DEALS
Zhong Lun's Representation in Response to Canada's Anti-Dumping and Countervailing Investigations on Fabricated Industrial Steel Components Successfully Terminates Tariff Measures
Zhong Lun's Representation in Response to Canada's Anti-Dumping and Countervailing Investigations on Fabricated Industrial Steel Components Successfully Terminates Tariff Measures
On April 19, 2022, the Canadian International Trade Tribunal (“CITT") issued a notice, ruling that it would no longer initiate a sunset review of anti-dumping and countervailing measures against Chinese fabricated industrial steel components and that the relevant tariff measures would be automatically terminated upon their expiration on May 24, 2022. Since then, Chinese products exported to Canada will no longer face pressure from anti-dumping and countervailing tariffs. This is also one of the rare cases in the history of Canada’s anti-dumping and countervailing investigations against China, where Canada decided not to initiate a review investigation and directly terminated the tariff measures.
On September 12, 2016, the Canada Border Services Agency (“CBSA") issued a notice deciding to initiate an anti-dumping and countervailing investigation against fabricated industrial steel components originating in or exported from China (the “subject goods"). On April 25 and May 25, 2017, the CBSA and the CITT issued final determinations of dumping and subsidization and final determination of injury to the domestic industry, respectively, announcing the imposition of anti-dumping and countervailing duties on the subject goods from China.
On February 28, 2022, the CITT issued a notice of imminent expiry of anti-dumping and countervailing tariff measures and requested stakeholders to submit written defenses and comments on whether a sunset review should be initiated. According to Canadian law, if no sunset review is initiated, the original anti-dumping and countervailing tariff measures will automatically end upon expiration. If a sunset review is initiated, it is possible that the anti-dumping and countervailing tariff measures will continue for five years, and Chinese exporters will continue to face tariff pressure.
Ms. Song Lei, senior counsel of Zhong Lun Law Firm, led the project team to represent a leading domestic Sino-foreign joint venture that had participated in the original investigation in response to the sunset review investigation. The team prepared and submitted a written defense within the time limit required by the Canadian investigation authority. In the defense, citing the changes of Canadian import structure and the recent business situation of Canadian domestic enterprises, the team argued in detail that the initiation of the investigation and measures were unjustifiable and unreasonable, and resolutely opposed the initiation of the sunset review.
On April 19, 2022, the CITT issued a ruling, deciding to accept the opinions of Chinese enterprises and not to initiate this sunset review, and the original anti-dumping and countervailing measures would automatically end when they expire on May 24, 2022. According to statistics, this case is the only Canadian trade remedy case in the past eight years (from 2014 to the present) in which the investigated party has passed the preliminary defense procedure, causing the Canadian investigative authority to directly abandon the sunset review and automatically end the tariff measures when they expire.
