Anti-dumping tax and counterveiling duty will be likely imposed on Vietnamese OCTGs. This is the first time that a Vietnamese product has faced an anti-dumping lawsuit in Canada. — Photo ndh.vn

HA NOI (Biz Hub) — Canada may levy an anti-dumping (AD) tax of 28.6 per cent and a countervailing duty (CVD) of 19 per cent on oil country tubular goods (OCTG) produced in Viet Nam.

The Vietnam Competition Authority, on August 14, stated that both, the AD rate and the CVD duty are the highest in comparison with those of OCTG exporters from other countries including India, Indonesia, the Philippines, along with South Korea, Thailand, Turkey and Ukraine, who may be taxed between 4.9 per cent and 18.3 per cent and from 3.2 per cent to 12.1 per cent, respectively.

The Canada Border Services Agency (CBSA) had initiated investigations against the alleged injurious dumping and subsidising of certain oil country tubular goods originating in or exported from those countries on July 21 this year.

The investigations follow a complaint filed by Tenaris Canada (Calgary, Alberta) and Evraz North America Inc. of Regina, Saskatchewan, alleging that the dumping of these goods and the subsidies they get are harming Canadian products.

This is the first time that a Vietnamese product has faced an anti-dumping lawsuit in Canada.

The Canadian International Trade Tribunal will begin a preliminary inquiry to determine whether the imports are harming Canadian producers and will take a decision by September 19, 2014. While the tribunal examines the question of loss, the CBSA will investigate whether the imports are being dumped and subsidised, and will make its preliminary decision by October 20, 2014.

After this, the exporters can submit a document committing adjustment of OCTG price exported to Canada to eliminate the AD margin. Meanwhile, the country's Government has also sent another document pledging to cancel or limit its subsidy for the goods exported to Canada. — VNS