This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration. Need a new registration confirmation email? Click here
NEW YORK, April 22, 2013 (GLOBE NEWSWIRE) -- Globe Specialty Metals, Inc. (Nasdaq:GSM) (the "Company"), confirms the earlier announcement today of the Canadian Border Services Agency ("CBSA") that CBSA has initiated an anti-dumping and countervailing duties action in response to dumped and subsidized Chinese imports of silicon metal sold into Canada. Globe operates Canada's only producer of silicon metal, Quebec Silicon LP, which filed the complaint with the CBSA.
Canadian trade laws provide for the application of duties against unfairly traded products.The CBSA has initiated a proceeding to determine if imports of silicon metal from China have been dumped into Canada and/or have benefitted from countervailable subsidies. The Canadian International Trade Tribunal (CITT) will be conducting a parallel inquiry to determine whether these dumped and subsidized imports have caused material injury to the Canadian industry.
The products covered by this investigation are: "Silicon metal containing at least 96.00% but less than 99.99% silicon by weight, and silicon metal containing between 89.00% and 96.00% silicon by weight that contains aluminum greater than 0.20% by weight, of all forms and sizes, from China."
Duties are expected to take effect on July 22, 2013.
However, duties could be applied retroactively to imports arriving after April 22, 2013. The decision on whether duties will apply retroactively to imports between April 22 and July 22, 2013 will not be made until late 2013 by the CITT.
The party that is "in reality the importer of the goods" is liable to pay the duties.
It should be noted that this means that a party that is not the "importer of record" for customs purposes may be liable for the duties. For example, a Canadian purchaser can be treated as the importer, even if they are not directly involved in arranging for the physical importation of the goods. Further, the Chinese exporter cannot reimburse the Canadian importer for the amount of the duties.
The specific amount of duty that will be levied on Chinese imports will be determined by CBSA and varies from case to case. For example, in a 2012 anti-dumping and countervailing duty case involving piling pipe from China, the combined average rate of dumping and countervailing duty was 101.3%.