Statement of Reasons—Preliminary determination: Wheat Gluten 2 (WG2 2026 IN)

Exporters

[12] The CBSA received responses to the dumping request for information (RFI) and supplemental RFI (SRFI), where applicable, from two groups of companies.^{Footnote 1} The Sedamyl Group of companies includes one trading company, Sedamyl SBE in Italy, one producer of wheat gluten in Italy, Sedamyl SPA, and one producer of wheat gluten in the United Kingdom, Sedamyl UK. The Cargill Group includes one trading company in Belgium, Cargill N.V., as well as a producer in Poland, Cargill Poland.

Importers

[13] Three importers provided a response to the importer RFI:^{Footnote 2} Cargill Limited, Green Boy Group, and Meelunie America, Inc. One importer, Cargill Limited, also provided a response to a subsequent SRFI.

Domestic producers

[14] Two Canadian producers provided a response to the Canadian industry profit survey RFI: ADM Agri-Industries Co. and Permolex Ltd.^{Footnote 3}

Definition

[15] For the purpose of this investigation, subject goods are defined as:

[16] Refer to the Statement of Reasons—Initiation of investigation: Wheat Gluten 2 (WG2 2026 IN) for additional product information, production process information and the classification of imports.

Like goods and class of goods^{Footnote 4}

[17] Subsection 2(1) of SIMA defines “like goods” in relation to any other goods as “…(a) goods that are identical in all respects to the other goods, or (b) in the absence of any such goods, goods the uses and other characteristics of which closely resemble those of the other goods.” In considering the issue of like goods, the Canadian International Trade Tribunal (CITT) typically looks at a number of factors, including the physical characteristics of the goods, their market characteristics, and whether the domestic goods fulfill the same customer needs as the subject goods.

[18] The complainant states that domestically produced wheat gluten is like goods and in relation to the subject goods as they are both commodity products that compete directly with each other in the Canadian market. The complainant states that the goods are fundamentally the same goods that are produced using identical or nearly identical production processes, are fully interchangeable, and are sold to the same end users or channels of distribution.

[19] Additionally, the complainant notes that with respect to the Wheat Gluten 1 injury inquiry, the CITT found that domestically produced wheat gluten constitutes like goods in relation to the subject goods, and further concluded there was a single class of goods.

[20] After considering questions of use, characteristics and all other relevant factors, the CBSA is of the opinion that the domestically produced wheat gluten, that is of the same description as the subject goods, is like goods to the subject goods and further, that the subject goods and like goods constitute only one class of goods.

[21] In its preliminary injury inquiry for this investigation, the CITT further reviewed the matter of like goods and classes of goods. On September 2, 2026, the CITT issued its preliminary inquiry Statement of Reasons, indicating that: “There is no evidence on the record indicating that there is anything other than one class of like goods.”^{Footnote 5}

Normal value

[31] Normal values are generally estimated based on the domestic selling prices of like goods in the country of export, in accordance with the methodology of section 15 of SIMA, or on the aggregate of the cost of production of the goods, a reasonable amount for administrative, selling and all other costs, plus a reasonable amount for profits, in accordance with the methodology of paragraph 19(b) of SIMA.

Export price

[32] The export price of goods sold to importers in Canada is generally estimated in accordance with the methodology of section 24 of SIMA based on the lesser of the adjusted exporter’s sale price for the goods or the adjusted importer’s purchase price. These prices are adjusted where necessary by deducting the costs, charges, expenses, duties and taxes resulting from the exportation of the goods as provided for in subparagraphs 24(a)(i) to 24(a)(iii) of SIMA.

[33] Where there are sales between associated persons and/or a compensatory arrangement exists, the export price is estimated based on the importer’s resale price of the imported goods in Canada to unrelated purchasers, less deductions for all costs incurred in preparing, shipping and exporting the goods to Canada that are additional to those incurred on the sales of like goods for use in the country of export, all costs included in the resale price that are incurred in reselling the goods (including duties and taxes) or associated with the assembly of the goods in Canada and an amount representative of the average industry profit in Canada as provided for in paragraphs 25(1)(c) and 25(1)(d) of SIMA.

Margin of dumping

[34] The estimated margin of dumping by exporter is equal to the amount by which the total estimated normal value exceeds the total estimated export price of the goods, expressed as a percentage of the total estimated export price. All subject goods imported into Canada during the POI are included in the estimation of the margins of dumping of the goods. Where the total estimated normal value of the goods does not exceed the total estimated export price of the goods, the margin of dumping is zero.

Italy

Sedamyl Group (Italy)

[35] Sedamyl SPA is a producer of subject goods located in Italy. Sedamyl SPA has one wheat gluten production facility located in Saluzzo, Italy. All of the subject goods shipped to Canada were produced at this production facility in Saluzzo. Sedamyl SBE is the exclusive distributor of goods produced by Sedamyl SPA. All of the goods produced by Sedamyl SPA are sold through Sedamyl SBE, including domestic and export sales.

