Canada Border Services Agency Issues Preliminary Determination of Dumping & Subsidization in Steel Grating Case
On January 4, 2011, the Canada Border Services Agency (CBSA) issued the Statement of Reasons regarding its preliminary determination preliminary determinations of dumping and subsidizing on December 20, 2010, respecting the alleged injurious dumping and subsidizing of certain metal bar grating of carbon, alloy or stainless steel, consisting of load-bearing pieces and cross pieces, produced as standard grating or heavy-duty grating, in panel form, whether galvanized, painted, coated, clad or plated, originating in or exported from the People's Republic of China. The Statement of Reasons made be obtained at the following link - http://www.cbsa.gc.ca/sima-lmsi/i-e/ad1389/ad1389-i10-pd-eng.pdf
The preliminary anti-dumping and countervailing duty rates are as follows:
SinoSteel Yantai Steel Grating Co., Ltd. (China)
Anti-dumping Duty rate= 20%
Countervailing Duty rate = 6%
Shanghai DAHE Grating Co. Ltd. (China)
Anti-dumping Duty rate= 91%
Countervailing Duty rate = 14%
All Other Exporters (of subject goods originating in or exported from China)
Anti-dumping Duty rate= 91% (Ministerial Specification)
Countervailing Duty rate = 129% (Ministerial Specification)
What is significant about these numbers is that in this steel case, the CBSA issued company specific margins of dumping and subsidization. it does not appear as China is being treated as a non-market economy in respect of the manufacture of the subject goods.
SinoSteel Yantai was treated better than Shanghai DAHE as SinoSteel Yangtai filed a better RFI response. Shanghai DAHE's RFI response contained inconsistencies that need to be clarified in the supplemental RFI and verification process.
The lesson to be learned is that an exporter who works hard during the preliminary determination of dumping stage may obtain a strategic advantage in the short term as they may still be able to export the goods between the preliminary determination and final determination stages. They may keep that advantage even if a final determination of injury is made and duties are in place for 5 years.