Trade Compliance

GHY discusses changes to international trade regulations and explores cutting-edge compliance strategies.

Canada Customs & Other Regulatory Trade Updates: October-November 2018

Posted November 21, 2018


A summary of recent regulatory updates, notifications, and technical bulletins from the Canada Border Services Agency and other federal government departments, agencies and administrative entities concerning Canadian imports and exports.

Canadian Border Services Agency


SR 2018 IN: Certain Sucker Rods
Statutory notice that on November 14, 2018, pursuant to the provisions of SIMA, the CBSA made final determinations of dumping and subsidizing in respect of certain sucker rods from China (usually classified under 8413.91.00.10.

CSWP3 2018 IN: Carbon Steel Welded Pipe
Statement of reasons concerning the preliminary determination with respect to the dumping of carbon steel welded pipe from Pakistan, the Philippines, Turkey and Vietnam. CBSA indicates that its investigation into the margins of dumping ahead of making a final decision by January 16, 2019.

CSWP1 2018 ER: Certain Carbon Steel Welded Pipe
Statement of reasons concerning the review determination made pursuant to SIMA regarding the dumping and subsidizing of certain carbon steel welded pipe from China which found that expiry of the order would likely result in the continuation or resumption of dumping and/or subsidization of the subject goods.

TC 2018 ER: Certain Thermoelectric Containers
Following initiation of an expiry review order by the CITT concerning the dumping and subsidizing of certain thermoelectric containers that provide cooling and/or warming with the use of a passive heat sink and a thermoelectric module, excluding liquid dispensers, originating in or exported from China, the CBSA has initiated its own investigation to determine whether expiry is likely to result in the continuation or resumption of dumping and/or subsidizing of the subject goods.

CRS 2018 IN: Cold-Rolled Steel
Notice that on October 31, 2018, the CBSA made final determinations of dumping and subsidizing with respect to certain cold-rolled steel in coils or cut lengths from China, South Korea and Vietnam.

AE 2018 SP: Certain Aluminum Extrusions
Statutory notice that the CBSA has initiated a scope proceeding under SIMA respecting certain aluminum extrusions from China.

Customs Notice 18-20: Grace Period for Late Accounting Penalty (LAP) related to the U.S. Surtax Remission Order
Notification that CBSA has decided to provide for a 2-week grace period (LAP waiver) for LAPs that were released between: October 11, 2018 to October 25, 2018, inclusively with respect to the United States Surtax Remission Order.

Customs Notice 18-19: Cannabis Customs Excise Duty Procedures
Notification detailing the calculation of the amounts of cannabis duty and additional cannabis duty to be imposed on packaged cannabis products, as per legislative changes to the Excise Act, 2001, when importing these goods into Canada.

Customs Notice 18-18: Amendment 14 to the Energy Efficiency Regulations
Notification advising that Amendment 14 to the Energy Efficiency Regulations is anticipated to be published in Canada Gazette Part II in fall 2018, as Natural Resources Canada (NRCan) indicated in the Forward Regulatory Plan 2018-2020.

Customs Notice 18-17: Provisional Safeguard Measures Imposed on the Importation of Certain Steel Goods
Information concerning the implementation of the Order imposing a 25% safeguard surtax on the importation of certain steel goods (excluding those imported from the U.S. and several other countries), which comes into force October 25, 2018.

Customs Notice 18-16: United States Surtax Remission Order
Information concerning the introduction and application of the United States Surtax Remission Order, 2018-1272, which is intended to minimize the negative effects of the surtaxes on Canadian companies and the economy by providing relief in exceptional situations.

COR 2018 IN: Corrosion-Resistant Steel Sheet
Notice that CBSA has made a preliminary determination of dumping with respect to certain corrosion-resistant steel sheet from China, Taiwan, India and South Korea. Based on the estimated margin of dumping, provisional duties will be applied at rates ranging from 2.6% to 44.2%.

CSWP3 2018 IN: Carbon Steel Welded Pipe
Notice that CBSA has made a preliminary determination of dumping with respect to certain carbon steel welded pipe from Pakistan, the Philippines, Turkey and Vietnam. Based on the estimated margin of dumping, provisional duties will be applied at rates ranging from 3% to 95%.

CSWP1 2018 ER: Certain Carbon Steel Welded Pipe
Statutory notice that a CBSA investigation into the dumping and subsidizing of certain carbon steel welded pipe originating in or exported from China found that expiry of the 2013 order covering the subject goods would likely result in continuation or resumption of dumping and subsidization.

BSF5197: Cannabis Document
Brochure advising that taking cannabis (marijuana) or products containing cannabis across the border remains illegal.

SM 2018 ER: Certain Silicon Metal
Following the expiry review initiated by the CITT on October 16 concerning the dumping and subsidizing of certain silicon metal originating in or exported from China, CBSA has initiated an expiry review investigation to determine whether expiry of the finding is likely to result in the continuation or resumption of dumping and/or subsidizing.

Memorandum D19-9-2: Importation and Exportation of Cannabis, Controlled Substances and Precursors
This memo outlines the pertinent regulatory requirements and roles and responsibilities of law enforcement agencies associated with the import and export of controlled substances and precursors (including transit and transhipment) regulated under the Controlled Drugs and Substances Act.

FISC 2018 SP: Certain Fabricated Industrial Steel Components
Statement of essential facts in SIMA scope proceeding initiated by CBSA on July 26, 2018 regarding certain fabricated industrial steel components originating in or exported from China, South Korea and Spain. This is the CBSA’s first scope proceeding since they were enacted into law as a result of changes to the SIMA and the Special Import Measures Regulations that came into force on April 26, 2018.

Canadian Food Inspection Agency


Web Notice 20181113: Update to the List of Establishments Approved to Export Live or Raw Molluscan Shellfish from France to Canada
Addition of Chiron Fils to the list.

MHD-2018-21: Chapter 11 of the Meat Hygiene Manual of Procedures – Japan
Directive advising that the MHMOP has been updated to reflect amended Japanese requirements for use of artificial gelatin or collagen casings.

D-16-02: Administration of the United States – Canada Greenhouse-Grown Plant Certification Program
Guidance regarding the delivery of the US–Canada Greenhouse-Grown Plant Certification Program, a bilateral export certification program for greenhouse-grown plants shipped between Canada and the continental United States.

Canadian International Trade Tribunal

 

AP-2017-061: Atlas Trailer Coach Products Ltd. v. President of the CBSA
The issue in this appeal is whether “Fastway e2 Sway Control Hitches” are properly classified under tariff item No. 8708.99.99 as “parts and accessories of the motor vehicles of headings 87.01 to 87.05,” as determined by the CBSA, or should be classified under tariff item No. 8302.49.90 (or 8302.49.00 since October 1, 2014) as “base metal mountings, fittings and similar articles suitable for... coachwork... or the like,” as contended by Atlas. Rejecting the appellant’s argument that would expand the meaning of “coachwork or the like” to include a towing hitch, the CITT found the goods were properly classified under heading 87.08 and dismissed the appeal accordingly.

AP-2017-002: Lone Pine Supply Ltd. v. President of the CBSA
The issue in this appeal is whether certain woven polypropylene bags are classified under tariff item No. 9903.00.00 as articles for use in agricultural or horticultural machines of heading No. 84.36. The bags attach directly to an automated bagger carousel, from which they are filled with sawdust, sewn shut and removed to be stacked on pallets. Central to the appeal is a determination concerning whether the functionality of the “host good” constitutes an agricultural or horticultural machine of heading No. 84.36. The appeal was dismissed after the CITT concluded that the “host good” in question did not qualify as an agricultural machine, but instead should be classified individually as a bagger carousel for industrial use.

AP-2017-045: Costco Wholesale Canada Inc. v. President of the CBSA
The issue in this appeal is whether “Quick Lock Trekking Poles” are properly classified under 6602.00.90 as “walking-sticks, seat‑sticks, whips, riding crops and the like,” as determined by the CBSA, or should be classified under 9506.91.90 as “articles and equipment for general physical exercise, gymnastics or athletics,” as Costco argues. In accordance with General Rules, the CITT found heading 66.02 to be the preferred classification of the two proposed by virtue of the heading providing the most specific description of the subject goods. The appeal was therefore dismissed.

