Further to our initial alert on this matter (Provisional Safeguard Measures), what are known as “tariff rate quota” (TRQ) permits will be required on those steel goods subject to the 25% safeguard measure. Once quotas or TRQ volumes have been met, the 25% safeguard surtax will be imposed.
Importers will be well-advised to periodically monitor TRQ levels to avoid any unpleasant surprises. Global Affairs Canada (GAC) has as their mandate to issue TRQ level updates and will do so – beginning October 25 – through TRQ utilization tables to be found here.
It should be noted that this safeguard measure does not apply to certain origin goods but those goods must be exported and originate from the country in question. As such, country exemptions apply to goods originating in and imported from the US, Chile, Israel, and developing countries which are beneficiaries to the general preferential tariff (GPT), with notable exceptions: energy tubular and wire rod from Mexico and concrete reinforcing bar from Vietnam.
Please contact your local Delmar International representative or our North American Customs advisory Services Group at email@example.com for additional information.