On May 15, 2023, the Canadian International Trade Tribunal (“CITT”) issued a notice that it was beginning an Expiry Review in respect of dry wheat-based pasta originating in or exported from the Republic of Turkey (“Turkey”).
Anyone wanting to participate in the expiry review must file a Notice of Participation with the CITT by May 30, 2023!
Both domestic producers and exporters should consider participating in the expiry review, as current anti-dumping duties (“ADDs”) for goods without a normal value are 99.9%, and countervailing duties (“CVDs”) are 0.09 TRY / kg!
Subject Goods are defined in the Order as follows:
Dry wheat-based pasta, not stuffed or otherwise prepared, and not containing more than two percent eggs, whether or not enriched, fortified, organic, whole wheat or containing milk or other ingredients, originating in or exported from the Republic of Turkey, excluding refrigerated, frozen or canned pasta.
Background
Canada Border Services Agency (“CBSA”) originallyinitiated an investigation in respect of the Subject Goods on December 27, 2017, in response to a complaint from the Canadian Pasta Manufacturers Association (“CPMA” – which includes Italpasta, Primo, and Grisspasta) about exports from Turkey.
The CBSA made a preliminary determination that the Subject Goods were being dumped and subsidized on March 28, 2018, and on April 25, 2018, the CBSA made a final determination that Subject Goods were being dumped and subsidized.
On July 26, 2018, the CITT issued a finding that the dumping of the Subject Goods (as defined in the finding) from Turkey have caused injury or are 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 in respect of Subject Goods originating in or exported from Turkey.
One exporter (Durum Gida Sanayi ve Ticaret A.Ş.) co-operated with CBSA in its investigation, and received a normal value and specific amount of subsidy for their products. A further re-investigation took place in 2021 which updated the normal values for this exporter (which was the only one that participated in the re-investigation).
The CITT’s newly announced expiry review is in respect of this 2018 finding, as required every five years by section 76.03 of the SIMA.
What’s Next?
Exporters who cooperate throughout this round of investigations and provide complete submissions could be determined not to be dumping and thus not subject to ADDs or CVDs, or, even if found to be dumping, may be assigned specific normal values in respect of their products.
From the other side of the fence, if no domestic producer files a notice of participation by May 30, 2023, the CITT has indicated that it will likely terminate the expiry review and let its previous finding laps – resulting in the termination of the ADD/CVDs.
This (new) preliminary step puts a significant time pressure on domestic producers who may have been used to waiting for an RFI from CBSA to nudge them into action!
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