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CBSA Investigating Dumping of Wire Rod: Certain Wire Rod from China, Egypt, and Vietnam

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On March 8, 2024, the Canada Border Services Agency (“CBSA”) issued a Notice of Initiation of Investigation under the Special Import Measures Act (“SIMA”) in respect of the alleged dumping of certain wire rod from China, Egypt, and Vietnam.  This investigation was prompted by a complaint filed by an Ontario manufacturer. 

The goods under investigation are more specifically described as: 

Certain hot‐rolled wire rod of carbon steel and alloy steel of circular or approximately circular cross section, in coils, equal to or less than 25.5 mm in actual solid cross‐sectional diameter, originating in or exported from the People’s Republic of China, the Arab Republic of Egypt and the Socialist Republic of Vietnam (the “Subject Goods”). 

      

The following are excluded from Subject Goods:

tier cord quality wire rod; stainless steel wire rod; tool steel wire rod; high-nickel steel wire rod; ball-bearing steel wire rod; and concrete reinforcing bars and rods (also known as rebar).

Further details on the Subject Goods and exclusions, can be found in the notice itself, including important technical specifications.  Note: concrete reinforcing bar may be covered by existing anti-dumping orders (1, 2, 3, 4). 

Parallel CITT Investigation

On March 11, 2024 the Canadian International Trade Tribunal (the “CITT”) issued a notice initiating a preliminary injury inquiry in respect of the same Subject Goods, a parallel process to determine whether the alleged dumping has caused or is threatening to cause injury to the Canadian industry.

Why Do I Care?

If the CBSA and CITT ultimately conclude that dumping of the Subject Goods has caused injury or is threatening to cause injury to the Canadian industry, Anti-Dumping Duties (“ADDs”) will be imposed, effectively increasing the costs of the Subject Goods. 

Anti-dumping investigations offer Canadian importers and foreign exporters and producers the opportunity to participate in the CBSA investigation and obtain their own specific Normal Values, which are preferable to the ADDs payable on imports from producers who do not have Normal Values. 

It may  also be possible to request a product exclusion from the CITT on the basis that certain goods are unique and the Canadian industry is incapable of manufacturing a substitutable product.

What is the Timeline for Next Steps? 

Under SIMA the matter will proceed along two parallel tracks:

  • The CBSA has 90 days to make a preliminary determination as to dumping (and to determine provisional anti-dumping duties);
  • The CITT has 60 days to make a preliminary determination as to injury to the domestic industry by the alleged dumping.

Currently CITT’s preliminary determination is expected by May 7, 2024, and CBSA’s preliminary determination is expected by June 6, 2024, each followed by a Statement of Reasons 15 days later. 

How do I get involved?

Specialized legal advice is generally required. Given the strict timelines, and amount of work involved in responding to CBSA and CITT questionnaires, any parties potentially impacted should contact their lawyers immediately to discuss next steps – regardless of whether you have received a questionnaire! 

For help with the Dumping Investigation or Injury Inquiry, click here.

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