Tax & Trade Blog

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AD/CV DUTIES: LOST IN THE TRANSLATION?

EXPORTERS TO THE US MAY HAVE LOST THEIR WAY RELYING ON CHINESE IMPORTS

We recently had a file come across our desk where a Canadian company was trading in Chinese products and marginally manufacturing them for export to the United States (US).  The company ultimately came under scrutiny from the United States Customs and Border Protection (US CBP) concerning potential duties.  But not the kind of "duties" that everyone is concerned with today (i.e., neither the "Trump Tariffs" or Canada's "Retaliatory Tariffs").

USCBP was concerned with Anti-Dumping and Countervailing Duties on the Chinese goods – totalling almost 200% based on the landed cost of the goods being exported to the US from Canada.

On October 16, 2024, the Canadian International Trade Tribunal (the “CITT”) announced an Order in Expiry Review RR-2023-007 (the “Order”), continuing its finding of material injury in respect of the dumping of Carbon Steel Welded Pipe originating in or exported from Pakistan, the Philippines, Türkiye (Turkey), and Vietnam (the “Subject Goods”). 

The Subject Goods

The Subject Goods are defined as:

On August 21, 2024, the Canadian International Trade Tribunal (the “CITT”) issued an Order in Expiry Review RR-2023-005 (the “Order”), continuing its finding of material injury in respect of the dumping and subsidizing of sucker rods originating in or exported from the People’s Republic of China (the “Subject Goods”). 

More detail, including the full definition of the Subject Goods, can be found in the Expiry Review.

On July 18, 2024, the Canada Border Services Agency (“CBSA”) issued a Notice of Conclusion of its investigation in the ongoing Expiry Review of certain Carbon Steel Welded Pipe 1 (“CSWP-1”) originating in or exported from the People’s Republic of China (the “Subject Goods”).  

The CBSA determined that the expiry of the Canadian International Trade Tribunal’s (“CITT”) order dated March 28, 2019, in Expiry Review No. RR-2018-001 is likely to result in the continuation or resumption of (i) dumping of the Subject Goods and (ii) subsidizing of the Subject Goods.

More detail, including a full definition of the Subject Goods can be found in the Statement of Reasons for the determination.

On August 12, 2024, the Canadian International Trade Tribunal (the “CITT”) issued a notice that it was beginning an expiry review in respect of certain Circular Copper Tube originating in or exported from the Federative Republic of Brazil, the Hellenic Republic (Greece), the People’s Republic of China, the Republic of Korea and the United Mexican States (Mexico) (the “Subject Goods”).  On August 13, 2024, the Canada Border Services Agency (the “CBSA”) similarly gave notice of the initiation of their parallel expiry review investigation.

More details on the technical definition of the Subject Goods can be found here.

On June 27, 2024, the Canada Border Services Agency (“CBSA”) issued a notice that it will be conducting a re-investigation in respect of oil country tubular goods originating in or exported from Chinese Taipei, India, Indonesia, South Korea, Thailand, Türkiye and Vietnam (the "Subject Goods”).  This re-investigation falls under measure in force code OCTG2.  Detailed information, including the definition of the Subject Goods, can be found on the OCTG2 page.

Additionally, the CBSA has announced it will also update the surrogate normal values for certain seamless carbon and oil country tubular goods originating in or exported from China, under measure in force codes SC and OCTG1 respectively!

On June 20, 2024, the Canadian International Trade Tribunal (the “CITT”) issued a preliminary determination of injury, concluding that there was evidence that the alleged dumping and subsidizing of certain pea protein from China (the “Subject Goods”) has caused material injury to the domestic industry.

More details, including the definition of the Subject Goods and product inclusion can be found in the determination here.

On January 17, 2024, the Canada Border Services Agency (the “CBSA”) announced that it has initiated a re-investigation of the normal values and export prices in respect of certain gypsum board (known more colloquially as “drywall” or “wallboard”) originating in or exported from the United States (the “Subject Goods”) for use or consumption in Western Canada (i.e., BC, AB, SK, YU, and NT).

On June 20, 2024, the CBSA released a notice concluding the re-investigation with updated normal values and export prices. 

On June 24, 2024, the Canadian International Trade Tribunal (the “CITT”) issued a notice that it was beginning an expiry review in respect of silicon metal originating in or exported from the People’s Republic of China (the “Subject Goods”).  On June 25, 2024, the Canada Border Services Agency (the “CBSA”) similarly gave notice of the initiation of their parallel expiry review investigation.

More details on the technical definition of the Subject Goods can be found here.

On April 22, 2024, the Canada Border Services Agency (“CBSA”) issued a Notice of Initiation of Investigation under the Special Import Measures Act (“SIMA”) in respect of the alleged dumping and subsidizing of certain pea protein from China.  This investigation was prompted by a joint complaint filed by two manufacturers in Manitoba. 

The goods under investigation are more specifically described as: 

High protein content (“HPC”) pea protein originating in or exported from the People’s Republic of China in all physical forms regardless of packaging, with a minimum pea protein content of 65 percent on a dry weight basis calculated using a Jones factor of 6.25 (the “Subject Goods”).  

The Canadian International Trade Tribunal (the “CITT”) announced an Order in Expiry Review RR-2021-004 on October 19, 2022 (the “Order”), continuing its order made on January 4, 2017, in Expiry Review NQ-2016-002, in respect of the dumping of certain gypsum board products originating in or exported from the U.S., imported into Canada for use or consumption in the provinces of BC, AB, SK, and MB, as well as NT and YK (the “Subject Goods”). 

On October 5, 2023, the Canadian International Trade Tribunal (“CITT”) issued its order in respect of an Expiry Review of a previous Order made on February 8, 2018, continuing the Order’s finding of dumping and subsidizing of stainless steel sinks from the People’s Republic of China (“China”).

The CITT more specifically described the Subject Goods as:

On August 31, 2023, the Canadian International Trade Tribunal (“CITT”) issued a revised notice of an Expiry Review in respect on the dumping and subsidizing of copper pipe fittings from the Socialist Republic of Vietnam (“Vietnam”).

The CITT defined the Subject Goods in its May 25, 2018 Finding: