Dumping and Subsidizing FAQ

FREQUENTLY ASKED QUESTIONS – DUMPING AND SUBSIDIZING

What is the Tribunal’s role in trade remedies investigations?

The Canadian International Trade Tribunal (Tribunal) conducts inquiries into whether the dumping and/or subsidizing of imports have caused or are threatening to cause material injury to a domestic industry, or have caused material retardation of the establishment of a domestic industry. If the Tribunal determines that there is injury, threat of injury or retardation, the Canada Border Services Agency (CBSA) imposes anti-dumping duty on imports of the dumped goods and/or countervailing duties on imports of the subsidized goods.

The Tribunal also conducts inquiries into whether the reduction or elimination of anti-dumping and/or countervailing duties would be in the public interest. In addition, the Tribunal conducts interim reviews and expiry reviews of injury, threat of injury or retardation findings or of likelihood of injury or retardation orders, and hears appeals from decisions of the CBSA concerning the enforcement of such findings or orders.

What is the governing legislation?

The Special Import Measures Act (SIMA) is the principal legislation in Canada that serves to protect domestic producers from injury due to unfair import competition. SIMA sets out Canada’s rights and obligations in respect of anti-dumping and countervailing proceedings and measures implemented pursuant to the Agreement Establishing the World Trade Organization.

What is a preliminary injury inquiry?

When the CBSA initiates a dumping and/or subsidizing investigation, the Tribunal commences a preliminary injury inquiry to determine whether the evidence discloses a reasonable indication that dumping and/or subsidizing have caused or are threatening to cause material injury to a domestic industry, or have caused material retardation of the establishment of a domestic industry.

What is a final injury inquiry?

Upon receipt of notice of preliminary determination of dumping and/or subsidizing from the CBSA, the Tribunal commences a final injury inquiry to determine whether the dumping and/or subsidizing of the goods to which the CBSA’s final determination applies have caused or are threatening to cause material injury to a domestic industry, or have caused material retardation of the establishment of a domestic industry.

What is a public interest inquiry?

Following an injury, threat of injury or retardation finding, the Tribunal may decide, either as a result of a request from an interested person or on its own initiative, that the imposition of part or all of the anti‑dumping and/or countervailing duties is not in the public interest. If that is the case, the Tribunal then conducts a public interest inquiry and may recommend to the Minister of Finance a reduction in the amount of duties to be collected.

What is an expiry review?

An expiry review occurs five years after the Tribunal issues a finding of injury, threat of injury or retardation, or an order continuing, with or without amendment, a previous finding or order. The purpose of an expiry review is to determine whether the finding or order should be rescinded or continued, with or without amendment. In an expiry review, the CBSA must first determine whether the expiry of the finding or order is likely to result in the continuation or resumption of dumping and/or subsidizing. If the CBSA finds that such a likelihood exists, the Tribunal then determines whether the expiry of the finding or order is likely to result in material injury to a domestic industry or material retardation of the establishment of a domestic industry.

What is an interim review?

An interim review may be conducted at any time between the making of an affirmative finding or order and its expiry. The Tribunal may conduct an interim review on its own initiative or at the written request of the Minister of Finance, the CBSA, or any person or government. An interim review is generally initiated when there has been a material change in circumstances, such as if there is no longer a domestic industry. In such circumstances, an interim review may result in the early rescission of a finding or order, in whole or in part.

What are the differences between case types?

 

Preliminary Injury Investigation

Final Injury Inquiry

Expiry Review

Issues Considered

Whether evidence discloses a reasonable indication that dumping and/or subsidizing have caused or are threatening to cause material injury to a domestic industry, or have caused material retardation of the establishment of a domestic industry

Whether dumping and/or subsidizing have caused or are threatening to cause material injury to a domestic industry, or have caused material retardation of the establishment of a domestic industry

Whether the continuation or resumption of dumping and/or subsidizing is likely to result in material injury to a domestic industry or material retardation of the establishment of a domestic industry

Time Frame Considered

Most recent 3 years;
generally 18 to 24 months ahead for threat of injury

Most recent 3 years; generally 18 to 24 months ahead for threat of injury

Generally 18 to 24 months ahead

Primary Sources of Evidence

- Information from the CBSA

 - Submissions from    parties

- Questionnaire replies

Submissions from parties

Oral hearing

 - Questionnaire replies

- Submissions from parties

- Oral hearing

Number of Days to Issue Decision

60 days

120 days

Normally 130 days

Trigger

Receipt of notice of initiation of a dumping and/or subsidizing investigation from the CBSA

Receipt of preliminary determination of dumping and/or subsidizing from the CBSA

Receipt of decision from the CBSA indicating that the expiry of the finding or order is likely to result in the continuation or resumption of dumping and/or subsidizing

What is the duration of a Tribunal finding or order?

A finding of injury, threat of injury or retardation, or an order continuing, with or without amendment, a previous finding or order remains in effect for five years, unless an interim review is commenced prior to its expiry. An interim review is usually conducted when there has been a material change in circumstances, such as if there is no longer a domestic production. The Tribunal can also continue a finding or an order through an order upon completion of an expiry review before the previous finding or order expires. If there is such an order, it remains in effect for five years, unless an interim or expiry review is initiated during this period.

What is the role of the Canada Border Services Agency in imposing duties?

If the Tribunal determines that there is injury, threat of injury or retardation, the CBSA imposes anti‑dumping and/or countervailing duties on the imported goods in question to remedy the dumping and/or subsidizing. The CBSA is responsible for collecting all applicable duties on the imported goods.

Where can I search for measures in force online?

The CBSA maintains a list of all goods subject to measures (anti-dumping duties, countervailing duties and undertakings) under SIMA, the relevant countries of origin or export and the respective amounts of duty expressed as a percentage of the export price. You will find this information on CBSA’s Web site at www.cbsa-asfc.gc.ca/sima-lmsi/mif-mev-eng.html.

Is it possible to appeal a Tribunal decision?

Yes. Individuals and businesses may apply for judicial review of a Tribunal decision by the Federal Court of Appeal. Alternatively, parties from the United States, Mexico or Canada may request a binational panel review of a Tribunal decision under the North American Free Trade Agreement. In addition, foreign governments that are members of the World Trade Organization (WTO) may refer certain Tribunal decisions to the WTO’s Dispute Settlement Body for review.

What are Tribunal questionnaires?

During the conduct of its proceedings, the Tribunal must obtain extensive information from domestic producers, importers, purchasers, foreign producers and trade companies, principally through questionnaires, so as to have the best information to render a well-informed decision Standardized questionnaires are tailored by Tribunal trade remedies investigations staff to suit the subject goods and industry.

In a typical inquiry or expiry review, all domestic producers of like goods and a representative sample of importers and trade companies that account for a large percentage of imports from the subject countries as well as from non-subject countries are asked to complete a questionnaire.

Selected domestic purchasers of like goods and subject goods and all identified foreign producers in the subject countries are also asked to complete a questionnaire.

If I receive a Tribunal questionnaire, do I have to complete it?

Domestic producers and importers are strongly encouraged to respond to the questionnaire. The Tribunal can issue a production order to a domestic producer or an importer that fails to respond or, ultimately, can issue a subpoena to appear and produce documents. Domestic purchasers of like and subject goods are also urged to respond, particularly if they intend to participate in the case.

The Tribunal cannot compel a response from foreign producers unless they have filed a notice of participation in the case.

All companies that are requested to file a questionnaire response must do so, generally, within a three-week time period.

Resource Type

Status

Publication Date

Tuesday, May 27, 2014

Modification Date

Tuesday, May 27, 2014