Preliminary finding: small power transformers

Summary#

Canada Border Services Agency made a preliminary finding on August 27, 2021 that certain small power transformers imported from Austria, the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (Chinese Taipei), and South Korea have been dumped. As a result, provisional duties may be charged while the Canadian International Trade Tribunal (CITT) holds a full inquiry and decides whether Canadian industry was injured.

What it does#

• Declares a preliminary determination of dumping for certain small power transformers (decision made August 27, 2021).
• Lists the main tariff classification numbers for the subject goods:
  • 8504.22.00.20
  • 8504.23.00.00
  • It says some shipments may also be declared under: 8504.90.90.10, 8504.90.90.82, 8504.90.90.90.
• Starts a period during which provisional duty can be charged on released shipments. That period runs from August 27, 2021 until the earlier of:
  • the investigation is terminated,
  • the CITT makes an order or finding, or
  • an undertaking is accepted.
• If the dumping margin is judged insignificant, the investigation continues but provisional duty will not be collected.
• The provisional duty charged will not exceed the estimated margin of dumping.
• The Customs Act governs payment and interest on overdue duties.
• The CBSA will issue a Statement of Reasons within 15 days and post it on its website.

Who's affected#

• Importers who bring these kinds of small power transformers into Canada under the listed tariff numbers.
• Canadian manufacturers and sellers of similar transformers (they are parties to the injury inquiry).
• Businesses that buy these transformers (they may face higher costs or delays if provisional duties are applied).
• Government agencies involved in the case: Canada Border Services Agency and the Canadian International Trade Tribunal (CITT).

Why it matters#

• Importers could face extra charges (provisional duties) on shipments released during the investigation.
• Buyers and projects that need these transformers may see higher prices or slower deliveries while the case is unresolved.
• The outcome of the CITT inquiry could lead to final duties, which would affect trade flows between Canada and exporters in the named countries.
• If the CBSA provides its Statement of Reasons (in 15 days), interested parties will learn the evidence and rationale behind the preliminary finding.