Updates on Canada’s aluminum-import monitoring regime & steel-import monitoring system
Canada's Department of Finance (Finance) is introducing additional changes to ensure that imports of aluminum and steel into Canada do not increase beyond historical levels. Beginning September 1, 2019, certain aluminum products face additional monitoring, as a result of being added to the Import Control List under the Export and Import Permits Act.
At the same time, the Government is adding new reporting and record-keeping requirements for steel importers and says it is excluding a handful of steel products from existing safeguard measures, following recommendations from the Canadian International Trade Tribunal. Canada will also be remitting safeguard surtaxes that have been paid on imports of these products since October 2018.
Finance previously announced amendments to allow the Canada Border Services Agency (CBSA) to address price distortions when calculating margins of steel and aluminum dumping, along with new policy changes to help monitor anti-dumping levels (see TaxNewsFlash-Canada 2019-34, "Canada Keeps Close Eye on Steel Imports"). These measures were in addition to recent changes that allow Canada to re-impose surtaxes on steel imports if required, which followed announcements by Canada and the United States that they would eliminate their respective trade tariffs on steel and aluminum, effective May 20, 2019.
Aluminum & Steel import monitoring
Starting September 1, 2019, aluminum import shipments into Canada must cite a certain permit (i.e., a General Import Permit) on CBSA import declarations. This change is intended to alert Canada as to whether a global oversupply of aluminum is making its way into the country.
Also, Finance says certain steel importers will be asked to submit detailed reports on their imports, to help identify possible errors or inconsistencies in import data.
Finance adds that it is clarifying its documentation requirements for importers, to improve how it tracks imports and import patterns so that it may better identify whether a trade remedy action is required (and so that it can better track imports once such a trade remedy is in place).
Exclusions from Steel Safeguards
The Government says it is excluding certain specific products from its safeguard measures for heavy plate and stainless steel wire. Finance says its decision to exclude seven products for heavy plate and one for stainless steel wire follows recommendations made by the Canadian International Trade Tribunal in an "exclusion inquiry" that concluded on July 15, 2019. The Government says it will also remit safeguard surtaxes paid on imports of the excluded products since October 2018.
Details of the additional exclusions can be found in revised Customs Notice 19-08.
For more information, contact your KPMG adviser.
Information is current to August 20, 2019. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500
© 2020 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
For more detail about the structure of the KPMG global organization please visit https://home.kpmg/governance.