Specialty Steel Melt-and-Pour Reporting

Summary#

This is a proposed order that would change the General Import Permit No. 81 – Specialty Steel Products. It would require importers to report the "country of melt and pour" for many specialty steel shipments and add some small-shipment and product exemptions. Interested people can comment within 30 days of publication (publication date August 24, 2024).

What it does#

• Replaces part of section 2 so that when goods are accounted for under the Customs Act, the resident of Canada must include the code "GIP81" or "LGI81" on the accounting form.
• Adds a new requirement that, at the time of importation, importers must state the country of melt and pour in the form and manner set by the Canada Border Services Agency.
• Defines "country of melt and pour" as the country where the raw steel was first made liquid in a steel-making furnace and poured into its first solid form (for example, a slab, billet, ingot, or a finished mill product).
• Creates exemptions:
  • The section 2 accounting statement and the melt-and-pour reporting do not apply to a CSA importer that releases steel under a specific paragraph of the Customs Act (as defined in existing regulations).
  • The melt-and-pour reporting does not apply if the total value for duty of the imported goods is $5,000 or less.
  • The melt-and-pour reporting also does not apply to certain product types, including:
    • welded angles, shapes or sections;
    • non-electrically insulated stranded wire, ropes, cables or the like;
    • barbed wires or fencing wires;
    • wire nails, tacks, pins, staples or the like.
• Sets the proposed coming-into-force date as November 5, 2024 (or the date of registration if registered after that day).

Who's affected#

• Importers of specialty steel products into Canada will be the primary group affected.
• Customs brokers and companies that do the accounting for imported goods will need to include the required codes and, for many shipments, report the country of melt and pour to the Canada Border Services Agency.
• Manufacturers, fabricators, and other users of imported specialty steel may be indirectly affected if suppliers need to collect and supply additional origin information.
• Small shipments with a value for duty of $5,000 or less, and the specific product types listed above, are exempt from the melt-and-pour reporting.
• It is unclear from the notice how broadly the term "specialty steel products" is applied in practice beyond the permit’s legal text.

Why it matters#

• The change would make origin information about where steel was actually produced (the melt-and-pour country) a regular part of import paperwork for many specialty steel items.
• That information can affect whether goods meet trade rules, monitoring, or enforcement actions that depend on origin. It may also add time and paperwork for importers and their service providers.
• The exemptions for low-value shipments and common wire and fastener items mean small orders and some simple products won’t face the new reporting requirement.
• This is a proposed order. The government is asking for public input for 30 days from publication (August 24, 2024).