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.

What is an Expiry Review

Expiry Reviews are conducted jointly by the CBSA and the CITT to review prior Anti-Dumping Duty (“ADD”) or Countervailing Duty (“CVD”) findings made by the CITT under the Special Import Measures Act (“SIMA”). These Expiry Reviews occur 5 years (approximately) following the original finding or subsequent continuation orders.

Expiry Reviews allow the CBSA to investigate whether the expiry of a prior order is likely to result in the continuation or resumption of dumping or subsidizing of the subject goods, and the CITT to determine whether material injury to the domestic industry would be likely as a result.

Background

The CBSA initiated its investigation on February 20, 2024, one day following the CITT’s notice of the initiation of its Expiry Review of an order made on March 28, 2019 (RR-2018-001), concerning the Subject Goods.

In total, five Canadian producers and one Canadian importer took part in the CBSA’s investigation and responded to questionnaires, however no exporters took part, nor did the government of China.

As no exporters from China took part in the CBSA’s last re-investigation, all importers of the Subject Goods must currently pay an ADD of 179% of the export price, and a CVD of 5,280 CNY per metric tonne of the Subject Goods.

In its determination, the CBSA noted that between 2020 and 2023, $1.53 million was assessed in ADDs and CVDs on imports of the Subject Goods from China.  It seems that imports into Canada have continued despite the ADDs and CVDs.

Next Steps

The Expiry Review now moves to the CITT which will determine whether the expiry of its order is likely to result in injury to the Canadian industry.  As part of this process, the CITT will consider any exclusion requests filed by participating parties (exclusion requests must be filed by September 16, 2024). 

The CITT will also be having a public hearing currently scheduled for October 15, 2024, with the Expiry Review expected to conclude by December 24, 2024 with the CITT’s Order and Statement of Reasons.

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