Order Repealing the United States Surtax Order (Aluminum 2020): SOR/2021-112
Canada Gazette, Part II, Volume 155, Number 12
Registration
SOR/2021-112 June 1, 2021
CUSTOMS TARIFF
P.C. 2021-461 June 1, 2021
His Excellency the Administrator of the Government of Canada in Council, on the recommendation of the Minister of Finance and the Minister of Foreign Affairs, pursuant to subsection 53(2) footnote a of the Customs Tariff footnote b, makes the annexed Order Repealing the United States Surtax Order (Aluminum 2020).
Order Repealing the United States Surtax Order (Aluminum 2020)
Repeal
1 The United States Surtax Order (Aluminum 2020) footnote 1 is repealed.
Coming into Force
2 This Order comes into force on September 16, 2020.
REGULATORY IMPACT ANALYSIS STATEMENT
(This statement is not part of the Order.)
Issues
On September 15, 2020, the United States Trade Representative announced that the United States would restore tariff-free treatment of imports of Canadian aluminum, retroactive to September 1, 2020. The U.S. tariffs were officially repealed through a Presidential Proclamation on October 27, 2020. Therefore, an order is required to formally repeal Canada's planned countermeasures to the U.S. tariffs.
Background
The United States Surtax Order (Aluminum 2020) [the Surtax Order] came into force in a planned response to the United States having imposed tariffs on imports of certain aluminum products from Canada under section 232 of the Trade Expansion Act of 1962, effective August 16, 2020. The Surtax Order established planned surtaxes of 10% on imports of certain aluminum and aluminum-containing products from the United States.
Objective
The objective of the Order Repealing the United States Surtax Order (Aluminum 2020) [the Order] is to repeal the Surtax Order.
Description
The Order repeals the planned surtaxes of 10% on imports from the United States of aluminum and aluminum-containing products classified under 44 tariff items. The Order comes into force retroactively, as of September 16, 2020, which is the date on which the Surtax Order came into force.
Regulatory development
Consultation
During public consultations on the scope of Canada's countermeasures, the Government of Canada publicly indicated that Canada's countermeasures would be in place until the United States eliminated its tariffs on imports of certain aluminum products from Canada. Certain stakeholders expressed concerns with the surtaxes and requested that certain products be excluded from the scope of the surtaxes. Other stakeholders expressed support for the surtaxes insofar as they constituted countermeasures to the U.S. tariffs. Given that the United States formally repealed its tariffs on October 27, 2020, Canada's countermeasures are no longer necessary. Additional consultations were not required on this Order.
Modern treaty obligations and Indigenous engagement and consultation
Constitutional and modern treaty obligations were considered and none were identified for this Order.
Instrument choice
Subsection 53(2) of the Customs Tariff provides the authority for the Governor in Council, on the recommendation of the Minister of Finance and the Minister of Foreign Affairs, to, by order, make goods that originate in any country subject to a surtax for the purpose of responding to acts, policies or practices of the government of a country that adversely affect, or lead directly or indirectly to adverse effects on, trade in goods or services of Canada. As the Surtax Order was made under this authority, the mechanism to repeal it is an order made under the Customs Tariff.
Regulatory analysis
Benefits and costs
By repealing the Surtax Order, this Order ensures the surtax-free treatment of importations into Canada of the aluminum and aluminum-containing products from the United States that would otherwise have been subject to surtaxes of 10%. The planned countermeasures were to cover $3.6 billion in imports from the United States annually (2017–2019 annual average). The effective date of the Order is September 16, 2020, which will ensure that Canadian importers are not liable for surtaxes on imports of subject goods since that date.
Small business lens
Small businesses benefit from the repeal of the Surtax Order given that it allows surtax-free importations into Canada of aluminum and aluminum-containing products in the context of highly integrated North American supply chains.
One-for-one rule
The one-for-one rule does not apply to the Order, as there is no change in administrative costs to businesses.
Regulatory cooperation and alignment
The Order does not have a regulatory cooperation component.
Strategic environmental assessment
In accordance with the Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals, a preliminary scan concluded that the Order would not have a positive or negative environmental impact; therefore, a strategic environmental assessment is not required.
Gender-based analysis plus
No gender-based analysis plus (GBA+) impacts have been identified for the Order.
Implementation, compliance and enforcement, and service standards
The Canada Border Services Agency (CBSA) is responsible for administering the Customs Tariff and its regulations. The CBSA will inform importers of administrative issues related to this Order as appropriate.
Contact
Sébastien Lauzier
International Trade Policy Division
Department of Finance Canada
90 Elgin Street
Ottawa, Ontario
K1A 0G5
Email: fin.tariff-tarif.fin@canada.ca