On March 3/15, the Canada Border Services Agency (CBSA) made a Final Decision respecting the Dumping and Subsidy of “Certain Oil Country Tubular Goods” from specific countries. In short, the decision details are as follows:
- The Subsidy Investigation (Countervailing Duty) has been terminated with respect to Certain Oil Country Tubular Goods originating in or exported from the Philippines, Thailand & Ukraine only. If any provisional was paid on imports from these 3 Countries, it will be refunded by CBSA.
- The Dumping case and the Subsidy case remain and provisional duties will continue to apply on:
|Description of Goods||Usual HS Classification||Country of Origin (or export)|
|Certain Oil Country Tubular Goods||7304.29.00.11 to 7304.29.00.79
7306.29.00.11 to 7306.29.00.49
7306.30.00.29 to 7306.30.00.39
7306.90.00.10 to 7306.90.00.20
|Dumping Case: Chinese Taipei, India, Indonesia, Philippines, Republic of Korea, Thailand, Turkey, Ukraine and Vietnam
Subsidizing Case: India, Indonesia, Vietnam
**Full detail of CBSA’s final decision, and related provisional duty rates can be found at: http://www.cbsa-asfc.gc.ca/sima-lmsi/i-e/ad1404/ad1404-i14-nf-eng.html.
Useful Definitions and Information:
The CBSA provides help to Canadian producers who face unfair foreign competition in the Canadian market place. The CBSA is responsible for the administration of the Special Import Measures Act (SIMA), which helps to protect Canadian industry from injury caused by the dumping and subsidizing of imported goods.
- What is Dumping? Dumping occurs when goods are sold to importers in Canada at prices that are lower than the selling price of comparable goods in the country of export, or are sold to Canada at unprofitable prices, thereby causing potential “injury” to Canadian industries.
- What is subsidizing? Subsidizing occurs when goods imported into Canada have benefited from foreign government financial assistance (i.e. grants, tax incentives, loans at preferential rates) thereby causing potential “injury” to Canadian industries.
- What is “injury”? A critical factor is whether the dumped or subsidized imports are causing injury or is threatening to cause injury to the Canadian industry. Injury may be shown by: lost sales, reduced prices, lost market share, decreased profits, etc.
- Investigation: The investigation is a twofold process. The CBSA investigates whether or not dumping or subsidizing has occurred, and the CITT (Canadian International Trade Tribunal) investigates whether or not injury has or will occur as a result of the dumping or subsidizing. To continue with an investigation, both the CBSA and the CITT must have come to a positive decision. If not, the investigation is terminated.
- What happens if Dumping and/or Subsidy is determined to have occurred? In addition to the usual duty rate, your imported goods may be assessed an anti-dumping or countervailing duty. This duty rate will be dependent on the degree of “injury” caused by the dumping or subsidizing, and is often substantial.
We await the Canadian International Trade Tribunal’s (CITT) Final Decision on the matter which is expected on April 2, 2015. We will update the website as the details are released. If you have questions on the subject, and you are an existing Cole client, please contact your specific Cole Technical Services Representative for assistance. Other inquiries can be directed to Duane Bean, Senior Trade Advisor at 403-219-2270.
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