The Canada Border Services Agency (CBSA) is investigating the alleged dumping and injurious subsidizing of certain oil country tubular goods originating in or exported from Chinese Taipei, India, Indonesia, the Philippines, the Republic of Korea, Thailand, Turkey, Ukraine and Vietnam.
The investigations follow a complaint filed by Tenaris Canada of Calgary and Evraz North America Inc. of Regina.
The complainants allege the dumping and subsidizing of these goods are harming Canadian production by causing the following: price depression and price suppression, lost sales and market share, loss of employment, reduced profits, reduced capacity utilization, and negative effects on capital investments.
The Canadian International Trade Tribunal will begin a preliminary inquiry to determine whether the imports are harming Canadian producers and will issue a decision by Sept. 19, 2014.
While the tribunal is examining the question of injury, the CBSA will investigate whether the imports are being dumped and/or subsidized, and will make preliminary decisions by Oct. 20, 2014.
Dumping occurs when goods are sold to importers in Canada at prices that are less than their selling prices in the exporter’s domestic market or at unprofitable prices.
Subsidizing occurs when goods imported into Canada benefit from foreign government financial assistance.
The Special Import Measures Act protects Canadian producers from the damaging effects of such unfair trade.
Should the CBSA make a preliminary determination of dumping and/or subsidizing, the investigations will be continued for the purpose of making a final decision within 90 days after the date of the preliminary determination.
If the CBSA’s investigations reveal that imports of the subject goods have not been dumped or subsidized, that the margin of dumping or amount of subsidy is insignificant or that the actual and potential volume of dumped or subsidized goods is negligible, the investigations will be terminated.
Duties to counteract the dumping and subsidizing are normally only applied to goods released on or after the date of the CBSA’s preliminary determinations.
However, if the tribunal determines that an unusually large increase in harmful imports has occurred prior to the CBSA’s decision and that the retroactive application of anti-dumping or countervailing duty is therefore justified, duty could be levied on the goods brought into Canada immediately.