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Notice to Importers – Steel Goods (Item 82 on the Import Control List)
Serial No. 983
Date: December 31, 2019
1.0 Purpose, Coverage and Duration
1.1 The purpose of this Notice is to inform importers of the procedures governing the administration of 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) for the period beginning on February 1, 2020 and ending after October 24, 2021.
1.2 These goods are included on the ICL to implement the Order Amending the (Surtax Order). The Surtax Order establishes safeguards in the form of TRQs for steel goods matching the product descriptions specified in column 2 of the Schedule to the Surtax Order, above which a surtax will apply. The TRQs and surtax rates vary annually. Details regarding the TRQs and surtax rates applicable in each given period can be found in from the Canada Border Services Agency (CBSA).
1.3 This Notice applies to steel goods other than those originating in:
- Canada;
- Chile;
- Colombia;
- Israel or another CIFTA beneficiary;
- Korea;
- Mexico;
- Panama;
- Peru;
- the United States; and
- a World Trade Organization Member country benefiting from the General Preferential Tariff.
1.4 This Notice does not apply to imports of steel products that do not meet the product descriptions specified in column 2 of the Schedule to the Surtax Order.
1.5 Goods that are not subject to the Surtax Order may continue to be imported under General Import Permit No. 80 or General Import Permit No. 81, as the case may be.
1.6 The TRQs will be administered by way of shipment-specific import permits. The TRQs will be administered until the Surtax Order is amended or repealed by the Governor in Council, or ceases to have effect pursuant to section 56 of the Customs Tariff.
1.7 This Notice will remain in effect until October 24, 2021, unless superseded by a further Notice or otherwise repealed.
2.0 Authority
2.1 Steel goods subject to the Surtax Order were placed on the ICL on October 25, 2018 under the authority of subsection 5(6) and section 6 of the Export and Import Permits Act (EIPA).
3.0 Method of Administration
3.1 There are two TRQs: one for stainless steel wire, and one for heavy plate. The commodity goods covered by each TRQ are set out in the .
3.2 In order to facilitate the proper administration of the TRQs, the issuance of shipment-specific import permits will be administered on an allocated basis, based on the methodology set out in this Notice.
3.3 Pursuant to the Surtax Order, ¶¶ÒùÊÓƵ has established quantities of subject goods that may be imported into Canada under item 82 on the ICL in each quota period:
Quota Period | Dates | TRQ Quantities |
---|---|---|
1 Unutilized quantities of quota from June 3, 2019 to January 31, 2020 will also be available for the residual pool (per paragraph 3.5.1). | ||
1 | February 1, 2020 to May 12, 20201 | Heavy plate: 27,595,333 kg Stainless steel wire: 772,333 kg |
2 | May 13, 2020 to May 12, 2021 | Heavy plate: 110,000,000 kg Stainless steel wire: 3,080,000 kg |
3 | May 13, 2021 to October 24, 2021 | Heavy plate: 54,699,000 kg Stainless steel wire: 1,532,000 kg |
3.4 The TRQ quantities noted in the quota periods will be divided into two pools: i) an allocation pool, available for eligible applicants based on their import history during the reference period; and ii) a residual pool, available on a first-come, first-served basis to those who do not hold allocations.
3.4.1 Applications from all importers will be accepted. However, an allocation will only be issued to importers that accounted for at least 0.5% of import share during the 12-month reference period from July 1, 2017 to June 30, 2018.
3.4.2 Eligible allocation applicants may be allocated, from the allocation pool, the lesser of: 1) the maximum possible allocation, as determined by their historical imports; or 2) the requested amount in their application.
3.4.3 Any remaining unallocated portions will then form the residual pool. Permits for the residual pool will be issued on a first-come, first-served basis to applicants that did not receive an allocation.
3.4.4 Unutilized TRQ quantities from one quota period will not be transferable to the subsequent quota period.
3.5.5 A list of heavy plate and stainless steel wire allocation holders will be published on ¶¶ÒùÊÓƵ’s website. The list will provide the names of the allocation holders without disclosing individual quota quantities or utilization.
Quota Period 1
3.5 Applications for a quota allocation, to be utilized between February 1 and May 12, 2020, will be accepted by ¶¶ÒùÊÓƵ between January 1 and January 22, 2020. Applications must be submitted no later than January 22, 2020. Application Form 3145 must be submitted by e-mail to steel-acier@international.gc.ca.
3.5.1 Any quota that went unutilized during the period between June 3, 2019 and January 31, 2020 will be transferred into the residual pool for access on a first-come, first-served basis.
3.5.2 Quota allocations will be issued to eligible importers by January 29, 2020. The application period for shipment-specific import permits in the Export and Import Control System will open at 4:00 a.m. EST on February 1, 2020.
3.5.3 Allocation holders will be able to access the residual pool as soon as they have utilized the entirety of their allocation.
3.5.4 In order to maximize TRQ utilization, allocation holders that do not intend to utilize the entirety of their allocation by May 12, 2020 are requested to return any quantities that they do not intend to utilize as early as possible before May 12, 2020.
