On August 21, 2024, the Canadian International Trade Tribunal (the "CITT") issued an Order in Expiry Review RR-2023-005 (the "Order"), continuing its finding of material injury in respect of the dumping and subsidizing of sucker rods originating in or exported from the People's Republic of China (the "Subject Goods").
More detail, including the full definition of the Subject Goods, can be found in the Expiry Review.
What is an Expiry Review
Expiry Reviews are conducted jointly by the Canada Border Services Agency (the "CBSA") and the CITT to review prior Anti-Dumping Duty ("ADD") or Countervailing Duty ("CVD") findings made by the CITT (the "Findings") 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.
Reasons for the Order
The CITT considered various factors, including the following:
- Ongoing ties between Chinese exporters and Canadian customers, which may lead to increased importation if the Order is allowed to expire;
- The attractiveness of the Canadian market as a stable and profitable opportunity for Chinese exporters;
- Sustained oversupply in the Chinese steel industry;
- Export orientation of Chinese sucker rod manufacturers; and
- Price sensitivity of sucker rods, as they are a commodity product, and price is a primary factor in purchasing decisions.
Why Do I Care?
With the conclusion of the Expiry Review, the current ADDs and CVDs – currently 149.9% and approximately $23 per piece for exporters without a normal value or specific subsidy amount – will remain in force for at least another 5 years until the next Expiry Review. At that time, Canadian importers and foreign exporters and producers will have an opportunity to take part in that Expiry Review. Canadian domestic producers (i.e., those benefitting from the Order) are effectively required to participate (or risk a conclusion that there is insufficient domestic support to continue the Order).
Can I Get Involved Now?
While this Expiry Review has concluded, exporters impacted by the Order may be able to request an Expedited Review from the CBSA. An Expedited Review is the process by which the CBSA will review the normal value, export price and amount of subsidy (if applicable) on subject goods for an exporter who was not previously asked to submit information to the CBSA in a prior investigation or re-investigation.
Exporters who are interested in product-specific exclusions should also prepare their materials in advance of the next Expiry Review, as that is when the CITT will consider product exclusion requests!
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
