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Guidelines for Preparing a Dumping or Subsidizing Complaint
Table of Contents
More on the steps to preparing your complaint
- Step 1 - Contacting the Anti-Dumping and Countervailing Directorate
- Step 2 - Completing the Statement of Complaint
- Step 3 - Answering the Questionnaire
- Step 4 - Identifying all Confidential Information in your Complaint
- Step 5 - Preparing a Non-confidential Version of your Complaint
- Step 6 - Filing your Complaint
1. Identification of the Complainant
2. Imported Goods
3. Goods Produced in Canada
4. Classes of Goods
5. Canadian Industry
6. Dumping
6.1 Normal Value
6.2 Export Price
6.3 Margin of Dumping
7. Subsidizing
8. Demonstrating Injury
Appendix 1 - Describing the Goods
Important Steps
Step 1 - Read this document. Then contact the Anti-Dumping and Countervailing Directorate .
Step 2 - Complete the Statement of Complaint.
Step 3 - Answer the questions. Attach evidence to support your allegations.
Step 4 - If your complaint contains confidential information and evidence, identify those parts that are confidential.
Step 5 - Prepare a non-confidential version of your complaint.
Step 6 - Forward your statement of complaint, your answers to the questions, your evidence and the non-confidential version of your complaint to the:
Director General
Anti-dumping and Countervailing Directorate
Canada Border Services Agency
100 Metcalfe Street, 11th floor
Ottawa ON K1A 0L8
More on the Steps to Preparing your Complaint
Introduction
The steps in this guide are intended to help you prepare a dumping and/or subsidizing complaint concerning imported goods causing injury to Canadian industry.
Step 1 - Contacting the Anti-Dumping and Countervailing Directorate
The Anti-Dumping and Countervailing Directorate of the Canada Border Services Agency conducts investigations to determine whether goods imported into Canada are dumped or subsidized. Most investigations result from a written complaint provided by Canadian producers.
If you are thinking about preparing a dumping or subsidizing complaint, you should start by reading this guide and the brochure titled "What You Should Know Before Preparing a Dumping or Subsidizing Complaint".
After you have read these materials, contact us. We can offer advice on preparing your complaint or answer your questions about the dumping and subsidizing process.
| Telephone: | 613-954-7265 |
| Fax: | 613-948-4844 |
| E-mail: | simaregistry-depotlmsi@cbsa-asfc.gc.ca |
Step 2 - Completing the Statement of Complaint
As a first item in preparing your written complaint, you must complete a "Statement of Complaint" which identifies the dumped and/or subsidized imports causing injury to Canadian industry. This statement is also your pledge that the information in the complaint is true and complete.
Step 3 - Answering the Questionnaire below
You must then answer a series of questions, and attach supporting evidence, to explain and document the allegations in your complaint.
Your written complaint may lead to an investigation into the matter. If you have important information to support your allegations that we have not specifically asked for, you should include this information in your complaint. The more information available to us, the better equipped we will be to assess your complaint. It is therefore in your best interest to provide us with all available information.
Step 4 - Identifying all Confidential Information in your Complaint
There are various legal requirements concerning the disclosure of information in your complaint.
Generally, while ensuring the protection of confidential information, we are required to make non-confidential information available to interested persons so they can understand the reasons for any decisions taken.
You should start by going over your completed response to the questionnaire and marking "Confidential" at the top of each page containing confidential information. As a general rule, confidential information usually includes any commercial or financial details not normally made public. You must also provide a statement, normally in the form of a covering page, that the designated information should be treated as confidential and explaining why the information is considered confidential.
Subject to strict conditions, we may be requested to disclose confidential information in your complaint to counsel for other parties involved in the proceedings. Counsel has to protect this information and it cannot be made known to parties represented by counsel or any other persons.
We also provide a copy of the confidential version of the complaint to the Canadian International Trade Tribunal (Tribunal). The Tribunal's rules of procedure concerning the treatment of confidential information then apply to the complaint.
