26 September 2025

Canada Border Services Agency releases notice of preliminary determinations for steel strapping

  • On 16 September 2025, the Canada Border Services Agency (CBSA) made preliminary determinations of dumping for steel strapping from China, South Korea, Turkiye and Vietnam, with provisional duties ranging from 2.3% to 48.8% effective immediately.
  • The investigations, initiated on 12 May 2025, revealed concerns about alleged injurious dumping and subsidizing, leading to the imposition of these duties on imports released after the announcement date.
  • Entities importing steel strapping should evaluate the implications of these provisional duties on their supply chains and pricing strategies and consider consulting with trade advisors to navigate the ongoing investigations and potential final determinations expected by 14 January 2026.
 

On 16 September 2025, the Canada Border Services Agency (CBSA) made preliminary determinations of dumping respecting steel strapping originating in or exported from China, South Korea, Turkiye and the Vietnam, and the subsidizing of steel strapping originating in or exported from China, pursuant to subsection 38(1) of the Special Import Measures Act (SIMA).

For goods released by the CBSA on or after 16 September 2025, provisional duties ranging from 2.3% to 48.8% will now apply to the import of these goods.

Background

On 12 May 2025, the CBSA initiated investigations, pursuant to subsection 31(1) of the SIMA, respecting the alleged injurious dumping of steel strapping originating in or exported from China, South Korea, Türkiye and Vietnam, as well as the alleged subsidizing of steel strapping originating in or exported from China.

For the purposes of the investigations, the CBSA's 12 May announcement defined "subject goods" as:

Steel strapping, of carbon or alloy steel, with or without seals, whether or not in coils, whether or not punched, whether or not waxed, regardless of surface finish (including whether or not coated, painted, galvanized or "blued"), with a nominal width of 9.5 mm (3/8") to 50.8 mm (2") inclusive, and a nominal thickness of 0.38 mm (0.015") to 1.12 mm (0.044") inclusive (with all dimensions being plus or minus allowable tolerances), originating in or exported from the People's Republic of China, the Republic of Türkiye, the Republic of Korea, and the Socialist Republic of Vietnam.

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 10 July 2025, the CITT made a positive determination of reasonable indication of a threat of injury, following which the CBSA made its preliminary determination of dumping subject goods from China, South Korea, Türkiye and Vietnam, and subsidizing subject goods from China, and began to levy provisional duties as of 16 September 2025.

Provisional duties

The subject goods are normally imported under various tariff classification numbers in Chapters 72 and 73 of the Schedule to the Customs Tariff (S.C. 1997, c. 36).

The CBSA identified four exporters that have been assigned specific provisional rates of duty ranging from 2.3% to 41.7%; all other exporters are subject to a provisional duty rate ranging from 33.4% to 48.8% 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 30 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's final determination is expected to be issued on 14 January 2026.

Importers of steel strapping 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.

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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: 2025-1940