[36] The Sedamyl Group’s exports of subject goods from Italy represent 100% of the volume of subject goods exported to Canada from Italy.

[37] The responses to the Dumping RFI included a database of domestic sales of wheat gluten during the POI. However, normal values could not be estimated in accordance with section 15 of SIMA as there were not such a number of sales of like goods that complied with all the terms and conditions referred to in sections 15 and 16 of SIMA as to permit a proper comparison with the sales of the goods to the importer in Canada.

[38] As such, normal values were estimated pursuant to paragraph 19(b) of SIMA, based on the aggregate of the cost of production of the goods, a reasonable amount for administrative, selling and all other costs and a reasonable amount for profits. The cost of production was estimated in accordance with paragraph 11(1)(a) of the Special Import Measures Regulations (SIMR), based on Sedamyl SPA's unverified cost data associated with the subject goods shipped to Canada. As inputs significant in the production of the goods were acquired from an associated supplier, the cost of the inputs were estimated pursuant to subparagraph 11.2(1) of SIMR.

[39] The amount for administrative, selling, and all other costs was estimated in accordance with subparagraph 11(1)(c)(ii) of the SIMR, based on both Sedamyl SPA and Sedamyl SBE’s selling and administrative expenses incurred during the PAP. The amount for profits could not be estimated in accordance with subparagraphs 11(1)(b)(i) to 11(1)(b)(vi) as there were not a sufficient amount of profits from exporters from Italy. As such, the amount for profits was estimated using the weighted-average of the amount for profits estimated for the responding exporters from Poland and the United Kingdom.

[40] During the POI, all of the subject goods exported to Canada by the Sedamyl Group from Italy were sold to unrelated importers. Export prices were estimated in accordance with section 24 of SIMA, based on the lesser of the exporter’s selling price and the importer’s purchase price, adjusted by deducting the costs, charges and expenses incurred in preparing the goods for shipment to Canada and resulting from the exportation and shipment of the goods.

[41] The total estimated normal value compared to the total estimated export price results in an estimated margin of dumping of 37.0% for the Sedamyl Group (Italy), expressed as a percentage of the export price.

All other exporters: Italy

[42] Although no evidence was found that other exporters had exported subject goods from Italy to Canada during the POI, provisional anti-dumping duty is applicable should that change during the final phase of the investigation, or should new exporters begin selling subject goods to Canada.

[43] In establishing the methodology for estimating the normal values and export prices for other potential exporters from Italy, the CBSA considered all of the information on the administrative record, including the complaint filed by the domestic industry, the CBSA’s estimates at the initiation of the investigation, information submitted by parties that responded to RFIs, and CBSA customs entry documentation.

[44] The CBSA decided that the normal values and export prices for other potential exporters of subject goods from Italy would be estimated based on information from the exporter in Italy that provided a substantially complete RFI response for purposes of the preliminary determination. The CBSA finds this information to be more relevant and reflective of the trading practices of exporters in Italy than the information provided in the complaint or estimated at initiation.

[45] Based on the information available, for potential exporters that did not provide a response to the Dumping RFI, normal values of subject goods originating in or exported from Italy were estimated based on the highest amount by which an estimated normal value exceeded the estimated export price, on an individual transaction for the cooperative exporter during the POI. The transactions were examined to ensure that no anomalies were considered, such as very low volume and value, effects of seasonality or other business factors.

[46] Using the above methodology, for the preliminary determination, the estimated margin of dumping for all other potential exporters in Italy is 66.1%, expressed as a percentage of the export price.

Poland

Cargill Group

[47] Cargill N.V. is a distributor located in Belgium that sells subject goods produced by a related producer, Cargill Poland, to Canada. All of the subject goods shipped to Canada were produced at Cargill Poland’s facility in Wroclaw, Poland. All of the goods produced by Cargill Poland are sold through Cargill N.V, including domestic and export sales.

[48] The Cargill Group’s exports of subject goods represent 100% of the volume of subject goods exported to Canada from Poland.

[49] The Cargill Group provided a substantially complete response to the CBSA's Dumping RFI, including a database of domestic sales of wheat gluten during the POI. Where there were sufficient profitable sales of like goods, normal values were estimated in accordance with the methodology of section 15 of SIMA, using the Cargill Group’s domestic prices of wheat gluten in Poland.

