3d human with a red question mark

Since April 10, 2017, Canada has imposed definitive anti-dumping and countervailing duties on OCTG pup joints (referred to as “pup joints”) originating in or exported from China.  Pup joints are defined as “oil country tubular goods pup joints, made of carbon or alloy steel, welded or seamless, heat-treated or not heat-treated, regardless of end finish, having an outside diameter from 2 3/8 inches to 4 1/2 inches (60.3 mm to 114.3 mm), in all grades, in lengths from 2 feet to 12 feet (61 cm to 366 cm)”. So, we are not talking about dog treats.  We are talking about a steel product used in the oil and gas industry.

On June 13, 2016, the Canadian International Trade Tribunal (“CITT”) commenced the first step in the expiry review process.  The CITT has commenced LE-2016-001 and has asked for submissions on whether and expiry review is warranted.

The timeline for the LE proceedings is:

June 29, 2016 – Notices of Participation are due

June 30, 2016 – The CITT will distribute the record

July 8, 2016 – Parties requesting or opposing the initiation of an expiry review of the findings shall file their written public submissions containing relevant information, opinions and arguments

July 18, 2016 – Reply submissions are due

August 2, 2016 – The CITT will issue its decision

If the CITT decides that an expiry review is warranted, the Canada Border Services Agency (“CBSA”) will commence the expiry review proceedings likely sometime in August.  In an expiry review, the CBSA takes 90 days to determine whether dumping and subsidization of pup joints will likely resume or continue should the duties be rescinded.  The CBSA in most cases determines that dumping and subsidization of pup joints will likely resume or continue should the duties be rescinded.  The CITT then conducts an inquiry into whether the resumption or continuation of dumping/subsidization is likely to cause injury to the domestic industry.  Commencing on or about the 90th day to the CITT inquiry, the CITT usually holds a hearing. The CITT usually takes approximately 45 days to make its decision.  It is based on this timeline that we believe the expiry review would commence sometime in August.

The CITT asks for submissions and evidence from the Canadian pup joints industry and importers/exporters/foreign producers on the following:

  • the likelihood of continued or resumed dumping and subsidizing of the goods;
  • the likely volume and price ranges of dumped and subsidized imports if dumping and subsidizing were to continue or resume;
  • the domestic industry’s recent performance (data for the past three years and for the most recent interim period), including supporting data and statistics showing trends in production, sales, market share, domestic prices, costs and profits;
  • the likelihood of injury to the domestic industry if the findings were allowed to expire, having regard to the anticipated effects of a continuation or resumption of dumped and subsidized imports on the industry’s future performance;
  • any other developments affecting, or likely to affect, the performance of the domestic industry;
    changes in circumstances, domestically or internationally, including changes in the supply of or demand for the goods, and changes in trends in, and sources of, imports into Canada; and
  • any other matter that is relevant.

Any party that would like its voice to be heard should make submissions to the CITT.  Further, by participating in the proceedings, importers/exporters/foreign producers (if represented by counsel who have signed confidentiality undertakings) will have an opportunity to review the Canadian producers’ case.  It is useful to participate in the LE because the timelines in the expiry review are tight. If one is not well prepared, it could mean 5 more years of definitive anti-dumping and countervailing duties.

If you have any questions, please contact Cyndee Todgham Cherniak at 416-307-4168 or cyndee@lexsage.com. Alternatively, visit www.lexsage.com.