Following an Order published in the Canada Gazette last week, Global Affairs Canada has issued a Notice (Serial No. 1032) advising that effective November 2, 2020, item 80 (Carbon Steel Products) and item 81 (Specialty Steel Products) of the Import Control List, which may be imported under the authority of General Import Permit No. 80 and No. 81, respectively, have been re-added to the ICL, following their deemed removal on November 1, 2020.
It should be noted that the Harmonized System codes associated with each of these items have also been amended.
Scope of Coverage
- Carbon steel products (ICL item 80) include semi-finished products (ingots, blooms, billets, slabs and sheet bars), plate, sheet and strip, wire rods, wire and wire products, railway-type products, bars, structural shapes and units, pipes and tubes, but excludes the specialty steel products referred to in item 81. These items are covered by HS headings 7206-7217, 7225-7229, 7302, 7304-7306.
- Specialty steel products (ICL item 81) refers to stainless steel flat-rolled products (sheet, strip and plate), stainless steel bar, stainless steel pipe and tube, stainless steel wire and wire products, stainless steel in ingots or other primary forms, semi-finished products of stainless steel, alloy tool steel, mold steel and high-speed steel. These items are covered by HS headings 7218-7224, 7301, 7308, 7312-7313, and 7317.
Steel Monitoring Program
Following the Joint Statement by Canada and the United States on Section 232 Duties on Steel and Aluminum in August 2019, whereby the Trump administration agreed to eliminate the tariffs imposed under Section 232 on imports of Canadian steel/aluminum and Canada likewise lifted its retaliatory tariffs, the two countries also agreed to establish a process for monitoring cross-border trade in aluminum and steel and redoubling their efforts to prevent the transshipment of products sold at dumped prices and/or that are unfairly subsidized.
Canada’s steel monitoring program, which has been in place since 1986, provides the domestic steel industry with the most up-to-date information available on nature, volume, price and origin of steel imports in order to provide early warning of potential dumping situations.
Reason for the Change
Faced with persistently adverse market conditions (e.g., overcapacity, widespread subsidization and prevalence of injurious dumping), items 80 and 81 have repeatedly been re-added to the ICL for two- or three-year periods pursuant to subsection 5.1(1) of the Export and Import Permits Act.
These items were last re-added to the ICL in 2017 and were deemed removed from the list on November 1, 2020, three years from the day on which they were previously included. Up to now, such items needed be re-added to the ICL every three years in order for the Program to continue.
Global Affairs notes that owing to a change in legislative authority for the purpose of implementing the Joint Statement, a prescribed end date is no longer called for, thereby enabling the Program to continue without these products having to be periodically re-added to the ICL.
Importer Obligations - Steel Monitoring Program
Steel importers are required to ensure that quantity (in kilograms), value (in Canadian dollars and excluding freight costs), product classification, country of origin, U.S. state of export (if applicable), supplier name and address and importer name are given correctly, if necessary by amending the import documentation.
If requested by Global Affairs Canada, companies importing under the authority of GIP No. 80 (Carbon Steel) and GIP No. 81 (Specialty Steel) must provide the following information within 10 days: Name and the address of the importer or consignee; proof of Canadian residency; date of entry of the goods into Canada; quantity, expressed in kilograms; country of export; country of origin; shipping document(s) separately indicating freight and other transportation costs; HS tariff classification; import value in Canadian dollars; and a detailed description of the goods.
Need More Information?
Should you have any questions about this this amendment to the Import Control List, or if you have any other questions about importing or exporting steel products, don’t hesitate to contact one of our knowledgeable trade experts.
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