Preliminary CBSA Finding: Rebar Dumping

Summary#

• On March 4, 2021, the Canada Border Services Agency (CBSA) made a preliminary finding that certain concrete reinforcing bar (rebar) from the Sultanate of Oman and the Russian Federation may be dumped in Canada.
• As a result, provisional duties can be charged on affected imports released from CBSA starting March 4, 2021, while the Canadian International Trade Tribunal (CITT) carries out a full inquiry into whether Canadian producers were injured.

What it does#

• The CBSA’s action is a preliminary determination under the Special Import Measures Act (SIMA) that certain imported rebar may have been sold in Canada at dumped prices.

• Provisional duty rules:

  • Provisional duty can be collected on subject goods released from the CBSA during the period starting March 4, 2021 and ending when the investigation stops, when the CITT makes a finding, or when an undertaking is accepted.
  • The provisional duty charged will not be greater than the estimated margin of dumping.
  • The Customs Act rules apply for accounting and payment; interest can be charged if duties are not paid on time.

• The CITT process:

  • The CITT will conduct a full inquiry to decide whether dumping has caused injury to Canadian industry and must make a finding within 120 days after it receives notice of the CBSA’s preliminary determination.
  • The Tribunal has opened Inquiry No. NQ-2020-005 on these goods and set procedural dates (see below).

• Product details and exclusions (plain language summary):

  • Covered: hot-rolled deformed steel concrete reinforcing bar (rebar) in straight lengths or coils, various diameters up to 56.4 mm, excluding plain round bar and fabricated rebar.
  • Excludes a specific coated 10 mm (10M) rebar made to certain standards in lengths from 1 foot up to 8 feet.

• Administrative notes:

  • The CBSA will publish a Statement of Reasons within 15 days of the decision on its website.
  • The Tribunal invited parties to join the inquiry by March 19, 2021, and indicated a hearing would be held in early June 2021.

• Tariff classification numbers commonly used for these imports (as of February 4, 2021):

  • 7213.10.00.11
  • 7213.10.00.12
  • 7213.10.00.13
  • 7213.10.00.90
  • 7214.20.00.00
  • 7215.90.00.20
  • 7215.90.00.30
  • 7227.90.00.50

Who's affected#

• Importers and customs brokers bringing rebar into Canada from Oman and Russia.
• Canadian companies that buy rebar — for example, construction contractors, infrastructure projects, and fabricators.
• Domestic rebar producers who complained and are seeking relief.
• Exporters and manufacturers in the Sultanate of Oman and the Russian Federation.
• It is unclear from the notice how large the volumes are or which specific contracts will be hit first; decisions about particular shipments depend on CBSA release dates and whether provisional duty is charged.

Why it matters#

• If provisional duties are applied, imported rebar released after March 4, 2021 could cost more right away. That can raise costs for construction and infrastructure projects that use rebar.
• The inquiry could lead to longer-term duties if the CITT finds dumping caused injury. That would affect supply choices and prices in the Canadian market.
• The decision is preliminary. Final outcomes (and any lasting duties) depend on the CITT’s inquiry and later CBSA or Tribunal determinations.