The Order Referring to the Canadian International Trade Tribunal, for Inquiry into and Reporting on, the Matter of the Importation of Certain Steel Goods on October 10, 2018, directed the Canadian International Trade Tribunal (CITT) to conduct a safeguard inquiry concerning the future importation into Canada of seven classes of steel goods from countries (other than certain countries, including those party to a free trade agreement such as the US, Mexico and Israel) that have been subject to a 25% provisional safeguard surtax since October 25, 2018. The purpose of this safeguard inquiry under World Trade Organization (WTO) rules is to determine whether goods subject to reduced tariffs under WTO binding tariff reductions are being imported into Canada in such increased quantities and under such conditions as to be a principal cause of serious injury or threat thereof to domestic producers of such goods. If so, surtaxes to offset such injury or threat can be imposed by the Governor in Council.

A Tax Alert prepared by Ernst & Young Canada, and attached below, provides additional details.

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Full text of this Tax Alert