Provisional Safeguard Measures Imposed on the Importation of Certain Steel Goods
Customs Notice 18-17

Ottawa,

Order Imposing a Surtax on the Importation of Certain Steel Goods:

1. This notice provides information on the implementation of the Order Imposing a Surtax on the Importation of Certain Steel Goods (the Order), registered on October 11, 2018 and which comes into force October 25, 2018.

2. The Order applies to certain steel goods (goods) imported from all countries except for the exclusions listed below:

Note: Goods eligible for these exemptions must both originate in and be imported from the same country.

3. 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.

Application

4. Importers should refer to Schedule 1 of the Order to determine if the goods meet the product description of goods subject to the safeguard surtax.

5. Effective on the day on which the Order comes into force, 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.

6. 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 an import permit at the time of accounting, are subject to the safeguard surtax.

7. For information on conditions to satisfy when requesting specific permits, please refer to the Notice to Importers on 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.

8. 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.

9. Absent a specific permit, the safeguard surtax will apply to all goods including those released from a Customs Bonded Warehouse or Sufferance Warehouse on or after October 25, 2018 when the Order comes into force.

10. 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

11. The burden of proof that goods do not originate from an applicable country as defined in the Order lies with the importer.

12. 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.

13. To confirm whether imported goods are subject to the safeguard surtax, the CBSA may require importers to provide the following documentation:

Completing the B3-3 Canada Customs Coding Form

14. The following instructions and examples demonstrate how the B3 should be completed for importations of goods subject to provisional safeguards.

blank B3

 
Field Instructions
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.
26 Provide the specific permit number (number here is for illustrative purposes only) if applicable. If a permit has not been obtained leave blank.
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 or metric tonnes.
30 Specify unit of measure in kilograms (KGM) or metric tonnes (MT).
32 SIMA code 51 is used if the goods are subject to the safeguard surtax. SIMA Code 50 is used if a specific permit has been issued and the importation is exempt from the safeguard surtax.
35 GST rate is 5%.
37 Provide the value for duty of the imported goods in Canadian dollars.
39

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.

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

Example 1: Safeguard surtax not payable

Example 2: Safeguard Surtax payable – No other applicable duties

Example 2: Safeguard surtax payable

Example 3: Safeguard Surtax payable in addition to SIMA duties

Example 2: Safeguard surtax payable in addition to SIMA duties

Example 4: Safeguard Surtax partially payable (specific permit obtained but part of importation exceeds TRQ)

Example 2: Safeguard surtax partially payable

15. For further information on the applicability of SIMA (anti-dumping) duties see the SIMA website, Measures in Force section.

16. Refer to Memorandum D17-1-10, Coding of Customs Accounting Documents for additional information on completing Form B3-3.

Corrections, Re-Determinations, and Refunds

17. 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.

18. 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.

19. 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.

20. 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.

21. Decisions made by the CBSA may be subject to appeal under the Customs Act.

Examinations and Verifications

22. 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.

Additional Information

23. 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.

24. 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.

Appendix A

Developing countries (beneficiaries of the GPT) that are not subject to the safeguard surtax.
1 Afghanistan 37 Gambia 73 Paraguay
2 Angola 38 Georgia 74 Philippines
3 Anguilla 39 Ghana 75 Pitcairn
4 Armenia 40 Guatemala 76 Rwanda
5 Ascension Island 41 Guinea 77 Saint Helena and Dependencies
6 Bangladesh 42 Guinea-Bissau 78 Samoa
7 Belize 43 Guyana 79 Sao Tome and Principe
8 Benin 44 Haiti 80 Senegal
9 Bhutan 45 Honduras 81 Sierra Leone
10 Bolivia 46 Iraq 82 Solomon Islands
11 British Indian Ocean Territory 47 Kenya 83 Somalia
12 Burkina Faso 48 Kiribati 84 South Sudan
13 Burma 49 Kyrgyzstan 85 Sri Lanka
14 Burundi 50 Laos 86 Sudan
15 Cambodia 51 Lesotho 87 Swaziland
16 Cameroon 52 Liberia 88 Syria
17 Canary Islands 53 Madagascar 89 Tajikistan
18 Cape Verde 54 Malawi 90 Tanzania
19 Central African Republic 55 Mali 91 Timor-Leste
20 Ceuta and Melilla 56 Marshall Islands 92 Togo
21 Chad 57 Mauritania 93 Tokelau Islands
22 Christmas Island 58 Micronesia 94 Tonga
23 Cocos (Keeling) Islands 59 Moldova 95 Tristan Da Cunha
24 Comoros 60 Mongolia 96 Turkmenistan
25 Congo 61 Montserrat 97 Tuvalu
26 Cook Islands 62 Morocco 98 Uganda
27 Côte d'Ivoire 63 Mozambique 99 Ukraine
28 Democratic Republic of Congo 64 Naura 100 Uzbekistan
29 Djibouti 65 Nepal 101 Vanuatu
30 Egypt 66 Nicaragua 102 Vietnam*
31 El Salvador 67 Niger 103 Virgin Islands, British
32 Eritrea 68 Nigeria 104 Yemen
33 Ethiopia 69 Niue 105 Zambia
34 Falkland Islands 70 Norfolk Island 106 Zimbabwe
35 Fiji 71 Pakistan  
36 French Southern and
Antarctic Territories
72 Papua New Guinea

Source: Canada Border Services Agency, Customs Tariff 2018 – List of Countries and Applicable Tariff Treatments

* The safeguard surtax is applicable to imports of concrete reinforcing bar originating in or imported from Vietnam.

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