Anti-dumping probe: small power transformers

Summary#

The Canada Border Services Agency started an anti-dumping investigation on April 15, 2021 into certain small power transformers imported from the Republic of Austria, the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (Chinese Taipei) and the Republic of Korea. The Canadian International Trade Tribunal will hold a preliminary inquiry and interested parties could send information to the agencies (CBSA requested submissions by August 24, 2021).

What it does#

• The Canada Border Services Agency opened an investigation under the Special Import Measures Act into alleged injurious dumping of certain small power transformers.
• The product of interest is described as liquid-dielectric (oil-filled) transformers with top power handling capacity of 3,000 kilovolt amperes (kVA) or more and less than 60,000 kVA, and nominal high voltage rating greater than 34.5 kilovolts (kV). These can be assembled, unassembled, complete or incomplete.
• The Canadian International Trade Tribunal will run a preliminary injury inquiry and must decide within 60 days whether there is a reasonable indication that dumping is injuring Canadian industry.
• Key filing dates mentioned:
  • Participation forms for the Tribunal by April 28, 2021.
  • Submissions from parties opposed to the complaint by May 13, 2021 (noon ET).
  • Responses from complainants by May 20, 2021 (noon ET).
  • Written submissions to the Canada Border Services Agency to be considered should be received by August 24, 2021.
• The CBSA and the Tribunal provided instructions for submitting public and confidential information (including edited non‑confidential versions).

Who's affected#

• Canadian companies that make or repair large power transformers (domestic manufacturers).
• Utilities and other large electricity users that buy or import such transformers.
• Importers, exporters and sellers of the specified transformers in the named foreign markets.
• If measures follow, downstream businesses that rely on these transformers (contractors, system integrators) and possibly electricity customers could notice effects.

If it is unclear whether a particular model or part is covered, the agencies’ product definition and classification lists (tariff numbers) should be checked on the CBSA and Tribunal websites.

Why it matters#

• This is the start of a trade remedy process — not a finding of wrongdoing. If the inquiry finds a reasonable indication of injury, the investigation continues and could eventually lead to trade measures under the Special Import Measures Act.
• That could change import costs, supply choices, or the competitive landscape for transformer suppliers in Canada.
• Manufacturers, importers and large buyers of these transformers may want to follow the process or provide information if they have evidence or concerns.