Canada is rolling out a remission framework which will provide qualifying applicants with relief from the payment of surtaxes, or refund of already-paid surtaxes, in connection with the countermeasures applied to certain U.S. products as of July 1, 2018. For a more detailed analysis including a breakdown of the U.S. products and surtax rates that apply, see our previous Client Alert.
Remission of surtaxes is meant to address exceptional situations, in which applicants can demonstrate that their particular market circumstances warrant special consideration. In this case, Canada indicates that it will consider requests for remission of the surtaxes in the following instances only:
- To address situations of short supply in the domestic market, either on a national or regional basis;
- Where there are contractual requirements, existing prior to May 31, 2018, for Canadian businesses to use U.S. steel or aluminum in their products or projects; or
- To address, on a case-by-case basis, other exceptional circumstances that could have severe adverse impacts on the Canadian economy.
Requests for remission will be reviewed by an inter-departmental committee and may be subject to consultation with third parties, such as domestic producers. The Department of Finance has laid out a specific information template that must be followed in the submission process. Further details, along with the required factual information to be contained in submissions, can be found here. Canada’s Duties Relief and Duty Drawback programs continue to be available to importers for duties, including surtaxes, paid or owed by Canadian businesses that meet the requirements of the programs.