Tariff Appeal and Steel Exclusions Inquiry

Summary#

The Canadian International Trade Tribunal published several notices on matters that affect trade and government contracting. Key items include an appeal hearing on tariff classification scheduled for June 22, 2021, the start of an exclusion inquiry for certain steel goods with a report due July 9, 2021, a procurement complaint that was dismissed on May 3, 2021, and two new procurement inquiries announced in May 2021.

What it does#

• Appeal about tool classification

  • The Tribunal is handling an appeal by Entreprise Robert Thibert Inc. against the President of the Canada Border Services Agency over how certain torque ratchet handles (models RDTW150F and RDTW600F) should be classified for tariff purposes.
  • A hearing is scheduled for June 22, 2021. The dispute is whether the goods belong under tariff item 8204.11.00, 8207.90.90, or 8466.10.00.

• Exclusions inquiry for certain steel goods

  • The Tribunal began an inquiry directed by the government to decide whether some heavy plate and stainless steel wire should be excluded from a surtax on certain steel imports (this came from the Exclusions Inquiry Order).
  • The Tribunal must report to the Minister of Finance by July 9, 2021.
  • The notice gives a short schedule for filing exclusion requests and responses (key dates include May 10, 2021, May 21, 2021, May 27, 2021, June 7, 2021, June 14, 2021, and July 9, 2021).
  • The notice sets rules for submissions, including a page limit of 55 pages, formatting rules, and how to mark information confidential while providing a public summary.

• Procurement decisions and inquiries

  • The Tribunal issued a decision on May 3, 2021 that a complaint by Heiltsuk Horizon Maritime Services Ltd./Horizon Maritime Services Ltd. about Solicitation No. F7017-160056/C (emergency towing vessels) was not valid.
  • The Tribunal decided to open inquiries into two complaints from Wärtsilä Canada Incorporated about Fisheries and Oceans Canada procurements (Solicitation Nos. F6855-210015/A and F7049-200079/A). These notices say the Tribunal will look into allegations that mandatory requirements were not properly applied in awarding the contracts.

Who's affected#

• Importers and customs brokers who bring in tools like the torque ratchet handles in question.
  • Entreprise Robert Thibert Inc. and the Canada Border Services Agency are directly involved.
• Steel importers, Canadian firms seeking to import specific heavy plate or stainless steel wire, and domestic steel producers who might claim they can supply those goods.
• Companies that want an exclusion from the surtax, because they must follow the Tribunal's tight schedule and evidence rules (including the 55 pages limit).
• Businesses and bidders involved with the public-works procurements named in the complaints, including Heiltsuk Horizon Maritime Services Ltd./Horizon Maritime Services Ltd. and Wärtsilä Canada Incorporated, plus the Department of Public Works and Government Services and the Department of Fisheries and Oceans.
• The public may be affected indirectly where these decisions change who supplies government services (for example, towing or ship maintenance) or the cost of imported steel.

Why it matters#

• Tariff classification can change how much duty is paid and affect how quickly goods clear customs. The outcome of the tools appeal could change costs for importers or resellers of those ratchet handles.
• The exclusions inquiry could let some steel imports avoid the surtax. That would lower costs for buyers who import excluded products and could affect demand for Canadian steel producers.
• Procurement inquiries can overturn or delay contract awards. That can change who provides services to government and affect local jobs or service availability.
• The Tribunal’s strict timelines, page limits, and confidentiality rules mean businesses must move quickly and prepare focused evidence if they want an exclusion or to challenge a procurement decision.