Tax & Trade Blog
Carbon Steel Welded-Pipe Re-Investigation
On May 4, 2023, the Canadian Border Services Agency (“CBSA”) issued a notice that it will be conducting a re-investigation in respect of carbon steel welded pipe originating in or exported from Taiwan, India, Oman, South Korea, Thailand, and the UAE (the “Listed Countries”). CBSA has issued a Request for Information (“RFI”) to both importers and exporters, and responses are due June 5, 2023 and June 12, 2023, respectively!
Normal values established during the re-investigation will be effective as of the end date of the re-investigation, and all normal values currently in place will expire on that date.
Exporters of Subject Goods from the Listed Countries should consider cooperating with CBSA, as the potential anti-dumping duties (“ADDs”) for goods without normal values range from 29.6% for goods from Taiwan, to 54.2% for goods from the other Listed Countries. Exports from India are also subject to a countervailing duty (“CVD”) of 23,872 rupees per metric ton!
Subject Goods are defined as follows (subject to several exclusions):
Carbon steel welded pipe, commonly identified as standard pipe, in the nominal size range from 1/2 inch up to and including 6 inches (12.7 mm to 168.3 mm in outside diameter) inclusive, in various forms and finishes, usually supplied to meet ASTM A53, ASTM A135, ASTM A252, ASTM A589, ASTM A795, ASTM F1083 or Commercial Quality, or AWWA C200-97 or equivalent specifications, including water well casing, piling pipe, sprinkler pipe and fencing pipe, but excluding oil and gas line pipe made to API specifications exclusively, originating in or exported from Chinese Taipei (excluding goods exported from Chinese Taipei by Chung Hung Steel Corporation and Shin Yang Steel Co. Ltd), the Republic of India, the Sultanate of Oman, the Republic of Korea, Thailand and the United Arab Emirates (excluding goods exported from the United Arab Emirates by Conares Metal Supply Ltd.).
CBSA originally initiated an investigation in respect of the Subject Goods on May 14, 2012 in response to a complaint from Canadian producers Novamerican Steel Inc. (from Montreal) and Bolton Steel Tube Co. Ltd. (from Bolton), about imports from the Listed Countries. CBSA made a preliminary determination on August 13, 2012, and, on November 9, 2012 the CBSA made a final determination that Subject Goods were being dumped.
On December 11, 2012, the Canadian International Trade Tribunal (“CITT”) issued a finding that the dumping of the Subject Goods (as defined in the finding) from the Listed Countries, and subsidizing of goods originating or exported from India, had caused injury to the Canadian domestic industry.
As a result of this finding, the ADDs determined by the CBSA came into effect (replacing earlier provisional duties) in respect of Subject Goods from the Listed Countries, as did CVDs for goods from India.
The CITT has previously renewed the ADDs and CVDs following an Expiry Review that concluded on May 22, 2018. Accordingly, another Expiry Review is expected to commence on August 21, 2023 to determine whether to continue the ADDs and CVDs for another 5-year period.
Importers and exporters should request an RFI package from CBSA ASAP if they have not received one, as it needs to be submitted by early June 2023! The CBSA will then verify this information with exporters before closing the record on August 30, 2023, with the anticipated conclusion of the re-investigation on October 6, 2023.
If you may be impacted by this re-investigation, legal advice from counsel with extensive experience in the area is highly recommended, in order to make sure that the worst impacts of anti-dumping and countervailing duties can be avoided!
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