AP-2017-035: Engineered Floors, LLC v. President of the CBSA
The issue in this appeal is whether certain machine-tufted carpets produced by Engineered Floors, LLC (EFL) and exported to Canada are entitled to preferential NAFTA tariff treatment. Despite being manufactured in the U.S. from imported materials, CBSA has ruled that the subject carpets did not meet the specific requirements set out in the NAFTA rules of origin. EFL advanced an origin calculation method that was rejected by the Tribunal as having no basis in law and therefore the appeal was dismissed.

NQ-2018-004: Corrosion-Resistant Steel Sheet
Notice pursuant to SIMA that the CITT has initiated an inquiry to determine whether the dumping of certain corrosion-resistant flat-rolled steel sheet products of carbon steel, originating in or exported from China, Taiwan, India, and South Korea, has been or threatens to be injurious to domestic producers.

NQ-2018-003: Carbon Steel Welded Pipe
Notice pursuant to SIMA that the CITT has initiated an inquiry to determine whether the dumping of certain carbon steel welded pipe originating in or exported from Pakistan, Philippines, Turkey and Vietnam, has been or threatens to be injurious to domestic producers.

LE-2018-007: Hot-Rolled Carbon Steel Plate and High-Strength Low-Alloy Steel Plate
Notice pursuant to SIMA that a 2013 order by the CITT concerning certain hot-rolled carbon steel plate and high-strength low‑alloy steel plate not further manufactured than hot-rolled, heat‑treated or not, originating in or exported from Bulgaria, the Czech Republic and Romania is scheduled to expire on January 6, 2019, unless an expiry review is initiated by the Tribunal in response to submissions by domestic producers and others.

LE-2018-006: Structural Tubing
Notice pursuant to SIMA that a 2013 order by the CITT concerning certain structural tubing originating in or exported from South Korea and Turkey is scheduled to expire on December 19, 2018, unless an expiry review is initiated by the Tribunal in response to submissions by domestic producers and others.

RR-2018-004: Thermoelectric Containers
Notice that the CITT will be initiating an expiry review of a prior order scheduled to expire on December 8, 2018, concerning the dumping and subsidizing of thermoelectric containers that provide cooling and/or warming with the use of a passive heat sink and a thermoelectric module, excluding liquid dispensers, originating in or exported from China.

RR-2018-003: Silicon Metal
Statutory notice pursuant to SIMA advising that CITT is initiating an expiry review of a 2013 finding concerning the dumping and subsidizing of certain silicon metal, of all forms and sizes, originating in or exported from China.

RR‑2017-005: Carbon Steel Welded Pipe
An expiry review pursuant to SIMA of a 2012 finding of threat of injury made by the CITT concerning the dumping of certain carbon steel welded pipe, commonly identified as standard pipe, including water well casing, piling pipe, sprinkler pipe and fencing pipe, originating in or exported from South Korea, Taiwan, India, Oman, Thailand and the United Arab Emirates, and the subsidizing of the aforementioned goods originating in or exported from India. Following examination of relevant factors, the CITT has decided to continue its finding concerning the threat posed to domestic producers.

Environment and Natural Resources


Prohibition of Asbestos and Products Containing Asbestos Regulations
Regulations prohibiting the import, sale and use of asbestos and the manufacture, import, sale and use of products containing asbestos, with limited exclusions.

Global Affairs Canada


Message to Industry: Steel Safeguard Tariff Rate Quotas
Advisory pertaining to imports of certain steel goods as listed in the Order Imposing a Surtax on the Importation of Certain Steel Goods informing importers that shipment-specific import permits can now be requested up to five days prior to a shipment’s arrival and until – and including – the day of final accounting with CBSA.

Notice to Importers: Item 82 – Steel Goods
Notification advising importers of the procedures governing the administration of provisional safeguards, in the form of tariff rate quotas (TRQ), for certain steel goods that are listed in item 82 on the Import Control List (ICL). These goods were added to the ICL to implement the Order Imposing a Surtax on the Importation of Certain Steel Goods (Surtax Order). The Surtax Order establishes provisional safeguards in the form of TRQs for steel goods matching the product descriptions specified in the column 2 of the Schedule to the Surtax Order, above which a 25% surtax will apply.

Sign Up for Trade News, Compliance Updates and More