On 31st December 2019, the Trade Controls Bureau at Global Affairs Canada published a new Notice to Importers (Serial No. 983) concerning the administration of the safeguard tariff rate quotas (TRQs) for certain imports of heavy steel plate and stainless steel wire for the period from 1st February 2020 through 24th October 2021. Further to the public consultation conducted by Global Affairs Canada from 25th November until 8th December 2019, each of the quotas will continue to be divided into two pools: (i) an allocation pool, from which in-quota volumes are allocated to eligible applicants based on their import history during a 12-month reference period (1st July 2017 to 30th June 2018); and (ii) a residual pool, available on a first-come, first-served basis to those who do not hold allocations.

From 1st February 2020 until the last day of the safeguard measures on 24th October 2021, the TRQs will be administered in three “quota periods” as follows:

• Quota Period 1 will run from 1st February 2020 until 12th May 2020.
  • During this period, the total TRQ quantities available will be:
    • 27,595,333 kg for imports of heavy steel plate, and
    • 772,333 kg for imports of stainless steel wire.
  • Import surtax will apply to all non-quota imports of the covered products (i.e., all shipments for which the importer does not have a valid import permit) in the following amounts:
    • 20 percent for heavy steel plate, and
    • 25 percent for stainless steel wire.
  • Applicants must submit a completed Application Form 3145 by email to steel-acier@international.gc.ca. Applications for quota allocation will be accepted no later than 22nd January 2020.

• Quota Period 2 will run from 13th May 2020 through 12th May 2021.
  • During this period, the total TRQ quantities available will be:
    • 110,000,000 kg of heavy steel plate, and
    • 3,080,000 kg of stainless steel wire.
  • Import surtax will apply to all non-quota imports of the covered products (i.e., all shipments for which the importer does not have a valid import permit) in the amount of 15 percent for both heavy steel plate and stainless steel wire.
  • Applications for quota allocation will be accepted no later than 29th April 2020.

• Quota Period 3 will run from 13th May 2021 until 24th October 2021.
  • During this period, the total TRQ quantities available will be:
    • 54,699,000 kg of heavy steel plate, and
    • 1,532,000 kg of stainless steel wire.
  • Import surtax will apply to all non-quota imports of the covered products (i.e., all shipments for which the importer does not have a valid import permit) in the following amounts:
    • 10 percent for heavy steel plate, and
    • 5 percent for stainless steel wire.
  • Applications for quota allocation will be accepted no later than 29th April 2021.

The Notice provides that, going forward, Global Affairs Canada will publish a public list of the names of allocation holders on its website (without disclosing their quota allocation quantities or their utilization rates).

For more information about the administration of these steel safeguard TRQs, please see the new Notice to Importers (Serial No. 983) published by Global Affairs Canada and Customs Notice 19-08 published by the Canada Border Services Agency.

Tereposky & DeRose regularly provides advice on Canadian trade matters, including safeguard measures. Should you have any questions regarding these matters or any other trade-related issues, we are at your disposal.