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Mexico Imposes Provisional Duty on Steel Pipe Imports

The Issue:

Mexico announced on July 14, 2015, that it has concluded a preliminary anti-dumping investigation into imports of certain types of carbon steel pipe from companies in the United States, Spain, and India.

What is Dumping?

Dumping occurs when goods are sold to importers in a country (Mexico in this case) at prices that are lower than the selling price of comparable goods in the country of export, or are sold to a country at unprofitable prices, thereby causing potential “injury” to that country’s industries.

What is “injury”?

A critical factor is whether the “dumped” imports are causing injury or threatening to cause injury to the country’s industry. Injury may be shown by: lost sales, reduced prices, lost market share, decreased profits, etc.

Results of Mexico’s Investigation:

Description of Goods

Usual Classification(s)

Country of Origin (or export)

Has Dumping Occurred?

Provisional Duty Payable

Certain Steel Pipe

•   7305.11.01

•   7305.11.99

•   7305.12.01

•   7305.12.99 

  •   7305.19.01   

•   7305.19.99

•   United States

•   India

•   Spain

United States – Yes

India – Yes

Spain - Yes

United States – 56.44% *

India – 5.15% to 73%

Spain – 55.28%

*  Longitudinal straight seam welded pipe from US is 25.43%


What do you need to do?

• Pay the imposed provisional duty on the subject goods until further notice.

• Contact Cole International at (403) 262-2771. We can assist you by providing information and by putting you in contact with the appropriate office to address your Customs needs into Mexico.

Canada-Ukraine Free Trade Agreement

The Issue:

Canada and the Ukraine announced the Canada-Ukraine Free Trade Agreement (CUFTA) on July 14, 2015. CUFTA will benefit a wide range of industry sectors, covering (but not limited to) commodities such as:

  • Fish and Seafood
  • Industrial Products
  • Agricultural Products
  • Sunflower Oil
  • Sugar & Chocolate Confectionery
  • Baked Goods
  • Vodka
  • Apparel
  • Ceramics
  • Iron & Steel
  • Minerals

How does this affect Imported & Exported Goods?

If you import goods of Ukraine origin - directly from the Ukraine - the CUFTA will benefit you. Tariffs (duty) on 99.9% of goods imported from the Ukraine will be immediately eliminated on the day that CUFTA comes into force. If you export goods from Canada to the Ukraine, you will also benefit from CUFTA. Ukraine will eliminate 86% of tariffs on Canada’s current exports immediately on the day that CUFTA comes into force. The balance of tariffs on Canadian goods will be eliminated gradually over the next 7 years.

Note: The “Coming Into Force” Date for CUFTA is not yet known.

Interesting Facts:

  • Canada and the Ukraine have enjoyed close bilateral relations since Canada became the first Western nation to recognize Ukraine’s independence on December 2, 1991
  • There are 1.2 million people of Ukrainian heritage currently living in Canada
  • Canada’s merchandise imports from Ukraine averaged $133 million / year between 2011 and 2013
  • Bilateral merchandise trade between Canada and Ukraine averaged $347 million in the same period
  • CUFTA negotiations began in 2010

What do you need to do?

  1. Contact Cole International at (403) 262-2771. We will refer you to the appropriate person within our Consulting team to work with your firm to prepare a detailed impact analysis based on your past imports.
  2. Sign up to receive future updates on this topic, and other important Customs news

Links & more information:


What Will Customs Audit? (July - Dec, 2015)

The Canada Border Services Agency (CBSA) has published a list of commodities and programs on which they will focus their 2015 audits (compliance verifications).

There are 5 new items on the July 2015 list as follows:

  • Bicycle Parts
  • Articles of Plastic
  • Articles of Iron or Steel
  • Vices and Clamps
  • Parts for Use With Machinery of Chapter 84

CBSA’s verification priorities are carried over from previous years, so the full list actually contains 35 commodities covering the following 3 program areas:

  • Tariff Classification (31/35 items on list)
  • Valuation (2/35)
  • Origin (2/35)

For a complete list of CBSA’s verification (audit) priorities, see the following links:

English: http://www.cbsa-asfc.gc.ca/import/verification/menu-eng.html

French: http://www.cbsa-asfc.gc.ca/import/verification/menu-fra.html

Cole International works diligently every day to ensure that your company is Customs compliant, but CBSA may still chose to audit your company. Be assured that Cole’s Audit Response Unit is ready and able to assist you through a CBSA audit in the event that it happens.

If you import any of the 35 commodities on CBSA’s list, and you want to discuss the matter further, please contact your Cole Technical Services Representative (TSR) at the number you have on file.


U.S. CBP Center of Excellence and Expertise

The Issue

The United States Customs and Border Protection (CBP) recently announced the institution of “Centers of Excellence and Expertise” (CEE). The CEE concept is aimed at:

  • Increasing industry-based knowledge within CBP
  • Facilitating legitimate trade through effective risk management
  • Enhancing enforcement and address industry risk

What is a CEE?

In layman’s terms, they are centralized CBP offices that will deal with all post-release issues on a specific commodity or industry. For example:

  1. Electronics
  2. Petroleum, Natural Gas & Minerals
  3. Pharmaceuticals, Health & Chemicals
  4. Agricultural & Prepared Products
  5. Automotive & Aerospace
  6. Base Metals
  7. Consumer Products and Mass Merchandising
  8. Industrial & Manufacturing Materials
  9. Machinery

The Electronics CEE has been operational for approximately 4 months now, and the Petroleum, Natural Gas & Chemicals CEE will be operational as of June 29/15. The balance of the CEE’s listed above will be implemented over time and are currently in the volunteer testing phase.

What does this mean to Cole the broker and you the client?

With respect to the importation and release of goods, nothing will change for Cole or our clients. The border locations will continue to make all release and examination decisions.

The post-release functions of CBP will not change, but the location at which they are done will. All requests for information will now come from a CEE holding responsibility for the commodity at hand.

This new structure is meant to streamline legitimate trade, so it will be a beneficial tool when fully implemented and functional. In the beginning stages of implementation, as CBP navigates the new roles and responsibilities of their CEE’s, there is the potential to see ‘a few’ more requests for information than what we typically see now. This should diminish over time as the CEE’s become familiar with the commodities, clients and industry issues in their area of responsibilities.

We will continue to keep you updated on the issue and as more CEE’s become operational.

Additional Information & Links:


Cole International USA Inc. Contact: 360-332-1124

100% Surtax on Certain USA Goods – Update

Earlier this month, Cole International reported that Canada was set to impose a 100% surtax on a wide list of goods imported from the USA.  This situation began due to the USA’s revised country-of-origin labelling (COOL) rules for importations of meat from Canada and Mexico. To see the full story and a list of goods to which the surtax would apply, click here: http://www.coleintl.com/news/227-canada-set-to-impose-100-surtax-on-a-wide-list-of-goods-imported-from-usa.php

New Development:

While the implementation of the surtax is still a possibility in the coming months, the USA is currently taking steps to prevent it from becoming a reality.  USA Lawmakers voted to repeal the disputed meat-labelling law that has prompted threats of the 100% Surtax from Canada on a wide range of U.S. products.  Please see the following story in the Coast Reporter for more details: http://www.coastreporter.net/facing-tariff-threat-from-canada-u-s-takes-step-toward-repeal-of-disputed-law-1.1964877

Cole will continue to monitor the situation and will keep you updated as new information is released on this issue.

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