Dumping Finding for Small Power Transformers

Summary#

On November 25, 2021, the Canada Border Services Agency (CBSA) closed a dumping investigation for certain small power transformers exported from South Korea by IEN Hanchang Co., Ltd., finding those goods were not dumped. The CBSA made a final dumping finding for similar transformers from Austria, Chinese Taipei (the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu), and other exporters from South Korea (excluding IEN Hanchang). Provisional duties remain in place while the Canadian International Trade Tribunal (CITT) finishes an injury inquiry due by December 24, 2021.

What it does#

• Confirms that imports of certain small power transformers from IEN Hanchang Co., Ltd. (South Korea) are not dumped; that part of the investigation is terminated.
• Finds dumping occurred for certain small power transformers originating in or exported from Austria, Chinese Taipei, and South Korea (other than goods from IEN Hanchang).
• The subject goods are usually imported under these tariff numbers: 8504.22.00.20, 8504.23.00.00. They may also appear under: 8504.90.90.10, 8504.90.90.82, 8504.90.90.90.
• Provisional anti-dumping duty will continue to be charged on the goods from Austria, Chinese Taipei, and South Korea until the CITT issues its decision by December 24, 2021.
• If the CITT finds dumping has caused (or threatens to cause) injury to Canadian industry, formal anti-dumping duties will be applied to future imports and importers will be required to pay them.
• A Statement of Reasons for the CBSA’s decisions will be published on the CBSA website within 15 days of the decision.

Who's affected#

• Importers and distributors in Canada who bring in small power transformers from Austria, Chinese Taipei, and South Korea (except shipments from IEN Hanchang Co., Ltd.).
• Canadian businesses that use those transformers in equipment or installations (they may see added costs if duties are imposed).
• Manufacturers of small power transformers in Canada, who are parties to the injury inquiry before the CITT.
• Exporters based in Austria, Chinese Taipei, and South Korea whose goods match the listed tariff classifications.

If it is unclear whether a particular shipment is covered, importers should check the tariff numbers listed above or contact the CBSA.

Why it matters#

• The outcome could change the cost of importing these transformers. If the CITT finds injury, anti-dumping duties will be applied and importers will have to pay them.
• That can affect prices for companies that buy and install these transformers, and possibly final customers.
• The rulings also matter for trade relationships between Canadian buyers and exporters in the named countries, and for Canadian manufacturers who compete with those imports.