Canada Initiates Administrative Reviews Of Corrosion-resistant Steel Sheet (COR) And Copper Pipe Fittings Originating From Vietnam - International Trade & Investment - Worldwide

2023-02-16 15:44:36 By : Mr. Eason Zhong

HS Code of Corrosion Resistant Steel Sheet (COR) under investigation: 7210.30; 7210.49; 7210.61; 7210.69; 7212.20; 7212.30; 7212.50; 7225.91; 7225.92; 7226.99.

On November 8, 2019, CBSA initiated an anti-dumping and anti-subsidy investigation on COR steel products imported from Turkey, the United Arab Emirates (UAE) and Vietnam.

On November 16, 2020, the investigating agency issued an order to impose duties as follows: Turkey from 0% to 26.1% (anti-dumping duties) and 0.4% to 3.6% (anti-subsidy duties); UAE is not subject to anti-dumping and anti-subsidy duties; Vietnam from 2.3% to 71.1% (not subject to anti-subsidy duty).

This duty rate is applicable for 5 years from November 17, 2020.

Since the date of duty imposition, Vietnam's export volume to the Canadian market in 2020 is about 22,812 tons and sharply increases about 4 times to 87,736 tons in 2021, accounting for 2.46% and 6.48% of Canada's total COR steel imports. Export turnover in 2020 and 2021 is about USD 15.37 million and USD 104.86 million, respectively.

Considering that the total export turnover of corrosion-resistant steel sheet (COR) from Vietnam to Canada increased sharply even after the duty order was issued and still valid, CBSA initiated an administrative review (re-investigation) to determine a reasonable anti-dumping duty rate on corrosion-resistant steel sheet (COR) products on January 16, 2023.

Deadline for businesses to submit questionnaires to the investigating agency: February 22, 2023 (Canadian time).

It is expected that on June 5, 2023, related parties will have to submit all their information and views and arguments related to the case to the Investigation Agency for examination. On July 10, 2023, the CBSA is expected to issue a conclusion on the administrative review.

HS Codes of copper pipe fittings under investigation: 7412.10 and 7412.20

On January 17, 2023, the Court of International Trade of Canada announced the initiation of the end-of-term review to consider the continued imposition of anti-dumping and anti-subsidy duties on copper pipe fittings imported from Vietnam.

On October 27, 2017, CBSA initiated an anti-dumping and anti-subsidy investigation on copper pipe fittings imported from Vietnam. On May 25, 2018, the investigating agency issued an order to impose duty with the general anti-dumping and anti-subsidy duty rates for Vietnamese enterprises of 159% and 30.6%, respectively, effective from May 26, 2018 for 5 years.

The above duty rate is a non-preferential duty rate, which is synthesized by the investigation agency based on available data because Vietnamese enterprises do not cooperate fully in good faith during the investigation process.

Since the time Canada applied anti-dumping and anti-subsidy duty on copper pipe fittings products in 2018, Vietnam's export volume to this market in the period of 2019-2021 is about 20 tons, 16 tons and 48 tons, down about 87 times compared to the time before the 2017 investigation which was 1,745 tons.

In 2021, the export turnover of Vietnam's copper pipe fittings products to Canada is only about 281 thousand USD, accounting for about 0.15% of the total import turnover of this product into Canada (191.41 million USD).

Accordingly, considering that the total export turnover of Vietnam's copper pipe fittings to Canada has decreased remarkedly in recent years, thereby leading to the possibility of reducing damage to the domestic copper pipe manufacturing industry of Canada, CBSA initiated an administrative review of copper pipe fittings originating from Vietnam on January 16, 2023.

Deadline for parties to register to participate in the case: January 31, 2023 (Canada time). Deadline for Vietnamese exporters to submit questionnaires to the investigating agency: February 23, 2023 (Canadian time).

It is expected that on March 22, 2023, relevant parties will have to submit all their information and views, and arguments regarding the continuation or cessation of the trade remedy duty rate applied to the investigating agency for review. On July 15, 2023, the CBSA is expected to issue a conclusion on the administrative review.

The Initiation Notice can be downloaded here.

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.

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