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OTTAWA, January 21, 2010
4214-27
AD/1386
STATEMENT OF REASONS
Concerning the making of a preliminary determination of dumping of
FACED RIGID CELLULAR POLYURETHANE-MODIFIED POLYISOCYANURATE THERMAL INSULATION BOARD ORIGINATING IN OR EXPORTED FROM THE UNITED STATES OF AMERICA
DECISION
On January 6, 2010, pursuant to subsection 38(1) of the Special Import Measures Act, the President of the Canada Border Services Agency made a preliminary determination of dumping respecting faced rigid cellular polyurethane-modified polyisocyanurate thermal insulation board originating in or exported from the United States of America.
For a PDF version of the Statement of Reasons, please click on the following link.
Cet Énoncé des motifs est également disponible en français. Veuillez consulter la section "Information".
This Statement of Reasons is also available in French. Please refer to the "Information" section.
Table of Contents
- SUMMARY OF EVENTS
- PERIOD OF INVESTIGATION
- INTERESTED PARTIES
- PRODUCT DEFINITION
- CANADIAN INDUSTRY
- IMPORTS INTO CANADA
- INVESTIGATION PROCESS
- REPRESENTATIONS
- DUMPING INVESTIGATION
- SUMMARY OF PRELIMINARY RESULTS
- DECISION
- PROVISIONAL DUTY
- FUTURE ACTION
- RETROACTIVE DUTY ON MASSIVE IMPORTATIONS
- UNDERTAKINGS
- PUBLICATION
- INFORMATION
- APPENDIX - SUMMARY OF MARGINS OF DUMPING BY EXPORTER
SUMMARY OF EVENTS
On August 19, 2009, the Canada Border Services Agency (CBSA) received a complaint from IKO Sales Ltd. (IKO). The complaint alleged that imports of faced rigid cellular polyurethane-modified polyisocyanurate thermal insulation board (polyiso insulation board) originating in or exported from the United States of America (United States) were being dumped and that the dumping of these goods was causing injury to the Canadian industry.
The complaint contained evidence to support the allegations that the imports of polyiso insulation board from the United States into Canada have been dumped, and that the dumping of polyiso insulation board has caused injury and is threatening to cause injury to the Canadian industry. On September 9, 2009, pursuant to subsection 32(1) of the Special Import Measures Act1 (SIMA), the CBSA informed the complainant that the complaint was properly documented. The CBSA also notified the Government of the United States that it had received a properly documented complaint.
On October 8, 2009, pursuant to subsection 31(1) of SIMA, the President of the CBSA (President) initiated an investigation respecting the dumping of polyiso insulation board originating in or exported from the United States. The President was of the opinion that there is evidence that polyiso insulation board originating in or exported from the United States had been dumped, and evidence that discloses a reasonable indication that the dumping has caused injury or is threatening to cause injury.
On October 8, 2009, the Canadian International Trade Tribunal (Tribunal) commenced a preliminary injury inquiry pursuant to subsection 34(2) of SIMA into whether the evidence discloses a reasonable indication that the dumping of polyiso insulation board originating in or exported from the United States has caused injury or is threatening to cause injury.
On December 7, 2009, pursuant to subsection 37.1(1) of SIMA, the Tribunal made a preliminary determination that there is evidence that discloses a reasonable indication that the dumping of polyiso insulation board originating in or exported from the United States has caused injury.
On January 6, 2010, after estimating the margin of dumping and specifying the goods to which the preliminary determination applies based on the information available at the time, the President of the CBSA made a preliminary determination of dumping with respect to polyiso insulation board originating in or exported from the United States, pursuant to subsection 38(1) of SIMA.
On January 6, 2010, pursuant to subsection 8(1) of SIMA, provisional duty was imposed on imports of dumped goods that are of the same description as any goods to which the preliminary determination applies, and that are released during the period commencing on the day the preliminary determination is made and ending on the earlier of the day on which the President of the CBSA causes the investigation to be terminated pursuant to subsection 41(1) of SIMA or the day the Tribunal makes an order or finding pursuant to subsection 43(1) of SIMA.
