UNDER THE PUMP – CBSA & Tribunal Initiate Inquiry on Oil Country Tubular Goods from Mexico

On June 30, 2021, the Canada Border Services Agency (CBSA) launched its investigation under the Special Import Measures Act (SIMA) into the alleged injurious dumping imports into Canada of certain oil country tubular goods (OCTG) originating in or exported from the United Mexican States (Mexico). The complaint with CBSA was filed by EVRAZ Inc. NA Canada (Regina, Saskatchewan), and by Welded Tube of Canada Corp. (Concord, Ontario). On July 2, 2021, the Canadian International Trade Tribunal (CITT) initiated a preliminary injury inquiry into the same.

The CBSA’s Notice of Initiation lists the tariff classification numbers of both subject and non‑subject goods. Appendix 1 of the CBSA’s Notice of initiation of investigation defines subject goods as originating in or exported from Mexico:

  • … casing, tubing and green tubes 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 13 ⅜ inches (60.3 mm to 339.7 mm), meeting or supplied to meet American Petroleum Institute specification 5CT or equivalent and/or enhanced proprietary standards, in all grades, excluding drill pipe, pup joints, couplings, coupling stock and stainless steel casing, tubing or green tubes containing 10.5 percent or more by weight of chromium …

For the purposes of this dumping investigation, products that are upgraded, prior to being exported to Canada, in the manner described above in an intermediate country, do not fall within the purview of the investigation as the CBSA considers products to originate in the intermediate country. Similarly, other products not covered by the product definition are accessory products used in conjunction with downhole OCTG tubing and those that are further manufactured products which use OCTG.

The CBSA will continue its investigation if the preliminary determination indicates that there has been dumping, and the Tribunal will initiate a final injury inquiry simultaneously.

Importer Responses

The Importer Request for Information (RFI) sets out the information required from importers of the subject goods. The questions relate to subject goods imported into Canada during the period from May 1, 2020 to April 30, 2021.

The investigation schedule indicates July 26, 2021, as the due date for importer responses to the CBSA’s Request for Information.

Exporter Responses

Exporter responses to the CBSA’s Request for Information are due on August 6, 2021.

The CITT will issue a decision by August 30, 2021. If the CITT determines that the goods shipped to Canada are causing injury and the CBSA determines that they are dumped, provisional duties may apply to future shipments, starting at the time of the CBSA preliminary determination, on or before September 28, 2021. Any interested person, association or government that wishes to participate in the Tribunal’s preliminary injury inquiry may do so by filing a Form I – Notice of Participation. Further information about the investigations will be available in a Statement of Reasons that will be available within 15 days on the CBSA’s website.

Tereposky & DeRose regularly provides advice on Canadian trade remedy matters, including anti-dumping and countervailing duty investigations and safeguard actions. Should you have any questions regarding these new procedures, we are at your disposal.

Umair Azam
613.237.1208
uazam@tradeisds.com

Daniel Hohnstein
613.237.9005
dhohnstein@tradeisds.com

Falling Off the Grid – CBSA Launches Anti-dumping Investigation Concerning Certain Small Power Transformers

On April 15, 2021, the Canada Border Services Agency (CBSA) initiated an investigation  concerning the alleged injurious dumping of certain small power transformers from Austria, the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (Chinese Taipei), and South Korea (SPT 2021 IN). This investigation was triggered by a formal complaint filed on behalf of a group of Canadian transformer manufacturers, including Transformateurs Delta Star Inc., Northern Transformer Corporation, PTI Transformers Inc., and PTI Transformers L.P.

The CBSA’s Notice of Initiation explains that the subject goods are normally classified under tariff classification numbers 8504.22.00.20 and 8504.23.00.10, although parts and components of small power transformers and incomplete units may also be imported under tariff classification numbers 8504.90.90.10, 8504.90.90.82, and 8504.90.90.90.

According to the CBSA’s investigation schedule, responses to importer request for information (RFI) questionnaire are due by May 10, 2021, whereas responses to the exporter responses to the exporter RFI questionnaire are due by May 25, 2021. The preliminary determination (or termination) of the investigation will be issued on July 14, 2021, with the Statement of Reasons expected to follow on or about July 29, 2021.

