The CBSA Investigates the Dumping of Certain Liquid Dielectric Transformers

OTTAWA, ONTARIO--(Marketwire - April 23, 2012) - The Canada Border Services Agency (CBSA) announced today that it is initiating an investigation into the alleged injurious dumping of liquid dielectric transformers having a top power handling capacity equal to or exceeding 60,000 kilovolt amperes (60 megavolt amperes), whether assembled or unassembled, complete or incomplete, originating in or exported from the Republic of Korea.

Liquid dielectric transformers are capital goods that are made to order from a customer's particular needs. They are used to increase, maintain or decrease electric voltage in high voltage transmission and distribution systems. The subject goods encompass all power transformers regardless of name designation, including but not limited to: step-up transformers, step-down transformers, auto-transformers, interconnection transformers, voltage regulator transformers, HVDC transformers and rectifier transformers.

The investigation follows a complaint filed by ABB Inc. of Varennes, Québec, and CG Power Systems Canada Inc. of Winnipeg, Manitoba. The complainants allege that the dumping of these goods is harming Canadian production by causing the following: price depression and price suppression, lost sales, lost revenues and decreased employment levels.

Dumping occurs when goods are sold to importers in Canada at prices that are less than their selling prices in the exporter's domestic market or at unprofitable prices. The Special Import Measures Act protects Canadian producers from the damaging effects of such unfair trade.

The Canadian International Trade Tribunal (Tribunal) will now begin a preliminary inquiry to determine whether the imports are harming Canadian producers and will issue a decision by June 22, 2012. While the Tribunal is examining the question of injury, the CBSA will investigate whether the imports are being dumped and will make a preliminary decision by July 23, 2012.

If the Tribunal determines that an unusually large increase in harmful imports has occurred prior to the CBSA's decision, and that the retroactive application of anti-dumping duty is therefore justified, duty could be levied on the goods brought into Canada as of today.

A copy of the Statement of Reasons, which provides more details about the investigation, will be available on the CBSA's Web site at www.cbsa.gc.ca/sima-lmsi within 15 days. More information on the CBSA's Anti-dumping and Countervailing Directorate or the Special Import Measures Act can also be found on this site.