The Canadian International Trade Tribunal (CITT) announced on May 5, the initiation of an expiry review concerning its existing order on certain carbon steel fasteners originating in or exported from the People’s Republic of China and the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (commonly known as Chinese Taipei). The original order, issued on September 2, 2020, followed expiry review RR-2019-002 and imposed anti-dumping duties on screws from both regions and anti-subsidy duties on screws from China.

This new review aims to determine whether the expiration of these duties would likely lead to a continuation or resurgence of dumping and subsidizing of these carbon steel fasteners, and consequently, whether this would likely cause injury to the Canadian domestic industry.

The CITT's decision to launch this expiry review comes as the current five-year term of the duties is nearing its conclusion. Such reviews are a standard procedure under Canadian trade law, allowing the Tribunal to assess the ongoing need for trade protection measures.

The Canada Border Services Agency (CBSA) will play a crucial role in the initial phase of this review. They are mandated to determine, no later than October 2, 2025, whether there is a likelihood of resumed or continued dumping and/or subsidizing of the carbon steel screws if the current order expires. This investigation will involve analyzing import data, production costs, pricing strategies, and other relevant factors to assess the potential for unfair trade practices to re-emerge.

Should the CBSA issue a positive determination, indicating a likelihood of continued or renewed dumping or subsidizing, the CITT will then proceed to the second phase of the review. In this stage, the Tribunal will conduct its own investigation to determine whether this continued or resumed dumping or subsidizing is likely to cause injury to the Canadian domestic industry. This assessment, which is expected to be completed no later than March 11, 2026, will involve gathering evidence and hearing submissions from domestic producers, importers, exporters, and other interested parties. The Tribunal will consider factors such as lost sales, price depression, reduced profitability, and impacts on employment within the Canadian industry.

The outcome of this expiry review will have significant implications for both domestic manufacturers of carbon steel fasteners in Canada and importers of these products from China and Chinese Taipei. If the Tribunal finds that the expiry of the duties is likely to lead to continued or resumed dumping and subsidizing that would injure the domestic industry, the existing anti-dumping and anti-subsidy measures will be maintained for another five-year period. Conversely, if the Tribunal concludes that such a scenario is unlikely, the duties will be allowed to expire.

The Canadian International Trade Tribunal is an independent quasi-judicial body accountable to Parliament through the Minister of Finance. Its mandate includes adjudicating cases related to dumped and subsidized imports, safeguard measures, federal government procurement complaints, and appeals of customs and excise tax rulings.