[50] Where sufficient domestic sales of like goods did not meet the requirements of section 15 and 16 of SIMA, normal values were estimated using the methodology of paragraph 19(b) of SIMA, based on the aggregate of the cost of production of the goods, a reasonable amount for administrative, selling and all other costs and a reasonable amount for profits. The cost of production was estimated in accordance with paragraph 11(1)(a) of the SIMR, based on the Cargill Group's unverified cost data associated with the subject goods shipped to Canada. The amount for profits was estimated in accordance with subparagraph 11(1)(b)(i) of the SIMR, based on the Cargill Group's sales of wheat gluten in their domestic market, during the profitability analysis period (PAP), of like goods sold to Canada.

[51] For the subject goods exported from Poland by the Cargill Group to unrelated importers in Canada during the POI, export prices were estimated in accordance with section 24 of SIMA, based on the lesser of the exporter’s selling price and the importer’s purchase price less all costs, charges and expenses resulting from the exportation of the goods.

[52] During the POI, a small portion of the subject goods exported to Canada by the Cargill Group were sold to a related importer, Cargill Limited. Due to the relationship between these parties involved in the export sales, a reliability test was performed. Cargill Limited provided a response to the Importer RFI, however, there was insufficient information to estimate costs under section 25(1)(c)(iii) of SIMA, therefore, the reliability test was performed by comparing the export prices estimated in accordance with section 24 of SIMA, to the export prices estimated in accordance with paragraph 29 of SIMA under a methodology similar to that of section 25. The test revealed that the export prices estimated under section 24 were unreliable, and therefore, export prices for subject goods sold to Cargill Limited were estimated in accordance with section 29 of SIMA.

[53] The total estimated normal value compared to the total estimated export price results in an estimated margin of dumping of 12.6% for the Cargill Group, expressed as a percentage of the export price.

All other exporters: Poland

[54] Although no evidence was found that other exporters had exported subject goods from Poland to Canada during the POI, provisional anti-dumping duty is applicable should that change during the final phase of the investigation, or should new exporters begin selling subject goods to Canada.

[55] In establishing the methodology for estimating the normal values and export prices for other potential exporters from Poland, the CBSA considered all of the information on the administrative record, including the complaint filed by the domestic industry, the CBSA’s estimates at the initiation of the investigation, information submitted by parties that responded to RFIs, and CBSA customs entry documentation.

[56] The CBSA decided that the normal values and export prices for other potential exporters of subject goods from Poland would be estimated based on information from the exporter in Poland that provided a substantially complete RFI response for purposes of the preliminary determination. The CBSA finds this information to be more relevant and reflective of the trading practices of exporters in Poland than the information provided in the complaint or estimated at initiation.

[57] Based on the information available, for potential exporters that did not provide a response to the Dumping RFI, normal values of subject goods originating in or exported from Poland were estimated based on the highest amount by which an estimated normal value exceeded the estimated export price, on an individual transaction for the cooperative exporter during the POI. The transactions were examined to ensure that no anomalies were considered, such as very low volume and value, effects of seasonality or other business factors.

[58] Using the above methodologies, for the preliminary determination, the estimated margin of dumping for all other potential exporters in Poland is 29.7%, expressed as a percentage of the export price.

United Kingdom

Sedamyl Group (United Kingdom)

[59] Sedamyl UK is a producer of subject goods located in the United Kingdom. Sedamyl UK has one wheat gluten production facility located in Selby, United Kingdom. All of the subject goods shipped to Canada were produced at its production facility in Selby. Sedamyl SBE is the exclusive distributor of goods produced by Sedamyl UK. All of the goods produced by Sedamyl UK are sold through Sedamyl SBE, including domestic and export sales.

[60] Sedamyl Group’s exports of subject goods from the United Kingdom represent 100% of the volume of subject goods exported to Canada from the United Kingdom.

[61] The responses to the Dumping RFI included a database of domestic sales of wheat gluten during the PAP. However, normal values could not be estimated in accordance with section 15 of SIMA as there were not such a number of sales of like goods that complied with all the terms and conditions referred to in sections 15 and 16 of SIMA as to permit a proper comparison with the sales of the goods to the importer in Canada. There were however sufficient sales of goods of the same general category that met these conditions in order to estimate an amount for profits in accordance of subparagraph 11(1)(b)(ii) of the SIMR.

[62] As such, normal values were estimated pursuant to paragraph 19(b) of SIMA, based on the aggregate of the cost of production of the goods, a reasonable amount for administrative, selling and all other costs and a reasonable amount for profits. The cost of production was estimated in accordance with paragraph 11(1)(a) of the SIMR, based on Sedamyl UK's unverified cost data associated with the subject goods shipped to Canada.

[63] The amount for administrative, selling, and all other costs was estimated in accordance with subparagraph 11(1)(c)(ii) of the SIMR, based on both Sedamyl UK and Sedamyl SBE’s selling and administrative expenses incurred during the PAP. The amount for profits was estimated in accordance with subparagraph 11(1)(b)(ii) of the SIMR, based on the Sedamyl Group’s sales of goods in the United Kingdom, during the PAP, that were of the same general category as the subject goods exported to Canada.

