cole logo lrg
flags
image/svg+xml
An eye on everything.
Login

eCommunications

Subscribe
Go
{loadposition hubspot-ecomm}

Technical Updates

Process for Remission of Surtaxes

Surtax Remission

The Department of Finance Canada has now issued guidelines outlining a process to apply for surtax exemptions on goods from the U.S.

A remission will allow for relief from the payment of surtaxes, or the refund of surtaxes already paid under certain conditions.


Remission Requests

The Government will accept applications for the remission of surtaxes for the following reasons:

To address situations of short supply in the domestic market Where contractual requirements existed prior to May 31, 2018 for Canadian businesses to use U.S. steel or aluminum To address on an individual basis other circumstances

Only companies registered in Canada are eligible to make requests for remission of the surtaxes imposed as of July 1, 2018.


Surtax Remission Application Services are available through Cole Consulting

Please This email address is being protected from spambots. You need JavaScript enabled to view it. any inquiries for assistance with the Surtax Remission Application and our Consulting Department will be happy to assist.

Notice of intent to impose countermeasures action against the U.S.

(This is in response to tariffs on Canadian steel and aluminum products)

Background

As U.S. hits Canada with steel and aluminum tariffs imported from Canada as of May 31, 2018 midnight, the Canadian Government has announced its intention to apply countermeasures with its own tariffs on U.S. steel, aluminum and 
23047479 s
otherproducts including food, coming into effect on July 1 and will remain in place until the U.S. removes its trade measures against Canada.
Countermeasures

Products subject to countermeasures are listed in Tables 1 and 2 on below Finance Canada website. Goods selected from Table 1 will be subject to a 25% surtax. Goods selected from Table 2 will be subject to a 10% surtax.

These countermeasures will apply only to goods originating from the U.S and are eligible to be marked as goods of the U.S. in accordance with the Determination of Country of origin for the Purposes of Marking Goods (NAFTA Countries) Regulations.

Future Action

When planning imports of these types from the U.S. in the future, consideration must be given to the following: this comes into effect July 1 and applies to goods originating in the U.S and eligible to be marked as goods of the U.S.

Cole will provide the following support services to our clients during these new trade measures:

General Inquiries: please provide customer name, account number and contact information Supply a database report of impacted classifications at a nominal fee Provide a chargeable detailed Trade Brief Service

Contact us with questions or for more information 

For More Information:

Department of Finance Canada Website 
Justice laws Website 

Notice of Final Dumping Determination - CBSA

Case / File #: NQ-2016-001

This bulletin is to advise you that the Canada Border Services Agency (CBSA) has issued a Final Determination of Dumping or Subsidizing relating to the following goods that you may currently be importing:

Description of Goods Usual HS Classification Country of Origin (or export)
Large Diameter Line Pipe from China and Japan --- Japan, China

 

Decision Details (see highlighted selection):

On September 20, 2016, the Canada Border Services Agency (CBSA) made final determinations of dumping with respect to certain welded large diameter carbon and alloy steel line pipe (large line pipe) originating in or exported from the People’s Republic of China (China) and Japan, and subsidizing of large line pipe from China.
The Canadian International Trade Tribunal (CITT) is continuing its inquiry into the question of injury to the domestic industry and will make an order or finding by October 20, 2016. Provisional duties will continue to apply on imports of subject goods from China and Japan until the date of the CITT’s order or finding. 
Preliminary Dumping or Subsidizing Margins have been determined as follows:

MARGINS OF DUMPING AND AMOUNTS OF SUBSIDY BY EXPORTER 

Exporters   Margin of Dumping (% of Export Price) Amount of Subsidy         (% of Export Price) Amount of Subsidy per MT (RMB)
China – All Exporters         95.0% 30.3% 1,657.11
Japan – Marubeni Steel         22.1%    
Japan – Metal One         43.1%    
Japan – Sumitomo Corporation         44.6%    
Japan – All Others         95.0%    

NOTE: The margins of dumping reported in the table above are the margins determined by the CBSA for purposes of the final determination of dumping. These margins do not reflect the amount of anti-dumping duty to be levied on future importations of dumped goods. In the event of an injury finding by the CITT, normal values have been provided to the exporters which provided sufficient information for future shipments to Canada and these normal values would come into effect the day after an injury finding. 

Imports from exporters/producers that did not provide sufficient information to the CBSA during the dumping and subsidy investigations and who are not listed in the table above will be subject to the All Other Exporters anti-dumping duty rate of 95.0%, expressed as a percentage of the export price, and countervailing duty rate of 1,657.11 RMB per MT, pursuant to a ministerial specification. Please consult the SIMA Self-Assessment Guide for more detailed information explaining how to determine the amount of SIMA duties owing.

What do you need to do: Continue to pay any applicable provisional duties imposed on the subject goods. If the inquiry determines injury has not occurred the investigation will be closed and all provisional duties will be automatically returned to the importer.
If you believe that your goods are not a subject of this investigation and you may have overpaid the provisional duty imposed, Cole can request a re-determination on your behalf.

