Pea Protein Duties; Rebar Probe Extended

Summary#

The Canada Border Services Agency (CBSA) announced two trade-related actions under the Special Import Measures Act (SIMA): it extended the preliminary investigation into imported concrete reinforcing bar from some countries, and it made preliminary findings of dumping and subsidizing for high-protein pea protein from China. These steps can lead to provisional duties on imports and start a separate injury inquiry by the Canadian International Trade Tribunal (CITT).

What it does#

• For concrete reinforcing bar from Bulgaria, Thailand, and the United Arab Emirates, the CBSA extended the investigation’s preliminary phase from 90 days to 135 days, so a preliminary decision will be made on or before September 13, 2024.
• For high-protein pea protein from China, the CBSA made preliminary determinations of dumping and subsidizing on July 22, 2024.
  • Provisional duties are payable on subject goods released from CBSA custody starting July 22, 2024 and continuing until the investigation ends, the CITT issues an order or finding, or an undertaking is accepted.
  • The notice lists the tariff classifications 3504.00.90.00 and 2106.10.00.00, but says those codes include both subject and non-subject goods.
  • A Statement of Reasons will be published within 15 days of the decision.
• The CITT has launched a formal inquiry into whether the dumping and subsidizing of the pea protein caused injury, and set a hearing to begin on October 21, 2024. Interested parties had filing deadlines such as August 6, 2024 for participation notices.
• The CITT will also hold a public videoconference hearing on August 29, 2024 in the appeal Aquaterra Corporation Ltd. v. President of the CBSA about how two water-dispensing models are tariff-classified.
• Separately, the CITT continued an existing order (expiry review) on seamless carbon or alloy steel oil and gas well casing originating in or exported from China on July 24, 2024.

Who's affected#

• Importers and exporters of concrete reinforcing bar from Bulgaria, Thailand, and the United Arab Emirates — they may face provisional measures or later duties depending on the outcome.
• Importers and exporters of high-protein pea protein from China, and companies that use pea protein in food processing — provisional duties could raise costs or complicate shipments.
• Domestic producers of reinforcing bar, pea protein, and steel well casing — they are parties to the injury and expiry reviews and could gain relief if injury is found.
• Legal representatives, customs brokers, and trade compliance teams — they will need to track provisional duty liabilities, file submissions, or join hearings.
• Aquaterra Corporation Ltd. and other parties with tariff classification disputes about appliances such as water dispensers.

Why it matters#

• Provisional duties can mean immediate extra costs for importers and possibly higher prices for buyers if duties are passed on. The pea protein decision already makes provisional duties payable from July 22, 2024 on subject shipments.
• Extensions and inquiries slow trade decisions and uncertainty can disrupt supply chains, purchasing plans, and contracts.
• If the CITT later finds injury, longer-term duties or measures could be imposed, providing protection for some Canadian manufacturers but raising costs for businesses that rely on the imported goods.
• The classification appeal (water dispensers) and the continued order on well casing show that tariff treatment and anti-dumping/subsidy measures continue to be active levers affecting trade in multiple sectors.

Note: The Gazette notices do not state specific duty amounts or margins.