Canada-U.S. Blog Trade Lawyers Cyndee Todgham Cherniak and Susan K. Ross

Canada Announced New Marking Rules for Steel and Aluminum

Posted in Antidumping, Border Security, Canada's Federal Government, Customs Law, origin, Trade Remedies, U.S. Federal Government

On May 30, 2018, Canada’s Minister of Finance announced new marking rules for steel and aluminum products.  In a News Release entitled “Canada Bolsters Prevention of Transshipment and Diversion of Steel and Aluminum Products Through Country of Origin Marking Regime“, the Department of Finance announced that Canada was aligning its marking rules with the United States’ marking rules (the U.S. regime requires all foreign-origin steel and aluminum products to be marked with a country of origin). as a result of the new marking rules, foreign steel and aluminum that is not properly marked with country of origin will not be released into Canada by the Canada Border Services Agency.  It will either be sent back to the country of shipment or it will be destroyed.

Changes will be made very soon to two regulations:

(1) Determination of Country of Origin for the Purposes of Marking Goods (NAFTA Countries) Regulations; and

(2) Determination of Country of Origin for the Purposes of Marking Goods (Non-NAFTA Countries) Regulations.

Foreign manufacturers of steel and aluminum products will be expected to mark the goods with a country of origin marking.

The following changes were proposed in the Canada Gazette on April 28, 2018:

Table 1: Proposed amendments to the Determination of Country of Origin for the Purposes of Marking Goods (NAFTA Countries) Regulations and the Determination of Country of Origin for the Purpose of Marking Goods (Non-NAFTA Countries) Regulations

Existing Text Proposed Amendments
None (add in new section in Schedule 1) Add in new text after Schedule 1 (Subsection 2(1)):

1 Goods of Steel or Aluminum

Goods of steel or aluminum classified in headings 72.06 through 72.15, subheadings 7216.10 through 7216.50 or 7216.99, headings 72.17 through 72.29, subheading 7301.10, 7302.10, 7302.40 or 7302.90, headings 73.04 through 73.06, heading 76.01, headings 76.04 through 76.09 or castings or forgings of subheading 7616.99, except wire (other than barbed wire)

2(12) Iron or steel pipes and tubes Delete “or steel”
Renumber sections to reflect new section 1
Schedule II (Subsection 2(2))

4. Used goods, with the exception of iron or steel pipes and tubes

4. Used goods, with the exception of iron pipes and tubes, or goods of steel or aluminum listed in Schedule 1, section 1
5. Goods that are for the exclusive use of the importer or the importer’s employees and not for resale to the general public, with the exception of iron or steel pipes and tubes 5. Goods that are for the exclusive use of the importer or the importer’s employees and not for resale to the general public, with the exception of iron pipes and tubes, or goods of steel or aluminum listed in Schedule 1, section 1
8. Goods that are imported for subsequent exportation from Canada, with the exception of iron or steel pipes and tubes 8. Goods that are imported for subsequent exportation from Canada, with the exception of iron pipes and tubes, or goods of steel or aluminum listed in Schedule 1, section 1

Table 2: Additional amendments to the Determination of Country of Origin for the Purposes of Marking Goods (NAFTA Countries) Regulations (Schedule III — Tariff Shift Rules)

Existing Text Proposed Amendments
Schedule III

  • 72.01 – 72.29
  • A change to headings 72.01 through 72.29 from any other heading, including another heading within that group.
Replace rules 72.01 through 72.29 with the following:

  • 72.01 – 72.06
  • A change to headings 72.01 through 72.06 from any other heading, including another heading within that group.
  • 72.07
  • A change to heading 72.07 from any other heading, except from heading 72.06.
  • 72.08
  • A change to heading 72.08 from any other heading.
  • 72.09
  • A change to heading 72.09 from any other heading, except from heading 72.08 or 72.11.
  • 72.10
  • A change to heading 72.10 from any other heading, except from headings 72.08 through 72.12.
  • 72.11
  • A change to heading 72.11 from any other heading, except from headings 72.08 through 72.09.
  • 72.12
  • A change to heading 72.12 from any other heading, except from headings 72.08 through 72.11.
  • 72.13
  • A change to heading 72.13 from any other heading.
  • 72.14
  • A change to heading 72.14 from any other heading, except from heading 72.13.
  • 72.15
  • A change to heading 72.15 from any other heading, except from headings 72.13 through 72.14.
  • 72.16
  • A change to heading 72.16 from any other heading, except from headings 72.08 through 72.15.
  • 72.17
  • A change to heading 72.17 from any other heading, except from headings 72.13 through 72.15.
  • 72.18
  • A change to heading 72.18 from any other heading.
  • 72.19 – 72.20
  • A change to headings 72.19 through 72.20 from any other heading outside that group.
  • 72.21 – 72.22
  • A change to headings 72.21 through 72.22 from any other heading outside that group.
  • 72.23
  • A change to heading 72.23 from any other heading, except from headings 72.21 through 72.22.
  • 72.24
  • A change to heading 72.24 from any other heading.
  • 72.25 – 72.26
  • A change to headings 72.25 through 72.26 from any other heading outside that group.
  • 72.27 – 72.28
  • A change to headings 72.27 through 72.28 from any other heading outside that group.
  • 72.29
  • A change to heading 72.29 from any other heading, except from headings 72.27 through 72.28.
  • 76.01 – 76.06
  • A change to headings 76.01 through 76.06 from any other heading, including another heading within that group.
  • 7607.11 – 7607.20
  • A change to subheadings 7607.11 through 7607.20 from any other subheading, including another subheading within that group.
  • 76.08 – 76.15
  • A change to headings 76.08 through 76.15 from any other heading, including another heading within that group.
  • 76.01 – 76.04
  • A change to headings 76.01 through 76.04 from any other heading, including another heading within that group.
  • 76.05
  • A change to heading 76.05 from any other heading, except from heading 76.04.
  • 76.06 – 76.15
  • A change to headings 76.06 through 76.15 from any other heading, including another heading within that group.

It should be expected that the regulatory changes will be published soon.

The Department of Finance also announced that it was hiring more CBSA Officers to enforce border laws.  The new funding is to allow the CBSA to identify and stop companies that try to avoid AD/CVD duties and give the CBSA greater flexibility in responding to situations where home market pricing is problematic.

If you have any questions, please contact Cyndee Todgham Cherniak at 416-307-4168 or at cyndee@lexsage.com.