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OTTAWA, February 2, 2007

File No. 4214-12
AD/1358
File No. 4218-21
CVD/118

STATEMENT OF REASONS

Concerning the making of a final determination with respect to the dumping of

CERTAIN COPPER PIPE FITTINGS ORIGINATING IN OR EXPORTED FROM THE UNITED STATES OF AMERICA, THE REPUBLIC OF KOREA AND THE PEOPLE'S REPUBLIC OF CHINA

and the making of a final determination with respect to the subsidizing of

CERTAIN COPPER PIPE FITTINGS ORIGINATING IN OR EXPORTED FROM THE PEOPLE'S REPUBLIC OF CHINA

DECISION

On January 18, 2007, pursuant to paragraph 41(1)(a) of the Special Import Measures Act, the President of the Canada Border Services Agency made a final determination of dumping respecting certain copper pipe fittings originating in or exported from the United States of America, the Republic of Korea and the People’s Republic of China and made a final determination of subsidizing respecting certain copper pipe fittings originating in or exported from the People’s Republic of China.


TABLE OF CONTENTS


SUMMARY OF EVENTS

  1. On June 8, 2006, the President of the Canada Border Services Agency (CBSA) initiated an investigation pursuant to subsection 31(1) of SIMA into the alleged injurious dumping of certain copper pipe fittings originating in or exported from the United States of America (United States), the Republic of Korea (Korea) and the People’s Republic of China (China).  On the same date, the President of the CBSA initiated an investigation pursuant to subsection 31(1) of SIMA into the alleged injurious subsidizing of certain copper pipe fittings originating in or exported from China.

  2. The investigation was initiated in response to a complaint filed on April 26, 2006, by Cello Products Inc. (Cello) of Cambridge, Ontario.  On May 9, 2006, the CBSA informed Cello that the complaint was properly documented and notified governments of the United States, Korea and China that a properly documented complaint had been filed with the CBSA.  The complainant provided evidence that certain copper pipe fittings had been dumped and subsidized, and that the dumping and subsidizing had caused injury to Canadian producers of these goods.

  3. Upon receiving notice of the initiation of the investigation, the Canadian International Trade Tribunal (Tribunal) began its preliminary injury inquiry.  On August 8, 2006, the Tribunal made a preliminary determination that the evidence disclosed a reasonable indication that the dumping and subsidizing of certain copper pipe fittings has caused injury to the Canadian industry.

  4. On August 17, 2006, pursuant to paragraphs 39(1)(a) and (b) of SIMA, the President made the decision to extend the 90-day period for making a preliminary decision in the investigation to 135 days, due to the complexity and novelty of the issues presented by the investigation and the variety of goods and number of persons involved in the investigation.

  5. On October 20, 2006, pursuant to subsection 38(1) of SIMA,the President made a preliminary determination of dumping respecting certain copper pipe fittings originating in or exported from the United States, Korea and China and also made a preliminary determination of subsidizing concerning the subject goods originating in or exported from China.  For details regarding the basis of the preliminary determination, consult the Statement of Reasons issued on November 3, 2006, which is available on the CBSA Web site at
    http://www.cbsa-asfc.gc.ca/sima-lmsi/i-e/menu-eng.html.

  6. The CBSA continued its investigation and, on the basis of the results, the President is satisfied that certain copper pipe fittings originating in or exported from the United States, Korea and China have been dumped and that the margins of dumping are not insignificant.  Furthermore, the President is also satisfied that certain copper pipe fittings originating in or exported from China have been subsidized and that the amounts of subsidy are not insignificant.  Consequently, on January 18, 2007, the President made a final determination of dumping and subsidizing pursuant to paragraph 41(1)(a) of SIMA.

  7. The Tribunal’s inquiry into the question of injury to the Canadian industry is continuing.  Provisional duty will continue to be imposed on the subject goods until the Tribunal renders its decision.  The Tribunal will issue its finding by February 19, 2007.

