the Canada Border Services Agency announced the start of the expiry review (Canada’s sunset review process) of the antidumping and countervailing duty order against carbon steel fasteners from China (AD/CVD) and Taiwan (only AD). The AD/CVD duties have been in effect since January 2005. We were involved in the original investigation and the expiry reviews. This is the third expiry review proceeding.
The case is generally known to be against carbon steel screws. However, some fasteners that are called “bolts” (e.g., lag bolts, grain bin bolts) were listed as screws in the original proceedings and the AD/CVD duties apply to those items. That being said, the original case included nuts and bolts and the Canadian International Trade Tribunal (“CITT”) terminated the proceeding against nuts and bolts in 2005.
There are two parts to any expiry review process in Canada:
The CBSA determines whether resumption or continuation of dumping or subsidization is likely;
If the CBSA makes a positive determination (they always do), then the CITT determines whether the rescission of the order will cause material injury to the domestic industry.
The expiry review schedule is as follows:
November 28, 2019: CBSA: Submission of notices of representation and disclosure undertakings due and CBSA exhibits available;
December 5, 2019: CBSA: Questionnaire responses and other information due – domestic producer, importers, exporters and Government of China;
December 18, 2019, at noon: CBSA: Closing of the record date;
December 19, 2019: CBSA: Finalized CBSA import statistics and market tables available;
January 7, 2020, by noon: CBSA: January 7, 2020, by noon: Case briefs due from all parties arguing that continued or resumed dumping and/or subsidizing is likely or not likely;
January 21, 2020, by noon: CBSA: Reply submissions due from all parties in respect of the case briefs;
March 26, 2020: CBSA: CBSA Determination to be released;
March 27, 2020: CITT: Initiate expiry review injury proceedings;
April 14, 2020: CITT: Notices of Participation are due;
April 17, 2020: CITT: Replies to Tribunal expiry review questionnaires are due;
May 19, 2020: CITT: Distribution of Tribunal exhibits, including information transferred from the CBSA, and investigation report;
May 19-26, 2019: CITT: Requests for information (RFIs);
May 22, 2020: CITT: Investigation report teleconference (if required);
May 25, 2020, by noon: CITT: Product Exclusion Requests are due;
May 26, 2020, by noon: CITT: Cases of parties in support of a continuation of the order are due;
May 29, 2020, by noon: CITT: Objections to RFIs are due;
June 1, 2020, by noon: CITT: Domestic producers’ responses to requests for product exclusions are due AND Tribunal decisions on RFIs will be issued;
June 2, 2020, by noon: CITT: Cases of parties in opposition to a continuation of the order are due;
June 9, 2020, by noon: CITT: Requesters’ replies to domestic producers’ responses to requests for product exclusions are due AND Replies to RFIs are due;
June 10, 2020, by noon: CITT: Reply submissions of parties in support of a continuation of the order are due:
June 22, 2020: CITT: Public hearing commences (may be a number of days depending on the number of participants); and
September 2, 2020: CITT: CITT decision.
The CITT will consider well-documented requests or product exclusions during an expiry review injury inquiry and has issued a number of product exclusions for fasteners over the years. The effect of the product exclusion process is to remove goods from coverage and permit the items to enter Canada without payment of antidumping and countervailing duties. The CITT expiry review proceedings is a good time to make product exclusion requests if goods are not produced by Leland Industries in Canada. While there are other small fastener producers in Canada, Leland Industries was the main complainant and respondent in the last expiry review proceeding.
The CITT will not grant product exclusions if the domestic industry does not consent AND there are identical or substitutable domestic products. If it can be demonstrated that the domestic industry will not suffer material injury should the product exclusion be granted, the CITT may grant the request. For this reason, product exclusion requests should be strategized early and not at the last minute.