A Canada Border Services Agency (CBSA) investigation into the import of Thaco container chassis from Vietnam by Ocean Trailer has determined the activity doesn’t circumvent a Canadian International Trade Tribunal (CITT) ruling.
CBSA initiated an investigation on Nov. 25, 2024, after complaints from Max-Atlas International. The chassis manufacturer alleged Ocean Trailer was circumventing a tribunal ruling by having chassis comprised largely of Chinese parts and components assembled in Vietnam before import to Canada.
China-made container chassis are subject to an anti-dumping duty equal to 126.4%, CBSA reports.
“The complainant stated that container chassis from Vietnam are like goods that meet the same product definition as the subject goods, except that they originate in or are exported from Vietnam,” CBSA said in its ruling.
“The complainant alleges that the goods are assembled or completed in Vietnam by means of insignificant processes, using parts or components — that represent a major portion of the total cost of producing the like goods — originating in or exported from China.”
Max-Atlas suggested the import of Thaco container chassis circumvented CITT’s ruling, sparking the investigation. Ocean Trailer suspended the import of the chassis while the investigation was ongoing.
CBSA investigators visited Thaco in Vietnam to verify its production of such container chassis did not circumvent the CITT ruling.
“Thaco detailed the production process, which includes the following six main steps: fabrication of steel workpieces and main beams, welding, shot blasting, electrophoretic dipping, painting, and assembly. All six of these steps are performed by Thaco and its related parties, all in Vietnam,” CBSA concluded in a preliminary ruling last month.
“In addition, Thaco provided information concerning the processes completed in Vietnam, the large amount of time and employees required to complete the processes, and the level of skill and training required by workers. During on-site verification, the CBSA toured the production facilities, confirming the numerous employees and steps involved.”
Additionally, “The CBSA compared the cost of the processes completed in Vietnam to the total cost of producing the goods. Based on the information provided by Thaco and verified by the CBSA, for the purposes of the preliminary assessment, the cost of the processes represented a significant proportion of the total cost of production.”
While CBSA acknowledged there was a change in the pattern of trade following the CITT’s anti-dumping ruling, there was no violation of that ruling.
The investigation concluded May 23.
“We are very pleased with the CBSA’s decision and are eager to move forward, continuing to supply high-quality chassis to our Canadian customers,” Mack Keay, chief operations officer with Ocean Trailer told trucknews.com.
“We conducted thorough due diligence before partnering with Thaco, including visiting their manufacturing facilities in Vietnam. This gave us confidence from the outset that we would be cleared of any wrongdoing. However, the six-month suspension of chassis sales was challenging for our business.”
He said the ruling was vindicating for the company, which employs about 270 people in Canada.
“Being a good corporate citizen is a priority for us,” Keay said. “We strive to be a positive influence in the communities where we live and work. While we do not manufacture trailers ourselves, we are proud to support hundreds of Canadian families. Our reputation is built on valuing relationships with our customers and vendors, treating people fairly, and continuously seeking improvement.”
