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SIMA Expiry Review Order: Pup Joints

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The Canadian International Trade Tribunal (“CITT”) announced an Order in Expiry Review RR-2021-005 on December 29, 2022 (“Order”), continuing its order made on April 7, 2017, in expiry review RR-2016-001, in respect of the dumping of Pup Joints products from the People’s Republic of China (“Subject Goods”). 

What is an Expiry Review

Expiry Reviews are conducted jointly by the Canada Border Services Agency (“CBSA”) and the CITT to review prior Anti-Dumping Duty (“ADD”) or Countervailing Duty (“CVD”) orders made by the CITT (“Orders”) under Special Import Measures Act (“SIMA”).  These Expiry Reviews generally occur every five years following the original Orders or a subsequent renewal.

Expiry Reviews are designed to 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 continued material injury would occur to a domestic industry.

Detailed Description of Subject Goods

The CITT’s Order for the Subject Goods covered the following:

“Oil country tubular goods pup joints made of carbon or alloy steel, welded or seamless, heat treated or not heat-treated, regardless of end finish, having an outside diameter from 2 ⅜ inches to 4 ½ inches (60.3 mm to 114.3 mm), in all grades, in lengths from 2 feet to 12 feet (61 cm to 366 cm), excluding casing pup joints, originating in or exported from the People’s Republic of China.”

While passing the Order, the CITT conducted a “likelihood of injury analysis” to determine the potential impact of the Subject Goods on the domestic industry if the Order was rescinded.  The factors considered by the CITT included:  international and domestic market conditions for the Subject Goods, import volume, price effects of dumping (including price undercutting, price depression and price suppression) and the ultimate impact on the domestic industry.  The CITT concluded that if the order was rescinded, there would likely be a resumption of dumping and subsidizing of the Subject Goods from China, which would cause material injury to the domestic industry.

History of Previous Orders

The original finding in respect of the Subject Goods was made by CITT on April 10, 2012, in Inquiry NQ2011001, making the current Order the second continuance order for the Subject Goods.

Why Do I Care?

Canadian importers and foreign exporters and producers need to determine whether to take part in an Expiry Review or risk the continued application of potentially punitive ADDs and CVDs.  Canadian domestic producers (i.e., those benefiting from the Order) are effectively required to participate (or risk a conclusion that there is insufficient domestic support for the Review).

Can I Get Involved Now?

Exporters that were unable to participate in the Expiry Review of the Subject Goods can request an Expedited ReviewAn Expedited Review is the process by which the CBSA reviews the normal value, export price and amount of subsidy on subject goods for an exporter that was not previously asked to submit information in a proceeding.

Other than the expedited review process, the next chance to get involved will be the CITT’s Expiry Review in 2026-2027.

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