Dear BSG Canada customers,
As you may know, Canadian aluminum tariffs are set to take effect September 16, 2020. The Canadian government is asking for written comments regarding the impact of these tariffs by no later than September 6th. BSG Canada will be submitting a request for exclusion from these tariffs on behalf of our customers.
If BSG is not granted an exclusion from the 10% Aluminum tariffs our pricing will be impacted as follows:
- 10% will be added to each Direct Ship Order starting Sept. 16, 2020 to cover the Canadian Aluminum Tariff.
- Pricing for sleeved cans and blank cans and lids from stock will increase to cover the cost of the 10% tariff.
We encourage each of you to submit comments as well! If applicable, please mention that you purchase your can products from BSG Canada. If you purchase can products from someone else, please still submit comments none the less.
Guidelines for submitting are as follows:
Written comments should be provided no later than September 6, 2020. Submissions, at a minimum, should include the following information:
- Canadian company/industry association name and contact person.
- Relevant eight-digit tariff item(s) and description of the goods of particular interest. (in this case: 7612.90.99)
- Reasons for the expressed support for, or concern with, the proposed countermeasures, including detailed information substantiating any expected beneficial or adverse impact.
- Please identify if information provided in the submissions is commercially sensitive.
Submission of comments
All comments and general inquiries should be sent to the following email address: email@example.com. Only submissions by email will be accepted. Please include the term “Aluminum countermeasures” in the subject line of your submission.
For reference, below are the major points we will be submitting to the Canadian government. This may help in drafting your own comments.
BSG Canada’s Summary of Impact Document included the following points:
- Impacted products include Aluminum cans (16oz, 12oz and 12oz sleeks).
- Tariff code 7612.90 aluminum beverage cans.
- Aluminum can production is only available to BSG Canada and the Canadian craft industry through US can manufacture facilities. There are zero can manufacturing facilities in Canada for 16oz, 12oz sleek cans and lids.
- BSG Canada is the Importer of Record for can products that we sell.
- Can supply is at an all time low due to a surge in demand directly related to COVID19.
- The craft beer industry has had to pivot to can packaging for more products, as keg/draft beer sales dropped dramatically due government regulated closures of bars, pubs, and restaurants across Canada due to COVID19.
- The above has resulted in longer lead-times and can supply issues which have already caused BSG Canada and the craft beer industry financial strain; i.e. loss of sales due to delivery delays and production constraints.
- Adding the Canadian 10% tariff to the value of each can order that we have no choice but to purchase from US manufacturing locations will have a devastating impact on our business and the craft community, who as a whole are now relying solely on can sales to keep their businesses open.
- The impact will also be felt at the distribution and retail supply level. LCBO & grocery stores require the product that they sell to be packaged in cans for craft beer.
- Craft Breweries will be left with massive financial hardships at a time when they’ve already had to pivot their packaging type from kegs to cans due to COVID19. Investments in canning lines and equipment will be lost if they now have to pivot to alternative packaging types to stay in business. Not to mention the additional investment they will be required in purchasing new equipment, raw materials and rebranding in order to accommodate new packaging types if cans are not available to them.
- BSG Canada is a primary source of cans for the Canadian Craft Beer industry. Our customers and fellow Canadians will not have the option to buy their cans elsewhere without financial loss. Customers will lose their upfront investment required to set up custom printed cans. Customers will not be able to buy cans elsewhere when supply is so limited. Our Craft customers will be left with no options to source cans which will have a devastating impact on their business.
- Faced with this hardship; it will result in job losses and/or brewery closures.
- On behalf of Canadian Breweries, BSG Canada is requesting an exemption on the Canadian tariffs for can sizes/products with out Canadian manufacturing options available (including 16oz cans, 12oz sleek cans and can lids). We have no choice but to purchase these products from the US. If BSG Canada and our Canadian Craft Beer Customers are forced to pay the 10% Canadian retaliatory tariff it will have an enormous detrimental impact on our company, our employees and the independent craft beer industry.
As always, if you have questions please do not hesitate to reach out to your BSG Canada Sales Manager or Customer Service Representative.
We hope that through a collective effort, we can gain exclusion from these tariffs, and continue to grow our brewing industry and community together.