Canada Places Anti-Dumping Duties On China and Taiwan Fasteners

Jason Sandefur

Canada announced provisional duties on certain carbon and stainless steel nuts, bolts and screws imported from China and Taiwan. A preliminary investigation begun April 28 by the Canada Border Services Agency determined that the Asian countries had dumped fasteners in Canada at artificially low prices, the Canadian Press reported.\
The decision came in response to a complaint filed by Leland Industries Inc. of Toronto, which claimed that cheap imports from China and Taiwan had increased, flooding the market and driving down domestic prices. Leland claimed it lost sales and production because of increased imports.
Preliminary results showed imports of fasteners from China and Taiwan were dumped into Canada. The Press reported that China provided a 32% subsidy to fastener exporters, while Taiwan gave its companies a 7% subsidy.
The provisional anti-dumping rates against fasteners from China and Taiwan range from 2% to 126%. The provisional countervailing duty rates against fasteners from China are 32%, while duty rates for Taiwan products are 7%. Provisional duties will be imposed until final determinations are made in the case.
The dumping complaint is the largest trade remedy case to be investigated by the CBSA.
The duties are opposed by the Canadian Fastener Importers Coalition, a 22-member group formed in May 2004 to fight the dumping complaint. The coalition includes importers of carbon and stainless steel fasteners, as well as several domestic fastener producers and consumers of imported fasteners. The coalition has warned that any duties will hurt Canadian manufacturers and consumers. A list of coalition members was not available at the time of publication.
The CBSA will continue its investigation and issue a final decision in December.
Meanwhile, the Canadian International Trade Tribunal has begun an investigation into whether dumped carbon steel and stainless steel fasteners injured the domestic industry. The tribunal is expected to issue its final decision by Jan. 7.
Regardless of the CBSA”s final determination in December, if the Canadian International Trade Tribunal determines that the imports are not causing injury, final anti-dumping and countervailing duties are unlikely.
Coalition counsel Jon Johnson told FIN that it is too early in the process to tell how much damage the duties will cause importers.
“These duties are going to be in a state of flux for a while,” Johnson stated. “But they”re going to have an adverse affect on anyone selling fasteners (in Canada).”
Johnson described China and Taiwan as “fairly important partners” in North America”s supply chain. He expressed hope that countervailing duties would be lowered in the end, especially on fasteners from China. In most trade cases, final duties are generally lower than provisional duties, Johnson noted.
“We obviously hope they go down,” he told FIN.
But Johnson admitted that there is little optimism for provisional duties to be completely abolished in December”s final ruling.
“I don”t think that”s going to happen in this case, unfortunately.” �2004 FastenerNews.com