Tax & Trade Blog
Corrosion-Resistant Steel Re-Investigation
On October 31, 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”) imported from China, Chinese Taipei (i.e., Taiwan), India and South Korea (the “Listed Countries”). CBSA has issued a Request for Information (“RFI”) to both exporters and importers, and responses are due December 7, 2022!
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 33.2% to 53.3%, depending on the country!
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 in. (1,828.8 mm) with all dimensions being plus or minus allowable tolerances contained in the applicable standards, chemically passivated, originating in or exported from the People’s Republic of China, the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (Chinese Taipei), the Republic of India and the Republic of Korea”
CBSA originally initiated an investigation in respect of the Subject Goods on July 26, 2018 in response to a complaint from Canadian producer ArcelorMittal Dofasco G.P., about imports from the Listed Countries. CBSA made a preliminary determination on October 24, 2018, and, on January 22, 2019 the CBSA made a final determination that Subject Goods were being dumped.
On February 21, 2019, the Canadian International Trade Tribunal (“CITT”) issued a finding that the dumping and subsidizing of the Subject Goods (as defined in the finding) from the Listed Countries had caused injury to the Canadian domestic industry.
As a result of this finding, the ADDs and countervailing duties (“CVDs”) determined by the CBSA came into effect (replacing earlier provisional duties) in respect of Subject Goods from the Listed Countries.
Why Does this Re-Investigation Matter?
This is CBSA’s first re-investigation for COR, meaning it is the first real opportunity for exporters to obtain normal values from CBSA since the initial investigation (which resulted in ten (10) exporters receiving normal values – six (6) from China, three (3) from Taiwan, and one (1) from South Korea).
When goods are sold for export to Canada at or above the normal value assigned by CBSA, no ADDs apply. However, unless these 10 exporters cooperate in the re-investigation and CBSA assigns them new normal values, their exports will be 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 the CBSA.
Exporters should request an RFI package from CBSA ASAP if they have not received one, as it needs to be submitted by December 7, 2022! The CBSA will then verify this information with exporters before closing the record on March 13, 2023, with the anticipated conclusion of the re-investigation on April 24, 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.