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Technical Updates

Notice of Final Dumping Determination - CBSA

Case / File #: NQ-2016-001

This bulletin is to advise you that the Canada Border Services Agency (CBSA) has issued a Final Determination of Dumping or Subsidizing relating to the following goods that you may currently be importing:

Description of Goods Usual HS Classification Country of Origin (or export)
Large Diameter Line Pipe from China and Japan --- Japan, China


Decision Details (see highlighted selection):

On September 20, 2016, the Canada Border Services Agency (CBSA) made final determinations of dumping with respect to certain welded large diameter carbon and alloy steel line pipe (large line pipe) originating in or exported from the People’s Republic of China (China) and Japan, and subsidizing of large line pipe from China.
The Canadian International Trade Tribunal (CITT) is continuing its inquiry into the question of injury to the domestic industry and will make an order or finding by October 20, 2016. Provisional duties will continue to apply on imports of subject goods from China and Japan until the date of the CITT’s order or finding. 
Preliminary Dumping or Subsidizing Margins have been determined as follows:


Exporters   Margin of Dumping (% of Export Price) Amount of Subsidy         (% of Export Price) Amount of Subsidy per MT (RMB)
China – All Exporters         95.0% 30.3% 1,657.11
Japan – Marubeni Steel         22.1%    
Japan – Metal One         43.1%    
Japan – Sumitomo Corporation         44.6%    
Japan – All Others         95.0%    

NOTE: The margins of dumping reported in the table above are the margins determined by the CBSA for purposes of the final determination of dumping. These margins do not reflect the amount of anti-dumping duty to be levied on future importations of dumped goods. In the event of an injury finding by the CITT, normal values have been provided to the exporters which provided sufficient information for future shipments to Canada and these normal values would come into effect the day after an injury finding. 

Imports from exporters/producers that did not provide sufficient information to the CBSA during the dumping and subsidy investigations and who are not listed in the table above will be subject to the All Other Exporters anti-dumping duty rate of 95.0%, expressed as a percentage of the export price, and countervailing duty rate of 1,657.11 RMB per MT, pursuant to a ministerial specification. Please consult the SIMA Self-Assessment Guide for more detailed information explaining how to determine the amount of SIMA duties owing.

What do you need to do: Continue to pay any applicable provisional duties imposed on the subject goods. If the inquiry determines injury has not occurred the investigation will be closed and all provisional duties will be automatically returned to the importer.
If you believe that your goods are not a subject of this investigation and you may have overpaid the provisional duty imposed, Cole can request a re-determination on your behalf.

More Information:
Case Information:
SIMA Overview:
SIMA Guide:
Current Measures in Force:

For more information regarding this bulletin, please contact us at This email address is being protected from spambots. You need JavaScript enabled to view it.

Notice of 'Initiation of Investigation' by Canada Customs

This bulletin is to advise you that the Canada Border Services Agency (CBSA) has started an investigation into possible “dumping or subsidizing” of following goods that you may currently be importing: 

Description of Goods

Usual HS Classification

      Country of Origin (or export)


Fabricated Structural Steel and Plate-Work Components of buildings, process equipment, process enclosures, access structures, process structures, and structures for conveyancing and material handling, including steel beams, columns, braces, frames, railings, stairs, trusses, conveyor belt frame structures and galleries, bents, bins, chutes, hoppers, ductwork, process tanks, pipe racks and apron feeders, whether assembled or partially assembled into modules, or unassembled, for use in structures for: 1. oil and gas extraction, conveyance and processing; 2. mining extraction, conveyance, storage, and processing; 3. industrial power generation facilities; 4. petrochemical plants; 5. cement plants; 6. fertilizer plants; and 7. industrial metal smelters; but excluding electrical transmission towers; rolled steel products not further worked; steel beams not further worked; oil pump jacks; solar, wind and tidal power generation structures; power generation facilities with a rated capacity below 100 megawatts; goods classified as “prefabricated buildings” under HS Code 9406.00.90.30; structural steel for use in manufacturing facilities used in applications other than those described above; and products covered by Certain Fasteners (RR-2014-001), Structural Tubing (RR-2013-001), Carbon Steel Plate (III) (RR-2012-001), Carbon Steel Plate (VII) (NQ-2013-005), and Steel Grating (NQ-2010-002);



























Originating in or exported from the People’s Republic of China, the Republic of Korea, the Kingdom of Spain, the United Arab Emirates and the United Kingdom of Great Britain and Northern Ireland


What does this mean to you? 

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.
  • 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 threatening to cause injury to the Canadian industry.  Injury may be shown by: lost sales, reduced prices, lost market share, decreased profits, etc.
  • The 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 next?

1)     You may be contacted by CBSA via questionnaire.  The intention of the questionnaire is to gather detailed information on the alleged dumping or subsidizing of the imported goods. 
2)     60-90 days after an investigation begins, a Preliminary Decision of dumping or subsidizing  will be issued. Cole International will contact you with these results.  The Preliminary Decision will be either:

Preliminary Decision


Next Step

  • Dumping or Subsidizing has NOT occurred

Investigation terminated

No Further action taken; Case is Closed

  • Dumping or Subsidizing has occurred

Temporary duty will be imposed on imports

Investigation will continue

3)     90-120 days after a positive Preliminary Decision, a Final Decision will be issued. Cole International will contact you with these results.  The Final Decision will be either:
Final Injury Decision


Next Step

  • Dumping or Subsidizing has NOT occurred / No Injury
Investigation terminated

Temporary duty imposed will be automatically reimbursed

  • Dumping or Subsidizing has occurred & has caused Injury
Anti-dumping duty &/or Countervailing duty will be imposed on dumped / subsidized goods

This duty is generally assessed for 5 years


What do you need to do?

Provide a clear, detailed description of the subject goods on all of your invoices.  This will assist Cole in determining whether or not the goods attract the additional duty, and it will enable us to properly report them to Customs. Advise Cole if you receive any correspondence or a request for documentation from CBSA related to the importation of the above noted commodities. We can deal directly with CBSA on your behalf. Await additional information (Preliminary Decision), and be prepared for the potential assessment of the additional duty.

More Information:

CBP's New Anti-Duty Evasion Program

U.S. Customs and Border Protection (CBP) has issued “interim” regulations (81 Fed. Reg. 56477, August 22, 2016), effective immediately, under authority of the Trade Facilitation and Trade Enforcement Act of 2015 (specifically the provisions of the Enforce and Protect Act of 2015, or “EAPA”) to establish procedures for investigating claims of evasion of antidumping and countervailing duty orders. While U.S. Immigration and Customs Enforcement (ICE) has authority to conduct criminal investigations of ADD/CVD orders, and CBP has authority to assess civil penalties against importers for evasion, the new EAPA procedures afford private parties an opportunity to participate in investigations of ADD/CVD evasion.

Under the new investigative framework, CBP will have the authority to investigate allegations of ADD/CVD evasion that are filed by “interested parties” (or referred by another federal agency). Interested parties will receive notification of CBP’s initiation of the investigation, referrals to the U.S. Department of Commerce, and CBP’s determinations with respect to evasion, and may participate in the investigation and any administrative or judicial reviews of CBP’s determinations.

“Interested parties” who may file allegations of evasion (and “participate” in the investigation) include foreign manufacturers, producers, exporters or importers of the “covered merchandise,” domestic manufacturers, producers or wholesalers of a “like product,” as well as unions, groups of workers, and trade associations whose members manufacture, produce or wholesale a domestic like product. Allegations are to be filed electronically and must include, among other information, support of the allegation that the identified importer has engaged in evasion.

