Order Imposing a Surtax on the Importation of Certain Steel Goods:
- Heavy plate
- Concrete reinforcing bar
- Energy tubular products
- Hot-rolled sheet
- Pre-painted steel
- Stainless steel wire
- Wire rod
1. This notice provides information on the implementation of the Order Imposing a Surtax on the Importation of Certain Steel Goods (the Order), which came into force .
2. The Order was subsequently amended through the Order Amending the Order Imposing a Surtax on the Importation of Certain Steel Goods SOR/2019-35, which came into force on .
3. The Order and Amending Order are collectively referred to as the Order throughout this Customs Notice which reflects both orders.
4. The Order applies to certain steel goods (goods) imported from all countries except for the exclusions listed below:
- a) goods originating in Canada.
- b) goods originating in and imported from the U.S., Chile, and Israel or another CIFTA beneficiary.
- c) goods, specifically heavy plate, concrete reinforcing bar, hot-rolled sheet, pre-painted steel and stainless steel wire, originating in and imported from Mexico.
- d) goods originating in and imported from developing countries which are beneficiaries to the General Preferential Tariff (GPT) with one exception: concrete reinforcing bar originating in and imported from Vietnam are not exempt. A list of GPT beneficiaries is included in Appendix A.
- Note: For goods to be eligible for the exclusions identified above, with the exception of goods of Canadian origin, they must both originate in and be imported from the same country.
5. Importers of goods that were in transit to Canada before (i.e., began their physical journey to Canada) can claim remission of the provisional safeguard surtaxes payable at the time of importation, or claim remission if the surtax has already been paid, by citing special authority number 18-1610 in field 26 of their B3-3 Canada Customs Coding Form or Form B2, Canada Customs – Adjustment Request respectively. For further details, please see the Corrections, Re-Determinations, and Refunds section of this Customs Notice.
6. The origin of the goods is determined in accordance with the rules of origin set out in the Determination of Country of Origin for the Purposes of Marking Goods (NAFTA Countries) Regulations or the Determination of Country of Origin for the Purpose of Marking Goods (Non-NAFTA Countries) Regulations, as the case may be.
7. Importers should refer to Schedule 1 and 2 of the Order to determine if the goods meet the product description of goods subject to the safeguard surtax.
8. As per the Order, a 25% safeguard surtax is applicable to imported goods that exceed the tariff rate quota (TRQ) for each class of goods set out in the Order. For information on TRQ availability refer to the Global Affairs Canada website.
9. Importers may request shipment-specific import permits (specific permits) from Global Affairs Canada, which will be valid for 14 days. Goods for which an importer obtained a specific permit, valid at the time of accounting, are exempt from the applicable safeguard surtax. Imports of goods that do not have a specific permit, or are in excess of the quantity of a specific import permit at the time of accounting, are subject to the safeguard surtax.
10. For information on conditions to satisfy when requesting specific permits, please refer to the Notice to Importers on the Global Affairs Canada website. For general information about the permit application process and associated billing system, please refer to the Global Affairs Canada website: Import Controls and Import Permit.
11. The 25% safeguard surtax is applied on the value for duty of goods determined in accordance with sections 47 to 55 of the Customs Act.
12. Absent a specific permit, the safeguard surtax applies to all goods including those released from a Customs Bonded Warehouse or Sufferance Warehouse on or after when the Order came into force.
13. Canada’s Duties Relief Program and Duty Drawback Program continue to be available to importers for duties relief, including safeguard surtaxes, paid or owed by businesses that meet the requirements of these programs.
Proof of Origin/ Required Documentation
14. The burden of proof that goods do not originate from an applicable country as defined in the Order lies with the importer.
15. Proof of origin may be in the form of a commercial invoice, a Canada Customs Invoice, a Form A - Certificate of Origin, an Exporter's Statement of Origin, a Certificate of Origin pursuant to a Free Trade Agreement, or any other acceptable documentation that clearly indicates the country of origin of the goods.
