22 September 2025

Canada Border Services Agency releases notice of preliminary determination for certain carbon and alloy steel wire

  • On 19 September 2025, the Canada Border Services Agency (CBSA) issued a "Statement of reasons" explaining its recent preliminary determinations of dumping with respect to certain carbon and alloy steel wire originating in or exported from certain jurisdictions.
  • Provisional duties range from 3.5% to 138.6%, depending on the exporter for steel wire originating from jurisdictions including China, India and several EU nations.
  • The CBSA's investigations will conclude by 3 December 2025, potentially leading to final determinations and continued inquiries by the Canadian International Trade Tribunal regarding material injury to Canadian industry.
  • Taxpayers importing steel wire from the affected jurisdictions should assess the impact of these provisional duties on their supply chains and pricing strategies and consider engaging with trade advisors to navigate the implications of the ongoing investigations.
 

On 19 September 2025, the Canada Border Services Agency (CBSA) issued a "Statement of reasons" explaining its 4 September 2025 preliminary determinations of dumping with respect to 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 Turkiye; and the Socialist Republic of Vietnam, pursuant to subsection 38(1) of the Special Import Measures Act (SIMA).

Provisional duties ranging from 3.5% to 138.6% will now apply to the import of goods the CBSA released on or after 4 September 2025.1

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 jurisdictions.2

For the purposes of the investigations, the subject goods were defined as follows:

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 type3

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,4 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'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.

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Endnotes

1 See the Canadian Border Services Agency's "Notice of preliminary determination: Certain Carbon and Alloy Steel Wire (SW 2025 IN)," dated 4 September 2025.

2 Ibid.

3 See the CBSA's "Statement of reasons — Preliminary determination: Certain Carbon and Alloy Steel Wire (SW 2025 IN)," dated 19 September 2025.

4 See the Canadian International Trade Tribunal news release, "Tribunal Issues Determination of Reasonable Indication of Injury — Certain Carbon or Alloy Steel Wire from Various Countries," dated 19 June 2025.

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Contact Information

For additional information concerning this Alert, please contact:

Ernst & Young LLP (Canada), Global Trade

EY Law LLP (Canada)

Published by NTD’s Tax Technical Knowledge Services group; Carolyn Wright, legal editor

Document ID: 2025-1905