WG 2022 UP1: Wheat gluten
Conclusion of normal value and export price review
Ottawa,
The Canada Border Services Agency (CBSA) has today concluded a normal value and export price review of wheat gluten exported to Canada from Australia by Manildra Group.
The review is part of the CBSA’s enforcement of the Canadian International Trade Tribunal’s (CITT) injury finding issued on April 22, 2021, respecting the dumping of wheat gluten from Australia, Austria, Belgium, France, Germany and Lithuania, in accordance with the Special Import Measures Act (SIMA).
The product definition and the applicable tariff classification numbers of the goods subject to the CITT’s finding are contained in Appendix 1 (subject goods).
Period of investigation
The Period of Investigation (POI) and the Profitability Analysis Period (PAP) for the normal value and export price review were from May 1, 2021 to April 30, 2022.
Normal value review process
At the initiation of the normal value and export price review, the CBSA sent requests for information (RFIs) to Manildra Group to solicit information on the costs and selling prices of subject goods and like goods for purposes of updating the normal values for goods exported to Canada by Manildra Group. The CBSA did not receive a response to its RFI from Manildra Group. As such, subject goods will be subject to a ministerial specification. For information on the amount of the ministerial specification please see the CBSA’s Measures in Force.
As part of the normal value review, representationsFootnote 1 and case argumentsFootnote 2 were submitted by counsel on behalf of Canadian producers ADM Agri-Industries Co. and Permolex Ltd.
Representations and case briefs
The issues raised by parties mainly concerned updating the ministerial specification in accordance with subsection 29(1) of SIMA. Counsel for the complainant argued that exporters failed to respond to the CBSA’s questionnaires because they are content with being non-cooperative and having their imports assessed at the ministerial specification rather than shipping using normal values. Counsel continued by arguing that updating the ministerial specification is consistent with SIMA, CBSA policy and WTO agreements.
CBSA response
The issues raised by all parties were given due consideration by the CBSA prior to the conclusion of this review. The existing ministerial specification was developed in line with written CBSA policy and longstanding administrative practice to ensure that non cooperative exporters are not given lower margins than cooperative exporters where sufficient information has not been furnished or is not available to apply sections 15 to 28 of SIMA.
Normal value for future shipments
As the CBSA did not receive a response to its RFI from Manildra Group, normal values and/or export prices for subject goods exported to Canada by Manildra Group and released by the CBSA will be determined pursuant to a ministerial specification under subsection 29(1) of SIMA, with the normal value potentially determined based on the export price plus an amount equal to 26.2% of that export price.
Importer responsibility
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 SIMA measures and be provided with sufficient information necessary to clear the shipments. To determine their anti-dumping liability, 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.
The Customs Act (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. For more information on how to file a request for re-determination please refer to the Guide for Appealing a Duty Assessment.
Contact us
SIMA Registry and Disclosure Unit
Trade and Anti-dumping Programs Directorate
Canada Border Services Agency
11-100 Metcalfe St
Ottawa ON K1A 0L8
- Telephone:
- Jordan Harris: 343-573-3003
Appendix 1—product definition
Subject goods definition
Wheat gluten, whether or not blended with wheat flour, salt or any other substance, with a minimum wheat protein content of 40% by weight on a dry basis calculated using a Jones Factor of 5.7, originating in or exported from Australia, Austria, Belgium, France, Germany and Lithuania, but excluding (i) devitalized wheat gluten; (ii) hydrolyzed wheat gluten; (iii) wheat protein isolates; and (iv) organic wheat gluten that is certified organic in accordance with and otherwise meets the requirements of the Food and Drugs Act, R.S.C., 1985, c. F-27, and regulations made thereunder, and the Safe Food for Canadians Act, S.C. 2012, c. 24, and regulations made thereunder including the Safe Food for Canadians Regulations, S.O.R./2018-108, all of which as may be amended or replaced from time to time.
For greater certainty, the subject goods include but are not limited to vital wheat gluten as defined by the World Health Organization’s Codex Standard 163-1987, Rev. 1-2001 (“Standard for Wheat Protein Products Including Wheat Gluten”).
Tariff classification numbers
The subject goods are usually classified under the following tariff classification numbers:
- 1109.00.10.00
- 1109.00.20.00
This listing of tariff classification numbers is for convenience of reference only. Refer to the product definition for authoritative details regarding the subject goods.
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