On January 6, 2010, pursuant to section 42 of SIMA, the Tribunal commenced an inquiry to determine whether the dumping of polyiso insulation board originating in or exported from the United States has caused injury or is threatening to cause injury.
PERIOD OF INVESTIGATION
The Period of Investigation (POI) covered all subject goods imported into Canada from October 1, 2008 to September 30, 2009.
INTERESTED PARTIES
Complainant
The complainant, IKO, is the largest Canadian manufacturer of polyiso insulation board. The complainant's address is:
IKO Sales Ltd.
602 - 1 Yorkdale Road
Toronto, Ontario
M6A 3A1
Other Canadian Producers
The complainant identified two other domestic producers of polyiso insulation board in Canada: Atlas Roofing Canada (ARC) and Johns Manville Canada (JMC). JMC operates a plant in Cornwall, Ontario, and ARC operates a plant in Toronto, Ontario.
Exporters
At the initiation of the investigation, the CBSA identified 57 potential exporters of the subject goods. The CBSA sent a Request for Information (RFI) to each of the potential exporters. Thirty-one companies contacted the CBSA and indicated that they were not involved in the production and/or export of the subject goods. As such, based on the information obtained in the preliminary phase of the investigation, there are now 26 potential exporters.
Responses to the CBSA's RFI were received from seven exporters of the subject goods. Two of these exporters, Construction Materials International, Inc., and Dow Chemical, Inc., were requested to provide additional information to supplement or clarify their responses. The additional requested information was not received in time to be taken into consideration for the preliminary phase of the investigation.
RFI responses from the five remaining exporters were determined to be substantially complete and were taken into consideration for the preliminary phase of the investigation. These five exporters accounted for approximately 96 percent of the exports of subject goods exported to Canada during the POI.
Importers
At the initiation of the investigation, the CBSA identified 87 potential importers of subject goods based information contained in the CBSA Customs Commercial System database. The CBSA sent an RFI to each of these potential importers of the goods. Thirty-three companies contacted the CBSA and indicated that they were not involved in the importation of the subject goods. Five additional importers were identified from exporter responses to the RFI. As such, based on the information obtained in the preliminary phase of the investigation, there are now 59 potential importers. Seven importers provided a response to the CBSA's importer RFI, with varying degrees of completeness.
PRODUCT DEFINITION
For the purpose of this investigation, the subject goods are defined as:
“faced rigid cellular polyurethane-modified polyisocyanurate thermal insulation board originating in or exported from the United States of America”.
Additional Product Information
Polyiso insulation board is the primary insulation product for commercial wall and roof applications.
Generally, polyiso insulation board has the same physical foam properties whether it is used for roofing or for wall applications. Differences between the two applications usually relate only to thickness, type of facers (facing material bonded to both sides of the foam core) and board dimensions.
Polyiso roof insulation board is generally offered in sizes of 3' x 4', 4' x 4' and 4' x 8' and can be produced in a range of thicknesses from 1" to 4". Custom sizes and thicknesses are also available. These boards are used mainly in the commercial construction sector. The product is also available in tapered boards which are used in pre engineered slope insulated roof systems to provide positive drainage.
Polyiso wall insulation board is generally offered in 4' x 8' and 4' x 9' sizes and can be produced in thicknesses from 1" to 4". As with roofing boards, custom sizes and thicknesses are available. These boards are generally used for construction applications in both residential and non-residential wall systems.
Production Process2
The main ingredients in polyiso insulation board are aromatic polyester polyol (polyol), isocyanurate (MDI) and a blowing agent, which is usually pentane. Other ingredients are a facer material, fire retardant, a surfactant, and three different catalysts that are used to initiate and control the chemical reactions that take place in the manufacture of polyiso board. All of the raw materials, except for the facer material, are liquids. They are delivered to the factory in rail cars, tank trucks, or containers. Raw materials are transferred from rail cars and tank trucks to storage tanks in the factory.
The factory makes a mixture of the polyol, the fire retardant, the surfactant, and the catalysts. The temperature and pressure of this mixture are carefully controlled. The pressures and temperatures of the MDI and of the pentane are also, separately, carefully controlled. Then the polyol mixture, the MDI, and the pentane are combined under high pressure onto a “pour table”. The mixture flows between two facers, which are on a continuously moving double belt laminator and bonded to the said facers. Facers are distinguished by their water vapour permeance and composition and vary depending on the construction application.
