Global Fastener News

January 25, 2005 FIN – The Canadian government announced 5-year tariffs on certain carbon steel and stainless steel fasteners from Taiwan and China.

The duties were applied after the Canadian International Trade Tribunal determined that the dumping and illegal subsidization of fasteners from China and Taiwan have hurt the fastener industry in Canada.
In a final ruling, CITT decided to uphold anti-dumping and countervailing duties that were first implemented on a provisional basis in September. The dumping tariffs range from 1.39% to 170%. Countervailing duties on carbon steel screws from China will be 1.25 yuan (18 Canadian cents) per kilogram (2.2 pounds) of fasteners.
Provisional countervailing rates against Taiwan fasteners were dropped after Canada determined Taiwan subsidies were below 3% and therefore “insignificant.” The duties had been levied at about 7% from September until December. CITT excluded nuts and bolts, which were included in the provisional duties. The Tribunal also excluded all stainless steel fasteners from China in its final ruling.
The CITT decision was issued after a separate investigation by the Canada Border Services Agency found that exports of carbon steel screws from China had been dumped and subsidized counter to World Trade Organization rules.
CBSA also determined that carbon and stainless steel screws from Taiwan had been dumped at significant margins over the past two years.
China exported 39,241 metric tons of carbon steel screws to Canada in 2003, while Taiwan exported 132,665 metric tons of carbon steel and stainless steel screws to Canada.
The CITT finding drew criticism from China, which objected to the nature of the trade investigation.
“The Canadian investigation bureau … did not come to China to carry out field investigations, but based their findings about the subsidy level on Canada’s unilateral information,” China’s Ministry of Commerce complained in a written statement.
But CBSA senior program officer Bob Becker told FIN that many responses it received from Chinese companies were incomplete, making evaluation more difficult.
“We don’t go to China to gather information, we go to verify information we’ve been given, Becker explained to FIN.
Becker said the percentage of anti-dumping duties could change during the five-year period, but they won’t be repealed. At the end of the five-year period, CBSA will gather new price and market information to determine if dumping is likely to resume. At that time, it can choose to extend the duties for another period of time if necessary.

Ruling “Gratifies Canadian Fasteners Institute”
In a written statement, the Canadian Fasteners Institute expressed satisfaction with the final outcome of the investigation. “The duties should result in increased prices of these imported screws in Canada and will help keep the playing field level and ensure that imports are fairly priced in the Canadian market in the future.”
The investigation was prompted by a complaint from Leland Industries Inc. of Toronto, which claimed that cheap imports from China and Taiwan had increased, flooding the market and driving down domestic prices.
While the duties are opposed by the Canadian Fastener Importers Coalition – a 22-member group of importers and manufacturers –  the complaint by Leland Industries was supported by companies such as Arrow Fasteners Ltd., Hold-Tite Fasteners Ltd., Ready Rivet & Fastener Ltd., Westland Steel Products and Visque Inc., according to the CFI.
“These imports had both caused and threatened to cause significant financial harm to the Canadian manufacturing industry by lowering sales & suppressing prices,” the CFI stated.

Reactions in FIN Survey
Reaction from other Canadian fastener companies was mixed. In a special edition of the FIN Survey of the Fastener Industry Year-End 2004, about 70% of respondents claimed fasteners from Asia have a negative effect on the Canadian market. Nearly 60% of executives responding to the survey supported tariffs on Asian fasteners.
“Duties should be on Chinese fasteners, not Taiwan,” replied one fastener executive.
“Very nutty!” exclaimed another.
“The anti-dumping issue is another example of knee-jerk Canadian government reaction. This is killing the collated screw fastener industry.”
Other executives applauded the decision. “We won the case against China and Taiwan on all screw products and look forward to the new opportunities,” one executive commented. “Unless dumping of fasteners is eliminated the future of (North American) fastener manufacturers will be very bleak,” another respondent warned. For more information, visit cbsa-asfc.gc.ca/sima or citt.gc.ca  ©2005/2012 Fastener Industry News
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2005 FIN � China Disagrees with Canadian Anti-Dumping Findings

January 4, 2005 FIN – China objected to the findings of a Canadian trade investigation into alleged dumping of Chinese-made carbon steel and stainless steel fasteners.
“The Canadian investigation bureau… did not come to China to carry out field investigations, but based their findings about the subsidy level on Canada’s unilateral information, the Ministry of Commerce released in a written statement. The Chinese side expresses dissatisfaction over this.”
The Canada Border Services Agency (CBSA) concluded that China gave 1.25 yuan (15 US cents) in subsidies per kilogram (2.2 pounds) of fasteners exported.
The Canadian International Trade Tribunal is continuing its review to determine if the dumping and subsidizing have hurt the Canadian industry. It is expected to make a decision by January 7, 2005.
Under World Trade Organization rules, China will hold consultations with Canada to address the issue.
Chinese exports of such products were worth about $9 million from January 1, 2003 to March 31 this year, according to Agence France-Presse.
In September, Canada announced provisional duties on certain carbon and stainless steel nuts, bolts and screws imported from China and Taiwan. The tariffs were issued after a preliminary investigation by the CBSA determined that the Asian countries had dumped fasteners in Canada at artificially low prices.
The investigation was prompted by a complaint from Leland Industries Inc. of Toronto, which claimed that cheap imports from China and Taiwan had increased, flooding the market and driving down domestic prices.
The provisional anti-dumping rates against fasteners from China and Taiwan range from 2% to 126%. The provisional countervailing duty rates against fasteners from China are 32%, while duty rates for Taiwan products are 7%.
The duties are opposed by the Canadian Fastener Importers Coalition, a 22-member group of importers and manufacturers. ©2005/2012 Fastener Industry News
For information on permission to reuse or reprint this article please e-mail: FIN@GlobalFastenerNews.com