New Measures to Protect Canadian Steel
The Government of Canada announced on October 11, 2018 that they will be taking new steps to try to protect Canada’s steel industry.
While this will primarily affect our clients who deal with imported steel, this may also impact any company in Canada that purchases or deals with any steel products.
These new measures have the potential to cause price increases on any products made with or incorporating steel.
Please be advised that Canada has begun a Safeguard Inquiry into steel being imported into Canada. This is before the CITT and is expected to have a decision by April of 2019.
However, they have also introduced Provisional Safeguard measures that will take effect October 25th, 2018.
Under this program the countries that will be exempt from these measures are:
- the United States;
- Mexico, other than energy tubular products and wire rod originating in and imported from Mexico;
- Israel or another CIFTA beneficiary; and
- a country benefiting from the General Preferential Tariff, other than concrete reinforcing bar originating in and imported from Vietnam.
Impacted steel products imported from any non-exempt countries can be subject to a 25% tax, and this is in addition to any Anti-Dumping duties that may already be in place.
There will be a limited quota available of steel that is not impacted by the tariff and a permit can be applied for to get this quota on a first come first served basis.
This limited quota renews every 50 days.
Permits are only valid for 14 days.
According to our Director of Compliance, Alfred Chace, there is a high likelihood that steel imports will be impacted.
If you have questions about the current trade measures, and how it affects your business, you can call 204-633-7207 to speak to one of our Trade Compliance Specialists.