Upon exiting the laminator, the board is trimmed to the correct width and cut to the required length. The product is then packaged and placed in the warehouse for a period of two to four days for curing before shipment.
According to the complainant, all major North American producers use comparable manufacturing technology and the principal chemical inputs (PMDI, polyol and blowing agent) are generally sourced from the same chemical suppliers.
Classification of Imports
The subject goods are normally imported under the following Harmonized System (HS) classification number: 3921.13.99.10
The identification of the HS code is for convenience of reference only. Refer to the product definition for authoritative details regarding the subject goods.
CANADIAN INDUSTRY
There are three producers of polyiso insulation board in Canada: IKO, JMC and ARC.
IKO and its related companies are involved in the manufacture, sale, and distribution of a wide range of roofing products in Canada, the United States, eastern and western Europe, and other international markets. IKO is a privately-owned Canadian company.
Over the years, IKO has expanded its line of roofing products to include organic and fibreglass-based shingles, roofing felts, and APP (Atactic-Polypropylene) and SBS (Styrene-Butadiene-Styrene) modified bitumen roofing systems for commercial and industrial applications. As part of this focus IKO started manufacturing its own polyiso insulation board. In 2000, IKO opened a factory in Brampton, Ontario, to manufacture polyiso insulation board for the eastern Canadian market (from Ontario eastwards), and in 2005, IKO opened a factory in High River, Alberta, to serve the western Canadian market (from Manitoba westwards).
As indicated earlier, JMC operates a plant in Cornwall, Ontario, and ARC operates a plant in Toronto, Ontario. The complainant states that these plants mainly serve eastern Canada and eastern United States.
The CBSA contacted JMC and ARC for the purpose of determining whether these producers supported IKO's filing of the dumping complaint. ARC declined to provide an opinion on the matter.3 JMC, however, indicated its support for IKO's complaint.4
Therefore, at the time of the initiation of the investigation, the CBSA confirmed that the complaint was supported by domestic producers whose production represents more than fifty percent of the total production of like goods by those domestic producers who express either support for or opposition to the complaint. Furthermore, the CBSA confirmed that the domestic producers who support the complaint represent twenty-five percent or more of the total production of like goods by the domestic industry, and as such, the standing requirements of subsection 31(2) of SIMA were met.
IMPORTS INTO CANADA
During the preliminary phase of the investigation, the CBSA refined the estimated volume of imports based on information from import documents and other information received from exporters and importers.
The following table presents the CBSA's estimates of the volume of imports of polyiso insulation board for purposes of the preliminary determination:
Imports of Polyiso Insulation Board
(October 1, 2008 - September 30, 2009)
| Imports into Canada | Volume (MBF)* | % of Total Imports |
|---|---|---|
| United States | 90,102 | 99.0% |
| All Other Countries | 935 | 1.0% |
| Total Imports | 91,037 | 100% |
INVESTIGATION PROCESS
At the time of the initiation of the investigation, information was requested from 57 known and potential exporters and from 87 known and potential importers, concerning shipments of polyiso insulation board imported into Canada during the POI.
The CBSA received a complete response to the RFI from five exporters and incomplete submissions from two exporters. In addition, 31 exporters responded that they did not export subject goods.
The CBSA did not receive a complete response to the RFI from any importers and received incomplete submissions from seven importers. In addition, 33 importers responded that they did not import subject goods.
The preliminary determination is based on the information available to be taken into consideration by the President of the CBSA during the preliminary phase of the investigation. During the final phase of the investigation additional information will be obtained and selected exporters in the United States will be verified on-site, the results of which will be incorporated into the CBSA's final decision, which must be made by April 6, 2010.
REPRESENTATIONS
At the time of the initiation of the investigation, interested persons were invited to file written submissions presenting facts, arguments and evidence relevant to the alleged dumping. The CBSA did not receive any representations regarding the alleged dumping in the preliminary phase of the investigation.
DUMPING INVESTIGATION
Normal Values
The normal value of goods sold to importers in Canada is generally based on the domestic selling prices of like goods in the country of export pursuant to 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, and a reasonable amount for profits, pursuant to paragraph 19(b) of SIMA.
Export Prices
The export price of goods sold to importers in Canada is generally based on the lesser of the adjusted exporter's sale price for the goods or the adjusted importer's purchase price, pursuant to section 24 of SIMA. 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.
Preliminary Results of the Investigation
All subject goods imported into Canada during the POI from any exporter are included in the estimation of the margin of dumping of goods of that exporter. 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. 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.
With respect to the exporters that provided substantially complete responses to the RFI, company-specific information was utilized for the preliminary determination in estimating normal values and export prices for goods shipped to Canada.
For those exporters that did not submit a complete response to the RFI, the normal value of the goods was estimated by advancing the export price by the highest amount by which the normal value exceeded the export price on an individual transaction for an exporter that provided a substantially complete response to the RFI, excluding anomalies.
In calculating the estimated margin of dumping for the country, the estimated margins of dumping found in respect of each exporter were weighted according to each exporter's volume of polyiso insulation board exported to Canada during the POI.
Based on the preceding, 100 percent of the polyiso insulation board originating in or exported from the United States was dumped by an estimated margin of dumping of 28.3 percent, expressed as a percentage of the export price.
Preliminary Results by Exporter
The margins of dumping were estimated on the basis of unverified information provided by the exporters. On-site verification of the information contained in the exporters' submissions is planned during the final phase of the investigation.
Estimated margin of dumping details relating to each of the exporters that provided a response to the RFI are as follows:
Atlas Roofing Corp (Atlas)
A substantially complete response to the RFI was provided, including a database of domestic sales of like goods sold from the plant involved in exports to Canada, a database of export sales to Canada, as well as details on cost of production and general, selling, administrative and other costs on a per model basis.
Estimated Normal Value
Profitable domestic sales were used, when warranted, for purposes of estimating normal values using the methodology pursuant to section 15 of SIMA. In order to establish which profitable sales could be used to estimate the price-based normal values, the costs of production and administrative, selling and other costs were determined in accordance with section 11.1 of Special Import Measures Regulations5 (SIMR). In estimating the normal values, adjustments were made to the weighted average selling price for discounts in accordance with section 6 of the SIMR, as well as for delivery costs included in the selling price in accordance with section 7 of the SIMR.
In situations in which there were no domestic sales or domestic sales were not made at a profit, normal values were estimated pursuant to paragraph 19(b) of SIMA, as 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. For purposes of the preliminary determination, the amount for profit was estimated based on the profit earned on all domestic sales during the POI that were used to estimate the section 15 normal values.
Estimated Export Price
As Atlas sold the subject goods to unrelated importers in Canada, export prices were estimated using the methodology in paragraph 24(a) of SIMA, on the basis of the exporter's selling price less all costs, charges and expenses arising from the exportation of the goods.
Estimated Margin of Dumping
The total normal value was compared with the total export price for all polyiso insulation board imported into Canada during the POI. It was found that the goods exported by Atlas were dumped by an estimated margin of dumping of 10.9 percent, expressed as a percentage of the export price.
Carlisle Syntec Inc. (Syntec)
A substantially complete response to the RFI was provided, including a database of domestic sales of like goods sold from each of the plants involved in exports to Canada, a database of export sales to Canada, as well as details on cost of production and general, selling, administrative and other costs on a per model basis.
Estimated Normal Value
Profitable domestic sales were used, when warranted, for purposes of estimating normal values using the methodology pursuant to section 15 of SIMA. In order to establish which profitable sales could be used to estimate the price-based normal values, the costs of production and administrative, selling and other costs were determined in accordance with section 11.1 of SIMR. In estimating the normal values, adjustments were made to the weighted average selling price for discounts in accordance with section 6 of the SIMR, as well as for delivery costs included in the selling price in accordance with section 7 of the SIMR.
In situations in which there were no domestic sales or domestic sales were not made at a profit, normal values were estimated pursuant to paragraph 19(b) of SIMA, as 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. For purposes of the preliminary determination, the amount for profit was estimated based on the profit earned on all domestic sales during the POI that were used to estimate the section 15 normal values.
