Tax & Trade Blog
PRELIMINARY DETERMINATION: STEEL RACKS
- Font size: Larger Smaller
- Hits: 31
- 0 Comments
- Subscribe to this entry
- Bookmark
PRELIMINARY DETERMINATION: STEEL RACKS
CBSA IMPOSES PROVISIONAL DUTIES ON STEEL RACKS FROM CHINA
Download a PDF copy of this Blog here.
On September 2, 2026, the Canada Border Services Agency (“CBSA”) released a notice of its preliminary determination of dumping and subsidizing in respect of steel racks originating in or exported from the People’s Republic of China (the “Subject Goods”). Provisional duties are now imposed on imports of the Subject Goods released from the CBSA on or after September 2, 2026.
Background Information
On April 20, 2026, the CBSA issued a Notice of Initiation of Investigation under the Special Import Measures Act (“SIMA”) in respect of the alleged dumping of the Subject Goods, which are defined as follows:
Certain components of steel storage systems of racks, assembled to any extent, or unassembled, being: posts or columns; bracing; beams; cantilever arms; beam connectors; base or foot plates; pallet safety or support bars; cross-aisle ties; row spacers; and wall ties, including parts thereof, with each component made of steel that is at least 1.0668 mm (0.042 inches) thick; each post or column having a width that is greater than 50.8mm (2.0 inches); and each beam having a height that is equal to or greater than 50.8mm (2.0 inches).
The definition of the Subject Goods also contains inclusions for certain steel hardware, along with exclusions for certain shelving and racks.
Provisional Duties Effective September 2, 2026!
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 September 2, 2026.
The CBSA has assigned a specific provisional countervailing duty (“CVD”) of 7% of the export price to Chinese exporter Nanjing A-Plus Metal Products Co., Ltd. For all other Chinese exporters who did not participate in the investigation, the provisional anti-dumping duty (“ADD”) is 6.1% and the CVD is 7% of the export price.
Final Dumping Investigation and Injury Determination
Focus now turns to 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 the week of November 30, 2026, with the final finding expected by December 31, 2026. Anyone wishing to participate in the CITT hearing must file a Notice by September 17, 2026.
The CBSA is expected to provided its reasons within the next 15 days in its statement of reasons, in which it will publish its timeline for its final determination.
Exporters who engage get much lower ADDs.
Get involved before it is too late!
What Does This Mean For Me?
The fact that Chinese exporter Nanjing A-Plus Metal Products Co., Ltd was not assessed ADDs in comparison to 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 in effect. Failure to consult with Canadian legal counsel on this issue could lead to a costly assessment by the CBSA!
For help with a Dumping Investigation or Injury Inquiry, please click here.