This is not the CBSA’s first investigation of imported power transformers. Since November 2012, anti-dumping measures have been applied to large power transformers (i.e., “liquid dielectric transformers having a top power handling capacity equal to or exceeding 60,000 kilovolt amperes (60 megavolt amperes)” from the Republic of Korea).

Tereposky & DeRose regularly provides advice on Canadian anti-dumping and countervailing matters. Should you have any questions regarding this matter or trade remedies issues more generally, we are at your disposal.

Umair Azam
613.237.1208
uazam@tradeisds.com

Daniel Hohnstein
613.237.9005
dhohnstein@tradeisds.com

Greg Tereposky
613.237.1210
gtereposky@tradeisds.com

Canada Not Ready to Give Up Its Seat? CBSA Launches Investigations concerning Imports of Certain Upholstered Domestic Seating Products

On December 21, 2020, the Canada Border Services Agency (CBSA) initiated investigations concerning the alleged injurious dumping and subsidizing of certain upholstered domestic seating imported from China and Vietnam. The investigation has been commenced under the Special Import Measures Act (SIMA), which helps to protect Canadian industries from injury caused by the dumping and subsidizing of imported goods. The investigations were initiated further to a complaint filed by Palliser Furniture Ltd. (Winnipeg, Manitoba).

The subject goods are usually classified under the following tariff classification numbers: 9401.40.00.00; 9401.61.10.10; 9401.61.10.90; 9401.71.10.10; and 9401.71.10.90.

Appendix 1 to the notice of initiation of investigations provides the product definition and additional information on the subject goods. The product definition provides that the subject goods are any upholstered seating used for domestic purposes that originate in or are exported from China and Vietnam. This definition extends to include both stationary and “motion” seating. The phrase “for domestic purposes” is defined under Chapter 94 of the Schedule to the Canadian Customs Tariff and has been interpreted and applied in Tribunal jurisprudence (see e.g., Stylus Sofas, Appeal No. AP-2013-021).  It covers seating products that are intended and designed for use in residential settings. The product definition includes an explicit exclusion for seating products that are “clearly designed and marketed for non‑domestic (i.e. commercial) use, such as in offices, business reception areas, restaurants, studios and other non‑residential applications.”

Additional guidance addresses the different descriptive marketing terms that may be used by manufacturers and retailers to describe the subject goods, noting that these “descriptive words generally do not indicate any material differences in the nature of the goods or detract from the goods being subject goods.”

Further information regarding the investigations will be available in a Statement of Reasons that will be posted within 15 days on the CBSA’s website.

Tereposky & DeRose regularly provides advice on Canadian trade remedy and trade defence matters, including anti-dumping and countervailing investigations. Should you have any questions regarding this matter, we are at your disposal.

Umair Azam
613.237.1208
uazam@tradeisds.com

Daniel Hohnstein
613.237.9005
dhohnstein@tradeisds.com

Greg Tereposky
613.237.1210
gtereposky@tradeisds.com

New Canadian Anti-dumping Investigation on Concrete Reinforcing Bar from Algeria, Egypt, Indonesia, Italy, Malaysia, Singapore and Vietnam

On 22 September 2020, following a Complaint filed by AltaSteel Inc., ArcelorMittal Long Products Canada, G.P., and Gerdau Ameristeel Corporation, the Canada Border Services Agency (CBSA) initiated an anti-dumping investigation under the Special Import Measures Act with respect to the alleged injurious dumping of certain concrete reinforcing bar from Algeria, Egypt, Indonesia, Italy, Malaysia, Singapore, and Vietnam.

This is the third anti-dumping investigation of imported concrete reinforcing bar since 2014.

According to the CBSA’s Investigation Schedule, importers are required to file their response to the CBSA’s Request for Information by October 15th. Exporters must file their response by October 29th.

The CBSA is expected to issue its preliminary determination on or by December 21st. On that date, provisional anti-dumping duties could be imposed on imports of subject concrete reinforcing bar from the above-referenced countries.

The Notice of Initiation of Investigation provides the following information regarding the concrete reinforcing bar subject to this investigation:

Hot rolled deformed steel concrete reinforcing bar in straight lengths or coils, commonly identified as rebar, in various diameters up to and including 56.4 millimeters, in various finishes, excluding plain round bar and fabricated rebar products, originating in or exported the People’s Democratic Republic of Algeria, the Arab Republic of Egypt, the Republic of Indonesia, the Italian Republic, the Federation of Malaysia, the Republic of Singapore and the Socialist Republic of Vietnam.