Estimated Export Price
As Syntec sold the subject goods to unrelated importers in Canada, export prices were estimated using the methodology in paragraph 24(a) of SIMA, on the basis of the exporter's selling price less all costs, charges and expenses arising from the exportation of the goods.
Estimated Margin of Dumping
The total normal value was compared with the total export price for all polyiso insulation board imported into Canada during the POI. It was found that the goods exported by Syntec were dumped by an estimated margin of dumping of 20.4 percent, expressed as a percentage of the export price.
Firestone Building Products, Inc. (Firestone)
A substantially complete response to the RFI was provided, including a database of domestic sales of like goods sold from each of the plants involved in exports to Canada, a database of export sales to Canada, as well as details on cost of production and general, selling, administrative and other costs on a per model basis.
Estimated Normal Value
Profitable domestic sales were used, when warranted, for purposes of estimating normal values using the methodology pursuant to section 15 of SIMA. In order to establish which profitable sales could be used to estimate the price-based normal values, the costs of production and administrative, selling and other costs were determined in accordance with section 11.1 of SIMR. In estimating the normal values, adjustments were made to the weighted average selling price for discounts in accordance with section 6 of the SIMR, as well as for delivery costs included in the selling price in accordance with section 7 of the SIMR.
In situations in which there were no domestic sales or domestic sales were not made at a profit, normal values were estimated pursuant to paragraph 19(b) of SIMA, as 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. For purposes of the preliminary determination, the amount for profit was estimated based on the profit earned on all domestic sales during the POI that were used to estimate the section 15 normal values.
There was a small number of models for which no costs were provided in the RFI response. In these instances, the normal value was estimated by advancing the export price by the highest amount by which the normal value exceeded the export price on an individual transaction found for those transactions in which a normal value and export price was able to be estimated for this exporter.
Estimated Export Price
As Firestone sold the subject goods to unrelated importers in Canada, export prices were estimated using the methodology in paragraph 24(a) of SIMA, on the basis of the exporter's selling price less all costs, charges and expenses arising from the exportation of the goods.
Estimated Margin of Dumping
The total normal value was compared with the total export price for all polyiso insulation board imported into Canada during the POI. It was found that the goods exported by Firestone were dumped by an estimated margin of dumping of 18.7 percent, expressed as a percentage of the export price.
Hunter Panels Llc (Hunter Panels)
A substantially complete response to the RFI was provided, including a database of domestic sales of like goods sold from each of the plants involved in exports to Canada, a database of export sales to Canada, as well as details on cost of production and general, selling, administrative and other costs on a per model basis.
Estimated Normal Value
Profitable domestic sales were used, when warranted, for purposes of estimating normal values using the methodology pursuant to section 15 of SIMA. In order to establish which profitable sales could be used to estimate the price-based normal values, the costs of production and administrative, selling and other costs were determined in accordance with section 11.1 of SIMR. In estimating the normal values, adjustments were made to the weighted average selling price for discounts in accordance with section 6 of the SIMR, as well as for delivery costs included in the selling price in accordance with section 7 of the SIMR.
In situations in which there were no domestic sales or domestic sales were not made at a profit, normal values were estimated pursuant to paragraph 19(b) of SIMA, as 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. For purposes of the preliminary determination, the amount for profit was estimated based on the profit earned on all domestic sales during the POI that were used to estimate the section 15 normal values.
Estimated Export Price
As Hunter Panels sold the subject goods to unrelated importers in Canada, export prices were estimated using the methodology in paragraph 24(a) of SIMA, on the basis of the exporter's selling price less all costs, charges and expenses arising from the exportation of the goods.
Estimated Margin of Dumping
The total normal value was compared with the total export price for all polyiso insulation board imported into Canada during the POI. It was found that the goods exported by Hunter Panels were dumped by an estimated margin of dumping of 6.4 percent, expressed as a percentage of the export price.
Johns Manville (Johns Manville)
A substantially complete response to the RFI was provided, including a database of domestic sales of like goods sold from each of the plants involved in exports to Canada, a database of export sales to Canada, as well as details on cost of production and general, selling, administrative and other costs on a per model basis.
