RB2 2016 IN
Certain Concrete Reinforcing Bar
Notice of Initiation of Section 20 Inquiry
Ottawa, November 7, 2016
On August 19, 2016, the Canada Border Services Agency (CBSA) initiated an investigation pursuant to subsection 31(1) of the Special Import Measures Act (SIMA) concerning the alleged injurious dumping of certain concrete reinforcing bar (rebar) originating in or exported from the Republic of Belarus (Belarus), Chinese Taipei, the Hong Kong Special Administrative Region of the People’s Republic of China, Japan, the Portuguese Republic and the Kingdom of Spain.
SIMA has special provisions concerning the treatment of products where the government of the country of export has a monopoly of its export trade, and where domestic prices are substantially determined by the government and there is reason to believe that they may not be the same as they would be if they were determined in a competitive market.
Information on the administrative record for the investigation indicates that there is reason to believe that the government of Belarus plays a significant role in the rebar sector in Belarus. Information provided by the complainants indicates that the majority of all industry in Belarus is state controlled. In response to a CBSA Request for Information (RFI), OJSC Byelorussian Steel Works (BMZ), the only known producer of rebar in Belarus, identified itself as a state owned enterprise, wholly-owned by the government of Belarus.
Furthermore, information available on the administrative record for the investigation indicates that domestic prices of rebar may be substantially determined by the Government of Belarus. The CBSA conducted a price trend analysis, which indicated that prices in Belarus did not follow the same trend as in other countries during the profitability analysis period (PAP), where prices are determined in a competitive market. The domestic selling prices of rebar in Belarus remained flat throughout the period, most notably in the last three months of the PAP, when prices of rebar recovered in other countries. Therefore, the CBSA has reason to believe that the prices in the rebar sector in Belarus are not substantially the same as they would be if they were determined in a competitive market.
Accordingly, on November 7, 2016, the CBSA initiated an inquiry pursuant to paragraph 20(1)(b) of SIMA, respecting the alleged injurious dumping of rebar originating in or exported from Belarus. As such, the government of Belarus and the exporter BMZ will be given the opportunity to provide information regarding the nature and extent of government involvement in exports and in determining pricing with respect to the rebar sector.
If there is sufficient reason to believe that conditions described in paragraph 20(1)(b) of SIMA exist, normal values will be determined, pursuant to paragraphs 20(1)(c) of SIMA, where such information is available, on the basis of the domestic selling price or full cost plus a reasonable amount for profits of the like goods sold by producers in any country designated by the CBSA and adjusted for price comparability; or pursuant to paragraph 20(1)(d) of SIMA, on the basis of the selling price in Canada of like goods imported from any country designated by the CBSA and adjusted for price comparability.
- Paul Pomnikow: 613-948-7809
- Manshun Tong: 613-954-1666
- Date modified: