Investigations into Drill Pipe from China

Summary#

On March 25, 2022, the Canada Border Services Agency opened investigations under the Special Import Measures Act into alleged dumping and subsidizing of certain drill pipe imported from China. The Canadian International Trade Tribunal will do a preliminary inquiry and must decide within 60 days whether there is a reasonable indication of injury to Canadian industry.

What it does#

• Starts anti-dumping and countervailing investigations into specified drill pipe from China.
• Identifies the likely tariff classifications for the product as 7304.23.00.10 and 7304.23.00.20, and in some cases 8431.43.00.20 and 8431.43.00.90.
• Directs the Canadian International Trade Tribunal to hold a preliminary inquiry and issue a decision within 60 days of initiation.
• Says investigations will stop if the Tribunal finds no reasonable indication of injury.
• Promises a written "Statement of Reasons" within 15 days after the Tribunal’s decision.
• Invites written submissions from interested parties; submissions must be received by August 2, 2022 and, during the COVID‑19 pandemic, sent electronically to simaregistry@cbsa-asfc.gc.ca. Confidential submissions must be accompanied by a non‑confidential edited version.

Who's affected#

• Canadian producers and manufacturers of drill pipe who may claim injury.
• Importers, distributors, customs brokers, and companies that buy drill pipe from China.
• Any business or person with information or an interest in these imports (they can file submissions).
• The exact product scope and details are on the CBSA website; the Gazette notice does not give a full technical product description.

Why it matters#

• If dumping or subsidizing and injury are later found, measures such as anti‑dumping or countervailing duties could be imposed on the imports. This could raise the cost or change the supply of the affected drill pipe in Canada.
• Businesses that import or use drill pipe should pay attention to the deadline for submissions (August 2, 2022) if they want to provide evidence or make representations.
• The outcome could affect competitiveness for Canadian drill pipe makers and the costs for companies in drilling and related industries.