New Import Rules for Specialty Steel

Summary#

The federal government is proposing the Order Amending the General Import Permit No. 81 – Specialty Steel Products. If adopted, importers would need to give extra information at the border about where the steel was melted and poured, and include a permit code when goods are entered; the proposal is open for comments for 30 days.

What it does#

• Requires the person accounting for imported specialty steel to include the code “GIP81” or “LGI81” when goods are entered under the Customs Act.
• Requires importers, at the time of importation, to specify the country where the steel was first produced in liquid form and poured into its first solid state (the "country of melt and pour") in the form and way set by the Canada Border Services Agency.
• Defines "country of melt and pour" as the country where raw steel is first made in a steel-making furnace in liquid form and poured into a slab, billet, ingot, or a finished steel mill product.
• Exempts some situations and goods:
  • The code and the melt-and-pour reporting do not apply to a CSA importer that releases steel under paragraph 32(2)(b) of the Customs Act (the term CSA importer is defined in the Accounting for Imported Goods and Payment of Duties Regulations).
  • The melt-and-pour reporting does not apply if the total value for duty is $5,000 or less.
  • The melt-and-pour reporting does not apply to specific low-risk items: welded angles/shapes/sections; non-electrically insulated stranded wire, ropes or cables; barbed or fencing wire; and wire nails, tacks, pins, staples or the like.
• The Order is scheduled to come into force on November 5, 2024 (or on the day it is registered if registration happens after that date).

Who's affected#

• Importers of specialty steel products and their customs brokers.
• Businesses that buy, process, or resell imported specialty steel (manufacturers, fabricators, distributors).
• The Canada Border Services Agency, which will collect and process the new melt-and-pour information.
• Importers of small-value shipments ($5,000 or less) and certain listed basic steel items — these groups are mostly exempt from the melt-and-pour reporting.
• It is unclear from the notice how many shipments or which specific companies will be captured; the exact scope depends on how the CBSA implements the required form and manner of reporting.

Why it matters#

• This change increases traceability of steel origins at the border. Importers will need to document where steel was first melted and poured, which may mean extra paperwork and record-keeping when goods arrive.
• The government will get more detailed origin data for specialty steel. That can affect enforcement of trade measures and give officials better information about supply chains.
• Small shipments and common simple items are mostly exempt, so many low-value or simple wire/nail-type imports will see little change.