ARCHIVED - Notice of Conclusion of Re-investigation

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Refined Sugar

Dumping file #: 4237-80
Dumping case #: AD/1110

Subsidy file #: 4218-2
Subsidy case #: CVD/87

Ottawa, September 4, 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 refined sugar, refined from sugar cane or sugar beets, in granulated, liquid and powdered form (refined sugar), originating in or exported from the United States of America, Denmark, the Federal Republic of Germany, the Netherlands and the United Kingdom and the amount of subsidy of refined sugar originating in or exported from the European Union.

The re-investigation was initiated on April 16, 2014, as part of the ongoing enforcement of the Canadian International Trade Tribunal’s (Tribunal) findings of material injury of November 6, 1995.  The findings were subsequently reviewed and continued, with amendments, by the Tribunal’s orders issued in 2000, 2005, and 2010.

The subject goods are described as refined sugar, refined from sugar cane or sugar beets, in granulated, liquid and powdered form.  Refined sugar is sold as white granulated, liquid and specialty sugars.  Granulated sugar comes in a range of grain sizes (e.g. medium, fine and extra fine).  Liquid sugar includes invert sugar.  Specialty sugars include soft yellow sugar, brown sugar, icing sugar, Demerara sugar, baker’s sugar, coarse sugar and others.

The subject goods are normally imported into Canada under one of the following ten-digit Harmonized System classification numbers:

• 1701.91.90.11
• 1701.91.90.19
• 1701.91.90.21
• 1701.91.90.29
• 1701.91.90.91
• 1701.91.90.99

• 1701.99.90.10
• 1701.99.90.21
• 1701.99.90.27
• 1701.99.90.28
• 1701.99.90.90
• 1702.90.11.00

• 1702.90.12.00
• 1702.90.13.00
• 1702.90.14.00
• 1702.90.15.00
• 1702.90.16.00
• 1702.90.17.00

• 1702.90.18.00
• 1702.90.69.00
• 1702.90.89.10

At the initiation of the re-investigation, the CBSA sent a Request for Information (RFI) to importers, exporters and vendors, 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.

A complete response to the CBSA’s dumping Exporter RFI was submitted by Baldwin Richardson Foods Company and Michigan Sugar Company.  As a result, both Baldwin Richardson Foods Company and Michigan Sugar Company have been provided with specific normal values applicable to subject goods released from the CBSA on or after September 4, 2014.

Other exporters either did not provide a response to the CBSA’s RFI or provided an incomplete response.  Accordingly, normal values for all other exporters will be determined in accordance with a ministerial specification based on the export price of the goods advanced by 180%.

At the initiation of the re-investigation, the CBSA also sent an RFI to the Delegation of the European Commission (EC) in Canada in order to provide an opportunity to the EC to submit information for the purpose of updating the amount of subsidy for the goods in question. EC authorities were advised that the CBSA was conducting the re-investigation on an aggregate basis, resulting in a single amount of subsidy for the European Union (EU).  In the event that sufficient information was provided to the CBSA, amounts of subsidy could potentially be established for individual member states.

The EC provided substantial general information about the EU sugar program including aggregate spending on the programs.  Nevertheless, sufficient information has not been provided or is not otherwise available to enable the determination of the amount of subsidy in the prescribed manner pursuant to SIMA.  For example, no information was provided for specific member states.  Accordingly, the revised amount of subsidy was determined pursuant to a ministerial specification.

Despite the fact that the response provided by the EC submission was incomplete, it contained some information concerning the programs under investigation and as a result, was considered by the CBSA in this re-investigation.  The Canadian Sugar Institute (CSI) also provided extensive information with documented arguments related to current sugar subsidies, based on public information and the information provided by the EC.  A case argument was filed on August 13, 2014, outlining the CSI’s position on the current sugar subsidies, including the legal arguments for why the subsidies are actionable and specific and providing calculations, based on public information and numbers provided by the EC.  As a result, the CBSA used information from the EC, the CSI and other sources in determining the amount of subsidy in this
re-investigation.

A case argument was also received from counsel representing the exporter, Michigan Sugar Company.  The main focus of this submission involved the completeness and accuracy of the RFI response and the acceptability of the domestic sales information.

The information submitted in these case arguments were given due consideration by the CBSA.

The amount of subsidy will continue to be determined by ministerial specification.  The methodology to be used to determine the amount of subsidy reflects the following specific, actionable subsidy programs that were identified as a result of the re-investigation and that most closely reflects the amount of subsidy that will be applicable for future importations:

• Price Support
• Program of Options Specifically Relating to Remoteness and Insularity

As a result of this re-investigation, the CBSA has revised the amount of countervailing duty applicable on subject goods.  A countervailing duty equal to 24.39 EUR/100kg will be applied to all imports of subject goods originating in or exported from the EU, released from the CBSA on or after September 4, 2014.  The previous rate of countervailing duty of 22.13 EUR/10 kg is no longer applicable.

All normal values and amounts of subsidy previously in place expire on September 4, 2014.

Note that refined sugar imported from Denmark, the Federal Republic of Germany, the Netherlands and the United Kingdom is subject to both anti-dumping and countervailing duties.  Refined sugar imported from all other countries of the EU is subject to countervailing duties only.  Refined sugar from the United States of America is subject to anti-dumping duties only.

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 or countervailing duties.

Importers are reminded that it is their responsibility to calculate and declare their anti-dumping and countervailing 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 SIMA measures and be provided with sufficient information necessary to clear the shipments.  In order to determine their anti-dumping and countervailing duty liability, importers should contact their suppliers who can provide information on normal values and amounts of subsidy.  Under limited circumstances, the CBSA may make this information available to importers.  Please 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, for more information.

The Customs Act applies, with any modifications that the circumstances require, with respect to the accounting and payment of anti-dumping and countervailing duties.  As such, failure to pay 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 (an Appeal) of Goods under the Special Import Measures Act.

Any questions concerning the above should be directed to: