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.
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 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.