U.S. would not be exempt from the Order’s surtax.

Stay Up-To-Date On The Steel Surtax Order

You will continue to receive updates from Pacific Customs Brokers on how the order is being enforced, and how you may still be able to import certain amounts of steel, free of surtax, with shipment specific permits.

For further information on the Government of Canada Ordering a surtax on certain steel goods you can read the update from Canada Border Services Agency, the update from the Department of Finance Canada, or talk with an expert trade advisor from Pacific Customs Brokers.