On 1 July 2018, Canada began imposing a surtax of either 10% or 25% against certain steel, aluminum, and other products from the United States. We wrote about the actions leading up to the Government of Canada's decision to impose countermeasures, and the proposed list of products subject to the surtax, in an earlier Client Alert dated 1 June .
Following a public comment period, the final list of tariff items subject to the surtax was published by the Government of Canada on 29 June. Companies should confirm whether any of their products are subject to the surtax by reviewing the tariff classification of products imported into Canada against the final list, which can be found here.
The Canada Border Services Agency has also published a Customs Notice regarding the imposition of the surtax. The Customs Notice confirms that the surtaxes will only apply to goods that originate in the U.S., which are considered to be those goods 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. Surtaxes will apply to both commercial and personal importations of goods. The Customs Notice contains directions on the calculation of surtax when accounting for imported goods.
Importantly, the Customs Notice also confirms that Canada's duty relief and duty drawback programs will continue to be available to importers that meet the requirements of the programs. Importers who are affected by the surtax should consider whether duty relief or duty drawback is available in the circumstances.
The Customs Notice can be found online here.