Vol. 148, No. 24 — November 19, 2014
SOR/2014-247 October 31, 2014
EXPORT AND IMPORT PERMITS ACT
Order Amending the Import Control List
P.C. 2014-1155 October 30, 2014
Whereas, in the opinion of the Minister of Foreign Affairs, certain carbon and specialty steel products are traded in world markets in circumstances of surplus supply and depressed prices;
Whereas a significant proportion of world trade in those products is subject to control through the use of non-tariff measures;
Whereas the Governor in Council is satisfied that it is advisable to collect information with respect to the importation of those products;
And whereas those products were included on the Import Control List (see footnote a) by Order in Council P.C. 2011-901 of August 30, 2011 (see footnote b), which came into force on September 1, 2011, and will be deemed by subsection 5.1(2) (see footnote c) of the Export and Import Permits Act (see footnote d) to be removed from that list on August 31, 2014;
Therefore, His Excellency the Governor General in Council, on the recommendation of the Minister of Foreign Affairs, pursuant to subsection 5.1(1) (see footnote e) and section 6 (see footnote f) of the Export and Import Permits Act (see footnote g), makes the annexed Order Amending the Import Control List.
ORDER AMENDING THE IMPORT CONTROL LIST
1. Items 80 and 81 of the Import Control List (see footnote 1) are replaced by the following:
80. Carbon steel products including semi-finished products (ingots, blooms, billets, slabs and sheet bars), plate, sheet and strip, wire rods, wire and wire products, railway-type products, bars, structural shapes and units, pipes and tubes, but excluding the specialty steel products referred to in item 81.
81. Specialty steel products: stainless steel flat-rolled products (sheet, strip and plate), stainless steel bar, stainless steel pipe and tube, stainless steel wire and wire products, alloy tool steel, mold steel and high-speed steel.
COMING INTO FORCE
2. This Order comes into force on the day on which it is registered.
REGULATORY IMPACT ANALYSIS STATEMENT
(This statement is not part of the Order.)
Given that steel is traded in world markets in circumstances of surplus supply, market instability, and significant barriers to trade, the Steel Import Monitoring Program was implemented in 1986 to support identification of issues of dumping on the Canadian market. The authority to monitor is granted through the Export and Import Permits Act (EIPA), by placing a certain type of steel or a certain product made of steel on the Import Control List (ICL). Carbon steel and speciality steel products were included on the ICL in the Order Amending the Import Control List (SOR/2011-171), and, under the terms of subsection 5.1(2) of the EIPA, were automatically removed from the ICL after August 31, 2014. Since market conditions have not changed since 1986, imports of carbon steel and speciality steel products should continue to be monitored by placing these products on the ICL by the current Order Amending the Import Control List for another three-year period.
The Steel Import Monitoring Program is managed by the Department of Foreign Affairs, Trade and Development (DFATD) and aims to provide industry stakeholders with accurate and timely statistics on imports of specialty and carbon steel into Canada.
Import monitoring of steel products began on September 1, 1986, when carbon steel products were added to the ICL for the purpose of collecting information concerning the importation of such goods. This action was taken as a result of the report issued following the completion of an inquiry by the Canadian Import Tribunal, now known as the Canadian International Trade Tribunal, under section 48 of the Special Import Measures Act. The Tribunal, which concluded its inquiry in this matter in July 1986, found that given a number of factors, including excess carbon steel production capacity, market instability, and significant barriers to trade, it was advisable for the Government to begin collecting carbon steel import information.
Specialty steel products were added to the ICL on June 1, 1987, following an amendment to the EIPA that allowed the Government to collect information on the importation or the exportation of these steel products.
Maintaining carbon and specialty steel on the ICL aims to provide industry stakeholders with accurate and timely statistics on imports into Canada to facilitate early detection of the dumping of goods on the Canadian market, allowing early investigation by the Canada Border Services Agency (CBSA) and remedial action, if required.
The Canadian steel industry requires the most up-to-date information available on the nature, volume, price and origin of steel imports, as well as reports produced from this information. Import permit data is the most timely source available in Canada on these elements. There are currently no alternative sources of equivalent steel import statistics. Similar information from Statistics Canada is published at least six weeks later. DFATD provides the information to industry by publishing statistical reports on its Web site each Monday to reflect the previous week’s activity.
Over the last few years, DFATD, the Department of Finance and the CBSA have worked together to virtually eliminate any financial or administrative burden at the border. In November 2010, all steel import permit fees were eliminated as a cost saving measure for the industry. In April 2012, the requirement for importers to apply for import-specific permits was eliminated. Currently, importers must cite General Import Permit No. 80 — Carbon Steel as found in SOR/2012-17, February 27, 2012, and General Import Permit No. 81 — Specialty Steel Products as found in SOR/2012-18, February 27, 2012, on their CBSA import documentation, but do not need to apply for individual permits.
The current Order Amending the Import Control List includes carbon and speciality steel products on the Import Control List beginning on the date on which the Order is registered.
The “One-for-One” Rule does not apply to this proposal, as there is no change in administrative costs to business.
Small business lens
The small business lens does not apply to this proposal, as there are no costs to small business.
There is strong support for the renewal of this initiative by the main stakeholders, the Canadian steel producers. Canadian steel industry stakeholders are consulted on permit requirements within the context of the Government and Industry Steel Import Monitoring Committee chaired by the Department of Finance. DFATD representatives also meet regularly with the Trade Committee of the Canadian Steel Producers Association. All committee members were invited to submit views, in writing, with respect to the prospective renewal of the Steel Import Monitoring Program. The industry has also been actively querying DFATD to ascertain the status of the renewal of the Program. Industry stakeholders value this Program and support its renewal for another three years.
Under the terms of subsection 5.1(2) of the EIPA, any type of steel or any product that has been included on the ICL by order under subsection 5.1(1), shall be deemed to be removed from the ICL on the expiration of the period of three years from the day on which it was included on that ICL or on such day prior to the expiration of that period, as may be specified in the order. As a result, the Order Amending the Import Control List (SOR/2011-171) was only in effect until August 31, 2014.
The Order Amending the Import Control List will ensure that import monitoring of carbon and specialty steel products is renewed for an additional three-year period. The elimination of import monitoring would remove an important source of information used extensively by steel producers to track prices, volumes, and origins of steel imports.
Implementation, enforcement and service standards
Importers of carbon and specialty steel must cite the appropriate General Import Permit (General Import Permit No. 80 — Carbon Steel as found in SOR/2012-17, February 27, 2012, and General Import Permit No. 81 — Specialty Steel Products as found in SOR/2012-18, February 27, 2012) on customs documentation. DFATD provides information and guidance to industry on the process, as requested, with contact information posted on the Web site. Failure to cite the required import permit may lead to the levying of penalties by the CBSA under the Administrative Monetary Penalty System, which authorizes the CBSA to assess monetary penalties for non-compliance with customs legislative, regulatory and program requirements. Importers may also face prosecution under the EIPA for contravening a provision of the Act (section 19). Compliance is monitored by the CBSA.
Administration and Technology Services
Trade Controls Bureau
Department of Foreign Affairs, Trade and Development
125 Sussex Drive