Invitation to Submit Views

The Department of Finance is seeking feedback from Canadians regarding possible safeguard action related to imports of certain steel products.

The intent of these consultations is to better inform the Government as to whether safeguard action, including the imposition of provisional safeguards, may be warranted in respect of the steel products outlined in the Annex of this notice. Interested parties are also invited to submit views concerning the appropriate remedy, should provisional safeguards be warranted.

Background

Under the World Trade Organization (WTO) Agreement on Safeguards, global safeguard measures may be applied by a WTO Member if an investigation determines that a product is being imported in such increased quantities, and under such conditions, as to cause or threaten to cause serious injury to domestic producers of that product.  In critical circumstances where delay may cause damage that is difficult to repair, provisional safeguard measures may be applied by a WTO Member for up to 200 days on the basis of a preliminary determination pending the results of an investigation.

In Canada, the requirements for imposing global safeguard measures are provided for in the Customs Tariff.  The Customs Tariff allows the Governor in Council to impose, on the basis of a report and recommendation of the Minister of Finance, provisional safeguard measures if there are critical circumstances.  If provisional safeguard measures are imposed, the matter must be immediately referred to the Canadian International Trade Tribunal for inquiry.

In cases where imports have caused, or threaten to cause, serious injury to domestic producers, provisional safeguard measures may be warranted.  As announced on June 29, 2018, the Government is working with domestic producers of steel plate, concrete reinforcing bar and energy tubular products on an appropriate response, including provisional safeguards, to prevent increases in imports.  The Government is also actively considering whether similar measures are warranted in the case of hot-rolled sheet, pre-painted steel, wire rod and stainless steel wire.  The Government will continue to monitor the import situation and work with stakeholders to determine whether additional products may be considered for safeguards at a later date.

Provisional safeguards may take the form of a surtax that applies to all subject imports or a surtax that only applies to subject imports that exceed a specified quantity threshold (i.e., tariff-rate quota). As an example, provisional safeguards imposed by the European Union on July 19, 2018, took the form of product-specific tariff-rate quotas whereby a 25 per cent surtax is only applied once imports exceed 100 per cent of the average of volume of imports between 2015 and 2017.

If provisional safeguards are imposed, the Government would also direct the Canadian International Trade Tribunal to conduct a formal inquiry to determine whether final safeguards are warranted.

Comments

Written comments should be provided no later than August 29, 2018. Submissions, at a minimum, should include the following information and address the following issues:

  1. Canadian company/industry association name, address, telephone number, and contact person.
  2. Identify the steel product(s) to which the submission pertains.
  3. Views concerning whether safeguard action in respect of imports of the concerned products is warranted, supported by reasons for these views.
  4. Any supplementary information to support the views made in the submission in support of or opposed to safeguard action.
  5. Views concerning an appropriate remedy, should the imposition of provisional safeguards be warranted, including detailed information substantiating any expected beneficial or adverse impacts.
  6. Indicate if information provided in the submission is commercially sensitive.

Address for comments

Comments and general inquiries should be sent to the following address: International Trade Policy Division (Safeguards), Department of Finance, James Michael Flaherty Building, 14th Floor, 90 Elgin Street, Ottawa, Ontario K1A 0G5, 613-369-4024 (fax), (fin.simaconsult-lmsiconsult.fin@canada.ca).

Annex

Steel Plate

Product Definition

Carbon and alloy steel plate, in discrete form or in cut lengths, subject to the following dimensional restrictions and exclusions.

This definition includes hot-rolled carbon steel plate and high-strength low-alloy steel plate not further manufactured than hot-rolled, heat-treated or not, in widths from 80 inches (+/- 2,030 mm) to 152 inches (+/- 3,860 mm) inclusive, and thicknesses from 0.375 inches (+/-9.525 mm) up to and including 4.0 inches (101.6 mm), with all dimensions being plus or minus allowable tolerances contained in the applicable standards.  For greater certainty, these dimensional restrictions apply to steel plate, which contains alloys greater than required by recognized industry standards provided that the steel does not meet recognized industry standards for an alloy-specification steel plate.

This definition includes hot-rolled alloy steel plate in widths from 24 in. (+/- 610 mm) to 152 in. (+/- 3,860 mm) inclusive, and thicknesses from 0.187 in. (+/- 4.75 mm) to 4.0 in. (+/- 101.6 mm) inclusive, with all dimensions being plus or minus allowable tolerances contained in the applicable standards.

The definition excludes:

HS Codes

Plate is commonly imported under the following 10-digit HS numbers:

7208.51.00.10; 7208.51.00.93; 7208.51.00.94; 7208.51.00.95; 7208.52.00.10; 7208.52.00.93; 7208.52.00.96; 7225.40.00.10; 7225.40.00.20; 7225.40.00.30; 7225.40.00.40; 7225.40.00.50

Please note that these HS numbers are illustrative. There may be goods under the listed HS number that do not fall within the product definition, or goods that are imported under a HS number that is not listed but that fall within the product definition.

Concrete Reinforcing Bar

Product Definition

Hot-rolled deformed steel concrete reinforcing bar in straight lengths or coils, commonly identified as rebar, in various diameters up to and including 56.4 millimeters, in various finishes.

The definition excludes:

HS Codes

Concrete reinforcing bar is commonly imported under the following 10-digit HS numbers:

7213.10.00.00; 7214.20.00.00

Please note that these HS numbers are illustrative. There may be goods under the listed HS number that do not fall within the product definition, or goods that are imported under a HS number that is not listed but that fall within the product definition.  