Also excluded is 10 mm diameter (10M) rebar produced to meet the requirements of CSA G30 18.09 (or equivalent standards) and coated to meet the requirements of epoxy standard ASTM A775/A 775M 04a (or equivalent standards) in lengths from 1 foot (30.48 cm) up to and including 8 feet (243.84 cm).

For further clarity, the subject goods include all hot rolled deformed bar, rolled from billet steel, rail steel, axle steel, low alloy‑steel and other alloy steel that does not comply with the definition of stainless steel.

Uncoated rebar, sometimes referred to as black rebar, is generally used for projects in non corrosive environments where anti‑corrosion coatings are not required. On the other hand, anti corrosion coated rebar is used in concrete projects that are subjected to corrosive environments, such as road salt. Examples of anti corrosion coated rebar are epoxy or hot dip galvanized rebar. The subject goods include uncoated rebar and rebar that has a coating or finish applied.

Fabricated rebar products are generally engineered using Computer Automated Design programs, and are made to the customer’s unique project requirements. The fabricated rebar products are normally finished with either a protective or corrosion resistant coating. Rebar that is simply cut to length is not considered to be a fabricated rebar product excluded from the definition of subject goods.

Tereposky & DeRose has extensive experience in anti-dumping investigations. Should you have any questions regarding this investigation, we are at your disposal.

Daniel Hohnstein
613.237.9005
dhohnstein@tradeisds.com

Stephanie Desjardins
613.237.8680
sdesjardins@tradeisds.com

New Canadian Anti-dumping Investigation on Concrete Reinforcing Bar (22 September 2020)

Wheat Gluten Imports from Australia, Austria, Belgium, France, Germany and Lithuania Targeted by Canadian Anti-dumping Investigation

On 14 August 2020 the Canada Border Services Agency (CBSA) initiated an anti-dumping investigation respecting the alleged injurious dumping of certain wheat gluten from Australia, Austria, Belgium, France, Germany and Lithuania. The investigation was prompted by a complaint filed by ADM Agri‑Industries.  Wheat gluten consists of natural protein found in wheat. It is used as an ingredient in a broad range of food products.

Together with the Notice of the Initiation of Investigation, the CBSA has published the Investigation Schedule. Responses to the CBSA’s request for information (RFI) questionnaires are due September 7th for importers and September 21st for exporters. Publication of the CBSA’s preliminary determination is expected on or about November 12th. On that date, provisional anti-dumping duties could be imposed on imports of wheat gluten from the above-referenced countries.

Product definition

The subject goods are defined as follows:

Wheat gluten, whether or not blended with wheat flour, salt or any other substance, with a minimum wheat protein content of 40% by weight on a dry basis calculated using a Jones Factor of 5.7, originating in or exported from Australia, Austria, Belgium, France, Germany and Lithuania, but excluding (i) devitalized wheat gluten; (ii) hydrolyzed wheat gluten; (iii) wheat protein isolates; and (iv) organic wheat gluten that is certified organic in accordance with and otherwise meets the requirements of the Food and Drugs Act, R.S.C., 1985, c. F‑27, and regulations made thereunder, and the Safe Food for Canadians Act, S.C. 2012, c. 24, and regulations made thereunder including the Safe Food for Canadians Regulations, S.O.R./2018‑108, all of which as may be amended or replaced from time to time.

For greater certainty, the subject goods include but are not limited to vital wheat gluten as defined by the World Health Organization’s Codex Standard 163‑1987, Rev. 1‑2001 (“Standard for Wheat Protein Products Including Wheat Gluten”).

Tereposky & DeRose has extensive experience in anti-dumping investigations. Should you have any questions regarding this investigation, we are at your disposal.

Daniel Hohnstein
613.237.9005
dhohnstein@tradeisds.com

Greg Tereposky
613.237.1210
gtereposky@tradeisds.com

Wheat Gluten Imports Targeted by Canadian Anti-Dumping Investigation (14 August 2020)

What goes around comes around… Canada Issues List of Proposed Countermeasures against U.S. Aluminum Duties

As anticipated, Canada issued on August 13th a Notice of intent to impose countermeasures against the United States in response to the Section 232 tariffs that the U.S. administration imposed on Canadian articles of non-alloyed, unwrought aluminum on August 6th. Canada intends to impose 10 percent surtaxes on imports of aluminum and aluminum-containing products from the U.S., representing a proportionate amount of Canadian aluminum products affected by the U.S. tariffs.