Quota Period 2
3.6 Applications for a quota allocation, to be utilized between May 13, 2020 and May 12, 2021, will be accepted by ¶¶ÒùÊÓƵ between April 8 and April 29, 2020. Applications must be submitted no later than April 29, 2020. Application Form 3145 must be submitted by e-mail to steel-acier@international.gc.ca.
3.6.1 Quota allocations will be issued to eligible importers by May 6, 2020. The application period for shipment-specific import permits in the Export and Import Control System will open at 4:00 a.m. EST on May 13, 2020.
3.6.2 Allocation holders that have utilized the entirety of their allocation will be able to access the residual pool, starting February 1, 2021.
3.6.3 In order to maximize TRQ utilization, allocation holders that do not intend to utilize the entirety of their allocation by May 12, 2021 are requested to return any quantities that they do not intend to utilize before February 1, 2021. Returned quantities will be added to the residual pool. Any portion of an allocation that is returned by that date will be considered as having been used for purposes of administering the under-utilization policy identified in paragraph 3.6.4.
3.6.4 Allocation holders that do not utilize the entirety of their allocation before May 12, 2021 will have their allocation in quota period 3 adjusted downward by subtracting the amount of quota left unutilized in this quota period.
Quota Period 3
3.7 Applications for a quota allocation, to be utilized between May 13 and October 24, 2021, will be accepted by ¶¶ÒùÊÓƵ between April 8 and April 29, 2021. Applications must be submitted no later than April 29, 2021. Application Form 3145 must be submitted by e-mail to steel-acier@international.gc.ca.
3.7.1 Quota allocations will be issued to eligible importers by May 6, 2021. The application period for shipment-specific import permits in the Export and Import Control System will open at 4:00 a.m. EST on May 13, 2021.
3.7.2 Allocation holders that have utilized the entirety of their allocation will be able to access the residual pool, starting August 25, 2021.
3.7.3 In order to maximize TRQ utilization, allocation holders that do not intend to utilize the entirety of their allocation by October 24, 2021 are requested to return any quantities that they do not intend to utilize before August 25, 2021. Returned quantities will be added to the residual pool.
4.0 Import Permits
4.1 Types of Permits
4.1.1 An import permit issued by ¶¶ÒùÊÓƵ is required for shipments of steel goods covered by this Notice.
4.1.2 Importers may either present a shipment-specific permit or invoke the appropriate General Import Permit (GIP).
4.2 Shipment-Specific Permits
4.2.1 Shipment-specific permits are issued on demand for shipments of steel goods under the TRQs covered by this Notice. Importers may apply for an import permit up to five days in advance of, and no later than, the shipment’s arrival.
4.2.2 For shipment-specific permit applications, all quantities must be requested in kilograms. All permit applications submitted in metric tonnes will be rejected.
4.2.3 Shipment-specific import permits are valid for thirty calendar days.
4.2.4 For a shipment to be free of the surtax, the importer must present a valid shipment-specific import permit to the Canada Border Services Agency (CBSA) at the time of final accounting.
4.2.5 Unutilized expired permits may be automatically cancelled by ¶¶ÒùÊÓƵ.
4.2.6 For a shipment-specific import permit to be considered valid, the name on the permit must match the name of the importer on the B3-3 Canada Customs Coding Form and related documents at time of final accounting. It is incumbent on the party granted the permit to ensure that a permit application is made in the name of the importer of record and includes the correct quantity. Quantities of a shipment that exceed the amount on the permit will be subject to the surtax. For information on how customs entry documents should be completed, refer to CBSA .
4.3 General Import Permits
4.3.1 Goods imported without a valid shipment-specific permit must be imported under the authority of General Import Permit No. 80 or General Import Permit No. 81, as the case may be. There is no limit to the quantities of steel that may enter Canada under the General Import Permits, but such imports will be subject to the surtax.
4.4 How to Apply for a Permit
4.4.1 Information about the permit application process, the monthly billing system, information required from applicants, and the permit application form, is available on the ¶¶ÒùÊÓƵ website: .
4.4.2 Applications submitted without a broker must be sent to ¶¶ÒùÊÓƵ at the Export Import Controls System Help Desk.
4.4.3 Detailed information on permit fees can be found on the ¶¶ÒùÊÓƵ website: .
4.5 Permit Amendments and Cancellations
4.5.1 Importers who have been issued a shipment-specific permit should immediately inform ¶¶ÒùÊÓƵ in writing if the permit will not be utilized.
4.5.2 To amend a permit, an importer must submit a Cancellation Form: .
4.5.3 Cancellation forms must be accompanied with the following supporting documentation:
- CBSA Form B3 commercial invoice;
- Bill of Lading; and
- Canada Customs Invoice.
5.0 Contact Us
5.1 Contact details for the Steel Controls Unit and the Help Desk are available on the Global Affairs website: Contact Us.
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