For more information on the disclosure and treatment of confidential information, contact us.
Step 5 - Preparing a Non-confidential Version of your Complaint
If your complaint contains confidential information, you must also prepare a non-confidential version of the complaint.
The normal practice in preparing a non-confidential version is to make a complete copy of your complaint and then eliminate or remove any specific confidential details or data.
The non-confidential version of your complaint must be sufficiently detailed to allow a person reading it to have a reasonable understanding of the substance of the confidential information removed.
If an investigation is initiated, a copy of the non-confidential version of the complaint will be provided to the foreign governments and exporters involved. It is also made available on request to any other interested parties including importers.
Step 6 - Filing your Complaint
Forward your Statement of complaint; your answers to the questions along with supporting evidence; and a separate non-confidential version of this information to the address indicated above in the Important Steps section.
After we receive your complaint, we will evaluate it and decide whether it is documented and complete. We will notify you of our decision within three weeks. If the complaint is incomplete, we will advise you of the additional information required.
Definitions
Dumping occurs when goods are sold to importers in Canada at prices that are lower than the selling price of comparable goods in the country of export or when goods are sold to Canada at unprofitable prices.
Subsidizing occurs when goods imported into Canada benefit from foreign government financial assistance. These are referred to as subsidies.
Examples of subsidies:
- loans at preferential rates;
- grants;
- tax incentives.
Injury to Canadian industry must be caused by the dumping and/or subsidizing of the imported goods.
Examples of injury:
- lost market share;
- lower prices;
- lost sales;
- reduced profits.
Statement of Complaint
Note: Complete the following on your company's letterhead. Replace the italicised words in parentheses with the appropriate terms. Have the statement of complaint signed by a person who has the authority to submit a complaint on behalf of your company.
Director General
Anti-dumping and Countervailing Directorate
Canada Border Services Agency
100 Metcalfe Street, 11th floor
Ottawa ON K1A 0L8
(date)
Sir/Madam,
(Company name or association) is a (producer, manufacturer or an association of producers or manufacturers) of (goods) in Canada.
This complaint concerns the injurious dumping (or subsidizing) of (imported goods) originating in or exported from (country or countries).
I, (name), (position title), of (name of company or association), certify that the information and evidence submitted in this complaint to the Canada Border Services Agency is true, accurate and complete.
Signed: __________________________________________
Questionnaire
1. Identification of the Complainant
Give the complete name, address, telephone and fax numbers of the Canadian producer or association that is making the complaint. Identify the person we should contact for more information.
2. Imported Goods
2.1 Precisely describe the imported goods that you are alleging are being dumped and/or subsidized. Identify and explain their uses and characteristics including those listed in Appendix 1.
If available, provide product literature for the imported goods.
2.2 If available to you, provide the tariff classification numbers used when the goods are imported into Canada.
2.3 Indicate the country where the imported goods are produced and where they are exported from.
2.4 Identify any known exporters that are shipping the goods to Canada.
2.5 Identify any known Canadian importers of the goods.
2.6 Explain how the imported goods are marketed, priced, and distributed, in Canada.
3. Goods Produced in Canada
Action against dumped or subsidized imports can only be taken if the industry is producing goods in Canada that are identical or similar (i.e., like goods) to the imported goods.
Precisely describe the goods you produce. If not identical to the imported goods, explain how they differ in terms of uses and other characteristics (Uses and characteristics typically examined are listed in Appendix 1).
Provide product literature for the goods you produce.
4. Classes of Goods
Both the imported goods and the like goods produced in Canada, taken as a whole, may sometimes be divided into smaller "classes" or "sub-groupings" of goods.
It is necessary for us to determine whether there is more than one class of goods involved in this complaint.
As an example, plant seeds produced in Canada could be considered as like goods to imported plant seeds because they have similar characteristics and uses. That is, they have the same general uses, to grow plants, and they may have similar physical characteristics and methods of production. However, it is likely that these goods, as a whole, could be sub-divided into separate classes of goods such as flower seeds, vegetable seeds and grain seeds. These classes of goods do not directly compete with one another for the same customer, they do not fulfill the same needs and they are not substitutable.
Can the imported goods and the like goods produced in Canada be sub-divided into separate classes of goods? If yes, explain in detail.
5. Canadian Industry
Your complaint must have the support of Canadian industry before an investigation can be started. In brief, producer support for the complaint should be greater then opposition and represent not less than 25% of all Canadian production.
5.1 Identify all known Canadian producers of like goods.
5.2 Identify all the known associations of producers of like goods in Canada.
5.3 Provide the total volume and value of your production of like goods for the last three fiscal years and the current year to date.
5.4 Estimate the total volume and value of the like goods produced in Canada by each of the other known producers for the last three fiscal years and the current year to date. Explain how you estimated these figures.
5.5 Do you have any information on the views of the other Canadian producers regarding the imported goods? If you have discussed the matter with them, provide the name and telephone number of the person or persons contacted.
5.6 Are you, or any other known Canadian producer, related to an exporter or an importer of the goods? If yes, identify the company and the relationship.
5.7 Do you, or any other known Canadian producer, import the goods in question? If yes, provide details.
The following sections of the questionnaire ask for information and evidence on the alleged dumping or subsidizing of the imported goods as well as evidence that these goods are injuring Canadian industry.
Sometimes, you may not be able to find market, industry or other information sources that give a clear or detailed picture of the dumping (or subsidizing) and related import trends and injury effects in Canada.
Consult with us first if some of the information is not readily available. We may have knowledge of public sources which contain information on these items.
Ultimately, it may be necessary for you to provide a reasonable estimate for certain items using the best information and sources available to you (including your own commercial knowledge and expertise). Make sure to explain how and what you used in providing any such estimates.
6. Dumping
In general terms, dumping is occurring if goods are being sold to Canada:
- at prices that are less than the price for comparable products in the exporter's home market.
- at prices which are unprofitable.
The profitable selling price in the country of export is the basis for determining "normal value". Alternatively, normal value may be constructed based on the total cost of the goods and an amount for profit. The selling price to Canada is called an "export price".
To support your allegations that the imported goods are dumped into Canada, you must estimate and compare:
(6.1) normal values; and(6.2) export prices.
and determine
(6.3) an amount of dumping.Comparing normal value and export price
The identification of comparable goods in the exporter's home market (i.e., identical or similar goods to the goods sold to Canada) is an important first step in ensuring a fair comparison between normal value and export price.
Similarly, normal value and export price should both be expressed on a net basis (i.e., net of any common discounts, rebates or allowances) using the same unit of measure (i.e., per kg, per metric ton, etc.) and be compared at the ex-factory (or FOB) point of sale/delivery.
Product types, models, classes
If your complaint involves several different product types, models or classes of goods imported into Canada, you will need to estimate normal values, export prices, and margins of dumping, for a representative sample of the different types of goods.
If the imported goods all consist of the same type of product, one dumping calculation based on a comparison of normal value and export price may be sufficient for the whole product concerned.
Where the complaint involves goods from more than one country, you need to provide an estimate of normal values, export prices, and margins of dumping for each country.
Special provisions may apply if your complaint involves products from countries which, historically, have been operating on a non-market basis. You should contact us in this situation.
6.1 Normal Value
Generally, two different methods can be used to estimate normal values.
(a) First method
The preferred method of estimating normal values is using the selling price to unrelated purchasers in the exporter's home market where those goods are sold at a profit.
Start by identifying the comparable good. Next, provide selling price informationi available to you in the exporter's home market on these goods. This should reflect recent price information, preferably not more than one year old.
Provide any evidence of the selling price you have used such as price lists, market surveys, sales invoices, bids, sales correspondence, quotes, etc.
If necessary, estimate and support any of the items that should be deducted from the selling price to bring it to a net ex-factory (or FOB) level.
The following is an example of a normal value calculated using a retail selling price in the exporter's home market as the starting point.
Figure 6.1(a)
Estimate of normal value
(starting with a retail selling price in the exporter's home market)
In this example, you have obtained evidence of a retail selling price in the home market of the exporter (250 units of the currency of the exporting country) of a comparable product to the good sold to Canada. From this retail price, you have estimated the net ex-factory price by deducting the following relevant items: The retailer's mark-up (20%); usual annual rebates paid by the wholesaler to the retailer (4% of retail price); the wholesaler's mark-up (20%) and the exporter/manufacturer's freight and insurance costs for delivery of the goods to the wholesaler (10 currency units).
Imported product .............................................................. Model A1
Comparable product in the exporter's home market
(you have determined that the most comparable product is model A2)...................................................................................... Model A2
Retail selling price of model A2 in the exporter's home market
(in the currency of the exporting country) ............................. 250(per unit)
Less:
(1) Retailer's mark-up=20%
(The retailer's mark-up is the difference between the retailer's purchase price for the goods (i.e., the wholesale price) and the retail selling price. A mark-up normally takes into account all the seller's costs relating to the purchase and re-sale of the goods, such as general, selling and administrative costs (G.S.&A.), and an amount for profit).
Wholesale price ................................................................ 208
(calculation=250/1.2)
(2) Sales promotion rebates paid annually from wholesaler to retailer
(4% of retail price=.04 x 250=10)
Net wholesale price (delivered) ....................................... 198
(calculation=208 - 10)
Less:
(3) Wholesaler's mark-up=20%
(The wholesaler's mark-up is the difference between the wholesaler's purchase price for the goods (i.e., the exporter/manufacturer's selling price) and the net wholesale price. In this example, the mark-up covers all the wholesaler's G.S.&A. and other costs relating to the purchase and re-sale of the goods, including delivery/freight charges payable by the wholesaler on sales to the retailer, and an amount for profit).
Exporter/Manufacturer's selling price to wholesaler (delivered) ......................................................................... 165
(calculation=198/1.2)
Less:
(4) Exporter/Manufacturer's freight and insurance costs on home market sales (10 currency units)
(Freight and insurance costs payable by the exporter/manufacturer on sales to the wholesaler)
Ex-factory selling price..................................................... 155
(calculation=165-10)
Exchange rate -
(2 currency units of exporting country=1 Canadian dollar)
Normal value in Canadian dollars ................................... $77.50
(calculation=155/2)
Supporting references -
The retail selling price was obtained from __________ shown in Annex _____
Retailer and wholesaler mark-ups, and information on rebates, have been obtained from a market survey by __________ (or have been estimated based on ...). See Annex ________ for a copy of the relevant pages. Freight and insurance costs payable by the exporter/manufacturer on home market sales to the wholesaler are based on a price quote from a major freight carrier in the exporter's home market as attached in Annex _________.
Exchange rate is the average for the year ______ as listed in Bank of Canada web site _________ (See annex ________for details).
(b) Second method
The second method of estimating normal value is based on all costs relating to the production and sale of the goods, and an amount for profit.
Typically, this second method is used where:
- You have difficulty getting price information on sales of the comparable goods in the exporter's home market;
- There are no sales of comparable goods in the exporter's home market;
- You have information that indicates the exporter's sales in the home market are generally unprofitable; or
- The sales in the exporter's home market are made to related customers.
In constructing the total unit cost of the goods, you should use information based on the producer's costs in the country of export.
If you do not have this information, your own company's costs may be used for estimating the total cost of the goods. However, you should explain and adjust your costs to account for any known differences between your costs and those of the producer in the country of export, including differences in: labour rates; production processes (including technological differences); raw material costs; economies of scale; capacity utilization rates; etc.
