Anti-Dumping Alert: Cold-Rolled Steel (China, South Korea, Vietnam)

Cold-Rolled Steel: Dumping & Countervailing (China, South Korea and Vietnam)

Latest news:

CBSA:

On August 23, 2018, provisional duty was imposed on imports of dumped and subsidized goods that are of the same description as any goods to which the preliminary determinations apply.

CITT:

The CITT determined 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.

The CBSA Investigation:

The CBSA has initiated an investigation into Cold-Rolled Steel being imported from the People’s Republic of China (“China”), the Republic of Korea (“South Korea”) and the Socialist Republic of Vietnam (“Vietnam”) on May 25, 2018.  On June 8, 2018, the CBSA issued its Statement of Reasons regarding the initiation of investigations.

Prior to January 1, 2017, the allegedly dumped and subsidized goods were normally classified under the following tariff classification numbers:

  • 7209.15.00.10
  • 7209.15.00.40
  • 7209.16.00.10
  • 7209.16.00.20
  • 7209.17.00.10
  • 7209.17.00.20
  • 7209.18.00.10
  • 7209.18.00.20
  • 7209.25.00.10
  • 7209.25.00.20
  • 7209.26.00.10
  • 7209.26.00.20
  • 7209.27.00.10
  • 7209.27.00.20
  • 7209.28.00.10
  • 7209.28.00.20
  • 7209.90.00.90
  • 7211.23.00.00
  • 7211.29.00.00
  • 7211.90.00.90
  • 7225.50.00.19
  • 7225.50.00.29

Beginning January 1, 2017, under the revised customs tariff schedule, subject goods are normally classified under the following tariff classification numbers:

  • 7209.15.00.00
  • 7209.16.00.00
  • 7209.17.00.00
  • 7209.18.00.00
  • 7209.25.00.00
  • 7209.26.00.00
  • 7209.27.00.00
  • 7209.28.00.00
  • 7209.90.00.00
  • 7211.23.00.00
  • 7211.29.00.00
  • 7211.90.00.00
  • 7225.50.00.00

The subject goods are defined as:

Cold-reduced flat-rolled sheet products of carbon steel (alloy and non-alloy), in coils or cut lengths, in thicknesses up to 0.142 inches (3.61 mm) and widths up to 73 inches (1854 mm) inclusive, originating in or exported from China, South Korea, and Vietnam, and excluding:

  1. organic coated (including pre-paint and laminate) and metallic coated steel;
  2. steel products for use in the manufacture of passenger automobiles, buses, trucks, ambulances or hearses or chassis therefor, or parts thereof, or accessories or parts thereof;
  3. steel products for use in the manufacture of aeronautic products;
  4. perforated steel;
  5. stainless steel;
  6. silicon-electrical steel; and
  7. tool steel.

The CBSA began its investigation pursuant to a complaint from ArcelorMittal Dofasco G.P., in Hamilton, Ontario, on April 5, 2018.  Other Canadian manufacturers of like goods include Essar Steel Algoma Inc., in Sault Ste. Marie, Ontario, and Stelco Inc. in Hamilton, Ontario.

On April 26, 2018, the CBSA confirmed that the complaint was properly documented.  Consultations with the Canadian government and the Chinese, South Korean and Vietnamese governments were held on May 15 and 23, 2018 respectively.

On June 8, 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 cold-roller steel originating in or exported from China, South Korea and Vietnam have been dumped and subsidized. Further, there is a reasonable indication that such dumping and subsidizing has caused and is threatening to cause injury to the Canadian industry.

Based on the CBSA’s examination of the evidence and its own analysis, dumping and subsidy investigations were initiated on May 25, 2018.  The CBSA has identified 284 potential exporters and 62 potential importers affected by this investigation.

 

Stay Tuned…

The Investigation Schedule is as follows and we will provide updates as they are available:

May 25, 2018 Initiation of the CBSA’s dumping and subsidy investigations
June 8, 2018 Statement of Reasons issued regarding the initiation of the investigations
June 18, 2018 Importer responses to CBSA’s Request for Information due
July 3, 2018 Exporter and Government responses to CBSA’s Request for Information due
August 23, 2018 Preliminary Determinations or termination of the CBSA’s dumping and subsidy investigations
September 7, 2018 Statement of Reasons issued (Preliminary Determinations or termination)

In the event of preliminary determinations of dumping:

August 23, 2018 Exporter and Importer ruling letters available
October 2, 2018, at noon Closing of the Record date
October 9, 2018, by noon Case Arguments due from all parties
October 16, 2018, by noon Reply Submissions due from all parties in respect of Case Arguments
November 21, 2018 Final Determinations or termination of the CBSA’s dumping and subsidy investigations
November 21, 2018 Exporter and Importer ruling letters available
December 6, 2018 Statement of Reasons issued (Final Determinations or termination)

 

The CITT: Preliminary Injury Inquiry PI-2018-002

The Canadian International Trade Tribunal (“CITT”) gave notice on May 28, 2018, that it has initiated an inquiry to determine whether the evidence discloses a reasonable indication that the alleged injurious dumping and subsidizing of cold-reduced flat-rolled sheet products of carbon steel (alloy and non-alloy), in coils or cut lengths, in thicknesses up to 0.142 inches (3.61 mm) and widths up to 73 inches (1854 mm) inclusive, originating in or exported from China, South Korea, and Vietnam, and excluding: a) organic coated (including pre-paint and laminate) and metallic coated steel; b) steel products for use in the manufacture of passenger automobiles, buses, trucks, ambulances or hearses or chassis therefor, or parts thereof, or accessories or parts thereof; c) steel products for use in the manufacture of aeronautic products; d) perforated steel; e) stainless steel; f) silicon-electrical steel; and g) tool steel (the subject goods), have caused injury or retardation or are threatening to cause injury, as these words are defined in SIMA.

 

Stay Tuned…

The Preliminary Inquiry Schedule is as follows:

  • May 28, 2018 – Notice of commencement of preliminary injury inquiry
  • June 7, 2018 – Notices of participation and representation, declarations and undertakings
  • June 12, 2018 – Distribution of documents received from the CBSA
  • June 22, 2018, by noon – Submissions by parties opposed to the complaint
  • June 29, 2018, by noon – Replies from the complainant and parties in support of the complaint
  • July 24, 2018 – Determination
  • August 8, 2018 – Reasons for determination

 

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

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s