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Provisional Duties Imposed on Wire Rod!

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On June 6, 2024, the Canada Border Services Agency (“CBSA”) released a notice of its preliminary determination of dumping in respect of certain wire rod originating in, or exported from, China, Egypt and Vietnam. 

Provisional duties are now imposed on imports of the Subject Goods released from the CBSA on or after June 6, 2024!

Background Information

On March 8, 2024, the CBSA issued a Notice of Initiation of Investigation under the Special Import Measures Act (“SIMA”) in respect of the alleged dumping of certain wire rod from China, Egypt, and Vietnam.  See our previous blog post for more information, including a description of the Subject Goods.    

Provisional Duties Effective June 6, 2024!

Following the CBSA’s preliminary determination of dumping, provisional duties are now imposed at the rates specified by CBSA on imports of the Subject Goods released on or after June 6, 2024.

The CBSA has assigned specific provisional anti-dumping duties (“ADDs”) to the Subject Goods for each of the four exporters who participated in its investigation, namely, Jiangsu Shagang International Trade Co., Ltd., Suez Steel Co., Ltd., Hoa Phat Dung Quat Steel Joint Stock Company, and Hoa Phat Hai Duong Steel Joint Stock Company.  The ADDs for Subject Goods from exporters range from 6.1% to 50.9% of the value for duty of the Subject Goods.

Exporters who did not cooperate will find their imports subject to a substantially higher provisional ADD depending on the country of origin: 71% for China, 99.8% for Egypt, and 38.9% for Vietnam.

Final Dumping Investigation and Injury Determination

All eyes are now on the CITT for its final finding on whether the dumping of Subject Goods has caused or is threatening to cause injury to the domestic Canadian industry.  The CITT will hold a public hearing on this issue on September 3, 2024, with the final finding expected by October 4, 2024.  Anyone wishing to participate in the CITT hearing must file a Notice by June 21, 2024.

Concurrently, the CBSA will make a final determination of dumping by September 4, 2024, including issuing normal values to cooperating exporters, with reasons to follow 15 days later.  ADDs for all other exporters of Subject Goods will also be finalized at that time.

What does this Mean for Me?

The significant difference in the provisional ADDs between cooperative and non-cooperative exporters highlights the importance of participating in CBSA investigations.  Interested parties who have not cooperated with the CBSA investigation should contact counsel as soon as possible to determine potential next steps.

If your business imports Subject Goods or is considering doing so, you should seek Canadian legal advice immediately given the provisional ADDs now in effect.  Failure to consult with Canadian legal counsel on this issue could lead to a costly assessment by the CBSA down the road!

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