More Information:
Case Information: http://www.citt.gc.ca/en/node/7785
SIMA Overview: http://www.cbsa.gc.ca/sima-lmsi/brochure-eng.html
SIMA Guide: http://www.cbsa.gc.ca/sima-lmsi/self-auto-eng.html
Current Measures in Force:  http://www.cbsa.gc.ca/sima-lmsi/mif-mev-eng.html

For more information regarding this bulletin, please contact us at This email address is being protected from spambots. You need JavaScript enabled to view it.



Notice of 'Initiation of Investigation' by Canada Customs

This bulletin is to advise you that the Canada Border Services Agency (CBSA) has started an investigation into possible “dumping or subsidizing” of following goods that you may currently be importing: 

Description of Goods

Usual HS Classification

      Country of Origin (or export)

 

Fabricated Structural Steel and Plate-Work Components of buildings, process equipment, process enclosures, access structures, process structures, and structures for conveyancing and material handling, including steel beams, columns, braces, frames, railings, stairs, trusses, conveyor belt frame structures and galleries, bents, bins, chutes, hoppers, ductwork, process tanks, pipe racks and apron feeders, whether assembled or partially assembled into modules, or unassembled, for use in structures for: 1. oil and gas extraction, conveyance and processing; 2. mining extraction, conveyance, storage, and processing; 3. industrial power generation facilities; 4. petrochemical plants; 5. cement plants; 6. fertilizer plants; and 7. industrial metal smelters; but excluding electrical transmission towers; rolled steel products not further worked; steel beams not further worked; oil pump jacks; solar, wind and tidal power generation structures; power generation facilities with a rated capacity below 100 megawatts; goods classified as “prefabricated buildings” under HS Code 9406.00.90.30; structural steel for use in manufacturing facilities used in applications other than those described above; and products covered by Certain Fasteners (RR-2014-001), Structural Tubing (RR-2013-001), Carbon Steel Plate (III) (RR-2012-001), Carbon Steel Plate (VII) (NQ-2013-005), and Steel Grating (NQ-2010-002);

7216.99.00.10

7216.99.00.99

7308.40.00.90

7308.90.00.92

8428.31.00.00

8428.39.00.31

8428.39.00.90

7216.99.00.20

7301.20.00.10

7308.90.00.60

7308.90.00.99

8428.32.00.90

8428.39.00.34

7216.99.00.30

7301.20.00.20

7308.90.00.81

 7326.90.90.99

8428.33.00.90

8428.39.00.39

7216.99.00.91

7308.40.00.10

7308.90.00.89

8421.99.90.90

8428.39.00.20

8428.39.00.80

 

Originating in or exported from the People’s Republic of China, the Republic of Korea, the Kingdom of Spain, the United Arab Emirates and the United Kingdom of Great Britain and Northern Ireland

 

What does this mean to you? 

In addition to the usual duty rate, your imported goods may be assessed an anti-dumping or countervailing duty.  This duty rate will be dependent on the degree of “injury” caused by the dumping or subsidizing.
  • What is Dumping? Dumping occurs when goods are sold to importers in Canada at prices that are lower than the selling price of comparable goods in the country of export, or are sold to Canada at unprofitable prices, thereby causing potential “injury” to Canadian industries.
  • What is subsidizing? Subsidizing occurs when goods imported into Canada have benefited from foreign government financial assistance (i.e. grants, tax incentives, loans at preferential rates) thereby causing potential “injury” to Canadian industries.
  • What is “injury”? A critical factor is whether the dumped or subsidized imports are causing injury or threatening to cause injury to the Canadian industry.  Injury may be shown by: lost sales, reduced prices, lost market share, decreased profits, etc.
  • The Investigation: The investigation is a twofold process.  The CBSA investigates whether or not dumping or subsidizing has occurred, and the CITT (Canadian International Trade Tribunal) investigates whether or not injury has or will occur as a result of the dumping or subsidizing.  To continue with an investigation, both the CBSA and the CITT must have come to a positive decision.  If not, the investigation is terminated.

What happens next?

1)     You may be contacted by CBSA via questionnaire.  The intention of the questionnaire is to gather detailed information on the alleged dumping or subsidizing of the imported goods. 
2)     60-90 days after an investigation begins, a Preliminary Decision of dumping or subsidizing  will be issued. Cole International will contact you with these results.  The Preliminary Decision will be either:

Preliminary Decision

Action

Next Step

  • Dumping or Subsidizing has NOT occurred

Investigation terminated

No Further action taken; Case is Closed

  • Dumping or Subsidizing has occurred

Temporary duty will be imposed on imports

Investigation will continue

3)     90-120 days after a positive Preliminary Decision, a Final Decision will be issued. Cole International will contact you with these results.  The Final Decision will be either:
Final Injury Decision

Action

Next Step

  • Dumping or Subsidizing has NOT occurred / No Injury
Investigation terminated

Temporary duty imposed will be automatically reimbursed

  • Dumping or Subsidizing has occurred & has caused Injury
Anti-dumping duty &/or Countervailing duty will be imposed on dumped / subsidized goods

This duty is generally assessed for 5 years

 

What do you need to do?

