Canada: Canada Initiates New Antidumping/Subsidy Case Against PET Resin From China, Oman, India, and Pakistan

Last Updated: August 22 2017
Article by Cyndee Todgham Cherniak

On August 18, 2017, the Canada Border Services Agency ("CBSA") issued a Notice of Initiation stating that it has initiated both an antidumping investigation and a subsidy investigation against PET Resin from China, India, Oman and Pakistan.

The subject goods are defined as follows:

"Polyethylene terephthalate ("PET'') resin having an intrinsic viscosity of at least 0.70 deciliters per gram but not more than 0.88 deciliters per gram, including PET resin that contains various additives introduced in the manufacturing process, as well as blends of virgin PET resin and recycled PET containing 50 percent or more virgin PET resin content by weight, originating in or exported from the People's Republic of China, the Republic of India, the Sultanate of Oman and the Islamic Republic of Pakistan."

The following additional information is provided:

"Polyethylene terephthalate (PET) is a clear, strong and lightweight plastic belonging to the polyester family. PET is typically called polyester when used for fibers or fabrics and PET or PET resin when used for bottles, jars, containers and packaging applications. PET resin meeting the product definition is typically used in the production of plastic beverage bottles, in packaging for food and manufactured products, in containers for household and automotive products, and in industrial strapping.

One of the most important characteristics of PET is referred to as intrinsic viscosity (IV). The IV of the material is measured in decilitres per gram (dl/g) and it is a measure of the polymer's molecular chain length and molecular weight.

PET resin may contain some recycled material, although PET resin for packaging end uses (i.e. meeting the product definition parameters of 0.70 to 0.88 IV) is generally limited to a recycled content of 20%, and in any case, would not exceed a recycled content of 50%, which is a threshold included in the product definition."

Like goods are goods that are identical or similar to the subject goods and are sold in the exporter's domestic market.  Identical goods are goods that are identical in all respects to the subject goods exported to Canada by having all the characteristics used to identify a model.  For this investigation, a good is identical when it has the same following six characteristics:

  • Trade Name
  • Grade
  • Intrinsic Viscosity
  • Post-Consumer-Recycled (PCR) Content
  • Copolymer Content
  • Functional Additives

A good is considered similar when it has different but equivalent characteristics.

  • Prior to January 1, 2017, the subject goods were normally classified under the following Harmonized System (HS) codes
    • 60.00.10
    • 60.00.90
  • Beginning January 1, 2017, under the revised customs tariff schedule, the subject goods would be normally imported under the following tariff codes: 
    • 61.00.00
    • 69.00.10
    • 69.00.90

This listing of HS codes is for convenience of reference only.  Refer to the product definition for authoritative details regarding the subject goods.

Proceedings:

There are four separate proceedings:

1) The CBSA conduct and antidumping investigation.  Within the first 90 days, the CBSA sends Exporter Requests for Information that must be filed on or before the specified deadline.  The CBSA may send supplemental requests for information.  The Requests for Information permit the CBSA to calculate preliminary dumping margins.  It is preferable to obtain a company-specific dumping margin – especially if an exporter has not dumped goods into Canada; and

2) The CITT conducts a Preliminary Injury Inquiry within the first 60 days.  See our post on What is a Preliminary Interest Inquiry? In the Preliminary Injury Inquiry, the CITT looks at whether the complaint discloses a reasonable indication of injury.  Normally, the CITT will consider issues on (1) scope, (2) classes of goods and (3) evidentiary issues.  Since this is a regional case, arguments about test for regional cases and whether this is an appropriate regional case will likely be very relevant.  Companies should participate early and raise relevant issues with the CITT. The CBSA conducts a Preliminary Dumping Investigation within the first 90 days (the period overlaps with the CITT Preliminary Injury Inquiry).

3) The CBSA Conducts Final Dumping and Subsidy Investigations: After 90 or 135 days have elapsed, the CBSA starts final investigations. During this period, on-site verifications take place. This process takes 90 days.

4) After the CBSA issued Preliminary Determinations, the CITT conducts a Final Injury Inquiry.  The process takes 90 days.  On or about the 90th day, the CITT starts a hearing.

Timeline

The CBSA's timeline of important dates is as follows:

  • September 8, 2017 – CBSA: Importer responses to CBSA Requests for Information are due
  • September 25, 2017 – CBSA: Exporter responses to CBSA Requests for Information are due (no extensions are granted)
  • November 16, 2017 – CBSA issues preliminary dumping determination (unless the CBSA extends by up to 45 days)
  • January 4, 2018, at noon – CBSA: Closing of the Record Date
  • January 11, 2018, by noon – CBSA: Case arguments due from all parties
  • January 18, 2018, by noon – CBSA: Reply submissions are due
  • February 14, 2018 – CBSA issues final determination

We recently posted an article entitled " Exporters Who Receive De Minimis Dumping Margins in Canadian AD Cases Now Being Excluded From Final Orders" in which we highlight the benefits of participating in a Canadian antidumping case.  If an exporter can achieve a de minimis dumping margin (less than 2%), the dumping investigation will be terminated against that exporter.  This would allow that exporter to continue to sell to importers in Canada.

The CITT's timeline is as follows:

  • August 21, 2017 - Notice of commencement of preliminary injury inquiry
  • September 5, 2017 - Notices of participation and representation, declarations and undertakings
  • September 11, 2017 - Distribution of documents received from the CBSA
  • September 19, 2017, by noon - Submissions by parties opposed to the complaint
  • September 26, 2017, by noon - Replies from the complainant and parties in support of the complaint
  • October 17, 2017 - Determination
  • November 1, 2017 - Reasons for determination of Preliminary injury

Dates for Final Injury inquiry are provided later.

The CITT will normally make a finding that the complaint discloses a reasonable indication of injury.  The threshold is set very low.  However, the CITT will consider classes of goods arguments and other issues raised or brought to their attention that may be relevant in the final injury inquiry.  The CITT formulates questionnaires and information about the product at issue and the parties in the market can help the CITT in the final injury inquiry.

Other articles we have written concerning Canada's antidumping regime:

Top 10 Mistakes Make By Exporters When Completing Antidumping Requests For Information

Who is the Exporter for Special Import Measures Act (SIMA) Purposes?

CBSA Has Revised The D-Memorandum On The Anti-dumping/Countervailing Duty Redetermination Process

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Authors
Similar Articles
Relevancy Powered by MondaqAI
 
In association with
Related Topics
 
Similar Articles
Relevancy Powered by MondaqAI
Related Articles
 
Related Video
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
 
Email Address
Company Name
Password
Confirm Password
Position
Mondaq Topics -- Select your Interests
 Accounting
 Anti-trust
 Commercial
 Compliance
 Consumer
 Criminal
 Employment
 Energy
 Environment
 Family
 Finance
 Government
 Healthcare
 Immigration
 Insolvency
 Insurance
 International
 IP
 Law Performance
 Law Practice
 Litigation
 Media & IT
 Privacy
 Real Estate
 Strategy
 Tax
 Technology
 Transport
 Wealth Mgt
Regions
Africa
Asia
Asia Pacific
Australasia
Canada
Caribbean
Europe
European Union
Latin America
Middle East
U.K.
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.

Disclaimer

The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.

General

Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions