Tax & Trade Blog
Concrete Rebar (II) Finding Continued!
On February 2, 2023, the Canadian International Trade Tribunal (“CITT”) released an Order continuing the CITT’s original 2017 finding that the dumping of steel concrete reinforcing bar (“rebar”) originating in or exported from Belarus, Taiwan, Hong Kong, Japan, Portugal, and Spain (the “Listed Countries”) has caused injury to Canadian domestic injury.
The Order effectively means that the current anti-dumping duties (“ADDs”) of up to 108.5% will remain in place for Subject Goods originating in or exported from the Listed Countries.
Subject Goods are defined in the Order 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 millimetres (mm), in various finishes, excluding plain round bar and fabricated rebar products, originating in or exported from the Republic of Belarus, the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (excluding those goods exported by Feng Hsin Steel Co., Ltd.), the Hong Kong Special Administrative Region of the People’s Republic of China, Japan, the Portuguese Republic and the Kingdom of Spain. The Tribunal’s finding also excludes 10 mm diameter (10M) rebar produced to meet the requirements of CSA G30 18.09 (or equivalent standards) that is 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)."
Canada Border Services Agency (“CBSA”) originally initiated an investigation on July 21, 2017 in response to a complaint from Canadian producers AltaSteel Ltd., ArcelorMittal Long Products Canada, g.p., and Ameristeel Corporation, about imports of Subject Goods from the Listed Countries. The complaint was supported by Max Aicher North America Ltd.
On April 3, 2017, the CBSA made a final determination that Subject Goods were being dumped. Five exporters who co-operated with the CBSA in its investigation received normal values for their goods (i.e., one from Belarus, one from Taiwan, one from Portugal, and two from Spain).
On May 3, 2017, the CITT issued a finding that the dumping of the Subject Goods had caused injury to the Canadian domestic industry. However, the CITT found that the goods of Feng Hsin Steel Co., Ltd. were “non-dumped subject goods”, and granted an exclusion.
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.
On May 4, 2018, the CBSA concluded a re-investigation of normal values and export prices for Subject Goods from the Listed Countries. This re-investigation occurred in parallel with a similar re-investigation for a related Rebar Order that applies to other countries.
As a result of the re-investigation, the five (5) exporters were assigned new normal values. For one of these, Nervacero, S.A. of Spain, CBSA conducted a further normal value review that concluded on September 1, 2020.
This is the last rebar expiry review for the next little while – of the four (4) rebar Orders, the next expiry review is set to start for Concrete Reinforcing Bar (I) on October 13, 2025. In the meantime, businesses importing rebar into Canada need to be vigilant – the list of countries covered by one of the four (4) Orders includes China, South Korea, Turkey, Belarus, Taiwan, Hong Kong, Japan, Portugal, Spain, Algeria, Egypt, Indonesia, Italy, Malaysia, Singapore, Vietnam, Oman, and Russia – and China is also subject to countervailing duties (“CVD”)!
As always, 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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