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CBSA Message (TCC18-133) - Provisional Safeguard Measures Imposed on the Importation of Certain Steel Goods

Clients Affected: All importers and brokers who use EDI to transmit their trade data.

Further to Customs Notice CN18-17 pertaining to Provisional Safeguard Measures Imposed on the Importation of Certain Steel Goods https://www.cbsa-asfc.gc.ca/publications/cn-ad/cn18-17-eng.html please note the following for completion of the CADEX formatted records:

Completing the B3-3 Canada Customs Coding Form

14. The following instructions and examples demonstrate how the B3 should be completed for importations of goods subject to provisional safeguards.

Field

Instructions

22

Provide as much detail as possible. Where the goods are subject to provisional safeguards, state the specific product (heavy plate, concrete reinforcing bar, energy tubular products, hot-rolled sheet, pre-painted steel, stainless steel wire, or wire rod). Where the goods are exempt, include information explaining why they are exempt.

23

Indicate the weight in kilograms.

26

Provide the specific permit number if applicable. If a permit has not been obtained leave blank.
Note: Imported goods will not be exempt from the safeguard surtax unless the permit number is entered into this field at the time of accounting.

27

Provide the goods’ 10 digit classification number.

29

For the quantity field, indicate the total weight of the goods. Use field 30 to indicate whether this is in kilograms.

30

Specify unit of measure in kilograms (KGM).

32

SIMA code 51 is used if the safeguard surtax or SIMA duties are payable. Otherwise, leave this field blank.  Note: If you entered a specific permit number in field 26, then field 32 should remain blank, as the safeguard surtax is not payable.

35

GST rate is 5%.

37

Provide the value for duty of the imported goods in Canadian dollars.

39

This field is used for both SIMA duties and the amount of safeguard surtax.
The safeguard surtax is calculated at the value for duty (Field 37) x 25%.
Where SIMA duties are also applicable, the SIMA duties and amount of safeguard surtax will be added together and entered in this field.
Leave field 39 blank if there is no safeguard surtax or SIMA duties payable.

41

Value for tax = VFD + Safeguard surtax + SIMA duties (if applicable).

42

The GST is value for tax times 5%.

 

Example 1: Safeguard surtax not payable (specific permit obtained) – no other applicable duties

  • The specific permit number is entered in field 26. (Note: Imported goods will not be exempt from the safeguard surtax unless the permit number is entered into this field at the time of accounting.)
  • The SIMA Code (Field 32) is left blank, as the goods are exempt from the safeguard surtax.

CADEX FORMAT

  • The KI30 record would contain the permit number in the Special Authority Field

 

Example 2: Safeguard Surtax payable – No other applicable duties

  • No specific permit was obtained so the import is subject to the safeguard surtax.
  • The SIMA Code (Field 32) is entered as 51, as the safeguard surtax is payable.
  • The amount of safeguard surtax is calculated as follows: $44,200.00 (VFD) x 0.25 (25% safeguard surtax) = $11,050.00 (safeguard surtax payable).
  • The value for tax is $44,200.00 (VFD) + $11,050.00 (safeguard surtax) = $55,250.00

CADEX FORMAT

  • The KI30 record would contain 051 in the SIMA code field
  • The KI30 record would contain 11050.00 in the SIMA ASSESSMENT field
  • The KI50 record would contain 55250.00 in the Value For Tax field

 

Example 3: Safeguard Surtax payable in addition to SIMA duties

  • The SIMA Code (Field 32) is entered as 51, as the safeguard surtax is payable.
  • The amount of the safeguard surtax is: $44,200.00 (VFD) x 0.25 (25% safeguard surtax) = $11,050.00 (safeguard surtax payable).
  • For this example, there are $2000.00 in SIMA duties.
  • Amount to enter in Field 39: $11,050.00 (safeguard surtax) + $2000.00 (SIMA duties) = $13,050.00.
  • The value for tax is $44,200.00 (VFD) + $11,050.00 (amount of safeguard surtax) + 2000.00 (SIMA duties) = $57,250.00

CADEX FORMAT

  • The KI30 record would contain 051 in the SIMA code field
  • The KI30 record would contain 13050.00 in the SIMA ASSESSMENT field
  • The KI50 record would contain 57250.00 in the Value For Tax field

 

Example 4: Safeguard Surtax partially payable (specific permit obtained but part of importation exceeds TRQ)

  • Where the quantity of imported goods exceeds the corresponding quantity of a specific permit, and the safeguard surtax is applicable to the exceeding quantity of goods, two lines need be completed: Line 1 where the goods are covered by a specific permit (Note: In this situation the SIMA Code (Field 32) is left blank as the goods are exempt from the safeguard surtax); Line 2 where the goods are not covered by a specific permit (Note: In this situation the SIMA Code (Field 32) is entered as 51 as the goods are not exempt from the safeguard surtax.

CADEX FORMAT

LINE 1

  • The KI30 record would contain the permit number in the Special Authority Field

LINE 2

  • The KI30 record would contain 051 in the SIMA code field
  • The KI30 record would contain 2762.50 in the SIMA ASSESSMENT field
  • The KI50 record would contain13812.50 in the Value For Tax field
  • The KI90 record would contain 2762.50 in the Total SIMA Assessment field

Topic(s)

Acts & Regulations
CBSA Policies & Decisions

Information source

Canada Border Services Agency (CBSA)
Disclaimer

The foregoing information is provided for informational purposes only and is not intended as, nor should it be considered, professional advice or a substitute for conducting your own thorough research and review. Before making any decisions or taking any action based on the information provided, you should conduct your own independent investigation and/or seek professional advice from a qualified expert in the relevant field. The CSCB disclaims all liability for actions taken or not taken based on the information provided.