Process for requesting remission of surtaxes on steel imports that exceed tariff-rate quotas (TRQs)

The Government of Canada is outlining a framework and process for how it will consider remission requests for the 50 per cent surtax on imports of steel products that exceed TRQs, which applies to imports originating in all countries except Canada, the U.S., and Mexico.

The steel TRQs are intended to protect the Canadian steel industry from the harmful effects of diversion of steel imports into the Canadian market and to facilitate Canadian industry's pivot to the domestic market. In this regard, the government has sought to narrowly target tariff classifications covered by TRQs to those that include products for which there is domestic production capability. However, there may be instances in which covered tariff classifications include steel products of specific properties (e.g., dimension, grade, chemistry) not available domestically.

Accordingly, the government will consider requests for remission from the 50 per cent surtax to address exceptional circumstances, notably when there is no domestic production capability of a particular product. In such case, the application of the surtax has no protective effect for the Canadian steel industry and may cause undue burden for importers and downstream users. Remission may also be applied retroactively to the date of implementation of the surtaxes.

Any request for remission will be assessed by the Department of Finance, which includes targeted consultations with the domestic steel industry to validate claims concerning domestic capabilities. Recommendations will be made to the Minister of Finance. Under section 115 of the Customs Tariff, the Minister of Finance has the authority to recommend remission to the Governor in Council. To take effect, an Order in Council also needs to be approved by the Governor in Council.

In order to ensure that remission requests are properly substantiated and can be assessed in a timely manner, all remission requests must provide the information requested in the template below. Any information in the remission request that is deemed confidential must be marked as such and will be protected by the Government of Canada. Sufficient non-confidential information must be provided to allow for engagement with domestic producers, where appropriate to validate claims regarding domestic supply.

Template for Remission Requests

Requesting multiple types of exceptional relief

Submit a single request even if your product may be eligible under multiple Canadian remission programs. Indicate that you are seeking relief through multiple programs, and provide all the required information for each remission framework.

The Department of Finance will use this single request to consider any relevant remission program that may apply to your product.

Please provide the following information using the numbered headings:

1. A brief outline of the company's operations: details of corporate structure, location (HQ and any other locations), what it does, number of employees.
2. A detailed description of the goods for which remission is sought, the applicable 10-digit tariff classification number, and the TRQ product category under which they are classified.
3. The volume and value of importations of the goods, on an annual basis, for each country of origin. If goods have not been imported, indicate when imports will commence and the country of origin.
4. Evidence demonstrating inability to source the product, or substitutes, from Canadian suppliers, including any request for proposal notice or the names of companies canvassed and, if possible, copies of replies from these companies. Any additional relevant information on the company's sourcing model should also be provided.
5. Information on the effect of remission on employment, volume of production, investment, or other relevant aspects of operations.
6. Detailed comments on the reasons for requesting remission of surtaxes, clearly outlining the exceptional circumstances that merit consideration of the application, and making reference to the factual information provided in the submission.
7. Consent to share non-confidential information with domestic producers to validate information (and any conditions attached to that consent).
8. Any supportive or corroborative information, such as letters of support, independent studies, or market data.

Submitting your remission request and inquiries

Submit your remission requests or any inquiries to:
remissions-trq-derivatives-remises-ct-produitsderives@fin.gc.ca, with "TRQ Remission" in the subject line.