Trade Compliance

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New Measures to Monitor Aluminum & Steel Imports into Canada

Posted September 26, 2019


A recent announcement by the Government of Canada outlining new measures designed “to strengthen Canada’s ability to protect steel and aluminum industries, as well as the jobs and communities that rely on them, from unfairly traded imports,” included the establishment of a new aluminum import monitoring regime and additional actions to strengthen the existing monitoring system for steel imports.
Aluminum Rolls
According to the government, the changes made will result in industry having access to more timely import data, making it easier to quickly identify whether the global oversupply of these key metals is making its way to Canada.

Aluminum Imports


Under this new data collection regime — the monitoring program doesn’t limit the quantity of aluminum products that may be imported into Canada — certain aluminum products (see below) have been added to the Import Control List (ICL) as item 83 and as of September 1, 2019 must now cite “General Import Permit (GIP) No. 83” on the B3 import documentation.

Affected Products & Classification Numbers


Alloyed and not alloyed unwrought aluminum products, and wrought aluminum products limited to bars, rods, profiles, wires, plates, sheets, strips, foils, tubes and pipes, tube and pipe fittings and other articles of castings and forgings classified under the following Harmonized System codes: 7601.10.00.20, 7601.10.00.90, 7601.20.00.10, 7601.20.00.21, 7601.20.00.29, 7601.20.00.90, 7604.10.00.30, 7604.10.00.40, 7604.21.00.10, 7604.21.00.90, 7604.29.00.11, 7604.29.00.19, 7604.29.00.21, 7604.29.00.19, 7604.29.00.30, 7605.11.00.00, 7605.19.00.00, 7605.21.00.00, 7605.29.00.00, 7606.11.00.10, 7606.11.00.90, 7606.12.00.11, 7606.12.00.12, 7606.12.00.20, 7606.91.00.10, 7606.91.00.90, 7606.92.00.00, 7607.11.00.10, 7607.11.00.20, 7607.11.00.30, 7607.19.00.00, 7607.20.00.10, 7607.20.00.90, 7608.10.00.10, 7608.10.00.90, 7608.20.00.00, 7609.00.00.00, 7616.99.90.21, 7616.99.90.29, 7616.99.90.30.

Importer Obligations - Aluminum Monitoring Program


In order to enhance the reliability of the data and reduce the burden of post-clearance auditing, importers (who must be Canadian residents) utilizing GIP 83 are asked 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 83 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.

Steel Imports


In terms of the steel monitoring system, under the authority of the EIPA, Global Affairs Canada is now able to ask certain importers of carbon and specialty steel products to submit detailed reports on their imports of steel, which it says "will help identify any possible errors in import data and determine the source of any inconsistencies in a targeted manner."

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.

Non-Compliance


It should be noted that failure to cite the required GIP or not complying with the terms and conditions of the GIP may lead to the assessment of penalties by the Canada Border Services Agency (CBSA) under the Administrative Monetary Penalty System. Importers may also face prosecution under the Export and Import Permits Act for contravening a provision of the EIPA or its regulations (section 19). Compliance is monitored by the CBSA and Global Affairs Canada.

Need More Information?


If you have any questions or concerns about how these changes to the aluminum and steel monitoring programs may impact your company, don’t hesitate to contact us – our trade experts are here to help.

 

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