Estimated Normal Value
Profitable domestic sales were used, when warranted, for purposes of estimating normal values using the methodology pursuant to section 15 of SIMA. In order to establish which profitable sales could be used to estimate the price-based normal values, the costs of production and administrative, selling and other costs were determined in accordance with section 11.1 of SIMR. In estimating the normal values, adjustments were made to the weighted average selling price for discounts in accordance with section 6 of the SIMR, as well as for delivery costs included in the selling price in accordance with section 7 of the SIMR.
In situations in which there were no domestic sales or domestic sales were not made at a profit, normal values were estimated pursuant to paragraph 19(b) of SIMA, as 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. For purposes of the preliminary determination, the amount for profit was estimated based on the profit earned on all domestic sales during the POI that were used to estimate the section 15 normal values.
Estimated Export Price
As Johns Manville sold the subject goods to unrelated importers in Canada, export prices were estimated using the methodology in paragraph 24(a) of SIMA, on the basis of the exporter's selling price less all costs, charges and expenses arising from the exportation of the goods.
Estimated Margin of Dumping
The total normal value was compared with the total export price for all polyiso insulation board imported into Canada during the POI. It was found that the goods exported by Johns Manville were dumped by an estimated margin of dumping of 23.6 percent, expressed as a percentage of the export price.
All Other Exporters - Estimated Margin of Dumping
For all other exporters, including those exporters that provided late or incomplete responses, import pricing information available from the CBSA Customs Commercial System database was used for the purposes of estimating export price. The normal value and related margin of dumping was estimated by advancing export prices by the highest amount by which the normal value exceeded the export price on an individual transaction (215 percent) for a cooperating exporter.
SUMMARY OF PRELIMINARY RESULTS
Period of Investigation - October 1, 2008 to September 30, 2009
| Country | Estimated Dumped Goods as Percentage of Country Imports |
Estimated Margin of Dumping as Percentage of Export Price |
Country Imports as Percentage of Total Imports |
Estimated Dumped Goods as Percentage of Total Imports |
|---|---|---|---|---|
| United States | 100% | 28.3% | 99.0% | 99.0% |
Under subsection 35(1) of SIMA, the President of the CBSA is required to terminate an investigation prior to the preliminary determination if he is satisfied that the margin of dumping of the goods of a country is insignificant or that the volume of dumped goods of a country is negligible. Pursuant to subsection 2(1) of SIMA, a margin of dumping of less than 2 percent is defined as insignificant, whereas a volume of dumped goods from a country forming less than 3 percent of total imports is considered negligible.
The estimated margin of dumping of polyiso insulation board originating in or exported from the United Sates is above 2 percent and is, therefore, not insignificant. As well, the volume of dumped goods originating in or exported from the United States is above 3 percent, and is, therefore, not negligible.
DECISION
Based on the preliminary results of the investigation, on January 6, 2010, the President of the CBSA made a preliminary determination of dumping respecting polyiso insulation board originating in or exported from the United States, pursuant to subsection 38(1) of SIMA.
PROVISIONAL DUTY
Pursuant to subsection 8(1) of SIMA, provisional duties, payable by the importer in Canada, will be applied to imports of dumped polyiso insulation board originating in or exported from the United States that is released during the provisional period commencing on the day the preliminary determination is made, and ending on the earlier of the day on which the President of the CBSA causes the investigation to be terminated pursuant to subsection 41(1) of SIMA or the day on which the Tribunal makes an order or finding, pursuant to subsection 43(1) of SIMA.
Provisional duty is based on the estimated margin of dumping, expressed as a percentage of the export price of the goods. The estimated margins of dumping by exporter, and the related provisional duties payable on subject goods, released by the CBSA on and after January 6, 2010, are provided in the Appendix.
Importers are required to pay provisional duties in cash or by certified cheque. Alternatively, they may post security equal to the amount payable. Importers should contact their CBSA regional office if they require further information on the payment of provisional duty or the posting of security.
If the importers of such goods do not indicate the required SIMA code or do not correctly describe the goods in the import documents, an administrative monetary penalty could be imposed. The imported goods are also subject to the Customs Act. As a result, failure to pay duties within the specified time will result in the application of the provisions of the Customs Act regarding interest.
