Anti-Dumping Alert: Certain Sucker Rods (China)

Certain Sucker Rods: Dumping & Countervailing (China)

Latest news:

CBSA:

The CBSA has concluded its investigation and given the following margins of dumping:

Country of origin or export Margins of dumping expressed as a percentage of export price Amounts of subsidy expressed as a percentage of export price Amounts of subsidy per piece
China
Shandong Nine-Ring Petroleum Machinery Co., Ltd. 149.9% 21.0% 28.78 RMB
Shandong Shouguang Kunlong Petroleum Machinery Co., Ltd. 141.1% 24.4% 31.21 RMB
Zibo Hongyang Weatherford Oilfield Equipment Co., Ltd. 100.4% 2.8% 5.81 RMB
All Other Exporters 149.9% 68.1% 119.54 RMB

The statement of reasons can be found here.

CITT:

The CITT has concluded that the dumping and subsidizing of the above-mentioned goods have caused injury to the domestic industry.  The full decision can be found here.

The CBSA Investigation:

The CBSA has initiated an investigation into Certain Sucker Rods being imported from the People’s Republic of China (“China”) and has issued its Statement of Reasons regarding the initiation of Investigations on June 1, 2018.

The subject goods are usually classified under the following tariff classification number:

  • 8413.91.00.10

The subject goods are defined as:

Sucker rods, including pony rods, with or without couplings attached and with or without guides attached, manufactured to American Petroleum Institute (API) 11B specifications, equivalent standards or proprietary standards, including in a finished or semi-finished state, made of solid steel, including carbon, alloy and special grades of steel, of 2.5 inches (63.5 mm) or less in diameter of rod body, with stated measurements subject to permissible tolerances originating in or exported from China.

The CBSA began its investigation pursuant to a complaint from Dover Canada ULC – Alberta Oil Tool Division, in Edmonton, Alberta on March 29, 2018.  On April 19, 2018, the CBSA confirmed that the complaint was properly documented.  After consultations with the Canadian government on May 15 to 17, 2018, the CBSA began its dumping and subsidizing investigation on May 18, 2018.

On June 1, 2018, the CBSA initiated published its reasons for the initiation of the investigation.  In brief, the CBSA is of the opinion that there is evidence that certain sucker rods originating in or exported from China, have been dumped and subsidized, and there is a reasonable indication that such dumping and subsidizing have caused or are threatening to cause injury to the Canadian industry.

As a result, based on the CBSA’s examination of the evidence and its own analysis, dumping and subsidy investigations were initiated on May 18, 2018.  The CBSA has identified 40 potential exporters and 22 potential importers affected by this investigation.

The CITT: Preliminary Injury Inquiry No. PI-2018-001

The Canadian International Trade Tribunal (“CITT”) gave notice on May 22, 2018, that it has initiated an inquiry to determine whether the evidence discloses a reasonable indication that the alleged dumping and subsidizing of sucker rods, including pony rods, with or without couplings attached and with or without guides attached, manufactured to American Petroleum Institute (API) 11B specifications, equivalent standards or proprietary standards, including in a finished or semi-finished state, made of solid steel, including carbon, alloy and special grades of steel, of 2.5 inches (63.5 mm) or less in diameter of rod body, with stated measurements subject to permissible tolerances, originating in or exported from China (the subject goods), have caused injury or retardation or are threatening to cause injury, as these words are defined in SIMA.

On July 17, 2018, the CITT found that there is evidence that discloses a reasonable indication that the dumping and subsidizing of the above-mentioned goods have caused or are threatening to cause injury to the domestic industry.

John Reiterowski, DS Lawyers Canada, LLP

jreiterowski@dsavocats.ca

DS Customs & Trade team located in Paris, Brussels, Montreal, Toronto, Lima, Singapore, Vietnam, Beijing, Guangzhou, Dakar and Cotonou is at your disposal to provide you with additional information.

CONTACT US:

dscustomsdouane@dsavocats.com

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