In estimating the total unit cost for the goods, list separately the:
- raw material costs, including the major raw material items;
- direct labour costs;
- factory overhead costs, including the major overhead items;
- general, selling and administrative costs; and
- any other costs (specify).
Explain how you estimated the costs of producing and selling the goods and provide all the evidence you have to support these costs. Explain how you calculated an amount for profit.
The following is an example of a normal value calculated using the total unit cost of the goods and an amount for profit.
Figure 6.1(b)
Estimate of normal value
(based on the total cost of the goods and an amount for profit)
In this example, because you were unable to collect pricing information in the exporter's home market, you've estimated the normal value based on the constructed total unit cost of the goods using cost data and an amount for profit from various sources.
Imported product .............................................................. Model A1
Comparable product in the exporter's home market ...... Model A2
Manufacturing costs
(costs are expressed in the currency of the country of export)
Raw materials
- raw material X .................................................. 40 (per unit)
- raw materialZ .................................................... 35
Labour ........................................................................ 10
Energy ........................................................................ 15
Other factory overhead costs ...................................... 10
(specify - depreciation, maintenance and repair, etc.)
- Total Mfg. Costs .................................................... 110
General, selling and Admin costs ................................... 25
(specify - administration, selling,
technical assistance, etc.)
Financing costs ............................................................... 10
- TOTAL UNIT COST ................................................ 145
Amount for profit @ 8% ................................................... 12
...- NORMAL VALUE - Ex-factory ................................. 157
Exchange rate -
(2 currency units of exporting country=1 Canadian dollar)
- Normal value in Canadian dollars ......................... $78.50
(calculation=157/2)
Supporting references -
Import quantities, raw material costs, labour costs, factory overhead, and energy costs were obtained from an industry report by ___________shown in Annex ________
An allocation for general, selling and administrative costs, and financing costs, have been made based on our own cost experience and we have adjusted these items downwards by 10% to reflect any potential cost advantage to the exporter for these items. See annex ______ for a copy of the relevant pages.
A profit amount of 8% (of total cost) reflects the industry average amount earned in the 3 year period before the alleged dumping. See annex ________for details.
Exchange rate is the average for the year ______ as listed in Bank of Canada web site _________ (See annex ________for details).
6.2 Export price
Generally, the export price is the price of the exported goods paid by the importer in Canada.
It is usually estimated using one of two methods and should also be calculated at the net ex-factory (or FOB) level based on recent price information not more than one year old.
(a) First method
The first method of estimating the export price is based on the selling price offered by the exporter to the importer in Canada.
If available to you, provide all the evidence you have regarding the selling price to the importer in Canada, such as price lists; sales invoices; bids, written offers or price quotations; sales correspondence; salesman's reports; or even Statistics Canada reports (which may provide import prices for the country concerned).
Deduct any costs, included in the selling price, relating to the movement of the goods to Canada, such as freight and insurance, regular duties, etc. to bring the price back to an ex-factory level. Provide evidence to support the cost figures deducted.
(b) Second method
If you cannot estimate export prices this way, you can use the second method which starts with the selling price at which the imported goods are resold in Canada. From this resale price, subtract all costs and profits to bring the price back to an ex-factory level including:
- the importer's mark-up on the goods (normally covering all the importer's G.S.&A. and related costs concerning the purchase and re-sale of the goods, and an amount for profit); and
- all costsii relating to the movement of the goods such as freight and insurance (both within Canada and from the country of export to Canada), regular duties, etc.
Provide all the evidence that you have regarding the resale price of the imported goods in Canada, such as price lists, sales invoices, bids, sales correspondence, etc. Also provide the basis for the costs and profits subtracted from this selling price to bring it back to an ex-factory level such as published industry mark-ups, publicly available freight rates, etc.
