Concerning the preliminary determinations with respect to the dumping and subsidizing of steel racks originating in or exported from the People’s Republic of China.
Summary
[1] As a result of a written complaint from Arpac Storage Systems Corporation, Etalex Inc., Industries Cresswell Inc., North American Steel Equipment Inc., and Econo-Rack (2015) Group Inc. (collectively, the complainants), on April 20, 2026, pursuant to subsection 31(1) of the Special Import Measures Act (SIMA), the CBSA initiated investigations respecting the dumping and subsidizing of steel racks originating in or exported from the People’s Republic of China (China).
[2] Upon receiving notice of the initiation of the investigations, the Canadian International Trade Tribunal (CITT) commenced a preliminary injury inquiry, pursuant to subsection 34(2) of SIMA, into whether the evidence discloses a reasonable indication that the dumping and subsidizing of the above-mentioned goods have caused injury or are threatening to cause injury to the Canadian industry producing the like goods.
[3] On June 18, 2026, pursuant to subsection 37.1(1) of SIMA, the CITT made a preliminary determination that there is evidence that discloses a reasonable indication that the dumping and subsidizing of steel racks from China have caused or are threatening to cause injury to the domestic industry.
[4] Pursuant to subsection 38(1) of SIMA, after the sixtieth and on or before the ninetieth day after the initiation of an investigation under section 31, the CBSA shall make a preliminary determination of dumping or subsidizing with respect to the goods in respect of which the investigation has not been terminated. The CBSA may extend the ninety day period to 135 days pursuant to subsection 39(1) of SIMA; in this case, the period was extended on July 16, 2026.
[5] On September 2, 2026, as a result of the CBSA’s preliminary investigations and pursuant to subsection 38(1) of SIMA, the CBSA made preliminary determinations of dumping and subsidizing of steel racks originating in or exported from China.
[6] On the same date, pursuant to subsection 8(1) of SIMA, provisional duties were imposed on imports of dumped and/or subsidized goods that are of the same description as any goods to which the preliminary determinations apply, and that are released during the period commencing on the day the preliminary determinations were made and ending on the earlier of the day on which the CBSA causes the investigations in respect of any goods to be terminated pursuant to subsection 41(1) of SIMA or the day the CITT makes an order or finding pursuant to subsection 43(1) of SIMA.
Period of investigation
[7] The period of investigation (POI) for the investigations is January 1, 2025 to December 31, 2025.
Decisions
[84] On September 2, 2026, pursuant to subsection 38(1) of SIMA, the CBSA made preliminary determinations of dumping and subsidizing respecting steel racks from China.
Provisional duty
[85] Pursuant to subsection 8(1) of SIMA, provisional duties payable by the importer in Canada will be applied to dumped and subsidized imports of steel racks that are released from the CBSA during the period commencing on the day the preliminary determinations are made and ending on the earlier of the day on which the CBSA causes the investigations in respect of any goods to be terminated, in accordance with subsection 41(1), or the day on which the CITT makes an order or finding. The CBSA considers that the imposition of provisional duties is needed to prevent injury. As noted in the CITT’s preliminary determination, there is evidence that discloses a reasonable indication that the dumping and subsidizing of steel racks have caused or are threatening to cause injury to the domestic industry.
[86] Imports of steel racks originating in or exported from China, and released by the CBSA on or after September 2, 2026, will be subject to provisional duties equal to the sum of the estimated margin of dumping and the estimated amount of subsidy, expressed as a percentage of the export price of the goods. Appendix 1 contains the estimated margins of dumping, estimated amount of subsidy and the rates of provisional duties.
[87] Importers are required to pay provisional duties in cash or by certified cheque. Alternatively, they may post security equal to the amount payable. Importers should contact their CBSA regional office if they require further information on the payment of provisional duties or the posting of security. If the importers of such goods do not indicate the required SIMA code or do not correctly describe the goods in the import documents, an administrative monetary penalty could be imposed. The imported goods are also subject to the Customs Act. As a result, failure to pay duties within the specified time will result in the application of the provisions of the Customs Act regarding interest.
Future action
The Canada Border Services Agency
[88] The CBSA will continue its investigations of the dumping and subsidizing of steel racks and will make final decisions by December 1, 2026.
[89] If the margin of dumping or amount of subsidy of any exporter are found to be insignificant, the CBSA will terminate the investigation in respect of goods of that exporter and any provisional duties paid or security posted will be refunded to importers, as appropriate. If the CBSA is satisfied that the goods were dumped and/or subsidized, final determinations will be made.
The Canadian International Trade Tribunal
[90] The CITT has begun its inquiry into the question of injury to the Canadian industry. The CITT is expected to issue its finding by December 31, 2026.
[91] If the CITT finds that the dumping has not caused injury, retardation or is not threatening to cause injury, the proceedings will be terminated and all provisional anti-dumping duty collected or security posted will be refunded.
[92] If the CITT makes a finding that the dumping has caused injury, retardation or is threatening to cause injury, anti-dumping duty in an amount equal to the margin of dumping will be levied, collected and paid on imports of steel racks that are of the same description as goods described in the CITT’s finding.
[93] If the CITT finds that the subsidizing has not caused injury, retardation or is not threatening to cause injury, the proceedings will be terminated and all provisional countervailing duty collected or security posted will be refunded.
[94] If the CITT makes a finding that the subsidizing has caused injury, retardation or is threatening to cause injury, countervailing duty in the amount equal to the amount of subsidy on the imported goods will be levied, collected and paid on imports of steel racks that are of the same description as goods described in the CITT’s finding.
[95] For purposes of the preliminary determinations of dumping or subsidizing, the CBSA has responsibility for determining whether the actual and potential volume of goods is negligible. After preliminary determinations of dumping or subsidizing, the CITT assumes this responsibility. In accordance with subsection 42(4.1) of SIMA, the CITT is required to terminate its inquiry in respect of any goods if the CITT determines that the volume of dumped or subsidized goods from a country is negligible.
