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CITT ISSUES CONTINUATION ORDER

CONTINUING DUTIES ON THERMOELECTRIC CONTAINERS FROM CHINA

The Canadian International Trade Tribunal has issued a continuation order in respect of “thermoelectric containers from China”.  This order continues an order issued on September 5, 2019, relating to the dumping and subsidizing of thermoelectric containers originating in or exported from the People’s Republic of China (“China”).  In turn, these continuing orders go back to 2008.  Those goods are officially defined as:

Thermoelectric containers that provide cooling and/or warming with the use of a passive heat sink and a thermoelectric module, excluding liquid dispensers, originating in/or exported from the People's Republic of China.

Background

In May of 2008, CBSA initiated investigations relating to dumping and subsidizing of thermoelectric containers from China under s. 31(1) of the Special Import Measures Act (“SIMA”).  That investigation turned into final determinations of dumping and subsidizing in November of 2008. 

Concurrently, the CITT launched its own process, determining that dumping and subsidizing of thermoelectric containers from China had occurred following s. 43(1) of SIMA in December of 2008. 

In subsequent years – specifically December of 2013 and September of 2019 – the CITT issued orders continuing the original finding of likely material injury.  The CITT relied on the case studies of Koolatron of Brantford, Ontario, and MTL Technologies of Chambly, Quebec for information in these cases. 

What is an Expiry Review

Expiry reviews are conducted by the CITT (with the investigative assistance of the CBSA) to review any prior Anti-Dumping Duty (“ADD”) or Countervailing Duty (“CVD”) finding or order made by the CITT (“Order”) under the Special Import Measures Act (“SIMA”).  

They occur approximately five years following the original Order or subsequent renewal.

Expiry reviews are designed to allow the CITT to determine whether the prior Order remains necessary.  First the CBSA determines the likelihood of resumed/continued dumping/subsidizing if the Order expires, and then the CITT determines the likelihood of injury to Canadian industry.

Takeaways

First, the system under the SIMA can lead to multiple orders of dumping and subsidizing.  The most recent continuation order ensures that this series of orders will last the better part of the next decade.  As a result, there will be protection for Canadian producers of thermoelectric containers for the foreseeable future.

Second, based on CITT’s analysis, subsidizing and dumping by Chinese market participants would have continued or resumed in absence of a further order.  According to Koolatron, Chinese exporters have maintained a substantial presence in Canada.  This has occurred during the Period of Review (“POR”), despite CITT’s imposition of SIMA duties. Consequently, there is a real and continued threat from Chinese producers of thermoelectric containers.

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