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Karl Kynoch
- Canadian Pork Council Traceability and Zoning Committee |
| Farmscape for October 25, 2004 (Episode 1629)
Manitoba Pork Council is encouraging its producers to make sure they're aware of who is responsible for paying the new US import duty on live Canadian hogs and who will get that money back if the duty is revoked.
A 14.06 percent antidumping duty on live Canadian hogs took effect last week.
The duty is collected in the form of a security bond at the border and it must be paid by the importer.
Manitoba Pork Council Chair Karl Kynoch says the agency has become aware that, under US law, it's illegal for the exporter to pay the duty.
Clip-Karl Kynoch-Manitoba Pork Council
The intent of this duty is basically to increase the price of the live hogs to the US producers so that it encourages their producers to buy domestic product.
What this has done is that the NPPC, when they were trying to tax the Canadian producer, has in turn now taxed their own American producer and increased the price for him.
It is actually against the law for the Canadian producers to compensate the American producer for this duty.
The one thing the Canadian producer wants to make sure is that he understands who is actually the importer of record.
In different situations it applies differently.
Sometimes the Canadian producer is the importer of record but a lot of times the small producers are shipping through somebody else.
That's where these producers have to be careful to understand the agreement.
When this duty comes back, it'll come back to the importer of record and, if the Canadian producer has paid it, he needs to make sure he has access to get it back.
He needs to either call his broker or contact Manitoba Pork Council.
The US Department of Commerce will issue a final antidumping margin in early 2005 and if it's lower than the current margin the difference will be returned.
The US International Trade Commission will announce a final injury determination in April and, if it rules Canadian hogs do not harm American producers, all duties collected will be refunded.
For Farmscape.Ca, I'm Bruce Cochrane.
*Farmscape is a presentation of Sask Pork and Manitoba Pork Council |
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| Keywords: antidumping, price |
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© Wonderworks Canada
2004 |
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