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Order Imposing a Surtax on the Importation of Certain Steel Goods (SOR/2018-206)

Regulations are current to 2024-11-26 and last amended on 2020-07-01. Previous Versions

Order Imposing a Surtax on the Importation of Certain Steel Goods

SOR/2018-206

CUSTOMS TARIFF

Registration 2018-10-11

Order Imposing a Surtax on the Importation of Certain Steel Goods

Whereas the World Trade Organization Agreement on Safeguards allows for the application of a safeguard measure to a good if it is determined that such good is being imported in such increased quantities and under such conditions as to cause or threaten to cause serious injury to the domestic industry that produces like or directly competitive goods;

Whereas the World Trade Organization Agreement on Safeguards further allows for the application of provisional safeguard measures for a 200-day period, in critical circumstances where delay would cause damages difficult to repair;

Whereas it appears to the satisfaction of the Governor in Council, on the basis of a report of the Minister of Finance, that for each class described in the schedule to this Order, all of the steel goods, taken together, are being imported into Canada in increased quantities and have caused or threaten to cause serious injury to domestic producers of like or directly competitive goods;

And whereas, on the basis of the report of the Minister of Finance, it does not appear to the satisfaction of the Governor in Council that the conditions set out in subsection 59(1) of the Customs TariffFootnote a have been met with respect to certain goods imported from Mexico and to goods imported from the United States, Chile, or Israel or another CIFTA beneficiary;

Therefore, Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to subsection 55(1) of the Customs TariffFootnote a, makes the annexed Order Imposing a Surtax on the Importation of Certain Steel Goods.

Marginal note:Origin of goods

 For the purposes of this Order, 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 Purpose of Marking Goods (CUSMA Countries) Regulations or the Determination of Country of Origin for the Purpose of Marking Goods (Non-CUSMA Countries) Regulations, as the case may be.

Marginal note:Application

  •  (1) Subject to subsections (2) to (4), this Order applies to goods that are imported from all countries.

  • Marginal note:Exception

    (2) This Order does not apply to goods originating in Canada.

  • Marginal note:Exception

    (3) This Order does not apply to goods originating in Chile, Colombia, Mexico, Panama, Peru, Korea, the United States or Israel or another CIFTA beneficiary.

  • Marginal note:Exception

    (4) This Order does not apply to goods originating in a World Trade Organization Member country that benefits from the General Preferential Tariff, as long as its share of importation of the goods of the class in question does not exceed 3% of the total importation of goods of that class, provided that the importation of goods of that class from all such countries with less than 3% import share does not collectively account for more than 9% of the total importation of the goods of that class.

Marginal note:Surtax

  •  (1) Goods of a class set out in column 1 of the Schedule, and meeting the description set out in column 2, that are imported in excess of the quantity for that class set out to in column 4 during a period set out in column 3 are subject to a surtax at the rate specified in column 5 of their value for duty, the value for duty being determined in accordance with sections 47 to 55 of the Customs Act.

  • Marginal note:Permit

    (2) For the purposes of subsection (1), the goods of a class are considered to be imported in excess of the quantity referred to in that subsection if they are not imported under a permit that is issued under the Export and Import Permits Act in respect of section 82 of the Import Control List and valid at the time at which the goods are accounted for under subsection 32(1), (3) or (5) of the Customs Act.

 [Repealed, SOR/2019-127, s. 1]

Marginal note:Coming into force

 This Order comes into force 10 business days after the day on which it is registered.

SCHEDULE(Subsection 3(1))

Column 1Column 2Column 3Column 4Column 5
ItemClass of GoodsDescriptionPeriodsQuantity (tonnes)Surtax Rate
1Heavy Plate

Hot-rolled carbon steel plate and high-strength low-alloy steel plate not further manufactured than hot-rolled, heat-treated or not, in widths from 80 inches (± 2,030 mm) to 152 inches (± 3,860 mm), and thicknesses from 0.375 inches (± 9.525 mm) to 4.0 inches (101.6 mm), with all dimensions being plus or minus allowable tolerances contained in the applicable standards. For greater certainty, these dimensional restrictions apply to steel plate, that contains alloys greater than required by recognized industry standards provided that the steel does not meet recognized industry standards for an alloy-specification steel plate.

