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Canada: Proposed methods to address price distortions concerning steel imports

Canada: Proposed methods to address price distortions

The Department of Finance proposed to allow the Canada Border Services Agency (CBSA) address price distortions when calculating margins of dumping and also new policy changes to help monitor anti-dumping levels of steel imports.

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In addition, recent changes allow Canada to re-impose surtaxes on steel imports if required. This followed announcements by Canada and the United States that they would eliminate their respective trade tariffs on steel and aluminum, effective 20 May 2019.

CBSA calculation methods

Under the proposed method for calculating appropriate levels of anti-dumping duties in situations when there is a price distortion—specifically in calculating the costs of production when inputs are supplied by an associated supplier (e.g., a subsidiary or affiliated company)—the CBSA would be allowed to use one of three methods:

  • The highest of the transfer prices between the parties
  • The actual costs to the supplier
  • A reasonable benchmark determined in the country of export (if such information is available)

The Department of Finance has also proposed changes to allow the CBSA to use alternative methodologies, such as constructed costs, when calculating margins of dumping.

Comments are being accepted until 5 August 2019.

CBSA policy changes

The CBSA announced changes to its administrative policies to allow anti-dumping levels to be reviewed more frequently and to enhance the verification of steel import data, following the results of a recent public consultation. Updated re-investigation policies would allow the CBSA to:

  • List the criteria for determining when to start an investigative process to update normal values
  • List specific factors for determining whether to initiate a full re-investigation or a more streamlined normal value review
  • State normal values in a currency other than that of the country under investigation
  • Make retroactive assessments when exporters failed to adjust prices when their normal values became outdated due to changes in prices or costs of production
  • Clarify that the CBSA will use a normal value review process to determine normal values requested pursuant to a redetermination or an appeal


Read a July 2019 report [PDF 189 KB] prepared by the KPMG member firm in Canada

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