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Technical Updates

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);

7216.99.00.10

7216.99.00.99

7308.40.00.90

7308.90.00.92

8428.31.00.00

8428.39.00.31

8428.39.00.90

7216.99.00.20

7301.20.00.10

7308.90.00.60

7308.90.00.99

8428.32.00.90

8428.39.00.34

7216.99.00.30

7301.20.00.20

7308.90.00.81

 7326.90.90.99

8428.33.00.90

8428.39.00.39

7216.99.00.91

7308.40.00.10

7308.90.00.89

8421.99.90.90

8428.39.00.20

8428.39.00.80

 

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

Action

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

Action

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:

http://www.cbsa.gc.ca/sima-lmsi/brochure-eng.html
http://www.cbsa.gc.ca/sima-lmsi/self-auto-eng.html
http://www.cbsa.gc.ca/sima-lmsi/mif-mev-eng.html
http://www.cbsa-asfc.gc.ca/sima-lmsi/i-e/fisc2016/fisc2016-ni-eng.html

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