Further to the report issued by the Canadian International Trade Tribunal on 3rd April 2019 in Safeguard Inquiry No. GC-2018-001 (Certain Steel Goods), final safeguard measures were imposed on imports of heavy steel plate products and stainless steel wire products as of Monday 13th May.
The final safeguard measures were not announced until Friday 10th May in a customs notice published by the Canada Border Services Agency (CBSA) and a notice to importers issued by Global Affairs Canada. The measures are in the form of tariff rate quotas (TRQs), and the quotas are being administered in the following three stages:
As of Wednesday 15th May — within just three days of the new TRQs opening on 13th May on a first-come, first-served basis — 98.9 percent of the first-stage quota for heavy steel plate had been filled and 75.7 percent of the first-stage quota for stainless steel wire had been filled. This is one of the reasons why the Tribunal considered in its Report that the “first-come first-served method for administering [quota] has caused considerable disruption and uncertainty in the market” and made the recommendation that “the Governor in Council should consider alternative methods of allocation” for the final safeguard measures.
For importers with a historical record of import volumes during the one-year reference period, applications are currently being accepted by Global Affairs Canada for second-stage quota allocations. Applications must be made using “Application Form 3145” and submitted no later than 24th May 2019 to email address firstname.lastname@example.org. These allocations should provide greater certainty to importers who rely on well-established supply chains to serve the needs of their Canadian customers under long-term contracts by providing them with a guaranteed in-quota volume regardless of when their shipments arrive in Canada.
When heavy steel plate and stainless steel wire products that are subject to the final safeguard measures are imported without a shipment-specific import permit or a quota allocation, a “safeguard surtax” (i.e., an additional amount of duty) will be applied as follows:
Tereposky & DeRose regularly provides advice on Canadian trade matters, including safeguard actions. Should you have any questions regarding this matter, we are at your disposal.