steel roll - update to surtax on importation of certain steel goodsUpdate: Surtax on the Importation of Certain Steel Goods

Global Affairs Canada has published a new Notice to Importers, which reflects amendments to the Order Imposing a Surtax on the Importation of Certain Steel Goods

NOTE: This notice has no impact on tariffs for steel and aluminum products originating in and imported from the United States.

Original Post: Canada Announces Provisional Safeguard Surtax on Imported Steel

The provisional safeguards have been removed on the importation of certain steel goods including concrete reinforcing bar, energy tubular products, hot-rolled sheet, pre-painted steel and wire rod. Final safeguards – in the form of tariff rate quotas (TRQ) – were placed on heavy plate and stainless steel wire, effective May 13, 2019.

The quota volumes will be divided into two pools: an allocation pool, available for importers based on their import history of the subject goods between July 1, 2017 and June 30, 2018, and a residual pool, available for those that do not hold allocations on a first-come, first served basis.

Importers who are eligible to apply for an allocation have already received communication from PF Collins regarding the application process. All other importers will continue to require a shipment-specific import permit to remove the surtax from imports of heavy plate and stainless steel wire.

The following surtax rates will apply to heavy plate and stainless steel wire imported without a shipment-specific import permit:

Heavy plate: 20% surtax rate from May 13, 2019 to May 12, 2020, inclusive.

  • As of May 13, 2020, the surtax rate is reduced to 15%
  • As of May 13, 2021, the surtax rate is reduced to 10%
  • As of October 25, 2021, the surtax expires (i.e. no longer applies)

Stainless steel wire: 25% surtax rate from May 13, 2019 to May 12, 2020, inclusive.

  • As of May 13, 2020, the surtax rate is reduced to 15%
  • As of May 13, 2021, the surtax rate is reduced to 5%
  • As of October 25, 2021, the surtax expires (i.e. no longer applies)

Permits are issued on a first come, first served basis. If a quota is filled – or partially filled – the surtax on certain steel goods would apply to the quantity of goods that exceed the amount on the permit.

Permits can be obtained up to five days in advance of the shipment’s arrival.  However, the import permit is only valid for fourteen calendar days. Unused, expired permits are automatically cancelled.

To read the full notice, visit the following link:

Notice to Importers – Steel Goods 

If you have any questions regarding import permits or any other import/export-related concerns, please contact our Customs Consulting Department or your local PF Collins office. We offer a full range of Customs Brokerage and Customs Consulting services to assist with all your importing and exporting needs.