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SIMA Expiry Review Order: Hot-Rolled Carbon Steel Plate

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On May 15, 2024, the Canadian International Trade Tribunal (the “CITT”) announced an Order in Expiry Review RR-2023-002 (the “Order”), continuing its finding of material injury in respect of the dumping of hot-rolled carbon steel plate originating in or exported from the People’s Republic of China (the “Subject Goods”). 

More detail, including the full definition of the Subject Goods, can be found in the Expiry Review.

What is an Expiry Review

Expiry Reviews are conducted jointly by the Canada Border Services Agency (the “CBSA”) and the CITT to review prior Anti-Dumping Duty (“ADD”) or Countervailing Duty (“CVD”) findings made by the CITT (the “Findings”) under the Special Import Measures Act (“SIMA”). These Expiry Reviews occur 5 years (approximately) following the original finding or subsequent continuation orders.

Expiry Reviews allow the CBSA to investigate whether the expiry of a prior order is likely to result in the continuation or resumption of dumping or subsidizing of the subject goods, and the CITT to determine whether material injury to the domestic industry would be likely as a result.

Reasons for the Order

The CITT considered the following factors in its Order:

  • Chinese consumption of steel plate is expected to be lower than the production in China, creating a strong incentive for Chinese producers to seek sales in export markets;
  • South Korea, a major market for Chinese steel plate, will not be able to absorb Chinese exports, making the Canadian market an attractive alternative destination given its relative higher pricing;
  • Global steel plate production is expected to moderately outstrip consumption over the next two years;
  • The expiry of the Order would lead to a significant negative impact on the domestic industry’s profitability and return on investment;
  • A significant increase in the volume of imports at low prices would negatively impact workers of the domestic industry.

Why Do I Care?

With the conclusion of the Expiry Review, the current ADDs will remain in force for at least another 5 years until the next Expiry Review. At that time, Canadian importers and foreign exporters and producers will have an opportunity to take part in that Expiry Review. Canadian domestic producers (i.e., those benefitting from the Order) are effectively required to participate (or risk a conclusion that there is insufficient domestic support to continue the Order).

Can I Get Involved Now?

While this Expiry Review has concluded, exporters impacted by the Order may be able to request an Expedited Review from the CBSA.  An Expedited Review is the process by which the CBSA will review the normal value, export price and amount of subsidy (if applicable) on subject goods for an exporter who was not previously asked to submit information to the CBSA in a prior investigation or re-investigation.

Exporters who are interested in product-specific exclusions should also prepare their materials in advance of the next Expiry Review, as that is when the CITT will consider product exclusion requests!

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