16. To confirm whether imported goods are subject to the safeguard surtax, the CBSA may require importers to provide the following documentation:
- Specific permit
- Purchase invoice or order
- Bill of lading
- Mill certificate
- Product literature and technical specifications
- Any other document to substantiate whether the goods are subject to the safeguard surtax
Completing the B3-3 Canada Customs Coding Form
17. The following instructions and examples demonstrate how the B3 should be completed for importations of goods subject to provisional safeguards.
|22||Provide as much detail as possible. Where the goods are subject to provisional safeguards, state the specific product (heavy plate, concrete reinforcing bar, energy tubular products, hot-rolled sheet, pre-painted steel, stainless steel wire, or wire rod). Where the goods are exempt, include information explaining why they are exempt.|
|23||Indicate the weight in kilograms.|
Provide the specific permit number if applicable. If a permit has not been obtained leave blank.
Note: Imported goods will not be exempt from the safeguard surtax unless the permit number is entered into this field at the time of accounting.
|27||Provide the goods’ 10 digit classification number.|
|29||For the quantity field, indicate the total weight of the goods. Use field 30 to indicate whether this is in kilograms.|
|30||Specify unit of measure in kilograms (KGM).|
|32||SIMA code 51 is used if the safeguard surtax or SIMA duties are payable. Otherwise, leave this field blank. Note: If you entered a specific permit number in field 26, then field 32 should remain blank, as the safeguard surtax is not payable.|
|35||GST rate is 5%.|
|37||Provide the value for duty of the imported goods in Canadian dollars.|
This field is used for both SIMA duties and the amount of safeguard surtax.
The safeguard surtax is calculated at the value for duty (Field 37) x 25%.
Where SIMA duties are also applicable, the SIMA duties and amount of safeguard surtax will be added together and entered in this field.
Leave field 39 blank if there is no safeguard surtax or SIMA duties payable.
|41||Value for tax = VFD + Safeguard surtax + SIMA duties (if applicable).|
|42||The GST is value for tax times 5%.|
Example 1: Safeguard surtax not payable (specific permit obtained) – no other applicable duties
- The specific permit number is entered in field 26. (Note: Imported goods will not be exempt from the safeguard surtax unless the permit number is entered into this field at the time of accounting.)
- The SIMA Code (Field 32) is left blank, as the goods are exempt from the safeguard surtax.
Example 2: Safeguard Surtax payable – No other applicable duties
- No specific permit was obtained so the import is subject to the safeguard surtax.
- The SIMA Code (Field 32) is entered as 51, as the safeguard surtax is payable.
- The amount of safeguard surtax is calculated as follows: $44,200.00 (VFD) x 0.25 (25% safeguard surtax) = $11,050.00 (safeguard surtax payable).
- The value for tax is $44,200.00 (VFD) + $11,050.00 (safeguard surtax) = $55,250.00
Example 3: Safeguard Surtax payable in addition to SIMA duties
- The SIMA Code (Field 32) is entered as 51, as the safeguard surtax is payable.
- The amount of the safeguard surtax is: $44,200.00 (VFD) x 0.25 (25% safeguard surtax) = $11,050.00 (safeguard surtax payable).
- For this example, there are $2000.00 in SIMA duties.
- Amount to enter in Field 39: $11,050.00 (safeguard surtax) + $2000.00 (SIMA duties) = $13,050.00.
- The value for tax is $44,200.00 (VFD) + $11,050.00 (amount of safeguard surtax) + 2000.00 (SIMA duties) = $57,250.00
Example 4: Safeguard Surtax partially payable (specific permit obtained but part of importation exceeds TRQ)
- Where the quantity of imported goods exceeds the corresponding quantity of a specific permit, and the safeguard surtax is applicable to the exceeding quantity of goods, two lines need be completed: Line 1 where the goods are covered by a specific permit (Note: In this situation the SIMA Code (Field 32) is left blank as the goods are exempt from the safeguard surtax); Line 2 where the goods are not covered by a specific permit (Note: In this situation the SIMA Code (Field 32) is entered as 51 as the goods are not exempt from the safeguard surtax.
18. For further information on the applicability of SIMA (anti-dumping) duties see the SIMA website, Measures in Force section.
