Tax & Trade Blog
CITT Continues Copper Pipe Fittings Finding
On September 14, 2022, the Canadian International Trade Tribunal (“CITT”) issued an Order continuing its finding of a “threat of injury” in respect of copper pipe fittings originating in or exported from the United States, South Korea, or China (“CPF”).
The Order effectively means that the current anti-dumping duties (“ADDs”) of up to 242% will remain in place for Subject Goods originating in or exported from the listed countries, along with countervailing duties (“CVDs”) of 17.73 Renminbi per kilogram for goods originating in or exported from China.
Subject Goods are defined in the Order as follows:
“certain solder joint pressure pipe fittings and solder joint drainage, waste and vent pipe fittings, made of cast copper alloy, wrought copper alloy or wrought copper, for use in heating, plumbing, air conditioning and refrigeration applications, originating in or exported from the United States of America (United States), the Republic of Korea (South Korea) and the People’s Republic of China (China)”
A detailed list of subject goods can be found in the Appendix to the CITT’s Order, subject to the exclusion of copper-iron high pressure alloy fittings manufactured with UNS C19400 grade copper alloy and with a working pressure limit of up to 1740 PSI.
Canada Border Services Agency (“CBSA”) originally initiated an investigation in CPF on June 8, 2006 in response to a complaint from Canadian producer Cello Products Inc. about exports from the United States, Republic of Korea (aka South Korea) and China. On January 18, 2007, the CBSA made a final determination that Subject Goods were being dumped and, in the case of China, subsidized.
On February 19, 2007, the CITT issued a finding that the dumping of the Subject Goods (as defined in the finding) from the listed countries was threatening to cause injury to the Canadian domestic industry. As a result of this finding, the ADDs and CVDs determined by the CBSA came into effect (replacing earlier provisional duties) in respect of Subject Goods from the listed countries.
A number of exporters that cooperated with CBSA in its investigation were determined not to be dumping and were not subject to ADDs or CVDs, while a number of other companies were assigned specific normal values in respect of their products.
Prior Expiry Reviews
The CITT conducted an expiry review after 5 years, as required by section 76.03 of the Special Import Measures Act, and on February 17, 2012, continued its finding (and the ADDs/CVDs) in respect of Subject Goods from all of the listed countries. A further expiry review also continued the finding by way of an Order issued November 28, 2016, with amendment to exclude copper-iron high pressure alloy fittings manufactured with UNS C19400 grade copper alloy and with a safe working pressure of up to 1,740 psi from all three listed countries, along with other exclusions on a country-by-country basis.
The list of cooperating exporters who either have been determined not to be dumping, or have been assigned specific normal values, has also changed over time, with the current list of exporters available here.
Exporters should keep in mind that there is a broad range of exclusions within the copper pipe fitting orders – and that not all are necessarily explicitly mentioned in subsequent expiry review decisions! For example, “4 cast drainage lead 8 oz. closet flange” and “4 cast drainage 14 oz. lead closet flange” were excluded in the original 2007 finding – a fact referenced in the 2012 expiry review decision, but not the 2016 one.
Businesses importing goods that may fall within the definition of Subject Goods should seek legal advice before importing any goods, otherwise they could find themselves paying massive anti-dumping duties and/or countervailing duties!
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