January 28, 2013

Border Services investigates dumping claims

RICHARD GILBERT

staff writer

A complaint by a Richmond, B.C.-based manufacturer of wire and wire products has led to an investigation by Canada Border Services Agency (CBSA) into the alleged dumping of galvanized steel wire into Canada by China, Israel and Spain.

The agency initiated the investigation into the alleged dumping on Jan. 21, after a complaint was made by Tree Island Steel Ltd.

The complainant alleges that the dumping and subsidizing of these wire and wire products by foreign manufacturers are harming Canadian production in a number of ways.

It claimed the following: loss of market share, loss of sales, price erosion, declining capacity utilization, reduction in employment, and declining revenues, margins, and profits, said a CBSA press release.

“The Special Import Measures Act protects Canadian producers from the damaging effects of such unfair trade.”

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 March 22, 2013. Subsidizing occurs when goods imported into Canada benefit from foreign government financial assistance.

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.

Should the CBSA make a preliminary determination of dumping and/or subsidizing, the investigations will be continued. A final decision will be made within 90 days after the date of the preliminary determination.

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 a preliminary decision by April 22, 2013.

The investigations will be terminated, 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 tribunal is an independent quasi-judicial body that reports to Parliament through the Minister of Finance.

It hears cases on dumped and subsidized imports, safeguard complaints, complaints about federal government procurement and appeals of customs and excise tax rulings.

When requested by the federal government, the tribunal also provides advice on other economic, trade and tariff matters.

Print | Comment