Specialty Steel Import Declaration Rules

Summary#

This is a proposed Order Amending the General Import Permit No. 81 – Specialty Steel Products under the Export and Import Permits Act. If adopted, it would make importers of specialty steel declare where the raw steel was first melted and poured, and add some small-value and product exemptions.

What it does#

• Requires a Canadian resident accounting for goods under the Customs Act to include the code "GIP81" or "LGI81" on the customs form at the time of accounting.
• Requires importers, at the time of importation, to state the country where the steel was first melted and poured. The format and how this is reported will be set by the Canada Border Services Agency.
• Defines "country of melt and pour" as the country where the raw steel was first produced in a steel-making furnace in liquid form and poured into its first solid form (for example, a slab, billet, ingot, or a finished steel mill product).
• Adds exemptions:
  • The new form/code and the melt-and-pour declaration do not apply to a CSA importer that releases steel under paragraph 32(2)(b) of the Customs Act. (CSA importer is as defined in the Accounting for Imported Goods and Payment of Duties Regulations.)
  • The melt-and-pour declaration is not required when the total value for duty of the shipment does not exceed $5,000.
  • The melt-and-pour declaration is also not required for certain simple steel items, including welded angles/shapes/sections; non-electrically insulated stranded wire, ropes or cables; barbed or fencing wires; and wire nails, tacks, pins, staples or similar items.
• This is a proposed change. Interested people can make representations within 30 days of publication (publication date: August 24, 2024).
• If made final, the Order would come into force on November 5, 2024 (or on the day it is registered if registration happens later).

Who's affected#

• Importers of specialty steel products and their customs brokers or agents.
• Businesses that bring in specialty steel for manufacturing, resale, or construction.
• Larger importers who account for goods under the Customs Act (they must add the "GIP81"/"LGI81" code).
• Small shipments with a value for duty at or below $5,000 and specific simple wire/fastener items listed above — these are exempt from the melt-and-pour declaration.
• The Canada Border Services Agency, which will set how the country-of-melt-and-pour information is reported.

Why it matters#

• Import paperwork will change. Importers and brokers may need to collect and report an extra origin detail at the time of import.
• The new "country of melt and pour" info makes the origin of the steel itself clearer. That could affect sourcing choices and help the government monitor where steel actually comes from.
• The rule includes practical exemptions for low-value shipments and common small steel items, so many small purchases and shipments may not be affected.
• This is not law yet. The public has 30 days from August 24, 2024 to comment on the proposal before it could be finalized. If finalized, it would take effect on November 5, 2024 (subject to registration timing).