The Canada Border Services Agency (CBSA) launched an investigation into whether or not certain silicon metal originating in or exported from Brazil, Kazakhstan, Laos, Malaysia, Norway, Russia and Thailand is being sold at unfair prices in Canada. It will also investigate whether or not subsidies are being applied to certain silicon metal originating in or exported from Brazil, Kazakhstan, Malaysia, Norway and Thailand.
Silicon metal is used by primary and secondary aluminum producers as an alloying agent and by the chemical industry to produce a family of chemicals known as silicones.
The investigations are the result of a complaint filed by a manufacturer from Québec. The complainant alleges that as a result of price undercutting from the subject countries, it faces lost revenue and market share, resulting in reduced production and employment.
In the next step of the investigations the Canadian International Trade Tribunal began its preliminary inquiry to determine whether the imports are actually harming Canadian producers and will issue a decision by April 21, 2017.
Concurrently, the CBSA will investigate whether the imports are being sold in Canada at unfair and/or subsidized prices, and will make preliminary decisions by May 23, 2017.
Anti-dumping and/or countervailing duties could eventually be applied to the goods under investigation. Although such duties are normally only applied to goods released on or after the date of the CBSA’s preliminary determination, if the Tribunal determines that an unusually large increase in harmful imports has occurred prior to the CBSA’s decision and that the retroactive application of anti-dumping and/or countervailing duty is therefore justified, such duty could be levied on the goods brought into Canada as of the investigation’s starting date.