Tax & Trade Blog
CBSA Initiates Re-Investigation re: Concrete Rebar (RB1)
On September 8, 2022, the Canada Border Services Agency (“CBSA”) issued a notice that it would be conducting a re-investigation in respect of certain concrete rebar originating in or exported from Turkey (RB1). Responses to the CBSA’s Request for Information (“RFI”) are due October 17, 2022!
Normal values established during the re-investigation will be effective as of the date of the end of the re-investigation, while normal values currently in place will expire on that date. Importers of Subject Goods from Turkey should consider cooperating with CBSA, as the potential anti-dumping duties (“ADDs”) are as high as 41%!
Subject Goods are defined as follows:
“hot‑rolled deformed steel concrete reinforcing bar in straight lengths or coils, commonly identified as rebar, in various diameters up to and including 56.4 millimeters, in various finishes, excluding plain round bar and fabricated rebar products, originating in or exported from the People’s Republic of China, the Republic of Korea and the Republic of Turkey).”
CBSA originally initiated an investigation in RB1 on June 13, 2014 in response to a complaint from Canadian producers ArcelorMittal LCNA, Gerdau Longsteel North America, and Alta Steel Inc. about imports from China, the Republic of Korea (aka South Korea), and Turkey (the “listed countries”). On December 10, 2014 the CBSA made a final determination that Subject Goods were being dumped, with goods originating in or exported from China also being subsidized.
On January 9, 2015, the Canadian International Trade Tribunal (“CITT”) issued a finding that the dumping and subsidizing of the Subject Goods (as defined in the finding) from the listed countries was threatening to cause injury to the Canadian domestic industry, while excluding certain goods from the finding, specifically:
"10-mm-diameter (10M) rebar produced to meet the requirements of CSA G30 18.09 (or equivalent standards) and coated to meet the requirements of epoxy standard ASTM A775/A 775M 04a (or equivalent standards) in lengths from 1 foot (30.48 cm) up to and including 8 feet (243.84 cm)."
As a result of this finding, the ADDs and countervailing duties (“CVDs”) determined by the CBSA came into effect (replacing earlier provisional duties) in respect of Subject Goods from the listed countries.
The CITT conducted an expiry review after 5 years, as required by section 76.03 of the Special Import Measures Act (“SIMA”), and on October 14, 2020, continued its finding (and the ADDs) in respect of Subject Goods from all of the listed countries, while continuing the previous exclusion.
Why Does this Re-Investigation Matter?
Four exporters – all from Turkey – have been issued normal values. When goods are sold for export to Canada at or above the normal value assigned by CBSA, no ADDs apply. However, unless these exporters cooperate in the re-investigation and CBSA assigns them new normal values, they will be subject to the default ADDs.
Exporters who are not manufacturers should also consider applying to have CBSA determine a normal value – although they will need the manufacturers to cooperate with and provide information to the CBSA.
This re-investigation is particularly important for Turkish exporters of rebar because CBSA will also be investigating allegations of a Particular Market Situation in the Turkish rebar sector at the same time – namely, that Turkish rebar exporters are using Russian-origin inputs, whose costs may have been impacted by international sanctions (including Canadian ones!).
Exporters should request an RFI package from CBSA if they have not received one, and submit it ASAP given the due date of October 17, 2022!
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!
Do you require assistance in this area? If so, please click here.