Sucker Rods: Preliminary Dumping Determination

Summary#

The Canada Border Services Agency (CBSA) made a preliminary finding on December 30, 2019 that certain sucker rods imported from Argentina, Brazil and Mexico were dumped (sold in Canada below fair value). As a result, provisional duties can be charged on those imports while the Canadian International Trade Tribunal (CITT) carries out a full inquiry (Inquiry No. NQ-2019-001) to decide whether Canadian producers have been harmed.

What it does#

• Declares a preliminary determination of dumping under the Special Import Measures Act (SIMA) for certain sucker rods (usually classed as tariff number 8413.91.00.10).
• Makes provisional duties payable on subject goods released from the CBSA from December 30, 2019 until the earlier of: the investigation ending, the CITT making an order or finding, or an undertaking being accepted. The provisional duty will not exceed the estimated dumping margin.
• Starts a CITT inquiry (Inquiry No. NQ-2019-001) to decide whether the dumping has caused, is causing, or threatens to cause injury to Canadian industry.
• Sets an upcoming public hearing date of March 30, 2020 to hear evidence and arguments about injury.
• Promises a written Statement of Reasons for the CBSA decision within 15 days of the decision. Contact names listed for more information are Andrew Manera and Aaron Maidment.

The CITT’s description of the goods covers sucker rods (including pony rods), with or without couplings or guides, made to American Petroleum Institute (API) 11B or equivalent standards, made of solid steel, and of 2.5 in. (63.5 mm) or less in diameter, originating in or exported from the three named countries.

Who's affected#

• Importers, exporters and distributors of sucker rods from Argentina, Brazil and Mexico.
• Canadian companies that buy these rods — for example, oilfield service companies and drill operators who use sucker rods.
• Canadian manufacturers or producers of sucker rods who may have brought the complaint or who could benefit if the CITT finds injury.
• Customs brokers and freight handlers who deal with affected shipments.

It is not clear from the notice how many shipments or what total dollar amounts are affected.

Why it matters#

• Provisional duties can raise the immediate cost of importing the specified sucker rods into Canada. That can increase equipment costs for oilfield operators and suppliers.
• If the CITT later finds that dumping caused injury and orders anti-dumping measures, duties could become longer-lasting, affecting supply choices and prices in the Canadian oil and gas equipment market.
• The inquiry determines whether domestic producers need protection, so the outcome matters to both Canadian manufacturers and buyers of these goods.