8 April 1999

Re-investigation re Women's Leather and Non-Leather Boots and Shoes from the People's Republic of China

Revenue Canada has concluded its re-investigation of the normal values and export prices of women's leather and non-leather boots and shoes, originating in and exported from the People's Republic of China (PRC).

The re-investigation was initiated by the Department on 5 June 1998 and was originally scheduled to be completed by 18 December 1998. In an effort to secure sufficient information to perform the necessary calculations, Revenue Canada postponed the conclusion of the re-investigation.

When this re-investigation was initiated, the Department advised the Chinese government of the intent to continue to establish normal values for women's footwear on the basis of information obtained from a surrogate country, until such time that the Chinese government and exporters are able to demonstrate that the footwear sector is operating under competitive market conditions. While some information was submitted, the Department did not have the necessary information to conduct its analysis of the Chinese footwear industry. As such, the Department cannot establish normal values for women's footwear exported to Canada on the basis of domestic market sales in China.

During the course of this re-investigation, the Department contacted footwear producers in several potential surrogate countries to obtain information relating to sales of women's footwear in their domestic markets. This information, inclusive of selling and costing data, was requested on a courtesy basis. In response to these requests, the Department did not receive the information necessary to calculate a weighted average margin of dumping for the period of investigation. Consequently, the Department has decided to conclude the review, as any further extension of the conclusion date would only prolong the uncertainty for all parties affected by the re-investigation.

As stated above, the information received from surrogate countries during this re-investigation did not permit the Department to calculate a weighted average margin of dumping for purposes of reviewing the advance applied to selling price. As a result, the Department will continue to apply the weighted average margin of dumping calculated for the most recent investigation, which was concluded on 8 November 1996. Accordingly, all subject goods will continue to be assessed an anti-dumping duty equal to an advance of 29 per cent over the selling price to Canada.

Notice of the completion of the review will be published in a Customs Notice. Members with questions should contact either Ms. Karen Humphries at 613-954-7176 or Mr. Michel Desmarais at 613-954-7188, or by fax at 613-954-2510.