The EAPA and CBP’s regulations provide time frames for the initiation of investigations, the making of determinations, the communication of determinations to interested parties, and the initiation of interim enforcement action. Upon receipt of a properly filed allegation, CBP must make a determination within 15 days as to whether to initiate an investigation. Unless CBP makes a referral to the U.S. Department of Commerce, CBP must make a determination with respect to evasion within 300 days of the initiation (subject to extensions). In conducting its investigation, CBP may request information from interested parties, the importer alleged to have engaged in evasion, foreign producers and exporters, and the government of the country of exportation of the covered merchandise. While CBP will set forth the time for responses it its request, the 200th day after initiation of the investigation is the general deadline for information to be considered.

No later than 90 days after initiation, CBP will take “interim measures”, including suspending the liquidation of entries or extending suspension of liquidation of entries (and taking any necessary bond action) if it determines that there is “reasonable suspicion” that covered merchandise had been entered though evasion. Written arguments with respect to the alleged evasion and responses thereto by the “parties to the investigation” (the party who alleged evasion and the importer who allegedly engaged in evasion) may be submitted to CBP until 230 days after the initiation of the investigation.

Upon conclusion of the investigation, CBP will make a determination of evasion on the basis of “substantial evidence” and notify the parties to the investigation. Negative determinations will result in terminating any interim measures. Affirmative determinations will result in separate CBP action for liquidated entries of covered merchandise, and suspension or extension of liquidation of unliquidated entries (with continuation of the suspension or extension of liquidation of entries subject to interim measures), and CBP notification to the U.S. Department of Commerce.  

Requests for administrative review of this “initial determination” may be made by either the party alleging evasion or the person determined to have entered merchandise through evasion, and are to be submitted to CBP’s Office of Regulations and Rulings. Parties to the investigation may submit responses to the request. The final administrative determination that results of CBP’s review are subject to judicial review by the U.S. Court of International Trade.

Information provided by: Steve Varnis - U.S. Customs Consulting - Cole International

New Audit Tactic by U.S. Customs & Border Protection (U.S. CBP)

It’s in the Mail!

Cole recently learned that U.S. CBP has been sending “Informed Compliance Letters” to importers suggesting that they review their import transactions for compliance.  Within the letter, there is reference to “Informed Compliance Publications” (ICPs).  ICPs are documents published by U.S. CBP in order provide the necessary guidance to the public on the classification of certain goods and other issues (valuation, etc.) for which there is little information or guidance in the HTSUS or the Explanatory Notes (ENs) that can assist with proper classification, etc. such as:

This process is said to give the importer the opportunity to review their transactions to determine if there are any compliance issues that should be voluntarily disclosed before a full audit is undertaken by CBP.

What do you do if you receive an Informed Compliance Letter?

Don’t ignore it! Contact Cole International USA, INC. immediately.  Companies trying to go it alone without full knowledge of what may happen can be drawn into undesirable scenarios with expensive results.  Customs Audits are a very serious business and cannot be treated lightly!  Seemingly innocent requests for information are often the tip of the iceberg, leading to in-depth audits with wide-ranging scope and potential liability.  In many cases this can be prevented through early Cole involvement.  Our U.S. Consulting team will help to interpret Customs letters and identify a correct course of action for your situation. You will be represented by an experienced team that will act in your best interest to minimize exposure to penalties.

New Audit List Released By CBSA

The Canada Border Services Agency (CBSA) has published their mid-year list of commodities and programs on which they will focus their audits (compliance verifications) for the balance of the year.

There are 8 new items on the July, 2016 list as follows:

  • Cell Phone Cases

  • Mountings, Fittings & Similar Articles

  • Stone table & Counter Tops

  • Prepared Meat of Swine

  • Live Plants

  • Interchangeable Tools

  • Air Brakes and Parts Thereof

  • Handkerchiefs, Towels & Related Paper Products

CBSA’s verification priorities are carried over from previous years, so the full list actually contains 40 commodities covering the following 3 program areas:

  • Tariff Classification (36/40 items on list)

  • Valuation (2/40)

  •  Origin (2/40)

For a complete list of CBSA’s verification (audit) priorities, click here 

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 40 commodities on CBSA’s list, a deeper discussion may be warranted on how these issues may affect you.  Please contact your Cole account representative at the number you have on file or contact us.


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