PERIOD OF INVESTIGATION

  1. The dumping investigation covers all subject goods released into Canada during the period of investigation (POI), that is, from April 1, 2005 to March 31, 2006.  The subsidy investigation encompasses the period from January 1, 2005 to March 31, 2006.

INTERESTED PARTIES

Complainant

  1. The complainant, Cello Products, Inc., is the major Canadian producer of certain copper pipe fittings.  The complainant’s headquarters and factory are located at 210 Avenue Road in Cambridge, Ontario.  The only other Canadian producer of copper pipe fittings, Bow Plumbing Group, Inc. of Montréal, Quebec, also supports the complaint.

Exporters - United States

  1. At the time of the initiation of the investigation, the CBSA identified approximately 1,300 exporters that exported United States origin goods to Canada under the applicable Harmonized System (HS) classification numbers.  Given the unusually large number of exporters, the CBSA relied upon paragraph 30.3(1)(a) of SIMA, which provides that margins of dumping may be determined in relation to the largest percentage of goods that can reasonably be investigated if it is determined that it would be impracticable to determine a margin of dumping in relation to all goods because of the number of exporters, producers or importers.

  2. At the time of the initiation of the investigation, the CBSA identified thirteen potential exporters, which collectively accounted for 97% of the total value of subject goods originating in the United States and exported to Canada during the POI.  The CBSA sent a dumping Request for Information (RFI) to each of these selected exporters.  Non-selected exporters were not requested to provide a response to an RFI.  Complete submissions were received from 5 exporters of subject goods.  In addition, a reply from 1 exporter was received stating that the respondent had not exported subject goods during the period of investigation.

Exporters - Korea

  1. At the time of the initiation of the investigation, the CBSA identified 15 exporters of subject goods of Korean origin. The CBSA sent a dumping RFI to 11 exporters in Korea and 4 exporters located in the United States that also exported subject goods of Korean origin.  Submissions were received from 5 of the exporters.  Additional exporter and importer replies were received indicating that 6 of the exporters identified at the initiation of the investigation had not exported subject goods during the period of investigation.

Exporters - China

  1. At the time of the initiation of the investigation, the CBSA had identified 90 exporters of exported subject goods of Chinese origin.  However, a majority of the exporters shipped small quantities and 15 of the exporters identified by the CBSA accounted for 84% of the total value of imports of subject goods.  The CBSA sent a dumping RFI to each of the 15 selected exporters, some of whom exported subject goods of Chinese origin through the United States.  Non-selected exporters were not requested to respond to an RFI.  The CBSA also sent a subsidy RFI to all selected exporters as well as to the Government of China (GOC).  Submissions were received from 2 exporters.  An additional 4 exporter replies were received stating that the respondent had not exported subject goods during the period of investigation.

Importers

  1. At the initiation of the investigation, 77 importers were identified as having imported goods from the selected exporters in the United States, Korea and China.  The CBSA sent an RFI to each of the 77 selected importers.  Responses to the CBSA’s RFI were received from 17 importers.  During the investigation, additional importers in Canada were identified based on information provided by exporters.  As a result of this information, the number of importers identified as having imported subject goods from the selected exporters has increased to 151.

PRODUCT DEFINITION

  1. For the purpose of this investigation, the subject goods are defined as:

    Solder joint pressure pipe fittings and solder joint drainage, waste and vent pipe fittings, made of cast copper alloy, wrought copper alloy or wrought copper, for use in heating, plumbing, air conditioning and refrigeration applications, originating in or exported from the United States of America, the Republic of Korea and the People’s Republic of China, restricted to the products enumerated in Appendix 1.

  2. Appendix 1 contains a specific listing of copper pipe fittings, that constitute subject goods, broken down into the following categories: Adaptors (female, male and other); Bushings; Couplings; Elbows; Flanges; Pressure Tees; Unions; P/S traps; DWV TY’s; DWV Y’s; and Caps and Cleanouts.

