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Duty due on some steel structural tubing imports

OTTAWA, Ont. -- The CCRA will impose provisional duty on imports of steel structural tubing known as hollow structu...

OTTAWA, Ont. — The CCRA will impose provisional duty on imports of steel structural tubing known as hollow structural sections (HSS).
The tubing in question is imported from South Korea, South Africa, and Turkey.

This decision follows an investigation that the CCRA began on May 21, 2003, after receiving a complaint filed by three Canadian producers: Atlas Tube, Copperweld, and Welded Tube of Canada. These companies claim that imports have increased rapidly, taken market share from the Canadian producers, caused prices to decline, and hurt the companies’ financial performance.

The preliminary results of the CCRA’s investigation show that imports from the three countries were dumped into Canada by amounts that averaged 44% for imports from South Korea, 22.6% for imports from South Africa, and 7.8% for imports from Turkey. Provisional duties ranging from 4.5 to 44% are being imposed to offset the dumping. Provisional duties are expressed as a percentage of export prices.

Dumping occurs when goods are sold to importers in Canada at prices that are less than the selling prices in the exporter’s domestic market or at unprofitable prices. The Special Import Measures Act protects Canadian producers from the damaging effects of such unfair trade.

The Canadian International Trade Tribunal (Tribunal) made a preliminary determination of injury on July 21, 2003, saying that the evidence disclosed a reasonable indication that the dumping of HSS has caused injury to the Canadian industry. The Tribunal will conduct a full inquiry into the question of injury and must issue its final decision in December 2003. At the same time, the CCRA will continue its investigation and will make a final decision on the dumping by November 17, 2003.

A copy of the Statement of Reasons, which provides more details about this decision, will be available on request from the Anti-dumping and Countervailing Directorate and on the CCRA’s Web site at: within 15 days.

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