Canadian anti-dumping investigation launched against Chinese silicon metal

24 April 2013

The Canada Border Services Agency (CBSA) has initiated investigations this week into silicon metal exported from China. The investigations follow a complaint filed by Québec Silicon Limited Partnership of Bécancour, Québec, operated by Globe Speciality Metals.

Globe Speciality Metals released a statement confirming the initiation of the anti-dumping and countervailing duties action.

CBSA began the procedure on April, 22 under the Special Import Measures Act (SIMA), stating "respecting the alleged injurious dumping and subsidizing of silicon metal containing at least 96%, but less than 99.99% silicon by weight, and silicon metal containing between 89% and 96% silicon by weight that contains aluminum greater than 0.2% by weight, of all forms and sizes, originating in or exported from the People’s Republic of China."

The Canadian International Trade Tribunal (CITT), an independent quasi-judicial body, will also be conducting a parallel inquiry on whether the "dumped and subsidized imports have caused material injury to the Canadian industry."

The tribunal will come to a decision on June 21, 2013, on whether the domestic industry has indeed suffered with silicon metal from China. If so, the CBSA will continue to investigate and by July 22, 2013 issue the preliminary determinations. The antidumping and/or countervailing duties will only be imposed if CITT, in its final inquiry, finds the charges true. The timeline for investigations can be found here.

Duties: When and how high?

Duties are expected to take effect on July 22, when the preliminary determinations are due. Still duties can be applied retroactively to imports arriving after April 22, 2013.

Whether duties will be imposed retroactively in the time period until July 22 will be determined by the CITT. This decision is not expected until late 2013 though. The exact amount that can be levied on Chinese silicon metal will be determined by CBSA. The duties will be put into place for an initial five-year period and duties can be renewed thereafter for subsequent five-year periods.

Under SIMA's definition, the party who is "... in reality the importer of the goods" will be slapped with duties. Under this accord a Canadian purchaser who is not directly involved in arranging the physical importation of the goods can be treated as a purchaser too. Chinese exporters cannot reimburse the Canadian importer for the amount of duties either.

Jeff Bradley, CEO of Globe Specialty Metals said, "For years, Chinese exporters have targeted Canada and sold silicon metal at prices that decimated the market. Globe has a policy of defending its investments and workers by pursuing, when appropriate, trade measures in response to companies that sell their products at dumped prices and countries that subsidize their exports in violation of WTO obligations and commitments.

"We look forward to competing for sales in Canada on a level playing field and stabilizing the local market for Quebec Silicon. Perhaps with actions like this, the countries and exporters who act inconsistently with trade laws will get the message that free trade must be fair trade."

If the investigations show that the charges are indeed true, then Chinese silicon metal will join the list along with Chinese bicycles under goods subject to anti-dumping duties.