  3. For further clarity, Appendix 1 contains explanatory notes covering size (i.e., metric vs. imperial) as well as nominal vs. inside diameter and type of fitting (i.e., cast vs. wrought).  Appendix 1 also contains an Abbreviation Chart used in the list of models of copper pipe fittings.

ADDITIONAL PRODUCT INFORMATION

  1. Solder joint copper pipe fittings are used to connect copper pipes, tubes or other fittings to one another.  The methods of joining Copper Fittings include soldering, silver brazing and epoxy or similar gluing techniques.  The connections are made by fitting two pieces together and heating the ends of the tubing and fitting, and filling the gap between the two with melted solder which solidifies on cooling to form a strong, leak proof connection.  The fittings can also be used to connect copper tubing to other metal systems by use of threaded fittings.  However, at least one end of a fitting is always soldered.  Finally, the connection can also be made using epoxy or similar gluing methods.

  2. Solder joint copper pipe pressure fittings may be used in conveying liquids (e.g. potable water), gases and air under pressure in residential, industrial, commercial and institutional buildings.  Copper pipe pressure fittings are also used in a variety of air-conditioning and refrigeration (ACR) applications.  The types of fittings used in air conditioning applications are typically identified by reference to their outside diameters, whereas the same fittings used in non-air conditioning applications such as plumbing and heating are typically identified by reference to their inside or “nominal” diameters.  Apart from the reference to diameter, a fitting for an air conditioning application is the same as a fitting for a non-air conditioning application.

  3. Solder joint copper pipe drainage, waste and vent (DWV) fittings are used primarily to convey waste from buildings to sewers and for venting purposes under low-pressure conditions.

  4. Female and male adaptors are used to connect a copper tube to an iron pipe or a water heater.  Other adapters include ferrules that are used to join a copper tube to a cast-iron pipe in older installations.  Bushings are used to reduce the diameter of other fittings.  Couplings are used to join tubes of either the same size or two different sizes to make longer runs through buildings.  Elbows are used to change the direction of a copper tube by either 45° or 90°.  Flanges and unions are used to provide a connection that can be either unscrewed or unbolted for maintenance or repairs.  Tees are used to allow a copper line to be split into two separate lines.  There are pressure tees and drainage tees; TY’s (90°) and Y’s (45°).  Traps are used to trap water to prevent sewer gases from coming back into a building.  Cleanouts are used to provide access to drainage systems in case of blockage; and caps are removable plugs used to permit inspection and access for the purpose of clearing an obstruction.

  5. Solder joint pipe fittings manufactured in Canada and the United States are made to the standards of the ASME (American Society of Mechanical Engineers) / ANSI (American National Standards Institute) and to the standards of the MSS (Manufacturers Standardization Society).

  6. Details concerning the production process of copper pipe fittings were provided in the Statement of Reasons issued for the initiation of the investigation.  This document is available on the CBSA Web site at:  http://www.cbsa-asfc.gc.ca/sima-lmsi/i-e/menu-eng.html.

CLASSIFICATION OF IMPORTS

  1. The subject goods are properly classified in Chapter 74 of the Customs Tariff under the following Harmonized System (HS) classification numbers:

    HS 74.12 Copper tube or pipe fittings (for example, couplings, elbows, sleeves).
     
    7412.10.00 of refined copper
     
    7412.10.00.11 Pressure type: Wrought
     
    7412.10.00.19 Pressure type: Other
     
    7412.10.00.20 Drainage type
     
    7412.20.00 of copper alloys
     
    7412.20.00.11 Pressure type: Forged
     
    7412.20.00.12 Pressure type: Cast
     
    7412.20.00.19 Pressure type: Other
     
    7412.20.00.20 Drainage type


  2. It should be noted that the subject goods encompass a subset of the products that fall within these HS numbers as they relate only to soldered joint copper pipe fittings of certain dimensions.

CANADIAN INDUSTRY

  1. Cello was founded in 1946 in Cambridge, Ontario as a manufacturer of cast copper alloy solder joint pipe fittings.  Wrought copper and wrought copper alloy solder joint pipe fittings were added to the product line in the 1960's.  Today, Cello produces an extensive line of wrought and cast brass copper pipe fittings, in sizes ranging from ⅛-in. to 8-in.  In addition to manufacturing the goods subject to the complaint, Cello manufactures brass fittings and flanges.  Cello employs approximately 75 people.

  2. Bow Plumbing Group Inc. (Bow) was founded in 1949 as a manufacturer of various plastic products including some specialty plumbing items.  Bow began production of wrought copper and wrought copper alloy solder joint pipe fittings in 1991 when the company acquired the assets of Emco Canada, a former manufacturer of copper pipe fittings.

  3. Prior to initiation, the CBSA confirmed that Cello met the standing requirements of subsection 31(2) of SIMA.  There has been no change in the structure of the Canadian industry since the initiation of the investigation.

IMPORTS INTO CANADA

  1. During the final phase of the investigation, the CBSA further refined its estimates of the volume of imports from all sources.  For this purpose, the CBSA utilized its internal information system, reviewed customs accounting documents and examined information received during the investigation from importers and exporters.

  2. The CBSA’s revised statistics regarding importations of subject goods based on information gathered during the final phase of the investigation, are presented in the following table:

    Apparent Canadian Imports (April 1, 2005 to March 31, 2006) 1

    Imports into Canada Volume (pounds) Import Share (%)
    United States 3,538,932 32%
    China 2,724,441 24%
    Korea 2,580,083 23%
    Total Imports from Subject Countries 8,843,456 79 %
    Total Imports from Non‑subject Countries 2,378,450 21%
    Total Imports 11,221,906 100%


INVESTIGATION PROCESS

  1. At the time of the initiation of the investigation, the CBSA requested information from selected exporters to determine the normal values, export prices, and amounts of subsidy for the subject goods.  Details on the number of selected exporters are contained in the section titled “Interested Parties” in this Statement of Reasons.  Non-selected exporters were not requested to respond to an RFI.  Information concerning imports of the subject goods was also requested from selected importers.

  2. In conducting its investigation, the CBSA requested that selected exporters and importers provide sales and cost information necessary to determine the normal values and export prices of the subject goods.  Information was also requested from the GOC and producers and exporters located in China in order to determine the amount of subsidy, if any, applicable to the subject goods.

  3. Information concerning export prices and import volumes was requested from 77 importers.  In addition, RFIs concerning dumping were sent to 18 exporters in the United States, including 4 exporters of subject goods of Korean origin and 1 exporter of subject goods of Chinese origin.  Dumping RFIs were also sent to 11 exporters in Korea and to 9 exporters in China, and 6 exporters of subject goods of Chinese origin located outside of China.  All of the RFIs included instructions indicating that exporters that were not the manufacturer of the goods were to forward a copy of the RFI to the respective manufacturer in the United States, Korea or China.

  4. RFIs relating to the subsidy investigation were sent to 9 exporters in China, and 6 exporters of subject goods of Chinese origin located outside of China, as well as to the GOC via that country’s local embassy.

  5. Complete RFI responses involving the dumping investigation were received from 5 exporters located in the United States, 1 exporter located in Korea and 2 exporters located in China (both of which also responded to the subsidy RFIs).  During the investigation, the CBSA confirmed that 1 of the selected exporters in the United States did not export subject goods during the POI, 6 of the selected exporters in Korea did not export subject goods during the POI and 4 of the selected exporters in China did not export subject goods during the POI.  The remaining selected exporters that were requested to provide a response to an RFI did not provide a response or did not provide a complete response.

  6. A complete response to the CBSA's subsidy RFI was also received from the GOC.

  7. Submissions were also received from 17 importers, 4 of which are related to United States exporters.

DUMPING INVESTIGATION

  1. Normal values are generally based on the domestic selling prices of the goods in the country of export or based on the total cost of the goods (cost of production, administrative, selling and all other costs) plus an amount for profit.

