Preliminary duties on grinding media from India

Summary#

The Canada Border Services Agency (CBSA) made preliminary findings on April 30, 2021 under the Special Import Measures Act that certain grinding media imported from India have been dumped and subsidized. As a result, provisional duties can be charged while the Canadian International Trade Tribunal (CITT) carries out a full inquiry.

What it does#

• Finds there is a preliminary case of dumping and subsidizing for certain grinding media originating in or exported from India (decision made April 30, 2021).
• Applies provisional duty to subject goods released from CBSA custody during the period starting April 30, 2021 and ending on the earlier of:
  • termination of the investigation,
  • the day the CITT makes an order or finding, or
  • the day an undertaking is accepted.
• Limits provisional duties to amounts no greater than the estimated margin of dumping and the estimated amount of subsidy.
• Says the Customs Act governs how provisional duties are accounted for and paid; late payment will trigger interest under that Act.
• Lists the common tariff classification numbers for the goods as 7325.91.00.10 and 7325.91.00.90.
• Additional technical description (from the inquiry notice): the goods are chrome cast iron grinding media in spherical or ovoid (“ball”) shapes with diameters from 12.7 millimetres to 76.2 millimetres (± 5 percent tolerance) and with 10 percent or more chromium content, produced by casting. (The full inquiry will test these details.)

Who's affected#

• Importers and distributors who bring the listed grinding media into Canada from India.
• Canadian companies that use grinding media (for example, in mining, mineral processing, or mills) who may face higher prices or supply changes if duties are applied.
• Exporters or producers in India of the specified grinding media.
• The Canadian grinding media/steel-producing industry and their advisers, because the CITT inquiry will examine injury to domestic industry.

Why it matters#

• Provisional duties can increase the landed cost of these imported grinding media for Canadian buyers.
• The full CITT inquiry (required under the Special Import Measures Act) will decide whether to keep duties longer term; that decision can affect prices, competitiveness, and supply choices in sectors that use grinding media.
• A Statement of Reasons explaining the CBSA decisions will be issued within 15 days and posted on the CBSA website, so affected parties can see the basis for the preliminary findings.