CBSA Statement of Reasons Issued for Preliminary Determination in Certain Copper Pipe Fittings
On February 9, 2018, the Canada Border Services Agency issues its Statement of Reasons in support of its January 25, 2018, preliminary determination that imports of certain copper pipe fittings originating in or exported from the Socialist Republic of Vietnam (Vietnam) are being sold in Canada at unfair and subsidized prices.
Hailiang (Vietnam) Metal Products Co Ltd (Hailiang VN) is the sole producer and exporter of the subject goods originating in or exported from Vietnam to Canada during the period of investigation.
The CBSA was unable to use Hailiang VN’s information to estimate normal values because it considered its response to the Dumping Request for Information substantially incomplete as Hailiang VN did not provide domestic sales, costing and financial information. Thus, the CBSA estimated the margin of dumping on the basis of facts available. This resulted in an estimated margin of dumping of 159% of the export price.
Both Hailiang VN and the Government of Vietnam provided a substantially complete response to their Subsidy Request for Information. The CBSA preliminarily determined that Hailiang VN benefitted from two subsidy programs during the subsidy Period of Investigation: (1) exemption of import tax on equipment and machinery imported to create fixed assets and (2) tax exemptions and reductions for investment in disadvantaged regions. The CBSA estimated the amount of subsidy for Hailiang VN at 4.7% of the export price.
Provisional duties are being applied to the subject goods released from customs on or after January 25, 2018. The total provisional duties payable by Hailiang VN are 163.7% of the export price (159% estimated margin of dumping and 4.7% amount of subsidy).
The inquiry continues and the CBSA will issue its final determination by April 25, 2018, with a Statement of Reasons to follow by May 10, 2018. The Canadian International Trade Tribunal (CITT) preliminarily determined, on January 11, 2018, that the evidence adduced in the Complaint discloses a reasonable indication that imports are harming the domestic industry. A hearing will be held at the CITT on April 23, 2018, and the CITT is expected to issue its finding on the question of injury by May 25, 2018.
Tereposky & DeRose regularly provides advice on Canadian anti-dumping and countervailing matters. Should you have any questions regarding this matter or anti-dumping and countervailing issues more generally, we are at your disposal.