The CBSA’s final determination provided the following margins of dumping:
|Country of Origin or Export||Margin of Dumping*||Amount of Subsidy*||Amount of Subsidy per Metric Tonne|
|China – All Exporters||91.9%||11.6%||506 Chinese Renminbi|
|South Korea – All Exporters||53.0%||11.3%||86,733 South Korean Won|
|Vietnam – All Exporters||99.2%||6.5%||2,607,988 Vietnamese Dong|
The full statement of reasons can be found here.
The CITT 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 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:
Beginning January 1, 2017, under the revised customs tariff schedule, subject goods are normally classified under the following tariff classification numbers:
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:
- organic coated (including pre-paint and laminate) and metallic coated steel;
- 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;
- steel products for use in the manufacture of aeronautic products;
- perforated steel;
- stainless steel;
- silicon-electrical steel; and
- 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.
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 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.
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
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.