CARM: What all importers need to know about CARM

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Surtaxes Imposed on Certain Products Originating in the United States

On June 29, 2018, the Government of Canada released its

final list of tariff items

that will be applied as retaliatory tariffs to U.S. steel, aluminum and other products. These countermeasures are in response to the 25%

Steel Tariff

and the 10%

Aluminum Tariff

applied by the U.S. to Canadian origin goods. The countermeasures will come into effect on July 1 and remain in place until the U.S. removes its trade measures against Canada.

The list
is a must-read for all importers as the “other products” range from yogurt to ball point pens and not just steel and aluminum.

This final list has been issued after the Canadian Government took into consideration feedback received from Canadians through over 1,000 submissions during public consultations. The countermeasures being imposed amount to C$16.6 billion in imports of steel, aluminum, and other products from the U.S., representing the value of 2017 Canadian exports affected by the U.S. tariffs.

The Canada Border Services Agency (CBSA) have issued Customs Notice 18-08, United States Surtax Order (Steel and Aluminum) and United States Surtax Order (Other Goods) to provide detailed information concerning the application and administration of the surtaxes.

Of particular note:

  • The surtaxes do not apply to U.S. goods that are in transit to Canada prior to July 1, 2018.
    • Importers must have proof that such goods were in transit to Canada prior to July 1, 2018. Such proof may include, but is not limited to, the following documentation: sales orders, purchase orders, shipping documents (for example, a through bill of lading (TBL), report of entry documents, and cargo control documents. Such proof may be requested at any time by a CBSA officer.
  • The surtaxes will only apply to goods that originate in the U.S., which shall be considered as those goods eligible to be marked as goods of the U.S. in accordance with theDetermination of Country of Origin for the Purposes of Marking Goods (NAFTA Countries) Regulations.
    • The burden of proof that the goods are not considered originating in the U.S. as defined in the United States Surtax Order (Steel and Aluminum) and the United States Surtax Order (Other Goods) lies with the importer.
  • Canada’s
    Duties Relief andDuty Drawback Programs

    continue to be available to importers for duties, including surtaxes, paid or owed by Canadian businesses that meet the requirements of the programs.

As well, Global Affairs Canada released Canada stands up for our steel and aluminum workers and industry providing statements, facts, and additional background information on today’s announcements.

The House of Commons Standing Committee on International Trade held a hearing on June 26, 2018 regarding the impacts of US tariffs on steel and aluminum on Canadian businesses and workers, including steel companies, trade associations, and representatives from organized labour.

As a result of limited time for witnesses to be heard, the House of Commons Standing Committee on International Trade is asking that interested parties submit a brief through their online form by July 31, 2018, outlining thoughts about the impacts of US Section 232 tariffs on Canadian businesses and workers.

If you would like to engage our Customs Consulting team, please contact me at (905) 882-4880, ext. 213
to discuss available services, including a Duty Impact Study.

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