Canada announced provisional safeguards on imports of seven steel products

On October 11, the Government of Canada announced that it will be imposing provisional safeguards starting on October 25, 2018 on imports of seven steel products and also ordered the Canadian International Trade Tribunal to investigate whether more long-term safeguard measures are necessary.

The provisional safeguards will remain in place for 200 days from October 25, expiring on May 13, 2019.

The products affected by the safeguards include concrete reinforcing bars, and wire rods as well as heavy plate, energy tubular products, hot-rolled sheet, pre-painted steel, and stainless steel wire.

The provisional safeguard measures will be imposed through a quota system and a tariff rate of 25% for the quantities imported beyond the quota volumes. The quota threshold will be based on the average volume of the goods subject to the safeguards imported over selected periods in 2015-2016, 2016-2017 and 2017-2018. An additional limit will also be imposed on the share of the total quota that may be filled by producers in a single country for each steel product category equal to the historically highest import share from that country.

To be able to import a shipment of goods that are the subject of safeguards without the application of the 25% surtax, a permit must be issued for each shipment by Global Affairs Canada, based on meeting the relevant quota threshold. This permit can only be requested beginning with the day that is five days prior to the shipment’s arrival in Canada, and will expire 14 days after it is issued.

Certain countries will be excluded from the safeguard measures including the United States, Mexico (with the exception of energy tubular products and wire rod), Chile, Israel and countries whose economies are considered developing. In the case of Vietnam, while it will be exempt on six of the categories of steel products due to its status as a developing country, exports from that country of rebar products will be subject to the safeguard measures.

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