The following goods are excluded:

  • (a) all plate in coil form;

  • (b) all plate having a rolled, raised figure at regular intervals on the surface (also known as floor plate);

  • (c) hot-rolled carbon steel plate produced to the following specifications and grades, namely, ASME SA516/SA516M or ASTM A516/A516M, normalized, ASME SA299/SA299M or ASTM A299/A299M, normalized, and ASME SA537/SA537M or ASTM A537/A537M, normalized, in the following dimensions:

    • (i) 2 inches thick, greater than or equal to 97 inches wide and greater than 473 inches long,

    • (ii) 2 inches thick, greater than or equal to 121 inches wide and greater than 380 inches long,

    • (iii) 2 inches thick, greater than or equal to 150 inches wide and greater than 270 inches long,

    • (iv) 2.25 inches thick, greater than or equal to 97 inches wide and greater than 420 inches long,

    • (v) 2.25 inches thick, greater than or equal to 121 inches wide and greater than 330 inches long,

    • (vi) 2.25 inches thick, greater than or equal to 151 inches wide and of any length,

    • (vii) 2.5 inches thick, greater than or equal to 97 inches wide and greater than 380 inches long,

    • (viii) 2.5 inches thick, greater than or equal to 121 inches wide and greater than 300 inches long,

    • (ix) 2.5 inches thick, greater than or equal to 151 inches wide and of any length,

    • (x) 2.75 inches thick, greater than or equal to 97 inches wide and greater than 340 inches long,

    • (xi) 2.75 inches thick, greater than or equal to 121 inches wide and of any length,

    • (xii) 3 inches thick, greater than or equal to 97 inches wide and greater than 250 inches long,

    • (xiii) 3 inches thick, greater than or equal to 121 inches wide and of any length,

    • (xiv) 3.25 inches thick, greater than or equal to 97 inches wide and of any length, or

    • (xv) greater than or equal to 3.5 inches thick of any width and length;

  • (d) hot-rolled carbon steel plate in grade ASME SA516 Grade 70 or ASTM A516 Grade 70, normalized in thicknesses greater than or equal to 3.25 inches and widths greater than or equal to 97 inches;

  • (e) hot-rolled carbon steel plate in grade ASME SA516 Grade 70 or ASTM A516 Grade 70, normalized (heat treated) with a thickness greater than 3.28 inches;

  • (f) hot-rolled carbon steel plate manufactured to the following specifications and grades, namely,

    • (i) ASME SA285/SA285M or ASTM A285/A285M,

    • (ii) ASME SA299/SA299M or ASTM A299/A299M,

    • (iii) ASME SA515/SA515M or ASTM A515/A515M,

    • (iv) ASME SA516/SA516M or ASTM A516/A516M (including ASME SA516 Grade 70 or ASTM A516 Grade 70),

    • (v) ASME SA537/SA537M or ASTM A537/A537M, or

    • (vi) ASME SA841/SA841M or ASTM A841/A841M,

    which is normalized (heat treated) or vacuum degassed (including while molten) with a sulphur content less than 0.005 % and a phosphorus content less than or equal to 0.017 %, imported exclusively for use in the manufacture of pressure vessels for the oil and gas sector for use in sour service and hydrogen-induced cracking applications;

  • (g) high-strength low-alloy structural steel plate in grade ASTM A1066/A1066M, produced by thermo-mechanical controlled process;

  • (h) hot-rolled carbon steel plate for use in the manufacture of oil and gas line pipe (also known as skelp); and

  • (i) hot-rolled carbon steel plate in grades API 5L X70 PSL2 or CSA Grade 483 Category II for use in the manufacture of oil and gas line pipe.

Period 1. The period of one year beginning on the day of the coming into force of section 1.100,00020%
Period 2. The period of one year beginning on the day after the day on which Period 1 ends.110,00015%
Period 3. The period of one hundred and sixty-five days beginning on the day after the day on which Period 2 ends.54,69910%
2Stainless Steel Wire

Cold drawn and cold drawn and annealed, stainless steel round wire, up to 0.256 inches (6.50 mm) in maximum solid cross-sectional dimension; and cold drawn, and cold drawn and annealed, stainless steel cold-rolled profile wire, up to 0.031 square inches (0.787 mm2) in maximum solid cross-sectional area.

439 copper-coated TiCu stainless steel wire in diameters of 0.030 inch to 0.187 inch is excluded.

Period 1. The period of one year beginning on the day of the coming into force of section 1.2,80025%
Period 2. The period of one year beginning on the day after the day on which Period 1 ends.3,08015%
Period 3. The period of one hundred and sixty-five days beginning on the day after the day on which Period 2 ends.1,5325%

SCHEDULE 2

[Repealed, SOR/2019-127, s. 2]

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