The countermeasures will only apply to goods originating from the U.S., which are those eligible to be marked as a good of the U.S. in accordance with the Canadian Determination of Country of Origin for the Purposes of Marking Goods (CUSMA Countries) Regulations. They will take effect by September 16, 2020 and will remain in place until the U.S. eliminates its Section 232 tariffs against Canada. Goods that are in transit to Canada on the day on which these countermeasures come into force are excluded.

The products covered by the countermeasures will be drawn from the proposed list published in the Notice, which is reproduced below. This list encompasses a broad range of aluminum products, from primary products to finished goods (including e.g., doors, windows, climbing and mountaineering articles, refrigerators, washing machines, bicycles and parts, livestock trailers and golf clubs).

Comments on the Proposed List

The Department of Finance has invited written comments from interested stakeholders. Comments must be submitted by email to fin.tariff-tarif.fin@canada.ca no later than September 6, 2020. Submissions, at a minimum, should include the following information:

  • Canadian company/industry association name and contact person.
  • Relevant eight-digit tariff item(s) and description of the goods of particular interest.
  • Reasons for the expressed support for, or concern with, the proposed countermeasures, including detailed information substantiating any expected beneficial or adverse impact.

Tereposky & DeRose regularly provides advice on Canadian trade matters. Should you have any questions regarding this matter, we are at your disposal.

Greg Tereposky
613.237.1210
gtereposky@tradeisds.com

Daniel Hohnstein
613.237.9005
dhohnstein@tradeisds.com

What Goes Around Comes Around…Canada Issues List of Prpoposed Countermeasures (13 August 2020)

PROPOSED LIST

2606.00.00           Aluminum ores and concentrates

2620.40.00           Slag, ash and residues, containing mainly aluminum

2818.20.00           Aluminum oxide

2818.30.00           Aluminum hydroxide

2826.12.00           Fluorides of aluminum

2827.32.00           Other chlorides of aluminum

2833.22.00           Other sulphates of aluminum

3212.90.00           Pigments used in manufactures of paints and dyes

3815.19.00           Reaction initiators, reaction accelerators and catalytic preparations, other

7601.10.00           Unwrought aluminum, not alloyed

7601.20.00           Unwrought aluminum, aluminum alloys

7602.00.00           Aluminum waste and scrap

7603.10.00           Aluminum powders of non-lamellar structure

7603.20.00           Aluminum powders of lamellar structure; aluminum flakes

7604.10.00           Aluminum bars, rods and profiles, not alloyed

7604.21.00           Hollow profiles, of aluminum alloys

7604.29.00           Aluminum bars, rods and profiles, of aluminum alloys, other

7605.11.00           Aluminum wire, not alloyed, of which the maximum cross-sectional dimension exceeds 7 mm

7605.19.00           Aluminum wire, not alloyed, other

7605.21.00           Aluminum wire, of aluminum alloys, of which the maximum cross-sectional dimension exceeds 7 mm

7605.29.00           Aluminum wire, of aluminum alloys, other

7606.11.00           Aluminum plates, sheets and strip, of a thickness exceeding 0.2 mm, rectangular (square), not alloyed

7606.12.00           Aluminum plates, sheets and strip, of a thickness exceeding 0.2 mm, rectangular (square), of aluminum alloys

7606.91.00           Aluminum plates, sheets and strip, of a thickness exceeding 0.2 mm, other, not alloyed

7606.92.00           Aluminum plates, sheets and strip, of a thickness exceeding 0.2 mm, other, of aluminum alloys

7607.11.00           Aluminum foil, not backed, rolled but not further worked

7607.19.00           Aluminum foil, not backed, other

7607.20.00           Aluminum foil, backed

7608.10.00           Aluminum tubes and pipes, not alloyed

7608.20.00           Aluminum tubes and pipes, of aluminum alloys

7609.00.00           Aluminum tube or pipe fittings

7610.10.00           Aluminum doors, windows and their frames and thresholds for doors

7610.90.10           Aluminum structures and parts of structures; aluminum plates, rods, profiles, tubes and the like, prepared for use in structures, other than doors, windows and their frames and thresholds for doors, for use in Canadian manufactures

