ANTI-DUMPING DUTY ON STEEL FASTENERS (SCREWS & BOLTS) FROM CHINA & TAIWAN – UPDATE

On August 20, 2009, the Canada Border Services Agency (CBSA) determined that the expiry of the finding made by the Canadian International Trade Tribunal on January 7, 2005, would likely result in the continuation or resumption of dumping of carbon steel fasteners originating in or exported from the People’s Republic of China and Chinese Taipei; stainless steel fasteners originating in or exported from Chinese Taipei; and would likely result in the continuation or resumption of subsidizing of certain carbon steel fasteners originating in or exported from the People’s Republic of China.

The Canadian International Trade Tribunal is continuing its expiry review to determine whether the expiry of the findings is likely to result in injury or retardation to the Canadian industry, and is scheduled to make its decision by January 6, 2010.

Other countries currently have anti-dumping measures or investigations in place involving carbon steel or alloy steel fasteners from China. The most significant anti-dumping action was taken by the European Union which applied anti-dumping duties on carbon steel fasteners from China January 26, 2009. In that investigation the final anti-dumping duty rates ranged from 64.4 % to 77.5%, with an others rate of 85.0%. It is estimated that the European Union market accounted for one third of China’s total fastener exports.

Imports into Canada originating from these countries totalled $48.06 million dollars in 2006, $60.61 million dollars in 2007 and $57.39 million dollars in 2008.

Anti-dumping and countervailing duty rates into Canada are as high as 170%.

Fasteners specifically designed for application in the automotive or aerospace industry are excluded from these findings.

The CBSA’s Statement of Reasons including a list of subject goods is available at:
cbsa-asfc.gc.ca/sima-lmsi/er-rre/rr2009-001/rr2009-001-e09-de-eng.pdf

A list of exporters and their margins of dumping (anti-dumping duty rates) is available at:
cbsa-asfc.gc.ca/sima-lmsi/ri-re/ad1308/ad1308-ri08-nti-eng.html

Additional information concerning this and other recent developments is available from our technical consulting group.