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CANADA INVESTIGATING US RENEWABLE DIESEL

CANADA BORDER SERVICES AGENCY INITIATES ANTI-DUMPING INVESTIGATION

On March 6, 2025, Canada announced the start of an anti-dumping investigation on "Renewable Diesel” (A.K.A. hydrogenation-derived renewable diesel or “HDRD”), originating in or exported from the United States of America (the "Renewable Diesel”).

Producers of "Renewable Diesel” – as well as large commodities traders involved in the movement of these goods from the US into the Canadian market-place – will want to get involved quickly in both the CBSA and CITT investigative processes.

This report reviews what that is the case, while providing some background on the mechanics of the expected investigation.

Canada Border Service Agency Investigation

Under Canada's anti-dumping investigative process, 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 Renewable Diesel originating or exported from the United States – and seemingly prompted by an energy supplier from Alberta.  Called "Subject Goods" in anti-dumping parlance, the following are targeted 

Liquid fuel derived solely from biomass through hydrogenation, that meets ASTM Standards D975 or D396 or similar, commonly known as “Renewable Diesel” or hydrogenation-derived renewable diesel or “HDRD”, whether or not blended with other substances, originating in or exported from the United States.

The expected subheading for the Subject Goods is 2710.19.

Parallel CITT Investigation

On March 7, 2025, the Canadian International Trade Tribunal (the “CITT”) issued its own notice of a preliminary injury inquiry – a parallel process determining whether the alleged dumping has or will cause material injury to the Canadian industry.

Tight Timelines 

Canada's anti-dumping processes have notoriously tight timeframes.  For example, CBSA's Requests for Information (expected momentarily), are due March 27^th for importers and April 11^th for exporters.  Interested participants (and their counsel) are required to file notices of participation by March 19^th.  Preliminary determinations are expected May 5, 2025 (CITT) and June 4, 2025 (CBSA).  If dumping and injury is found, further steps will follow.

Why Do I Care & How do I get Involved?

US producers and exporters have a clear incentive to take part in the CBSA and CITT investigative processes.  This is because where Anti-Dumping or Countervailing Duties (“ADD/CVD”) are ultimately imposed, active participants in the process will generally be given established “normal values” (i.e., Canadian prices that can be used without the importer being hit by those ADD/CVD duties). 

Conversely, non-cooperative producers / exporters (i.e., anyone not participating in the investigations) would typically be assigned "Highest Dumping Margins" or "Highest Normal Values" based on the worst-case scenario findings (i.e., the highest margins and duties found in the investigation – at rates that are effectively punitive, to serve as s a deterrent to encourage participation).

Specialized legal advice is required, and the time for action is NOW.

For help with this Anti-Dumping Investigation, click here.

Download a PDF copy of this Blog here.