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On September 28, 2021 the Canada Border Services Agency (CBSA) announced a preliminary determination of dumping under the Special Measures Import Act (SIMA) for certain oil country tubular goods (OCTG) being imported into Canada.
Following is a recap of the investigations:
The oil country tubular goods being investigated are defined as:
OCTG3 2021 IN: Oil Country Tubular goods originating in or exported from Mexico
“Oil country tubular goods, which are casing, tubing and green tubes made of carbon or alloy steel, welded or seamless, heat treated or not heat treated, regardless of end finish, having an outside diameter from 2 ⅜ inches to 13 ⅜ inches (60.3 mm to 339.7 mm), meeting or supplied to meet American Petroleum Institute specification 5CT or equivalent and/or enhanced proprietary standards, in all grades, excluding drill pipe, pup joints, couplings, coupling stock and stainless steel casing, tubing or green tubes containing 10.5 percent or more by weight of chromium, originating in or exported from the United Mexican States.”
Additional Product Information and specifications is found on the respective CBSA informational pages:
Notice of preliminary determination: OCTG3 2021 IN: Oil country tubular goods 3
Notice of initiation of investigation: OCTG3 2021 IN: Oil country tubular goods 3
The HS codes the allegedly dumped and/or subsidized goods are usually imported under are:
Exporter: Tubos de Acero de Mexico S.A. (TAMSA): 51.1%
All Other Exporters from Mexico: 128.4%
Subject oil country tubular goods will be charged the above listed additional duties at the above listed rates for subject goods originating in or exported from Mexico
Provisional duties are temporary and are intended to protect Canadian producers until the Canadian International Trade Tribunal (CITT) makes its final injury decision. If the determination is that no injury is made then provisional duties will be refunded.
If the determination is that dumping and/or subsidizing is causing injury to Canadian industry then SIMA anti-dumping and/or countervailing duties will be established for imported subject goods.
If the goods you import do not meet the definition of a subject good and therefore are excluded, we recommend including on your commercial invoices or other customs documents the statement “Not Subject to SIMA OCTG32021IN”
These SIMA duties are calculated as an additional percentage payable on the value for duty of the goods at time of importation. For example if the anti-dumping rate is established at 128.4% and you import a subject casing pipe valued at $15000.00 CAD you will be paying an additional $19260.00 CAD in SIMA duties at time of importation.
We will keep a close eye on this investigation and provide updates as the investigation progresses.
Our Trade Advisors can help importers in their early stages of purchasing decisions by researching their sourced goods for the application of SIMA. For those importers who have brought goods into Canada and have been approached by Canada Customs for documentation, our trade advisory services can provide guidance in cases involving SIMA. To learn more contact our Trade Advisors.