Canada Mandates Importers to Disclose Source of Steel Smelting and Casting

Canada is set to implement a significant regulatory change affecting the importation of steel products, marking a pivotal moment in its efforts to bolster the resilience and reliability of the North American steel supply chain. According to an official announcement by the government, starting from November 5, 2024, importers of steel products will be mandated to furnish border authorities with detailed information regarding the country of origin for both steelmaking and bottling processes.

This directive represents a crucial step towards ensuring greater transparency and accountability within the steel industry, as importers will now be required to provide specific data on the origins of the raw steel utilized in their products. By initiating this phased approach, the Canadian government aims to facilitate a smooth transition towards mandatory reporting, fostering collaboration between the country and stakeholders within the steel sector.

At its core, Canada's objective is to establish a structured and transparent mechanism for collecting essential information on the smelting and bottling countries of steel products. This initiative is expected to fortify the integrity of the North American steel supply chain, thereby enhancing its resilience against potential disruptions and ensuring a more predictable flow of steel imports.

Integral to this regulatory shift is Canada's steel import monitoring program, which plays a pivotal role in disseminating critical data pertaining to the type, quantity, origin, and value of steel imports. By providing timely and comprehensive information, this program serves as a vital resource for tracking potential trends in the steel market in real-time. Notably, in 2023 alone, the program monitored over 373 thousand transactions, underscoring its significance in bolstering market transparency and oversight.

The phased implementation of this regulatory framework underscores the Canadian government's commitment to engaging with stakeholders and industry experts to ensure the efficacy and feasibility of the proposed changes. Following extensive public consultations with various entities within the metals industry that commenced in 2022, the government has devised a strategic plan to solicit further input from relevant stakeholders in the upcoming months. This inclusive approach is aimed at refining the regulatory framework and addressing any concerns or challenges voiced by industry participants.

The decision to enact these regulatory changes comes in response to mounting pressures facing the Canadian steel industry, as highlighted by the Canadian Steel Producers Association (CSPA). The association has been vocal in urging the federal government to take decisive action to safeguard the competitiveness of the domestic steel sector and preserve jobs within the industry. Citing the proliferation of offshore imports into Canadian steel markets and the supportive measures implemented by key global partners to bolster their respective steel industries, the CSPA has underscored the urgent need for proactive intervention to sustain Canada's position in the global steel landscape.