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CITT Continues Threat of Injury Finding in OCTG2!

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On September 8, 2022, the Canadian International Trade Tribunal (“CITT”) issued an Order continuing its finding of a “threat of injury” in respect of Oil Country Tubular Goods originating in or exported from a number of countries (“OCTG2”).

The Order effectively means that the current anti-dumping duties (“ADDs”) of up to 37.4% will remain in place for Subject Goods originating in or exported from the listed countries (apart from the Philippines*), with the exception of Subject Goods exported from South Korea by Hyundai Steel Company (“Hyundai Steel”), and from Turkey by Borusan Mannesmann Boru Sanayi ve Ticaret A.Ş. (“Borusan”).

Subject Goods are defined in the Order as follows:

“oil country tubular goods, which are casing, tubing and green tubes made of carbon or alloy steel, welded or seamless, heattreated or not heattreated, regardless of end finish, having an outside diameter from 2 3/8 inches to 13 3/8 inches (60.3 mm to 339.7 mm), meeting or supplied to meet American Petroleum Institute specification 5CT or equivalent and/or enhanced proprietary standards, in all grades, excluding drill pipe, pup joints, couplings, coupling stock and stainless steel casing, tubing or green tubes containing 10.5 percent or more by weight of chromium, originating in or exported from the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu, the Republic of India, the Republic of Indonesia, the Republic of the Philippines (the Philippines), the Republic of Korea (South Korea), the Kingdom of Thailand, the Republic of Turkey (Turkey), Ukraine and the Socialist Republic of Vietnam.”

*The CITT Order makes it clear they are continuing the Order from their prior Expiry Review, which rescinded the finding of dumping against the Philippines – see below for more.

Background

Canada Border Services Agency (“CBSA”) originally initiated an investigation in OCTG2 on July 21, 2014 in response to a complaint from Canadian producers Tenaris Canada and Evraz Inc. NA Canada about exports from Chinese Taipei (aka Taiwan), India, Indonesia, the Philippines, Korea, Thailand, Turkey, Ukraine, and Vietnam. On March 3, 2015 the CBSA made a final determination that Subject Goods were being dumped.

On April 2, 2015, 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 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, while a number of other companies were assigned specific normal values in respect of their products.  

The CITT conducted an expiry review after 5 years, as required by section 76.03 of the Special Import Measures Act, and on December 30, 2020, continued its finding (and the anti-dumping duties) in respect of Subject Goods from all of the listed countries except the Philippines – the CITT rescinded its prior finding, effectively terminating ADDs on Subject Goods originating in or exported from the Philippines.

Why Did this Review Happen Now?

While Expiry Reviews are conducted every 5 years, in this case a review was conducted earlier at the request of the Minister of Finance – apparently as part of Canada’s compliance with the WTO Ruling on carbon steel welded pipe (“Canada – Welded Pipe”).

The CBSA had previously excluded Hyundai Steel and Borusan from ADDs after a similar review requested by the Minister of Finance, but the CITT did not exclude Hyundai Steel and Borusan after its regular Expiry Review in 2020.

What’s Next?

Apart from Hyundai Steel and Borusan, any party which would have been affected by these anti-dumping measures will continue to be at risk of huge ADDs when importing to Canada!

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!

Do you require assistance in this area?  If so, please click here.

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