There are additional considerations if the export selling price is between an associated importer and exporter (as an example, through a parent/subsidiary relationship). Contact us for more information if this type of relationship exists.
The following is an example of an export price calculated using the resale price of the goods in Canada, by the importer, as the starting point.
Figure 6.2(b)
Estimate of export price
(starting with the resale price of the goods in Canada by the importer)
In this example, you have obtained evidence of a delivered selling price from a distributor/importer in Canada to a retailer. From this price, you have estimated the net ex-factory export price by deducting the relevant items. This includes: the distributor's mark-up (25%); export freight and insurance from the exporter's factory to Canada ($5 per unit); and regular customs duty of 4%.
Imported product .............................................................. Model A1
Importer/Distributor delivered selling price to retailer (Canadian $) ........................................................................................ 90 (per unit)
Less:
(1) Importer/ Distributor mark-up=25%
(The importer's mark-up is the difference between the importer's purchase price for the goods (i.e., the exporter's selling price) and the importer's selling price to the retailer. In this example, the importer's mark-up covers all their G.S.&A. and other costs relating to the purchase and re-sale of the goods, including freight and insurance costs in Canada for delivery of the goods to the retailer, and an amount for profit)
Exporter selling price to distributor, delivered and duties paid .................................................................................... $72
(calculation=90/1.25)
Less:
(2) Export freight, handling & insurance of $5 ................ $67
(costs payable by the exporter relating to the movement of goods
from the country of export to Canada)
Less:
(3) Regular duties of 4% .................................................. $64
(calculation=67/1.04)
- Ex-factory export price in Canadian dollars .......... $64
Supporting references -
The importer/distributor's selling price was obtained from a price catalogue (or market survey, price list, invoices, etc.) shown in Annex _______. Mark-up information, as well as export freight and insurance costs, have been obtained from the market survey by_________ or have been estimated based on_________. See annex ____for a copy of the relevant pages.
6.3 Margin of dumping
The margin of dumping is calculated by subtracting the export price from the normal value.
The following is an example of a margin of dumping calculation using information from the previous examples of normal value and export price:
Figure 6.3
Estimate of the margin of dumping
Imported product .............................................................. Model A1
Comparable product in the exporter's home market ...... Model A2
- Normal value - ex-factory (in Canadian dollars)
(constructed starting with the retail selling price of the
comparable product Model "A2" in the exporter's
home market) .......................................................... $77.50 (per unit) - Export price - ex-factory (in Canadian dollars)
(constructed starting with the resale price of Model A1
by the importer in Canada) ......................................... $64.00 - Margin of dumping
(normal value less the export price) ...................... $13.50
Other considerations when comparing normal value and export price
The preceding calculations may be sufficient for making a fair comparison between normal value and export price and form a satisfactory basis for determining the margin of dumping.
However, if you know of any important differences between the goods sold to Canada and the goods sold in the exporter's home market which might affect the fair comparison of prices between the two markets (i.e., price comparability), these should be explained.
Some typical differences which have an affect on price comparability include trade level differences or quantities purchased.
Regarding trade level, there may be a pattern of price differences between sales by the exporter to various levels of trade. These price differences commonly reflect the costs and expenses of the distribution systems and selling activities for each type of sale (as an example, there may be different selling costs and expenses when comparing the exporter's sales to retailers vs. the exporter's sales to distributors).
Accordingly, if the selling price of the exporter used for determining normal value is not at the same trade level as the exporter's selling price to the importer in Canada, explain the difference in trade levels (including any differences in selling and distribution activities) and whether it might affect pricing.
Differences in quantities purchased between the two markets is another consideration. If the selling price of the exporter used for determining normal value is based on sales to purchasers who buy in significantly larger (or smaller) quantities than the importer in Canada, and these differences affect the selling price of the goods, then this should be explained.
If you know of any other important differences which affect the price comparability of the goods, please explain and give details of these differences.
