CBSA Releases Final Determination Of Fabricated Industrial Steel Components

May 10, 2017

The following information is now available on the CBSA Web site: If you import or are looking at importing the affected products please contact the KWE Consulting Department

Fabricated Industrial Steel Components – Final Determination – Statement of Reasons –
Fabricated structural steel and plate-work components of buildings, process equipment, process enclosures, access structures, process structures, and structures for conveyancing and material handling, including steel beams, columns, braces, frames, railings, stairs, trusses, conveyor belt frame structures and galleries, bents, bins, chutes, hoppers, ductwork, process tanks, pipe racks and apron feeders, whether assembled or partially assembled into modules, or unassembled, for use in structures for: 1. oil and gas extraction, conveyance and processing; 2. mining extraction, conveyance, storage, and processing; 3. industrial power generation facilities; 4. petrochemical plants; 5. cement plants; 6. fertilizer plants; and 7. industrial metal smelters; but excluding electrical transmission towers; rolled steel products not further worked; steel beams not further worked; oil pump jacks; solar, wind and tidal power generation structures; power generation facilities with a rated capacity below 100 megawatts; goods classified as “prefabricated buildings” under HS Code 9406.00.90.30; structural steel for use in manufacturing facilities used in applications other than those described above; and products covered by Certain Fasteners (RR-2014-001), Structural Tubing (RR-2013-001), Carbon Steel Plate (III) (RR-2012-001), Carbon Steel Plate (VII) (NQ-2013-005), and Steel Grating (NQ-2010-002); originating in or exported from the People’s Republic of China, the Republic of Korea and the Kingdom of Spain.

Product Use:
[65] In industrial settings, FISC is used to construct a variety of structures including buildings and structures that support processing facilities, equipment and systems and parts used for conveyancing and material handling, including but not limited to conveyor belt frame structures and galleries and bents, bins, chutes, hoppers, silos, storage and process tanks, and pipe racks.
[66] FISC for buildings and process structures is used to construct a skeleton that fulfills the load bearing function required for the erection of the building or process. Structures composed of FISC are diverse. They include modest structures requiring several hundred tons of steel to multistory complexes or large support structures such as pipe racks used in oil and gas facilities or giant structures to hold a hopper for processing mining resources and requiring thousands of tons of steel.
[67] Many large structures are beam and column structures that consist of fabricated H and I shapes, i.e. wide flange beams and I-beams, joined in an interlocking fashion to form a rigid steel frame. Significant tonnages of FISC have been used in industrial structures such as oil and gas and mining facilities, including in support structures for large pipes, conveyancing systems used in oil and gas and mineral processing facilities, structural supports for mines, structural supports for processing facilities, and components of processing facilities (e.g. hoppers and storage tanks).
[68] As discussed above, finished FISC is shipped either unassembled or partially assembled from the fabricating facility to construction sites. Delivery of individual components requires coordination between the fabricator and the erector. Erectors are responsible for the placement and connection of the structural components at the construction site. The erector may be either an independent company or an operation related to the fabricator.
[69] Delivery schedules to a project site vary significantly based on the scope and size of the project. Most often delivery begins 16 to 20 weeks from the date of contract, and delivery can occur over a few months or over one or two years, sometimes more. FISC, whether in stick form or modules, is produced and then delivered to the jobsite in a deliberate sequence by the fabricator in order to allow the erector to proceed efficiently. Upon arrival at a job site, the FISC is checked by the erector’s crew chief who determines from blueprints the order in which the material is to be placed. The crane operator lifts sections to the proper place where ironworkers secure the piece by bolting it to existing sections. Welding may also be required to make connections.

[70] Effective January 1, 2017, imports into Canada of the subject goods are normally classified under the following Harmonized System (HS) classification numbers:
1. 7216.99.00.10
2. 7216.99.00.20
3. 7216.99.00.30
4. 7216.99.00.91
5. 7216.99.00.99
6. 7301.20.00.10
7. 7301.20.00.20
8. 7308.40.00.00
9. 7308.90.00.60
10. 7308.90.00.96
11. 7308.90.00.99
12. 7326.90.90.90
13. 8421.99.90.90
14. 8428.31.00.00
15. 8428.32.00.00
16. 8428.33.00.00
17. 8428.39.00.30
18. 8428.39.00.41
19. 8428.39.00.49
20. 8428.39.00.80
21. 8428.39.00.90
[71] The above-noted classification numbers replace the following HS classification numbers that were used during the POI:
1. 7216.99.00.10
2. 7216.99.00.20
3. 7216.99.00.30
4. 7216.99.00.91
5. 7216.99.00.99
6. 7301.20.00.10
7. 7301.20.00.20
8. 7308.40.00.10
9. 7308.40.00.90
10. 7308.90.00.60
11. 7308.90.00.81
12. 7308.90.00.89
13. 7308.90.00.92
14. 7308.90.00.99
15. 7326.90.90.99
16. 8428.31.00.00
17. 8421.99.00.90
18. 8428.32.00.90
19. 8428.33.00.90
20. 8428.39.00.20
21. 8428.39.00.31
22. 8428.39.00.34
23. 8428.39.00.39
24. 8428.39.00.80
25. 8428.39.00.90
[72] The HS classification numbers identified are for convenience of reference only. The HS classification numbers include non-subject goods. Also, subject goods may fall under HS classification numbers that are not listed. Refer to the product definition for authoritative details regarding the subject goods.
Goods not Covered by the Subject Goods Definition
[48] Goods that are not covered by the subject goods definition include steel components for electrical transmission towers, pre-fabricated metal buildings falling under HS Code 9406.00.90.30, goods subject to specified existing Canadian International Trade Tribunal orders or findings, power plants with a rated capacity of less than 100 megawatts, and solar, wind and tidal power generation structures. Also excluded are structural steel components for use in structures for manufacturing or processing, other than the seven end uses specified in the product definition.
[49] Structural steel components for use in “commercial” structures, such as warehouses, commercial buildings, high rises, hospitals, and cultural buildings (e.g. arenas, theatres, etc.) are not covered by the product definition.
[50] Note 4 of the Customs Tariff Chapter 94 provides that, “For the purposes of heading 94.06, the expression “prefabricated buildings” means buildings which are finished in the factory or put up as elements, presented together, to be assembled on site, such as housing or worksite accommodation, offices, schools, shops, sheds, garages or similar buildings.” Industrial structural steel frameworks, such as those identified in the product definition, are not “similar buildings” to housing, offices, schools, shops, sheds, garages or similar buildings. Prefabricated buildings are, however, commonly present on the physical sites of the industrial operations enumerated in the production definition. Structural steel components comprising these pre-fabricated buildings are therefore not included in the product definition.
[51] Fabricated reinforcing bars used in concrete structures are not included in the production definition as they are reinforcing steel, not structural steel. Also not included are fabricated structural steel components used in buildings and structures for end uses not specified in the production definition.