25 Nov 2019

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Global Affairs Canada opens Public Consultations concerning How Steel Safeguard Quotas should be Administered from 1st February 2020 through 24th October 2021

On 25th November 2019, Global Affairs Canada announced the commencement of public consultations concerning how the final safeguard measures on imports of heavy steel plate and stainless steel wire should be administered after 31st January 2020.

The final safeguard measures have been imposed in the form of tariff rate quotas (TRQs) on imports of these products since 13th May 2019 (see “Final Safeguard Measures Imposed on Imports of Heavy Steel Plate and Stainless Steel Wire”). During the current allocation period, which began on 3rd June 2019 and will end on 31st January 2020, quota allocations have been administered through two pools: (i) an “allocation pool”, from which allocations are granted to applicants based on their historical import activities; and (ii) a “residual pool”, which is available on a “first-come, first-served” basis to all other applicants. This methodology has provided vital certainty to Canadian importers and end-users who rely upon well-established, long-term supply chains, while also providing some flexibility to other stakeholders. However, Global Affairs Canada is currently considering whether to continue administering the TRQs in the same way or change to a different methodology.

From 1st February 2020 through 12th May 2020, the total in-quota volumes available will be approximately 27,595.3 tonnes of heavy steel plate and 772.3 tonnes of stainless steel wire. In accordance with Customs Notice 19-08, the surtax applicable to over-quota imports during this time will be 20 percent for heavy steel plate and 25 percent for stainless steel wire.

Then, from 13th May 2020 through 12th May 2021, the TRQ volumes will be 110,000 tonnes of heavy steel plate and 3,080 tonnes of stainless steel wire. During this period, the surtax applied to over-quota imports will decrease to 15 percent for both product categories.

Finally, from 13th May 2021 through 24th October 2021, the TRQ volumes available will be 54,699 tonnes of heavy steel plate and 1,532 tonnes of stainless steel wire. During this time, the surtax on over-quota imports will decrease to 10 percent for heavy steel plate and 5 percent for stainless steel wire.

Interested parties have until Sunday 8th December 2019 at 11:59 p.m. to submit their views by completing the online questionnaire prepared by Global Affairs Canada and/or by filing written comments at the following email address: TIN.consultations@international.gc.ca. Additional information is available in a “backgrounder” recently published by Global Affairs Canada, which links directly to the online questionnaire.

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.

Greg Tereposky
613.237.1210
gtereposky@tradeisds.com

Vincent DeRose
613.237.8862
vderose@tradeisds.com