On November 17, 2017, the Canadian International Trade Tribunal (“CITT”) announced the commencement of the antidumping/countervailing duty injury inquiry in respect of polyethylene terephthalate resin (PET resin) originating in or exported from China, India, Oman, and Pakistan. The Subject Goods are defined as “PET resin having an intrinsic viscosity of at least 0.70 deciliters per gram but not more than 0.88 deciliters per gram, including PET resin that contains various additives introduced in the manufacturing process, as well as blends of virgin PET resin and recycled PET containing 50 percent or more virgin PET resin content by weight.” This is an input in plastic goods.
The commencement of the injury inquiry followed the November 16, 2017 Canada Border Services Agency (“CBSA”) Notice of Preliminary Determinations of dumping and subsidization imposing AD/CVD margins between 26.1% – 76.7%. The CBSA Preliminary Determinations are as follows:
|Country of origin or export||Estimated Margin of Dumping||Estimated Amount of Subsidy||Total Provisional Duties Payable|
|Jiangsu Sanfangxiang Group Co. Ltd.||3.3%||22.8%||26.1%|
|All other exporters||17.4%||22.8%||40.2%|
|Reliance Industries Limited||34.0%||3.9%||37.9%|
|All other exporters||45.6%||31.1%||76.7%|
|OCTAL SAOC FZC||22.2%||0.50%||22.2%|
|All other exporters||41.3%||4.0%||45.3%|
|All other exporters||45.6%||2.3%||47.9%|
What this means is that if the CBSA issues a final determination in 90 days that is similar to the preliminary determination, significant duties will be imposed if the CITT makes an injury finding. For two companies, the subsidy case may be terminated in the final determination if, during the CBSA verifications, the low subsidy rates are confirmed as accurate. Given the significant duty rates, it is important for exporters and Canadian importers to participate in the CITT injury inquiry if you wish to continue to export to Canada or import from current sources.
CITT Injury Inquiry Schedule
The CITT Injury inquiry schedule is as follows:
- November 17, 2017 – The CITT posts the Questionnaires CITT’s website and sends the Questionnaires to parties identified by the CITT (including importers identified by CBSA FIRM data and exporters);
- December 1, 2017 – If you wish to participate in the injury inquiry, you must file a notice of participation and representation (counsel file declarations and undertakings);
- December 8, 2017 – Replies to all questionnaires must be filed;
- January 8, 2018 – The CITT distributes exhibits, including the investigation report, to the persons who filed a Notice of Participation (Parties). If you do not have a representative (such as legal counsel), you can only receive the public documents. Canadian resident counsel may receive the confidential record if they have filed confidentiality undertakings;
- January 8 to 16, 2018 – If a party wants another party to provide certain information that may be against the other parties’ interest in the case, they must formulate a Requests for information (RFIs) and the reason why the information is required and file the RFIs with the CITT;
- January 15, 2018, by noon – Parties who want certain goods excluded from an injury finding must file their Requests for product exclusions;
- January 16, 2018 by noon – Parties supporting a finding of injury must file their Briefs and Witness Statements (Submissions);
- January 18, 2018 – Parties which are the subject of RFI requests must file any objections to the RFIs;
- January 22, 2018, by noon – Domestic Industry files Responses to requests for product exclusions;
- January 23, 2018 – The CITT issues its decisions on RFIs (that is, they order parties to answer legitimate RFI questions and may ask their own requests for information;
- January 23, 2018, by noon – Parties opposing a finding of injury must file their Briefs and Witness Statements (Submissions in Opposition);
- January 31, 2018, by noon – Parties must file their Replies to RFIs;
- January 29, 2018, by noon – Parties who have requested exclusions must file their Replies to responses to requests for product exclusions;
- January 30, 2018, by noon – Parties supporting a finding of injury must file their Reply Submissions;
- February 12, 2018 – The CITT commences the public hearing that may take 1-5 days (can be more than 5 days);
- March 16, 2018 – CITT issues Order (the CITT let’s you know whether it has made an injury finding or threat of injury finding, granted exclusions or terminated the proceedings in whole or in part); and
- April 3, 2018 – CITT issues its Statement of Reasons.
We recommend to parties that they diarize these deadlines and block time in their schedules to respond to the CITT as scheduled. It is important to file a Notice of Participation if you what to watch what is happening in the proceedings. This does not obligate you to file submissions or appear at the hearing.
If you have any questions, please do not hesitate to contact Cyndee Todgham Cherniak who has appeared on behalf of exporters, foreign producers and importers in many CITT injury inquiries. Cyndee can be reached at 416-307-4168 or at email@example.com.