On October 31, 2018, The Canada Border Services Agency (“CBSA”) issued its Notice of Final Determinations concluding its nearly eight-month review regarding the dumping and subsidizing of cold-rolled steel cut lengths or coiled from Vietnam, South Korea, and China. Dumping and subsidizing activities violate section 38(1) of the Special Import Measures Act (“SIMA”) which was passed to ensure that Canadian businesses aren’t undermined by foreign government intervention.
Dumping or Subsidizing Goods
Some foreign governments aid their domestic industry by either (1) offering subsidies to reduce the cost of business and allow them to compete with foreign businesses in foreign markets (like Chinese steel in Canada) or by dumping. Dumping is the practice of overproducing a product domestically, so a country can sell it internationally to undermine foreign businesses and corner markets in particular goods. The CBSA is charged with investigating allegations of subsidizing and dumping and to pass tariffs or other measures to balance these activities. The affected goods are a variety of cold-rolled steel and a more extensive list can be found in the tariff classification schedule.
The CBSA found that Vietnam engaged in 99.2% of its margins were dumped. Moreover, that 6.5% subsidy was provided for each product (amounting to 2.6M Vietnamese Dong per metric tonne of cold-rolled steel). Similarly, China’s margin of dumping was 91.9% and its subsidy was 11.6% (or about 506 Renminbi). Finally, South Korea’s dumping was 53% and its subsidy was an impressive 11.3% (or about 86,700 Won). Keep in mind, these amounts were only calculated by the CBSA to estimate the subsidy. These values do not determine how much (if any) countervailing duties will be imposed on the affected goods.
Note, that this is only one step in the process. The Canadian International Trade Tribunal (“CITT”) continues its investigation into the harm done to the domestic industry by these activities. It is not expected to issue a final determination until December 21, 2018. So, keep an eye out for those final determinations. Until the final determination from the CITT, provisional duties will continue to apply to the affected classifications.
How ARGO Customs Can Help Your Business
If you’re concerned about the import of cold-rolled steel into Canada, ARGO Customs Brokers are here to assist you. We can work with your business if it is affected by the CITT ruling and help you keep working. Contact ARGO Customs today for further information.