7. Subsidizing
7.1 To your knowledge, are the imported goods eligible for any foreign government subsidy? If you answer "no", go to section 8 - "Demonstrating injury".
7.2 Provide any details and evidence of the known subsidies including:
- the name of the foreign authority granting the subsidy.
- an explanation of how the subsidy operates;
- the nature/type of subsidy benefit and the amount of the benefit to the industry/exporters shipping goods to Canada.
8. Demonstrating Injury
You must explain and provide evidence to show how the dumped or subsidized goods have injured the Canadian industry.
First, you should provide information on general import trends relating to the volume and prices of the dumped or subsidized goods.
Second, you should provide information and evidence which shows the effects of the volume and/or the low price levels of the dumped or subsidized goods on the Canadian industry. Typically, this includes information and evidence which shows that:
- the imports are displacing Canadian production of the goods; and/or
- the low prices of the imports are forcing you (and the rest of the Canadian industry) to reduce or restrain prices to meet the dumped/subsidized import prices.
Last, you should show the effect of the dumped or subsidized imports on other related injury factors. That is, how have the imports impacted specific sales accounts, profits, etc.
It is not necessary that all the injury factors show a negative trend or effect. For example, while you might have maintained volume and market share in response to the dumped or subsidized imports, it might be that this was accomplished only because you reduced prices to match those of the imported goods.
Similarly, it may not be necessary to provide information on all the listed injury indicators. Rather, you should provide as full and comprehensive a picture as possible, along with supporting evidence, to show that the injury is significant and can be linked to the dumped or subsidized imports.
8.1 Trends in the volume and market share of the dumped or subsidized imports (i.e., the subject imports) are an important injury consideration and may help demonstrate that the subject imports are causing injury by displacing Canadian production.
- As a first step, you should provide available details on the volumeiii of the subject imports for each of the last three fiscal years and the current year to dateiv.
- You should then compare and explain the impact of changes in the volume of subject imports on the volume of Canadian production and sales. This comparison is often done by providing data on changes in market share.
As market share is based on a percentage of the total size of the market, you normally have to collect information on:
- imports of the allegedly dumped or subsidized goods;
- all other imports;
- your company's production and sale of the goods; and
- the production and sales of other Canadian producers.
(removing and listing separately any export activity for your company and other Canadian producers).
This type of information is best presented in the form of a table and you may have to consult with various sourcesv to collect the information needed to estimate the total size of the market.
8.2 The price trend of the dumped or subsidized imports and their effect on the selling price of the goods produced in Canada is another important injury consideration.
- It's best if you can provide price trend information for the subject imports at the first point of sale to Canada; that is, from the exporter to the importer in Canada.
Where the subject imports are made up of the same types of product, a comparison of changes in average unit price figures (over the given period) may be useful for demonstrating price trends.
If the subject imports consist of many different product types, models or classes of goods, your examination of price trends should be based on a representative sample of the different types of goods.
In the absence of detailed pricing information for the subject imports, you might consider trying to collect more general price informationvi, such as price index information, which can be helpful in demonstrating price trends (as shown in the following table).Example - Price index for the subject imports
Base year index price = 100
Year 2 index price = 95
Year 3 index price = 94
- As a second step, you should compare and explain the trend in prices for the subject imports to the price trends for the goods you produce and sell.
- The trend of resale prices of the subject imports in Canada might be another way of examining import price trends. However, make sure you consider whether the resale prices are being significantly affected by changes in the pricing practices of the intermediary company selling the imported goods rather than the pricing practices of the exporter.
8.3 In addition to providing information on general import price trends, you should provide details on specific instances where the selling price to Canada (or the resale price of the imported goods in the Canadian market place):
- was lower than your selling price of like goods;
- forced you to reduce your selling price to compete with the price of the imported goods;
- prevented you from raising your selling price, to pass on cost increases.
Provide documentation to support these allegations such as correspondence with customers; notes of conversations; price lists; sales invoices; price quotations; contracts; bids; etc.