[64] During the POI, all of the subject goods exported to Canada by Sedamyl Group from the United Kingdom were sold to unrelated importers. Export prices were estimated using the methodology of section 24 of SIMA, based on the lesser of the exporter’s selling price and the importer’s purchase price, adjusted by deducting the costs, charges and expenses incurred in preparing the goods for shipment to Canada and resulting from the exportation and shipment of the goods.

[65] The total estimated normal value compared to the total estimated export price results in an estimated margin of dumping of 7.0% for the Sedamyl Group (United Kingdom), expressed as a percentage of the export price.

All other exporters: United Kingdom

[66] Although no evidence was found that other exporters had exported subject goods from the United Kingdom to Canada during the POI, provisional anti-dumping duty is applicable should that change during the final phase of the investigation, or should new exporters begin selling subject goods to Canada.

[67] In establishing the methodology for estimating the normal values and export prices for other potential exporters from the United Kingdom, the CBSA considered all of the information on the administrative record, including the complaint filed by the domestic industry, the CBSA’s estimates at the initiation of the investigation, information submitted by parties that responded to RFIs, and CBSA customs entry documentation.

[68] The CBSA decided that the normal values and export prices for other potential exporters of subject goods from the United Kingdom would be estimated based on information from the exporter in the United Kingdom that provided a substantially complete RFI response for purposes of the preliminary determination. The CBSA finds this information to be more relevant and reflective of the trading practices of exporters in the United Kingdom than the information provided in the complaint or estimated at initiation.

[69] Based on the information available, for potential exporters that did not provide a response to the Dumping RFI, normal values of subject goods originating in or exported from the United Kingdom were estimated based on the highest amount by which an estimated normal value exceeded the estimated export price, on an individual transaction for the cooperative exporter during the POI. The transactions were examined to ensure that no anomalies were considered, such as very low volume and value, effects of seasonality or other business factors.

[70] Using the above methodology, for the preliminary determination, the estimated margin of dumping for all other potential exporters in the United Kingdom is 20.2%, expressed as a percentage of the export price.

Summary of preliminary results

[71] A summary of the preliminary results of the dumping investigation respecting all subject goods released into Canada during the POI are as follows:

Negligibility

[72] Under section 35 of SIMA, the CBSA is required to terminate an investigation prior to the preliminary determination if the volume of goods of a country is negligible.

[73] Pursuant to subsection 2(1) of SIMA, the volume of goods of a country is considered negligible if it accounts for less than 3% of the total volume of all goods of the same description that are released into Canada from all countries.

[74] The table above confirms that the volume of imports from each of the named sources are above 3% of the total volume of goods released into Canada. Based on the definition above, the volume of imports from these sources are therefore not negligible.

Insignificance

[75] If, in making a preliminary determination, the CBSA determines that the margin of dumping of the goods of an exporter is insignificant pursuant to section 38 of SIMA, the investigation will continue in respect of those goods but provisional anti-dumping duty will not be imposed on goods of the same description imported during the provisional period.

[76] Pursuant to subsection 2(1) of SIMA, a margin of dumping of less than 2% of the export price of the goods is defined as insignificant. For all exporters, the estimated margin of dumping, expressed as a percentage of the export price, is above 2% and is, therefore, not insignificant. In respect of these goods, provisional anti-dumping duty will be imposed on goods of the same description imported during the provisional period.

The Canada Border Services Agency

[82] The CBSA will continue its investigation of the dumping and will make a final decision by December 16, 2026.

[83] If the margin of dumping of any exporter is found to be insignificant, the CBSA will terminate the investigation in respect of goods of that exporter and any provisional duty paid or security posted will be refunded to importers, as appropriate. If the CBSA is satisfied that the goods were dumped, a final determination will be made.

The Canadian International Trade Tribunal

[84] The CITT has begun its inquiry into the question of injury to the Canadian industry. The CITT is expected to issue its finding by January 15, 2027.

[85] If the CITT finds that the dumping has not caused injury, retardation or is not threatening to cause injury, the proceedings will be terminated and all provisional anti-dumping duty collected or security posted will be refunded.

[86] If the CITT makes a finding that the dumping has caused injury, retardation or is threatening to cause injury, anti-dumping duty in an amount equal to the margin of dumping will be levied, collected and paid on imports of wheat gluten that are of the same description as goods described in the CITT’s finding.

[87] For purposes of the preliminary determination of dumping, the CBSA has responsibility for determining whether the actual and potential volume of goods is negligible. After a preliminary determination of dumping, the CITT assumes this responsibility. In accordance with subsection 42(4.1) of SIMA, the CITT is required to terminate its inquiry in respect of any goods if the CITT determines that the volume of dumped goods from a country is negligible.