Investigation of oilfield tubing from Austria

Summary#

On July 7, 2021, the Canada Border Services Agency opened an investigation under the Special Import Measures Act into alleged injurious dumping of certain oilfield pipes and tubes from Austria. The agency will look at whether imports are dumped and the Canadian International Trade Tribunal will separately examine whether Canadian industry is being harmed; provisional duties could start after preliminary decisions.

What it does#

• The investigation covers certain oil country tubular goods — mainly casing, tubing and green tubes made of carbon or alloy steel, with an outside diameter of 2 3/8 inches to 13 3/8 inches (60.3 mm to 339.7 mm), built to API standards or equivalents. The full product definition is on the CBSA website.
• The Canada Border Services Agency will decide whether dumping is occurring and will issue a preliminary decision within 90 days. If it finds dumping, provisional duties may be applied at that time.
• The Canadian International Trade Tribunal will carry out a preliminary inquiry into whether the dumping has caused injury to Canadian producers and will issue a decision within 60 days of the start of the inquiry.
• The CBSA will publish a Statement of Reasons within 15 days after its decision.
• Interested parties may file written submissions with the CBSA by November 10, 2021 (email address listed in the notice). Confidential submissions must be accompanied by a non‑confidential summary.
• Separately, the CBSA announced an extension in the preliminary stage of an investigation into certain small power transformers from several countries. That preliminary stage was extended from 90 days to 135 days, so the preliminary decision for that matter must be made on or before August 27, 2021.

Who's affected#

• Importers, exporters and customs brokers dealing in the covered oil country tubular goods from Austria.
• Canadian manufacturers and suppliers of casing and tubing who have made the complaint or could be affected by competition from imports.
• Industries that buy these products, especially oil and gas companies that use casings and tubing, because supply or price could be affected.
• Exporters in Austria whose sales to Canada could face duties or restrictions.

The notice also mentions tariff classifications that include both covered and non-covered items. The exact scope of goods that will be targeted is clarified in the CBSA product definition.

Why it matters#

• If the CBSA finds dumping and duties are applied, importers could face higher costs immediately if provisional duties are imposed. That can raise costs for companies that use these pipes and tubes.
• A finding of injury by the Tribunal could lead to longer-term duties or trade remedies that protect Canadian producers but also raise prices for buyers.
• The investigation and possible duties can disrupt supply chains and affect contracts, especially in the oil and gas sector.
• Affected businesses have deadlines to submit evidence; missing those deadlines limits their ability to influence the outcome.