Provide a clear, detailed description of the subject goods on all of your invoices.  This will assist Cole in determining whether or not the goods attract the additional duty, and it will enable us to properly report them to Customs. Advise Cole if you receive any correspondence or a request for documentation from CBSA related to the importation of the above noted commodities. We can deal directly with CBSA on your behalf. Await additional information (Preliminary Decision), and be prepared for the potential assessment of the additional duty.

More Information:

http://www.cbsa.gc.ca/sima-lmsi/brochure-eng.html
http://www.cbsa.gc.ca/sima-lmsi/self-auto-eng.html
http://www.cbsa.gc.ca/sima-lmsi/mif-mev-eng.html
http://www.cbsa-asfc.gc.ca/sima-lmsi/i-e/fisc2016/fisc2016-ni-eng.html

CBP's New Anti-Duty Evasion Program

U.S. Customs and Border Protection (CBP) has issued “interim” regulations (81 Fed. Reg. 56477, August 22, 2016), effective immediately, under authority of the Trade Facilitation and Trade Enforcement Act of 2015 (specifically the provisions of the Enforce and Protect Act of 2015, or “EAPA”) to establish procedures for investigating claims of evasion of antidumping and countervailing duty orders. While U.S. Immigration and Customs Enforcement (ICE) has authority to conduct criminal investigations of ADD/CVD orders, and CBP has authority to assess civil penalties against importers for evasion, the new EAPA procedures afford private parties an opportunity to participate in investigations of ADD/CVD evasion.

Under the new investigative framework, CBP will have the authority to investigate allegations of ADD/CVD evasion that are filed by “interested parties” (or referred by another federal agency). Interested parties will receive notification of CBP’s initiation of the investigation, referrals to the U.S. Department of Commerce, and CBP’s determinations with respect to evasion, and may participate in the investigation and any administrative or judicial reviews of CBP’s determinations.

“Interested parties” who may file allegations of evasion (and “participate” in the investigation) include foreign manufacturers, producers, exporters or importers of the “covered merchandise,” domestic manufacturers, producers or wholesalers of a “like product,” as well as unions, groups of workers, and trade associations whose members manufacture, produce or wholesale a domestic like product. Allegations are to be filed electronically and must include, among other information, support of the allegation that the identified importer has engaged in evasion.

The EAPA and CBP’s regulations provide time frames for the initiation of investigations, the making of determinations, the communication of determinations to interested parties, and the initiation of interim enforcement action. Upon receipt of a properly filed allegation, CBP must make a determination within 15 days as to whether to initiate an investigation. Unless CBP makes a referral to the U.S. Department of Commerce, CBP must make a determination with respect to evasion within 300 days of the initiation (subject to extensions). In conducting its investigation, CBP may request information from interested parties, the importer alleged to have engaged in evasion, foreign producers and exporters, and the government of the country of exportation of the covered merchandise. While CBP will set forth the time for responses it its request, the 200th day after initiation of the investigation is the general deadline for information to be considered.

No later than 90 days after initiation, CBP will take “interim measures”, including suspending the liquidation of entries or extending suspension of liquidation of entries (and taking any necessary bond action) if it determines that there is “reasonable suspicion” that covered merchandise had been entered though evasion. Written arguments with respect to the alleged evasion and responses thereto by the “parties to the investigation” (the party who alleged evasion and the importer who allegedly engaged in evasion) may be submitted to CBP until 230 days after the initiation of the investigation.

Upon conclusion of the investigation, CBP will make a determination of evasion on the basis of “substantial evidence” and notify the parties to the investigation. Negative determinations will result in terminating any interim measures. Affirmative determinations will result in separate CBP action for liquidated entries of covered merchandise, and suspension or extension of liquidation of unliquidated entries (with continuation of the suspension or extension of liquidation of entries subject to interim measures), and CBP notification to the U.S. Department of Commerce.  

Requests for administrative review of this “initial determination” may be made by either the party alleging evasion or the person determined to have entered merchandise through evasion, and are to be submitted to CBP’s Office of Regulations and Rulings. Parties to the investigation may submit responses to the request. The final administrative determination that results of CBP’s review are subject to judicial review by the U.S. Court of International Trade.

Information provided by: Steve Varnis - U.S. Customs Consulting - Cole International

Subscribe for Updates
Please supply a valid email address
Please fill in your first name.
Please fill in your last name.
Please fill in your company.
Invalid Input
Invalid Input

-->
Get the Answers
Start Now
Still Have Questions?
Request Assistance
Request Assistance
Get the answers you need!
Set-up your NRI Account