Energy Tubular products

Product Definition

Carbon and alloy steel energy tubular products, including line pipe, tubing, and casing, for use in the oil and gas and petrochemical industries, finished or unfinished, welded or seamless, having a nominal outside diameter from 2.375 inches (60.3 mm) to 60 inches (1,524 mm) (with all dimensions being plus or minus allowable tolerances contained in the applicable standards), heat treated or not heat treated, regardless of length, wall thickness, surface finish (coated or uncoated), and end finish (plain, bevelled, threaded, or threaded and coupled), in all grades, meeting or supplied to meet American Petroleum Institute ("API") 5L, API 5L-B, API 5CT, Canadian Standards Association ("CSA") Z245.1, International Standards Organization ("ISO") 3183, American Society for Testing and Materials ("ASTM") ASTM A333, ASTM A106, ASTM A53-B or their equivalents and/or enhanced proprietary standards, whether or not actually certified or stenciled, whether or not meeting specifications for other end uses (e.g. single-, dual-, or multiple-certified, for use in oil and gas, piling pipe, or other applications).

For greater certainty, the product definition includes casing and tubing that are referred to as "green tubes" in the industry. These are formed tubes with the requisite chemistry and dimensions of casing or tubing, but that require further processing before they may be used in a well. They are included in the definition above as unfinished, non-heat treated, or plain end pipe. The finishing required may be heat treatment, threading, coupling, testing, or any combination of these processes.

The definition excludes:

HS Codes

Energy tubular products are commonly imported under the following 10-digit HS numbers:

7304.19.00.10; 7304.19.00.20; 7304.29.00.11; 7304.29.00.19; 7304.29.00.21; 7304.29.00.29; 7304.29.00.31; 7304.29.00.39; 7304.29.00.81; 7304.29.00.89; 7305.11.00.10; 7305.11.00.20; 7305.12.00.10; 7305.12.00.30; 7305.19.00.10; 7305.19.00.20; 7306.19.00.10; 7306.19.00.90; 7306.29.00.11; 7306.29.00.19; 7306.29.00.51; 7306.29.00.59; 7306.29.00.61; 7306.29.00.69

Please note that these HS numbers are illustrative. There may be goods under the listed HS number that do not fall within the product definition, or goods that are imported under a HS number that is not listed but that fall within the product definition.

Hot-rolled Sheet

Product Definition

Flat hot-rolled carbon and alloy steel sheet and strip, including secondary or non-prime material, in various widths from 0.75 inches (19 mm) and wider, and

The definition excludes:

HS Codes

Hot-rolled sheet is commonly imported under the following 10-digit HS numbers:

7208.25.00.00; 7208.26.00.00; 7208.27.00.00; 7208.36.00.00; 7208.37.00.10; 7208.37.00.20; 7208.37.00.50; 7208.38.00.10; 7208.38.00.20; 7208,38.00.50; 7208.39.00.00; 7208.53.00.00; 7208.54.00.00; 7208.90.00.00; 7211.14.00.90; 7211.19.00.90; 7225.30.00.00; 7226.91.00.00

Please note that these HS numbers are illustrative. There may be goods under the listed HS number that do not fall within the product definition, or goods that are imported under a HS number that is not listed but that fall within the product definition.

Pre-painted Steel

Product Definition

Pre-painted flat-rolled products of non-alloy and alloy steel (not including stainless steel) which are

in coils or cut lengths, in thicknesses up to 0.079 inches (2.0066 mm) and widths up to 61.5 inches (1562.1 mm) with all dimensions being plus or minus allowable tolerances contained in the applicable standards.

The definition excludes:

HS Codes

Pre-painted steel is commonly imported under the following 10-digit HS numbers:

7210.70.00.00; 7212.40.00.00

Please note that these HS numbers are illustrative. There may be goods under the listed HS number that do not fall within the product definition, or goods that are imported under a HS number that is not listed but that fall within the product definition.

Stainless Steel Wire

Product Definition

Cold drawn, and cold drawn and annealed, stainless steel round wire, up to and including 0.256 inches (6.50 mm) in maximum solid cross-sectional dimension; and cold drawn, and cold drawn and annealed, stainless steel cold-rolled profile wire, up to and including 0.031 square inches (0.787 sq. mm) in maximum solid cross-sectional area.

HS Codes

Stainless steel wire is commonly imported under the following 10-digit HS numbers:

7223.00.00.10; 7223.00.00.20

Please note that these HS numbers are illustrative. There may be goods under the listed HS number that do not fall within the product definition, or goods that are imported under a HS number that is not listed but that fall within the product definition.

Wire Rod

Product Definition

Certain hot‐rolled products of carbon steel and alloy steel, in coils, of approximately round cross section, less than 19.00 mm in actual solid cross‐sectional diameter.

The definition excludes:

HS Codes

Wire rod is commonly imported under the following 10-digit HS numbers:

7213.20.00.10; 7213.91.00.11; 7213.91.00.21; 7213.91.00.31; 7213.99.00.10; 7213.99.00.30; 7213.99.00.50; 7227.90.00.10

Please note that these HS numbers are illustrative. There may be goods under the listed HS number that do not fall within the product definition, or goods that are imported under a HS number that is not listed but that fall within the product definition.

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