As an example, you might have received a telephone call from an established customer asking you to reduce selling prices by 10% to match a competing selling price from an exporter of the dumped goods.
As part of your evidence, you should provide documentation on the customer's request (i.e., such as your telephone notes of the conversation) and your company's response to the customer request. For instance, you might provide in your complaint the following statement and supporting evidence:
"Due to the importance of this customer account, we agreed to reduce our prices by 10% to customer "ABC" and were able to retain the sale.
A note with details of the telephone conversation (including the customer's request that we match the exporter's competing selling prices), and our faxed response to this request (confirming a 10% price reduction) is attached".
Other injury factors
There may be other injury factors relating to the increased volume and/or the low price levels of the dumped or subsidized imports. Some typical injury considerations follow and you should provide any available evidence you have on these items.
8.4 Lost sales
- Have you lost sales to established customers to the dumped or subsidized imports?
- Have you lost sales opportunities to potential new customers to the dumped or subsidized imports?
If yes, provide details and evidence about the value and volume of lost sales for each of these categories of customers for a sufficient period of time to explain and support your statements.
8.5 Reduced Profits
Has the loss of sales and/or reduced selling prices caused by the dumped or subsidized imports affected your profit margin? Provide details and evidence for a sufficient period of time to explain and support your statement. This normally includes a comparison of your company's financial results over a representative period and may include copies of your company's income statements; product income statements; sales or gross margin analysis reports, etc.
8.6 Other Ways of Demonstrating Injury
Provide any other details and evidence to demonstrate that your company has been injured by these imports. Provide details and evidence for a sufficient period of time to explain and support your statement.
Other injury indicators may include actual and potential effects on the following:
- employment;
- wages;
- capacity utilization rate;
- productivity;
- inventories;
- decline in return on investments;
- cash flow;
- ability to raise capital.
8.7 Provide an explanation regarding any factors, other than the imported goods, which might have effected the Canadian industry such as:
- strikes;
- changes in consumer demand;
- technological advances;
- changes in export markets;
- environmental regulations.
Appendix 1
Describing the Goods
When describing the goods, you should identify and explain their characteristics and uses. For example, you could describe their appearance, physical characteristics, major raw materials or chemical composition, performance standards or requirements, finish, size, manufacturing process, distribution channels, selling patterns, customers etc. Include what you believe to be important in describing the goods.
Things to remember:
Use the ordinary meaning of a word to describe goods. Be careful when using general commercial terms and language. Sometimes, this has different meanings for different industry players and this can lead to misunderstandings on the goods involved.
If scientific terms, internationally recognized standards or specifications exist for the goods, they should be included in your description. This makes it easier to identify which goods are the subject of your complaint.
Make sure you identify all the products that are being dumped or subsidized and causing you injury.
Be clear and specific. We will be conducting research on the goods you describe so it is important that we are looking into the right goods.
Try to describe the goods in enough detail that any anti-dumping or countervailing duties applied to future imports will not be avoided because of how they are described. For example, if you make a complaint against red balls, and it is determined that red balls are being dumped and causing injury, future duties will apply to red balls only. Yellow balls would not be included.
End Notes
i If available, use selling price information to purchasers most comparable to the importers in Canada.
ii Be careful to ensure that any cost items deducted are not already included in the importer's costs listed in point (1)
iii Instead of import volumes, it might be acceptable to provide data on the value of imports - the key is to provide data which shows actual import trends and changes over the period concerned.
iv As a general guideline, the examination of import trends generally includes the last three years. However, you may choose a different period of time as long as it is representative and sufficient to support your allegations of injury.
v Industry associations, market sources, Internet web sites and libraries, Statistics and Industry Canada data are some of the sources that may be useful for collecting this type of information.
vi If information is not reasonably available, it may be necessary to provide an estimate for these items using the best information and sources available to you - including your own commercial knowledge and expertise