7610.90.90           Aluminum structures and parts of structures; aluminum plates, rods, profiles, tubes and the like, prepared for use in structures, other than doors, windows and their frames and thresholds for doors, other

7611.00.00           Aluminum reservoirs, tanks, vats and similar containers, for any material (other than compressed or liquefied gas), of a capacity exceeding 300 litres, whether or not lined or heat-insulated, but not fitted with mechanical or thermal equipment

7612.10.00           Aluminum collapsible tubular containers

7612.90.10           Aluminum aerosol containers, excluding three-piece cans without inserts having a base diameter of 50 mm or more but not exceeding 80 mm

7612.90.91           Embossed aluminum cans for use in the packaging of beverages

7612.90.99           Aluminum casks, drums, cans, boxes and similar containers, for any material (other than compressed or liquefied gas), of a capacity not exceeding 300 litres, whether or not lined or heat-insulated, but not fitted with mechanical or thermal equipment, other

7613.00.00           Aluminum containers for compressed or liquefied gas

7614.10.00           Stranded wire, cables, plaited bands and the like, of aluminum, not electrically insulated, with steel core

7614.90.00           Stranded wire, cables, plaited bands and the like, of aluminum, not electrically insulated, other

7615.10.00           Aluminum table, kitchen or other household articles and parts thereof; aluminum pot scourers and scouring or polishing pads, gloves and the like

7615.20.00           Aluminum sanitary ware and parts thereof

7616.10.00           Aluminum nails, tacks, staples (other than those of heading 83.05), screws, bolts, nuts, screw hooks, rivets, cotters, cotter-pins, washers and similar articles

7616.91.00           Cloth, grill, netting and fencing, of aluminum wire

7616.99.10           Articles of aluminum: Cups for use in the manufacture of candles; Ferrules for use in the manufacture of pencils; Fish egg incubators and parts thereof; For climbing or mountaineering; Identification bands for migratory birds; Pigeon countermark leg bands; To be employed in the manufacture of sera, antisera, toxoids, viruses, toxins or antitoxins, virus or bacterial vaccines, bacteriophage or bacterial lysates, allergenics, liver extracts, pituitary extracts, epinephrine or its solutions, insulin (with or without zinc, globin or protamine), and blood plasma or serum of human origin, or fractions thereof, or extenders or substitutes thereof

7616.99.90           Other articles of aluminum, other

8418.21.00           Refrigerators, household type, compression type

8418.29.00           Refrigerators, household type, other

8450.11.10           Household washing machines, not including machines which both wash and dry, of a dry linen capacity not exceeding 10 kg, fully-automatic

8450.11.90           Household or laundry-type washing machines, including machines which both wash and dry, of a dry linen capacity not exceeding 10 kg, fully-automatic, other

8450.12.00           Household or laundry-type washing machines, including machines which both wash and dry, of a dry linen capacity not exceeding 10 kg, with built-in centrifugal dryer

8450.19.00           Household or laundry-type washing machines, including machines which both wash and dry, of a dry linen capacity not exceeding 10 kg, other

8450.20.00           Household or laundry-type washing machines, including machines which both wash and dry, of a dry linen capacity exceeding 10 kg

8532.22.00           Other fixed capacitators, aluminum electrolytic

8712.00.00           Bicycles and other cycles

8714.91.10           Frame lugs, bottom bracket shells, forks, fork tubing sets, fork bearing assemblies, hydraulic shock absorbing cylinders, spring shock absorbers, rear pivots, cable stops, cable guides and back, chain and seat stays

8714.91.90           Other frames and forks, and parts thereof

8714.92.00           Wheel rims and spokes of vehicles of headings 87.11 to 87.13, other than bicycle wheels

8714.99.10           Bicycle wheels

8716.39.10           Aluminum construction drop-centre livestock trailers having a g.v.w. of 11.778 tonnes or more and a length exceeding 12 m

9403.10.00           Metal furniture of a kind used in offices

9403.20.00           Other metal furniture

9406.90.90           Prefabricated buildings, other than of wood

9506.31.00           Golf clubs, complete

9506.99.00           Articles for sports and general physical exercise (e.g., bats, hockey sticks, playground equipment)

9620.00.93           Monopods, bipods, tripods of aluminum