Duty Remissions on FISC2019-02-28T12:50:24-05:00

The Canadian government is considering granting a duty remission to LNG Canada (with one of its partners being Petro China) on fabricated steel, allowing the entire project to go to China at the expense of Canadian construction jobs and tax payers’ money. The Canadian International Trade Tribunal (CITT) levied trade duties against China in June 2017 after China was proven to be illegally dumping fabricated steel into Canada at up to 48 per cent, in addition to illegally subsidizing its industry up to $2,300 per metric tonne.

Canadian trades and FISC producers have a proven track record of producing the best and most complex industrial facilities in the world, with the highest quality and safety records. It is imperative that the Canadian government stands behind our industry to prevent $40 billion of free and fair construction contracts from going offshore to a proven dumping and subsidizing nation.

The CISC is actively advocating the importance of maintaining the integrity of the CITT’s original ruling and urging the federal government to recognize the importance of keeping construction in Canada.

October 2018

The final investment decision (FID) from a consortium of investors for Canada’s first LNG joint venture project is announced before an official decision has been made from the Federal court of Appeal regarding the request for remission on FISC duties filed by LNG Canada. Prime Minister Justin Trudeau unveils $275 million that the federal government has committed towards the completion of the LNG project in Kitimat, BC.

April 2018

The CISC has challenges an appeal against the original offenders in the FISC trade case that is looking to unravel the CITT’s original ruling. This case is currently still under investigation with the Federal Court of Appeal and is being heard to consider the reasonableness of the decision made by the tribunal. The court has yet to make a final decision.

November 2017

CISC challenges LNG Canada’s remission request to the Department of Finance, seeking exemption from anti-dumping duties on fabricated structural steel and modules from China. The decision has yet to be officially announced and is dependent on the outcome of various proceedings that are currently in front of the Canadian Border Services Agency (CBSA) and the Federal Court of Appeal.

May 2017

The CITT’s investigation concludes that dumped fabricated industrial steel components (FISC) from China, Korea and Spain, as well as subsidized FISC from China, have caused injury to Canada’s domestic industry. Duties against FISC from these three countries are enforced for the next five years. With this ruling, we have preserved over 1.5 million man hours and restored work worth over 100,000 tonnes of fabricated steel back to Canada.

“The argument that Canadian trades don’t have the expertise and that LNG Canada’s project is too complex for Canada is just plain false. The real story here is that there is no place in the world where illegal dumping and subsidizing is so extreme than in China, and that is the reason why players like Shell and Petro China (partners in LNG Canada) want to import Chinese steel products. It is all about illegally cheap construction.”

Ed Whalen, P.Eng., President & CEO of the CISC

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