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Canada Imposes Final Safeguard Duties on Heavy Plate and Steel Wire

Effective 13 May, Canada has imposed final safeguard duties on imports of certain heavy plate classified under HTSCA 7208.51.00.10, 7208.51.00.93, 7208.51.00.94, 7208.51.00.95, 7208.52.00.10, 7208.52.00.93 and 7208.52.00.96 and stainless steel wire classified under HTSCA 7223.00.00.10 and 7223.00.00.20 from most sources.

This measure will apply to all suppliers except for goods originating in Chile, Colombia, Mexico, Panama, Peru, South Korea, the United States or Israel (or another Canada-Israel Free Trade Agreement beneficiary), as well as goods originating in a WTO member country that is a beneficiary of Canada’s General Preferential Tariff programme, as long as the share of imports from such a country does not exceed three percent of total imports of each good, provided that imports from countries accounting for less than three percent do not collectively account for more than nine percent of total imports of each good. Imports of subject merchandise from mainland China and Hong Kong are both subject to the safeguard tariffs.

Specifically, subject heavy plate imported above a 100,000 tonne tariff-rate quota will face an additional 20 percent tariff from 13 May 2019 through 12 May 2020. The TRQ will grow to 110,000 tonnes and the safeguard tariff will fall to 15 percent during the period 13 May 2020 through 12 May 2021,  and the TRQ will then fall to 54,699 tonnes and the tariff will be adjusted to 10 percent during the period from 13 May through 24 October 2021.

In the case of stainless steel wire, subject merchandise imported above a 2,800 tonne TRQ will face an additional 25 percent tariff from 13 May 2019 through 12 May 2020. The TRQ will grow to 3,080 tonnes and the safeguard tariff will fall to 15 percent during the period 13 May 2020 through 12 May 2021,  and the TRQ will then fall to 1,532 tonnes and the tariff will also be reduced to five percent during the period from 13 May through 24 October 2021.

The TRQ will be administered by way of shipment-specific import permits. Goods for which an importer has obtained a specific permit from Global Affairs Canada, valid at the time of accounting, will be exempt from the applicable safeguard tariff. On the other hand, imports of goods that do not have a specific permit, or are in excess of the quantity of a specific permit at the time of accounting, will be subject to the additional tariff.

The safeguard measure on heavy plate covers 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. These dimensional restrictions apply to steel plate that contains alloys greater than required by recognised industry standards, provided that the steel does not meet recognised industry standards for an alloy-specification steel plate. Excluded from the scope are (i) all plate in coil form and (ii) all plate having a rolled, raised figure at regular intervals on the surface (also known as floor plate).

The safeguard measure on stainless steel wire covers 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, as well as cold drawn and cold drawn and annealed stainless steel cold-rolled profile wire, up to 0.031 square inches (0.787 sq. mm) in maximum solid cross-sectional area.

Meanwhile, the Canadian International Trade Tribunal has initiated an inquiry concerning exclusion requests for heavy plate and stainless steel wire subject to the aforementioned safeguard measures. In carrying out this inquiry, the CITT must determine whether there is at least one domestic source of supply of such goods, or if there is a firm and commercially viable plan to produce such goods domestically. If the CITT determines that that is not the case, it will recommend the exclusion of such goods from the application of the safeguard measures.

Parties wishing to participate in this inquiry must submit notices of participation, declarations and undertakings by 27 May. Product exclusion requests are due by 7 June, responses to such requests are due by 19 June, and a CITT decision is due by 15 July.

Content provided by Picture: HKTDC Research
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