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Provisional Duties in Effect: Concrete Reinforcing Bar from Bulgaria, Thailand & The UAE
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On September 13, 2024, the Canada Border Services Agency (“CBSA”) released a notice of its preliminary determination of dumping in respect of certain concrete reinforcing bar from Bulgaria, Thailand and the UAE (the “Subject Goods”).
Provisional duties are now imposed on imports of the Subject Goods released from the CBSA on or after September 13, 2024!
Background Information
On May 3, 2024, the CBSA issued a Notice of Initiation of Investigation under the Special Import Measures Act (“SIMA”) in respect of the alleged dumping of concrete reinforcing bar. See our previous blog post for more information, including a description of the Subject Goods.
Note: Concrete reinforcing bar from other countries may be covered by existing anti-dumping orders RB1, RB2, RB3 and RB4.
Provisional Duties Effective September 13, 2024!
Following the CBSA’s preliminary determination of dumping, provisional duties apply at the rates specified by CBSA on imports of the Subject Goods released on or after September 13, 2024.
The CBSA has assigned specific provisional anti-dumping duties (“ADDs”) ranging from 2% to 18.1% to each of the three exporters who participated in its investigation: Promet Steel JSC; Tata Steel Manufacturing (Thailand) Public Company Limited; and Thai Steel Profile Public Company Limited. Remarkably, one cooperating exporter (Conares Metal Supply Limited) was found to have an insignificant margin of dumping and will not be subject to any ADDs!
Imports of subject goods from all other countries will be subject to a substantially higher provisional ADD depending on the country of origin: 28% for Bulgaria, 13.8% for Thailand, and 29.4% for the UAE.
Final Dumping Investigation and Injury Determination
All eyes are now on the Canadian International Trade Tribunal (the “CITT”) who has commenced an investigation into whether the dumping of the Subject Goods has caused or is threatening to cause injury to the domestic Canadian industry. Anyone wishing to participate in the CITT inquiry must file a Notice by October 1, 2024, with any product exclusion requests due by November 12, 2024. The CITT’s public hearing on this issue is currently scheduled for December 9, 2024, with their decision expected on January 13, 2025.
Concurrently, the CBSA will make a final determination of dumping by December 12, 2024. At that time normal values will be issued to cooperating exporters and the ADD rates will be finalized.
What does this Mean for Me?
The significant difference between the provisional ADDs for cooperative and non-cooperative exporters (nearly 30% in some cases) highlights the importance of participating in CBSA dumping investigations. Exporters who did not participate in the CBSA investigation and want to understand their options should contact counsel as soon as possible to determine potential next steps.
If your business imports Subject Goods or is considering doing so, you should seek Canadian legal advice – particularly if goods are in-transit. Failure to consult with Canadian legal counsel on this issue could lead importers to a costly assessment by the CBSA down the road!