Canadian importers of steel and aluminum products may benefit from new relief measures.
Finance has announced that certain products imported into Canada will not be subject to tariffs, following its review of remission requests submitted by Canadian businesses. This new relief generally applies for products imported from the United States on or after July 1, 2018, the date it introduced its trade countermeasures, although certain products will no longer be eligible for relief on December 31, 2018. Finance has indicated that the final text of the remission order will be published in the Canada Gazette on October 31, 2018.
Finance has indicated that it is continuing to receive and assess relief applications with respect to the Canadian countermeasures. It is our understanding that the next batch of applications are in process, and that further relief measures will take at least 6-8 weeks to announce. KPMG's Trade & Customs team is currently working with clients to submit remission requests, particularly within the next two weeks to increase the likelihood of inclusion in the next order.
In addition, Finance announced an additional 25% tariff on the imports of certain steel products where the level of imports from trading partners exceeds historical norms. These temporary safeguard measures, which begin October 25, 2018, are intended to protect Canada's steel industry from foreign companies selling surplus steel products into Canada as a means to avoid U.S. tariffs.
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