Effective May 13, 2019, the Canada Border Services Agency (CBSA) Customs Notice 19-08 came into force. Notice 19-08 amending the order which set a surtax for certain steel goods (SOR/2018/206). The new order applies to the following goods:
- Goods from Canada;
- Goods from Israel (or another CIFTA country); the United States; the Republic of Korea (South Korea); Peru; Panama; Mexico; Columbia; and Chile; and
- All goods from WTO member-states who are within the General Preferential Tariff system.
There are two goods subject to the surtax: (1) Heavy Plate; and (2) Stainless Steel Wire. The following HS codes for heavy plate are covered by the surtax (bear in mind, these numbers are illustrative – not exhaustive): 7208.51.00.10; 7208.51.00.93; 7208.51.00.94; 7208.51.00.95; 7208.52.00.10; 7208.52.00.93; 7208.52.00.96. In general, carbon steel plate and high-strength/low-alloy plates are covered by the surtax.
Similarly, the following HS codes are applicable for stainless steel wire: 7223.00.00.10; 7223.00.00.20. Steel wires which are drawn cold in various specific widths and dimensions are also subject to the surtax.
You should review the schedule to determine clearly if your goods are subject to the surtax.
The surtax will be in effect until October 24, 2021. However, the surtax decreases from and from 100,000 tonnes to 54,699 tonnes for each period. The first period runs from May 13, 2019, to May 12, 2020. The second period runs from May 13, 2020, to May 12, 2021. And the final period ends October 24, 2021, at which point the surtax will end. The surtax reduces from 20% to 10% for steel plates during the periods and from 25% to 5% for stainless steel wire.
When importing or exporting goods into or out of Canada, make sure that you have proof of origin to substantiate where your goods come from to ensure that you pay the appropriate surtax. The CBSA may require you to provide purchase orders, bills of lading, mill certificates, product literature, or other permits. ARGO Customs agents can help you prepare your paperwork and guide you through the process or act on your behalf.