  2. The export price of imported goods is generally established as the lesser of the importer’s purchase price or the exporter’s selling price to Canada, less all of the costs and expenses related to exporting the goods.  When the total export price is less than the total normal value, the difference is the margin of dumping.  Where information submitted to the CBSA by exporters was found to be substantially complete, such information was used to determine the margins of dumping.

  3. With respect to the exporters in which company-specific information was utilized for the final determination, the normal value and export price was determined for each model shipped to Canada.  The margin of dumping for each of the exporters was then determined by subtracting the total export price from the total normal value for all of the sales made to Canada during the POI.  As such, any sales made at prices that were not dumped reduced the overall margin of dumping for that particular exporter.

  4. For those exporters that were requested to provide a response to the RFI (the selected exporters) and did not provide a complete response, normal values were determined by advancing export prices by the highest margin of dumping from the results found for co-operative exporters based on a ministerial specification pursuant to section 29 of SIMA.

  5. For those exporters that were not requested to provide a response to the RFI (the non-selected exporters), normal values were determined based upon the weighted average margin of dumping determined for cooperative exporters, excluding those exporters with a margin of dumping that is insignificant (less than 2% of the export price) pursuant to subsection 25.2(3) of the SIMR.

  6. In calculating the weighted average margin of dumping of a country, the overall margins of dumping found in respect of each exporter were weighted according to the volume of subject goods exported to Canada during the POI.

  7. Under Article 15 of the WTO Anti-dumping Agreement, developed countries are to give regard to the special situation of developing country members when considering the application of anti-dumping measures under the Agreement.  Possibilities of constructive remedies provided for, under the Agreement, are to be explored before applying anti-dumping duty where they would affect the essential interests of developing country members.

  8. As China is listed under Part I of the DAC List of Aid Recipients2 maintained by the Organization for Economic Co-operation and Development (OECD), the President recognizes China as a developing country for purposes of actions taken pursuant to SIMA.  In this particular investigation, this obligation was met by providing the opportunity for exporters to submit price undertakings.  The CBSA did not receive any proposals for undertakings from any of the identified exporters.

RESULTS OF THE DUMPING INVESTIGATION - UNITED STATES

  1. RFIs concerning dumping were sent to 13 companies in the United States regarding the export of subject goods originating in the United States.  During the investigation, it was found that 1 of these companies did not export subject goods to Canada during the POI.  Of the remaining 12 selected exporters of subject goods originating in the United States that were requested to provide a response to the CBSA’s RFI, complete responses were received from 5 companies, 3 of which were the subject of on-site verification during the end of August and early September, 1 which was the subject of on-site verification in November and 1 which was the subject of a desk audit verification.  Specific details relating to each of the exporters that provided a response to the RFI are as follows:

    Company Name Designation Location
    Barnes Distribution Distributor Cleveland, OH
    Elkhart Products Corporation Producer Elkhart, IN
    Mueller Industries, Inc. Producer Memphis, TN
    Nibco, Inc. Producer Elkhart, IN
    United Refrigeration, Inc. Distributor Philadelphia, PA

Barnes Distribution

  1. Submissions were received from Barnes Distribution and its related importer, Barnes Distribution Canada.  The submissions were deemed to be comprehensive and acceptable for purposes of the final determination.

  2. Barnes Distribution is an international, full-service distributor of maintenance, repair and operating (MRO) supplies, with head offices located in Cleveland, Ohio.  Barnes Distribution is a business unit of Barnes Group Inc. (NYSE: B) a publicly traded company.   Barnes Distribution purchases copper pipe fittings from suppliers who are either manufacturers or distributors. All of the subject goods exported to Canada were produced by Nibco Inc.
a) Normal Value
  1. Barnes Distribution sells the subject goods in both its domestic market in the United States and for export.  Since Barnes Distribution had sales of like goods in the United States, normal values were determined for the majority of its products pursuant to section 15 of SIMA, based on profitable domestic sales.  In situations in which there were no domestic sales, or domestic sales were not made at a profit, normal values were determined pursuant to paragraph 19(b) of SIMA, based on the aggregate of the full cost of production of the goods, plus a reasonable amount for all general, selling, administrative and other costs, plus a reasonable amount for profits.  For purposes of the final determination, the amount for profit was based on the profit earned by Barnes Distribution on sales of similar models sold in the domestic market.

  2. Since Barnes Distribution is a distributor, not a producer of subject goods, Barnes’ acquisition price for the subject goods was compared to the producer’s total cost of goods sold to ensure the acquisition price was sufficient to include all of the producer’s costs. As a result of this comparison, the acquisition price was deemed acceptable for purposes of determining normal values under section 15 and paragraph 19(b) of SIMA.
b) Export Price
  1. Barnes Distribution sells its product to a related importer in Canada, Barnes Distribution Canada. As such, an analysis was conducted in order to determine if the export price as determined pursuant to section 24, based on the lesser of the exporter’s selling price or importer’s purchase price, was reliable.  This analysis was conducted by comparing the export price as determined pursuant to section 24 with the section 25 “deductive” export price, based on the importer’s resale price of the imported goods in Canada, less deductions for all costs incurred in preparing, shipping and exporting the goods to Canada, all costs incurred in re-selling the goods (including duties and taxes), and an amount representative of the average industry profit in Canada.  (Further details of the calculation of the average industry profit can be found in the “Industry Profit in Canada” section below).

  2. The results of the reliability analysis revealed that Barnes Distribution’s export prices determined under section 24 of SIMA were not reliable.  As such, export prices were determined under paragraph 25(1)(c) of SIMA. As the total export price determined under paragraph 25(1)(c) of SIMA was a negative number, the total margin of dumping was expressed as a percentage of the total export price determined under section 24.
c) Margin of Dumping
  1. The total normal value was compared with the total export price for all subject goods imported into Canada during the POI.  It was found that the subject goods exported by Barnes Distribution were dumped by a weighted average margin of dumping of 221%, expressed as a percentage of the section 24 export price.  The margins of dumping ranged from 8% to 594% of the section 24 export price.

Elkhart Products Corporation

  1. Submissions in response to the RFIs were received from Elkhart Products Corporation (Elkhart) and its related Canadian importer Elkhart Products Ltd. (Elkhart Canada).  On-site verification of the submissions took place during the last week of August 2006, and the submissions were deemed to be comprehensive and acceptable for purposes of the final determination.

a) Normal Value
  1. Elkhart produces the subject goods for both its domestic market in the United States and for export.  Since Elkhart had sales of like goods in the United States, normal values were determined for the majority of its products pursuant to section 15 of SIMA, based on profitable domestic sales.  In situations in which there were no domestic sales, or domestic sales were not made at a profit, normal values were determined pursuant to paragraph 19(b) of SIMA, based on the aggregate of the full cost of production of the goods, plus a reasonable amount for all general, selling, administrative and other costs, plus a reasonable amount for profits.  For purposes of the final determination, the amount for profit was based on the profit earned by Elkhart on sales of similar models sold in the domestic market.

  2. An adjustment pursuant to section 6 of the Special Import Measures Regulations (SIMR) was made to the price of the like goods to account for prompt payment discounts and deferred rebates.

