CBSA Review Confirms 95% Anti-Dumping Duty on Chinese Steel Line Pipes
On January 10, 2025, the Canada Border Services Agency concluded its administrative review concerning the normal values and export prices for certain welded large diameter carbon and alloy steel line pipes originating in or exported from China. The review, which focused on the period from November 1, 2023, to October 31, 2024, has resulted in the continuation of a 95% anti-dumping duty on the import of these steel products from China.
The CBSA review aimed to update the normal values and export prices for these large diameter line pipes, which are classified under specific tariff numbers. The goal of such reviews is to ensure fair pricing in the Canadian market by adjusting duties to prevent market distortion caused by underpriced imports.
The Role of the Administrative Review and Its Findings
The review process is an essential mechanism within Canada’s trade protection framework, designed to evaluate whether anti-dumping measures should be adjusted or maintained. Anti-dumping duties are imposed when foreign goods are sold in the Canadian market at unfairly low prices, typically below the cost of production or at prices that harm Canadian industries. In this case, the subject goods are large diameter steel line pipes, used in the construction of pipelines for the transmission of oil, gas, and other fluids.
As part of the review, the CBSA reached out to all relevant parties, including Chinese exporters, producers, and vendors, for information regarding the costs and selling prices of the subject goods. The information was meant to help determine whether the products were being sold at dumped prices, thus requiring updated duties to level the playing field for Canadian producers.
However, despite this request, the CBSA did not receive any responses from Chinese exporters, producers, or vendors. As a result, the CBSA was unable to adjust the existing normal values and export prices based on the requested data. This lack of response led the CBSA to uphold the existing anti-dumping duty of 95% on all welded large diameter carbon and alloy steel line pipes from China.
Impact of the 95% Anti-Dumping Duty
The 95% anti-dumping duty means that any large diameter welded carbon and alloy steel line pipes imported from China will be subject to a significant additional cost. This duty effectively increases the price of the goods, making them less competitive in the Canadian market compared to domestically produced or non-dumped imports.
The continuation of the anti-dumping duty comes as a relief to Canadian steel producers, who argue that they are unfairly disadvantaged by cheaper imports that are sold at artificially low prices due to government subsidies or other market distortions in China. By maintaining the duty, the CBSA is aiming to protect local industries and prevent harm caused by such pricing practices.
Tariff Classification and Covered Products
The products under review are classified under specific tariff numbers within the Canadian customs system. These classifications cover a range of welded carbon and alloy steel line pipes, which are used primarily for pipeline construction. The specific tariff numbers involved in the review include:
• 7304.19.00.81, 7304.19.00.82, 7304.19.00.83, 7304.19.00.84, and 7304.19.00.89
• 7305.11.00.41, 7305.11.00.42, 7305.11.00.43, 7305.11.00.44, and 7305.11.00.49
• 7305.12.00.41, 7305.12.00.42, 7305.12.00.43, 7305.12.00.44, and 7305.12.00.49
• 7305.19.00.41, 7305.19.00.42, 7305.19.00.43, 7305.19.00.44, and 7305.19.00.49
These categories are part of a broader effort to regulate the imports of steel products that are essential for Canada’s energy, infrastructure, and industrial sectors. By imposing the anti-dumping duty, the Canadian government ensures that local manufacturers of these steel line pipes are protected from unfair competition and can continue to thrive in the domestic market.
WTO Involvement and International Trade Considerations
The Canada Border Services Agency’s decision to maintain the 95% anti-dumping duty on these products is aligned with international trade practices, as overseen by the World Trade Organization. Under WTO rules, countries are allowed to implement safeguard measures like anti-dumping duties when they can demonstrate that imports are causing material injury to domestic industries.
China, as one of the largest producers of steel globally, has been a frequent target of anti-dumping investigations in various countries, including Canada. The imposition of duties is not unique to Canada, as other countries also have similar protective measures in place to combat what they perceive as unfair trade practices.
The CBSA’s decision to maintain the duties reflects a broader trend of using trade defense measures to protect domestic industries, which has become an increasingly important aspect of international trade policy in the face of global overcapacity in steel production.
