Tax & Trade Blog
Steel Piling Pipe Expiry Review!
On March 13, 2023, the Canadian International Trade Tribunal (“CITT”) issued a notice that it was beginning an expiry review in respect of certain steel piling pipes originating in or exported from the People's Republic of China (China). Anyone wanting to participate in the expiry review must file a Notice of Participation with the CITT by March 28, 2023!
Both domestic producers and exporters should consider participating in the expiry review, as current anti-dumping duties (“ADDs”) for goods without a normal value are 96.4%, and countervailing duties (“CVD”) are 641.35 Chinese Renminbi (RMB) per metric tonne!
The Subject Goods are defined in the Order as follows:
Carbon and alloy steel pipe piles, commonly identified as piling pipe, in outside diameter ranging from 3 1/2 inches up to and including 16 inches (8.9 cm to 40.6 cm) inclusive, in commercial quality and in various forms and finishes, usually supplied to meet ASTM A252, ASTM A500, CSA G.40.21 or comparable specifications or standards, whether single, dual or multiple certified, excluding carbon steel welded pipe, in the nominal size range of 3 1/2 inches up to and including 6 inches (89 mm to 168.3 mm) in outside diameter, in various forms and finishes, usually supplied to meet ASTM A252 or equivalent specifications, other than carbon steel welded pipe in the nominal size range of 3 1/2 inches up to and including 6 inches, dual-stencilled to meet the requirements of both specification ASTM A252, Grades 1 to 3, and specification API 5L, with bevelled ends and in random lengths, for use as foundation piles, originating in/or exported from the People's Republic of China.
Canada Border Services Agency (“CBSA”) originally initiated an investigation in respect of the Subject Goods on May 4, 2012, in response to a complaint from Canadian producer Atlas Tube Canada Inc., a division of JMC Steel Group, about imports from China
The CBSA made a preliminary determination that the Subject goods were being dumped and subsidized on August 2, 2012, and on October 31, 2012 the CBSA made a final determination as to dumping and subsidizing. The two Chinese exporters who cooperated were assigned specific normal values in respect of their products.
On November 30, 2012, the CITT issued a finding that the dumping and subsidy of the Subject Goods (as defined in the finding) from China have not caused injury but were threatening to cause injury to the Canadian domestic industry. As a result of this finding, the ADD and normal values determined by the CBSA came into effect in respect of Subject Goods originating in or exported from China.
CBSA Normal Value Review
When goods are sold for export to Canada at or above the normal value assigned by CBSA, no ADDs or CVDs apply. However, unless exporters cooperate in an investigation or re-investigation, and CBSA assigns them normal values, the default ADDs and CVDs apply. CBSA may re-investigate the normal values following significant changes (i.e., in costs, pricing, etc.) warranting further CBSA review.
In addition to the two Chinese exporters who cooperated on the initial investigation, the CBSA has since determined normal values for Qingdao Wangbaoqiang Industry Co. Ltd., following a normal value review which concluded in 2022.
Prior Expiry Review
Separate from the CBSA’s re-investigations, the CITT is mandated to conduct expiry reviews every 5 years by section 76.03 of the Special Import Measures Act. The CITT initiated its first expiry review in 2017, and on July 4, 2019, continued its finding (and the ADD and CVD).
The CITT is now commencing its second expiry review.
If no domestic producer files a notice of participation by March 28, 2023, the CITT has indicated it will likely terminate the expiry review and let its previous finding lapse, terminating the ADD and CVD.
This preliminary step puts a new significant time pressure on domestic producers who may have been used to waiting for an RFI from CBSA to nudge them into action!
Businesses importing goods that may fall within the definition of Subject Goods should seek legal advice before import, otherwise they could find themselves paying massive anti-dumping duties!