  3. A number of products Elkhart sold to Canada involve cast copper pipe fittings sourced from an unrelated producer in the United States.  Approximately 50% of these transactions involve product that was shipped directly to Canada from this unrelated producer.  In these instances, the unrelated producer is considered the exporter for SIMA purposes.  As such, these transactions were removed from the Elkhart margin of dumping calculation.  In instances in which Elkhart took possession of the cast copper pipe fittings which it subsequently exported to Canada, an analysis of the acquisition price paid by Elkhart is required in order to determine whether the price paid by Elkhart was above the total cost of the goods.  The CBSA did not receive a response from the manufacturer, and as such a comparison of the acquisition price paid by Elkhart for the externally sourced products was made with comparable products produced by another manufacturer in the United States for which the CBSA had information.  In all cases the CBSA was able to confirm the acquisition price was above the total cost of the goods, and as such, the acquisition price was accepted and formed part of the cost for the calculation of the normal value.
b) Export Price
  1. Elkhart sells its products to a related company in Canada, Elkhart Canada.  As such, an analysis was conducted in order to determine if the export price as determined pursuant to section 24, based on the lesser of the exporter’s selling price or importer’s purchase price, was reliable.  This analysis was conducted by comparing the export price as determined pursuant to section 24 with the section 25 “deductive” export price, based on the importer’s resale price of the imported goods in Canada, less deductions for all costs incurred in preparing, shipping and exporting the goods to Canada, all costs incurred in re-selling the goods (including duties and taxes), and an amount representative of the average industry profit in Canada.  (Further details of the calculation of the average industry profit can be found in the “Industry Profit in Canada” section below).

  2. The results of the reliability analysis revealed that Elkhart’s export prices determined pursuant to section 24 of SIMA were unreliable.  As such, the export prices were determined using the methodology in section 25 of SIMA based on a “deductive” export price, based on the importer’s resale price of the imported goods in Canada, less deductions for all costs incurred in preparing, shipping and exporting the goods to Canada, all costs incurred in re-selling the goods (including duties and taxes), and an amount representative of the average industry profit in Canada.
c) Margin of Dumping
  1. The total normal value was compared with the total export price for all subject goods imported into Canada during the POI.  The total export price exceeded the total normal value, and as a result, the subject goods exported to Canada by Elkhart were not dumped.

Mueller Industries, Inc.

  1. Submissions in response to the RFIs were received from Mueller Industries, Inc. (Mueller) and its related importer in Canada.  On-site verification of the submissions took place during the last week of November 2006, and the submissions were deemed to be comprehensive and acceptable for purposes of the final determination.
a) Normal Value
  1. Mueller produces the subject goods for both its domestic market in the United States and for export.  Mueller had sales of like goods in the United States.  Normal values were determined for the majority of its products pursuant to section 15 of SIMA, based on profitable domestic sales of like goods.  In situations where there were no domestic sales, or domestic sales were not made at a profit, normal values were determined pursuant to paragraph 19(b) of SIMA, based on the aggregate of the cost of production of the goods, plus a reasonable amount for administrative, selling and all other costs, plus a reasonable amount for profits.  For purposes of the final determination, the amount for profit was based on the profit earned by Mueller on sales of goods of the same general category in the domestic market.  For a small portion of the models exported to Canada by Mueller, certain cost information necessary to determine normal values was not provided, and therefore the information submitted was not adequate for determining normal values under section 15 or paragraph 19(b) of SIMA.  As a result, for these models, normal values were determined based on a ministerial specification pursuant to section 29 of SIMA.

  2. An adjustment pursuant to section 6 of the SIMR was made in the determination of normal values to account for prompt payment discounts and deferred rebates.
b) Export Price
  1. During a portion of the period of investigation, Mueller sold the subject goods to a related company in Canada.  As such, an analysis was conducted in order to determine if the export prices for these sales as determined pursuant to section 24, based on the lesser of the exporter’s selling price or importer’s purchase price, was reliable.  This analysis was conducted by comparing the export price as determined pursuant to section 24 with the section 25 “deductive” export price, based on the importer’s resale price of the imported goods in Canada, less deductions for all costs incurred in preparing, shipping and exporting the goods to Canada, all costs incurred in re-selling the goods (including duties and taxes), and an amount representative of the average industry profit in Canada.  Further details of the calculation of the average industry profit can be found in the “Industry Profit in Canada” section below.

