Tax & Trade Blog
COR Steel (II) Re-Investigation
On January 16, 2022, the Canadian Border Services Agency (“CBSA”) issued a notice that it will be conducting a re-investigation in respect of corrosion-resistant steel sheet (“COR (II)”) imported from Turkey and Vietnam (the “Listed Countries”). CBSA has issued a Request for Information (“RFI”) to both exporters and importers, and responses are due February 22, 2023!
Normal values established during the re-investigation will be effective as of the end date of the re-investigation, and all normal values currently in place will expire on that date.
Exporters of Subject Goods from the Listed Countries should consider cooperating with CBSA, as the potential anti-dumping duties (“ADDs”) for goods without normal value range from 26.1% to 71.1%, depending on the country, and importers from Turkey are subject to a countervailing duty (“CVD”) of 200.46 Turkish liras per metric tonne!
Subject Goods are defined as follows (subject to several exclusions):
“Corrosion‑resistant flat‑rolled steel sheet products of carbon steel including products alloyed with the following elements:
- Boron (B) not more than 0.01%,
- Niobium (Nb) not more than 0.100%,
- Titanium (Ti) not more than 0.08%, or
- Vanadium (V) not more than 0.300%
in coils or cut lengths, in thicknesses up to 0.168 in. (4.267 mm) and widths up to 72 inch (1,828.8 mm) with all dimensions being plus or minus allowable tolerances contained in the applicable standards, with or without passivation and/or anti‑fingerprint treatments, originating in or exported from the Republic of Turkey and the Socialist Republic of Vietnam”
CBSA originally initiated an investigation in respect of the Subject Goods on November 8, 2019 in response to a complaint from Canadian producer ArcelorMittal Dofasco G.P., about imports from the Listed Countries. CBSA made a preliminary determination on April 3, 2020, and, on October 16, 2020 the CBSA made a final determination that Subject Goods were being dumped.
On November 16, 2020, the Canadian International Trade Tribunal (“CITT”) issued a finding that the dumping of the Subject Goods (as defined in the finding) from the Listed Countries, and subsidizing of goods originating or exported from Turkey, had caused injury to the Canadian domestic industry. (Note: The United Arab Emirates (“UAE”) was part of the inquiry as well, but the volume of dumped and subsidized goods was found to be negligible)
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, as did CVDs for goods from Turkey.
Why Does this Re-Investigation Matter?
This is CBSA’s first re-investigation for COR (II), meaning it is the first real opportunity for exporters to obtain normal values from CBSA since the initial investigation (which resulted in four (4) exported from Vietnam, and one (1) from Turkey receiving normal values).
When goods are sold for export to Canada at or above the normal value assigned by CBSA, no ADDs apply. However, unless the exporters who currently have normal values cooperate in the re-investigation and CBSA assigns them new normal values, their exports will become 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 CBSA.
Exporters should request an RFI package from CBSA ASAP if they have not received one, as it needs to be submitted by February 22, 2023! The CBSA will then verify this information with exporters before closing the record on May 29, 2023, with the anticipated conclusion of the re-investigation on July 10, 2023.
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.