FUTURE ACTION
The Canada Border Services Agency
The CBSA will continue its investigation and will make a final decision by April 6, 2010.
If the CBSA is satisfied that the goods were dumped, and that the margin of dumping is not insignificant, a final determination will be made. Otherwise, the CBSA will terminate the investigation and all provisional duties paid, or security posted, will be returned to importers.
The Canadian International Trade Tribunal
The Tribunal has begun its full inquiry into the question of injury to the Canadian industry. The Tribunal is expected to issue its finding by May 6, 2010.
If the Tribunal finds that the dumping has not caused injury or is not threatening to cause injury, the proceedings will be terminated and all provisional duties collected, or security posted, will be returned to importers. If the Tribunal finds that the dumping has caused injury or is threatening to cause injury, anti-dumping duties will be imposed on dumped imports of polyiso insulation originating in or exported from the United States.
For purposes of the preliminary determination of dumping, the President of the CBSA has responsibility for determining whether the actual and potential volume of dumped goods is negligible. After a preliminary determination of dumping, the Tribunal assumes this responsibility. In accordance with subsection 42(4.1) of SIMA, the Tribunal is required to terminate its inquiry in respect of any goods if the Tribunal determines that the volume of dumped goods from a country is negligible.
RETROACTIVE DUTY ON MASSIVE IMPORTATIONS
Under certain circumstances, anti-dumping duty can be imposed retroactively on subject goods imported into Canada. When the Tribunal conducts its inquiry on material injury to the Canadian industry, it may consider if dumped goods that were imported close to or after the initiation of the investigation constitute massive importations over a relatively short period of time and have caused injury to the Canadian industry. Should the Tribunal issue a finding that there were recent massive importations of dumped goods that caused injury, imports of subject goods released by the CBSA in the 90 days preceding the day of the preliminary determination could be subject to anti-dumping duty.
UNDERTAKINGS
After a preliminary determination of dumping, exporters may give a written undertaking to revise selling prices to Canada so that the margin of dumping or the injury caused by the dumping is eliminated.
Acceptable undertakings must account for all, or substantially all, of the exports to Canada of the dumped goods. In the event that an undertaking is accepted, the required payment of provisional duty on the goods would be suspended.
In view of the time needed for consideration of undertakings, written undertaking proposals should be made as early as possible, and no later than 60 days after the preliminary determination of dumping. Further details regarding undertakings can be found in Memorandum D14-1-9, Information Pertaining to the Acceptance, Enforcement, and Renewal of Undertakings in Dumping and Subsidy Investigations, available on the CBSA Web site at www.cbsa-asfc.gc.ca , in the section called “Publications and Forms”.
SIMA allows all interested parties to make representations concerning any undertaking proposals. The CBSA will maintain a list of interested parties and will notify them should an undertaking proposal be received. Persons wishing to be notified must provide their name, address, telephone, fax, or e-mail address, to one of the officers listed below. Interested parties may also consult the CBSA Web site noted below for information on undertakings offered in this investigation. A notice will be posted on the CBSA Web site when an undertaking proposal is received. Interested parties have nine days from the date the undertaking offer is received to make representations.
PUBLICATION
A notice of the preliminary determination of dumping will be published in the Canada Gazette pursuant to paragraph 38(3)(a) of SIMA.
INFORMATION
This Statement of Reasons has been provided to persons directly interested in these proceedings. It is also posted on the CBSA Web site at the address below. For further information, please contact the officers identified as follows:
Anti-dumping and Countervailing Program
Trade Programs Directorate
Canada Border Services Agency
100 Metcalfe Street, 11th Floor
Ottawa, Ontario K1A OL8
CANADA
Wayne Tian 613-946-2574
Original signed by
M.R. Jordan
Director General
Trade Programs Directorate
Attachment
APPENDIX - SUMMARY OF MARGINS OF DUMPING BY EXPORTER
| Exporter | Estimated Margin of Dumping / Provisional Duty * |
|---|---|
| Atlas Roofing Corp | 10.9% |
| Carlisle Syntec Inc. | 20.4% |
| Firestone Building Products Inc. | 18.7% |
| Hunter Panels LLC | 6.4% |
| Johns Manville | 23.6% |
| All Other Exporters: | 215.0% |
