Investigation of Mexican oil-country tubular goods

Summary#

Canada Border Services Agency (CBSA) initiated a formal investigation on June 30, 2021 under the Special Import Measures Act (SIMA) into whether certain oil-country tubular goods from Mexico are being dumped into Canada. The Canadian International Trade Tribunal (CITT) will separately check whether that dumping is hurting Canadian producers; provisional duties could start if the CBSA’s preliminary decision (within 90 days) finds dumping.

What it does#

• Opens an investigation into alleged injurious dumping of specific oil-country tubular goods (casing, tubing and green tubes made of carbon or alloy steel, welded or seamless, meeting API specification 5CT or equivalent).
• The product scope includes tubes with outside diameters from 2 3/8 inches to 13 3/8 inches (60.3 mm to 339.7 mm) and excludes certain items named in the notices (for example, drill pipe and stainless steel tubes over 10.5% chromium by weight are excluded).
• The CBSA will make a preliminary dumping decision within 90 days; if it finds dumping, provisional duties may be applied at that time.
• The Canadian International Trade Tribunal (CITT) will conduct a preliminary inquiry into whether the dumping may be injuring the Canadian industry and must decide within 60 days of the CBSA’s initiation.
• The CBSA will issue a Statement of Reasons within 15 days after its decision and invited written submissions to be received by November 3, 2021 (electronic submissions required during the COVID‑19 pandemic).

Who's affected#

• Importers and distributors who bring these kinds of steel casing and tubing into Canada from Mexico.
• Canadian manufacturers and suppliers of oil-country tubular goods who may be concerned about competition from imports.
• Oil and gas companies that buy casing and tubing for wells could see price or supply effects.
• Customs brokers and logistics firms handling cross-border shipments of these products.
• Mexican exporters of the listed products.

If it is unclear whether a particular product is covered, the CBSA’s full product definition and tariff information are referenced in the agency’s notice.

Why it matters#

• If the CBSA finds dumping and provisional duties are applied, importers could face extra costs or hold-ups at the border soon after the preliminary decision (within the 90‑day window).
• A CITT finding of likely injury could lead to longer-term duties or remedies that protect Canadian producers and change import prices and supply sources.
• The process is an investigation, not a final finding. Interested businesses and governments have deadlines to submit evidence if they want to take part or defend imports (key deadlines include July 13, 2021, July 28, 2021, August 4, 2021, and November 3, 2021, as set out in the notices).