ARCHIVED - Notice of Conclusion of Re-investigation

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Certain Whole Potatoes

Dumping file #: 4237-53
Dumping case #: AD/518, AD/689

Ottawa, September 18, 2014

The Canada Border Services Agency (CBSA) has today concluded a re-investigation, in accordance with the Special Import Measures Act (SIMA), of the normal values and export prices of certain whole potatoes originating in or exported from the United States of America, for use or consumption in the province of British Columbia.

The re-investigation was initiated on May 21, 2014, as part of the ongoing enforcement of the finding of the Anti-dumping Tribunal dated June 4, 1984, and of the finding of the Canadian Import Tribunal dated April 18, 1986, subsequently continued, with amendments, by the Canadian International Trade Tribunal’s (Tribunal) orders of 1990, 1995, 2000, 2005 and 2010.

The following products are excluded from the Tribunal’s finding:

• seed potatoes;
• imports during the period from May 1 to July 31, inclusive, of each calendar year;
• red potatoes;
• yellow potatoes;
• exotic potato varieties; and
• white and russet potatoes imported in 50-lb. cartons in the following count sizes: 40, 50, 60, 70 and 80.

The subject goods are generally classified under the following 10-digit Harmonized System classification numbers:

0701.90.00.10
0701.90.00.20

At the initiation of the re-investigation, the CBSA sent a Request for Information (RFI) to importers, exporters and growers to solicit information on the costs and selling prices of subject and like goods.  The information was requested for purposes of updating the normal values and export prices for subject goods imported into Canada.

Given that no exporters or producers provided a response to the CBSA’s RFI, normal values will therefore be determined by a ministerial specification under SIMA.  Accordingly, the normal values for all exporters will be based on the total costs and expenses associated with growing and harvesting potatoes, using various US university cost studies, plus an amount for profit and an estimated amount for packing, administration and selling the goods, as specified by the Minister.  The normal values will be effective for the subject goods released from the CBSA on or after September 18, 2014.

An analysis of export prices during the current re-investigation period has confirmed that export prices declared on customs documentation are accurate and reflect published market prices.  As such, the methodology used to determine the export prices under ministerial specification has been modified and aligned with that used for the enforcement of all other current anti-dumping cases.

Accordingly, the specification provides that where the export price cannot be determined under the other provisions of SIMA, it shall be based on the declared selling price to the Canadian importer as reflected on the customs documentation that is presented in accounting for the goods, adjusted by deducting from the selling price all costs, charges, expenses, duties and taxes described in subparagraphs 24(a)(i) to (iii) of SIMA, where this information is included with the customs documentation. 

Where a producer or exporter becomes aware that there have been substantial changes to domestic prices, market conditions or costs associated with production and sales of subject goods, the CBSA should be advised in order that normal values can be reviewed and updated if required, to reflect current conditions.  Similarly, the amount of export charges to be deducted from the export price may also need revision to reflect current conditions.  Where changes have occurred and the CBSA has not been advised in a timely manner, the extent of these changes could warrant retroactive assessments of anti-dumping duties.

Importers are reminded that it is their responsibility to calculate and declare their anti-dumping duty liability.  If importers are using the services of a customs broker to clear importations, the brokerage firm should be advised that the goods are subject to anti-dumping measures and be provided with sufficient information necessary to clear the shipments.  To determine their liability for anti-dumping duty, importers should contact the exporters to obtain the applicable normal values.  For further information on this matter, refer to Memorandum D14-1-2, Disclosure of Normal Values, Export Prices, and Amounts of Subsidy Established Under the Special Import Measures Act to Importers, on the CBSA’s Web site at: www.cbsa-asfc.gc.ca/publications/dm-md/d14-eng.html.

The Customs Act applies, with any modifications that the circumstances require, with respect to the accounting and payment of anti-dumping duties.  As such, failure to pay the duties within the prescribed time will result in the application of the interest provisions of the Act.

Should the importer disagree with the determination made on any importation of goods, a request for re-determination may be filed with the Director General, Trade and Anti-Dumping Programs Directorate, 11th Floor, 100 Metcalfe St., Ottawa, Ontario, K1A 0L8.  Such a request must be received within 90 days from the making of the determination, in the form and manner outlined in Memorandum D14-1-3, Procedures for Making a Request for a Re-determination or an Appeal Under the Special Import Measures Act, on the CBSA’s Web site at: www.cbsa-asfc.gc.ca/publications/dm-md/d14-eng.html.

Any questions concerning the above should be directed to: