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OCTG – Anti-Dumping Update!

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International Trade continues to be a hotbed of action for governments and businesses around the world. We previously wrote in July 2021 about complaints made to the Canada Border Services Agency (the “CBSA”) that Mexico and Austria have been “dumping” certain Oil Country Tubular Goods (“OCTG”) into the Canadian marketplace.

The CBSA has now completed its investigations and issued Final Determinations in respect of OCTG from Mexico (“OCTG3”), and OCTG from Austria (“OCTG4”), with the following results:

OCTG3 – Mexico

On December 22, 2021 the CBSA issued a Notice of Final Determination, having found dumping in respect of certain OCTG from Mexico. Generally, imports of subject goods into Canada will be subject to a duty of 164.7% (up from the provisional duty of 128.4%), with the exception of those subject goods originating or exported from Tubos de Acero de Mexico S.A. (TAMSA), which could be subject to a lower duty.

OCTG4 – Austria

On January 21, 2022 the CBSA issued their Notice of Final Determination, having found dumping in respect of certain OCTG from Austria. Generally, imports of subject goods into Canada will be subject to a duty of 129.2% (up from a provisional duty of 91%), with the exception of those subject goods originating or exported from Voestalpine Tubulars GmbH & Co KG, which could be subject to a lower duty.

What are the next steps?

Since the CBSA has issued its Notice of Final Determination and found that imports have been dumped or subsidized (as it has in OCTG3 and OCTG4), the inquiry moves to the Canadian International Trade Tribunal (the “CITT”) who must consider whether the dumping identified by CBSA is “injurious to a domestic industry”. If the CITT finds in the affirmative, the final anti-dumping duty will generally stay in place for a period of at least 5 years.

Anti-dumping duties at the Provisional Rates remain in place until the CITT makes its order or finding. In the case of OCTG3 the CITT’s finding is expected January 25, 2022, and in the case of OCTG4 the CITT’s finding is expected by February 22, 2022.

What can I do?

Importers of OCTG from Austria or Mexico should obtain expert advice on how to properly deal with their imports given the CBSA’s recent decisions.

Given the CITT’s findings are expected imminently, it is practically too late for new parties to become involved in the CITT’s investigation process – although importers should monitor for the CITT’s decisions.

Given the strict timelines, and the significant amount of work involved in responding to RFIs issued by the CBSA and the CITT, any importers or exporters potentially impacted by this investigation and the eventual anti-dumping/countervailing duties on subject goods should contact their lawyer immediately to discuss recommended next steps given the potential anti-dumping duties – regardless whether or not you have received an Request for Information (“RFI”)/Questionnaire!

It may also be possible to request the CITT to consider whether your goods should be excluded from the subject goods definition if you become involved in the process early enough – typically on the basis the goods are unique and the domestic industry is not capable of producing a substitutable product. Again, contact your lawyer immediately if you think your products should qualify for an exclusion.  

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