Tax & Trade Blog
Grinding Media Re-Investigation Concludes
On March 31, 2023, the Canada Border Services Agency (“CBSA”) released a notice confirming that its re-investigation in respect of grinding media originating in or exported from India had concluded, updating normal values and export prices.
One (1) producer/exporter fully co-operated with CBSA (AIA Engineering Ltd., or “AIA”, and associated subsidiaries), and was assigned normal values as part of the re-investigation. All other exporters of subject goods from India will be subject to 38.7% anti-dumping duties (“ADD”) and counter-vailing duties (“CVD”) of 24,831 Indian rupee per metric tonne.
Subject Goods are defined as follows:
“Chrome cast iron grinding media in spherical (“ball”) or ovoid shape, with a diameter of 12.7 millimetres (½ inch) to and including 76.2 millimetres (3 inches) within tolerances of 5 percent (5%), with an alloy composition of 10 percent or more (≥ 10% of total mass) chromium (“Cr”) content and produced through the casting method, originating in or exported from the Republic of India.”
CBSA originally initiated an investigation in respect of the Subject Goods on December 17, 2020 in response to a complaint from Canadian producer Magotteaux Limitée (“Magotteaux”), about imports from India. On July 29, 2021, the CBSA made a final determination that Subject Goods were being dumped and subsidized.
On August 27, 2021, the Canadian International Trade Tribunal (“CITT”) issued a finding that the dumping and subsidizing of the Subject Goods (as defined in the finding) from India 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 India.
Interestingly, in addition to the exceptions which form part of the subject goods definition (i.e., grinding media with an alloy composition of less than 10% chromium), imports of subject goods for use in cement production facilities are specifically excluded from the Order.
Importers are responsible for calculating and declaring any anti-dumping duties or countervailing duties. This means checking with suppliers to find out normal values (and subsidy rates, where applicable), if the subject goods are exported/produced by one of the listed companies. These amounts can be confirmed with CBSA.
While the re-investigation may be over, exporters who have normal values should remember their ongoing obligation to inform CBSA in writing of any relevant changes (for example, domestic prices, costs, market conditions, etc.).
CBSA may also decide to commence further re-investigations if they believe that costs and market conditions have changed substantially. For example, in this case, a re-investigation was started only 15 months after the CBSA made its original final determination!
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