19. Refer to Memorandum D17-1-10, Coding of Customs Accounting Documents for additional information on completing Form B3-3.
Corrections, Re-Determinations, and Refunds
20. Corrections to original declarations and requests for re-determinations or further re-determinations, and applications for a refund are to be made in the prescribed form and manner under the relevant provisions of the Customs Act, in accordance with the procedures outlined in Memorandum D11-6-7, as well as Memorandum D11-6-6, “Reason to Believe” and Self-Adjustments to Declarations of Origin, Tariff Classification, and Value for Duty, and Memorandum D6-2-3, Refund of Duties.
21. Where an overpayment of safeguard surtax has been identified on a commercial importation, Form B2, Canada Customs – Adjustment Request may be filed in a regional CBSA office requesting a refund of the overpaid amount under section 74(1)(g) of the Customs Act. If accounting information is being self-adjusted for a safeguard surtax refund or safeguard surtax payable to the CBSA, refer to Memorandum D17-2-1, The Coding, Submission and Processing of Form B2 Canada Customs Adjustment Request, for additional information on completing Form B2. Note that Customs Self Assessment (CSA) clients must use this process when seeking an adjustment of the safeguard surtax.
22. Refund requests for overpayments of SIMA duties must be filed on a separate B2 form. For more information on SIMA redeterminations, refer to Memorandum D14-1-3, Re-determinations and Appeals Under the Special Import Measures Act.
23. Accounting documents are reviewed by the CBSA to ensure that the correct amount of safeguard surtax was self-assessed by the importer. The CBSA may review the origin, tariff classification, value for duty and/or applicability of the safeguard surtax or SIMA duties on its own initiative or in response to a correction. In so doing, as with customs duties and taxes, the CBSA may assess any undeclared amount of safeguard surtax.
24. For information on the remission of safeguard surtax paid on goods that were in transit to Canada before (i.e., began their physical journey to Canada), please see Customs Notice 18-24, Provisional Safeguards – In-transit Steel Goods Remission Order.
25. Determinations, re-determinations or further re-determinations made by a CBSA officer may be reviewed under and in accordance with the Customs Act.
Examinations and Verifications
26. Importations may be subject to examination at the time of accounting and to post-release verification for compliance with the Tariff Classification, Valuation, Origin and Marking programs, and any other applicable provisions administered by the CBSA. If non-compliance is encountered by the CBSA, the safeguard surtax, SIMA duties and taxes, as well as penalties and interest will be assessed, where applicable.
27. Refer to Memorandum D16-1-1, Information pertaining to the application, collection, and adjustment of a surtax, for additional information concerning the administration and enforcement of safeguard surtax orders under sections 53(2), 55(1), 60, 63(1), 68(1), 77.1(2), or 77.6(2) or 78(1) of the Customs Tariff.
28. For more information on the administration of the safeguard surtax orders, within Canada call the Border Information Service at 1-800-461-9999. From outside Canada call 204-983-3500 or 506-636-5064. Long distance charges will apply. Agents are available Monday to Friday (08:00 – 16:00 local time / except holidays). TTY is also available within Canada: 1-866-335-3237.
|5||Ascension Island||41||Guinea||77||Saint Helena and Dependencies|
|7||Belize||43||Guyana||79||Sao Tome and Principe|
|11||British Indian Ocean Territory||47||Kenya||83||Somalia|
|12||Burkina Faso||48||Kiribati||84||South Sudan|
|19||Central African Republic||55||Mali||91||Timor-Leste|
|20||Ceuta and Melilla||56||Marshall Islands||92||Togo|
|23||Cocos (Keeling) Islands||59||Moldova||95||Tristan Da Cunha|
|28||Democratic Republic of Congo||64||Naura||100||Uzbekistan|
|31||El Salvador||67||Niger||103||Virgin Islands, British|
|34||Falkland Islands||70||Norfolk Island||106||Zimbabwe|
|36||French Southern and
|72||Papua New Guinea|
* The safeguard surtax is applicable to imports of concrete reinforcing bar originating in or imported from Vietnam.
- Date modified: