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Tax Alert 2025 No. 45, 19 September 2025
On 4 September 2025, the Canada Border Services Agency (CBSA) made preliminary determinations of dumping respecting certain carbon and alloy steel wire (steel wire) originating in or exported from the People’s Republic of China; the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (Chinese Taipei); the Republic of India; the Italian Republic; the Federation of Malaysia; the Portuguese Republic; the Kingdom of Spain; the Kingdom of Thailand; the Republic of Türkiye; and the Socialist Republic of Vietnam, pursuant to subsection 38(1) of the Special Import Measures Act (SIMA).
For goods released by the CBSA on or after 4 September 2025, provisional duties ranging from 3.5% to 138.6% will now apply to the import of these goods.1
Background
On 22 April 2025, the CBSA initiated investigations, pursuant to subsection 31(1) of the SIMA, respecting the alleged injurious dumping of steel wire originating in or exported from the subject countries.2
For the purposes of the investigations, the subject goods were defined as:
“Carbon or alloy steel wire, of round or other solid cross section, in nominal sizes up to and including 24.13 mm (0.950 inches) in diameter, whether or not coated or plated with zinc, zinc-aluminum alloy, or any other coating, including other base metals or polyvinyl chloride or other plastics, originating in or exported from the People’s Republic of China, the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (Chinese Taipei), the Republic of India, the Italian Republic, the Federation of Malaysia, the Portuguese Republic, the Kingdom of Spain, the Kingdom of Thailand, the Republic of Türkiye, and the Socialist Republic of Vietnam, excluding the following:
- stainless steel wire (i.e., alloy steel wire containing, by weight, 1.2 percent or less carbon and 10.5 percent or more chromium, with or without other elements)
- wire of high-speed steel and
- welding wire of any type”
Following the CBSA’s conclusion, the Canadian International Trade Tribunal (CITT) began a preliminary inquiry to determine whether available evidence discloses a reasonable indication that the alleged dumping and subsidizing of the subject goods have caused or are threatening to cause injury to Canadian industry.
On 19 June 2025, the CITT made a positive determination of reasonable indication of injury,3 following which the CBSA made its preliminary determination of dumping with respect to steel wire and began to levy provisional duties as of 4 September 2025.
Provisional duties
The subject goods are normally imported under various tariff classification numbers in Chapter 72 of the Schedule to the Customs Tariff (S.C. 1997, c. 36).
The CBSA identified 10 exporters that have been assigned specific provisional rates of duty ranging from 3.5% to 71.8%; all other exporters are subject to a provisional duty rate ranging from 16.6% to 138.6% during the provisional period.
Next steps
The CBSA will issue a Statement of Reasons within 15 days of the date preliminary determinations were made.
The CBSA’s investigations are expected to conclude by 3 December 2025, at which point either final determinations will be made or the investigations will be terminated.
If the CBSA makes final determinations of dumping and/or subsidizing, the CITT will continue its inquiry, and public hearings with respect to the question of material injury to the Canadian industry will be held. The CITT is required to make a finding with respect to the subject goods no later than 120 days after the date of the CBSA’s preliminary determinations.
Learn more
For more information, please contact one of the following EY Global Trade professionals:
Sylvain Golsse, Partner
+1 416 932 5165 | sylvain.golsse@ca.ey.com
Kristian Kot
+1 250 294 8384 | kristian.kot@ca.ey.com
Denis Chrissikos
+1 514 879 8153 | denis.chrissikos@ca.ey.com
EY Law LLP (Canada)
Helen Byon, Partner
+1 613 598 0418 | helen.byon@ca.ey.com
Peter Jarosz, Counsel
+1 613 563 6256 | peter.jarosz@ca.ey.com
Nadja Momcilovic
+1 613 598 6928 | nadja.momcilovic@ca.ey.com
Jackie Leahy
+1 604 899 3534 | jackie.leahy@ca.ey.com
Carolyn Wong
+1 403 206 5022 | carolyn.wong@ca.ey.com
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