  2. The results of the reliability analysis revealed that Mueller’s export prices to its related customer determined pursuant to section 24 of SIMA were reliable.  As such, the export prices for all subject goods sold to customers in Canada by Mueller were determined under section 24 of SIMA, based on the exporter's selling price, less costs, charges and expenses arising from the exportation of the goods.
c) Margin of Dumping
  1. The total normal value was compared with the total export price for all subject goods imported into Canada during the POI. It was found that the subject goods exported by Mueller Industries, Inc. were dumped by a weighted average margin of dumping of 47%, expressed as a percentage of the export price.  The margins of dumping excluding anomalies ranged from less than 1% to 242%, expressed as a percentage of the export price.

Nibco, Inc.

  1. A submission in response to the RFI was received from Nibco, Inc. (Nibco).  On-site verification of the submission took place in September 2006, and the submission was deemed to be comprehensive and acceptable for purposes of the final determination.
a) Normal Value
  1. Nibco produces the subject goods for both its domestic and export markets.  Where Nibco had sufficient sales of like goods in the United States, normal values were determined based on these sales pursuant to section 15 of SIMA, using profitable domestic sales.  In situations where there were no domestic sales, or domestic sales were not made at a profit, normal values were determined pursuant to paragraph 19(b) of SIMA, based on the aggregate of the cost of production of the goods, an amount for selling, general and administrative expenses, plus an amount for profit.  The profit was based on the amount earned by Nibco on sales of similar models sold in the domestic market.

  2. A small quantity of subject goods exported by Nibco were purchased from other United States producers. During the final phase of the investigation, CBSA confirmed that Nibco’s acquisition price was equal to, or greater than the producer’s cost of producing and selling the goods. As a result, the acquisition price was deemed acceptable for the purpose of determining normal values under section 15 and paragraph 19(b) of SIMA.
b) Export Price
  1. As Nibco sold subject goods to unrelated importers in Canada, export prices were determined under section 24 of SIMA, based on the exporter's selling price, less costs, charges and expenses arising from the exportation of the goods.
c) Margin of Dumping
  1. The total normal value was compared with the total export price for all subject goods imported into Canada during the POI. It was found that the goods exported by Nibco Inc. were dumped by a weighted average margin of dumping of 26%, expressed as a percentage of the export price.  The margins of dumping ranged from less than 1% to 441%, expressed as a percentage of the export price.

United Refrigeration Inc.

  1. Submissions in response to the RFIs were received from United Refrigeration Inc. (URI) and its related Canadian importer United Refrigeration of Canada (UR Canada).  URI provided information pertaining to the sales and costs of like goods sold in the domestic market and of the goods exported to Canada.  On-site verification of the submissions took place in September 2006, and the submissions were found to be comprehensive and acceptable for purposes of the final determination.
a) Normal Value
  1. URI is a distributor of refrigeration, air conditioning and heating parts and equipment, including copper pipe fittings.  Where URI had sufficient sales of like goods in the United States, normal values were determined based on these sales pursuant to section 15 of SIMA, using profitable domestic sales.  In situations in which there were no domestic sales, or domestic sales were not made at a profit, normal values were determined pursuant to paragraph 19(b) of SIMA, as the aggregate of the cost of production of the goods, a reasonable amount for administrative, selling and all other costs, and a reasonable amount for profits.  The profit used in determining the normal values under paragraph 19(b) was based on URI’s profits made on domestic sales of goods of the same general category.

  2. Since URI is a distributor, an examination of the acquisition price was made in order to determine whether the price paid by URI was above the total cost of the goods.  In most cases the CBSA was able to confirm the acquisition price was above the total cost of the goods.  As such, the acquisition price was deemed acceptable for the purposes of determining normal values under section 15 and paragraph 19(b) of SIMA.
b) Export Price
  1. URI sells its products to a related company in Canada, UR Canada.  As such, an analysis was conducted in order to determine if the export price pursuant to section 24, based on the lesser of the exporter’s selling price or importer’s purchase price, was reliable.  This analysis is conducted by comparing the export price as determined pursuant to section 24 with the section 25 “deductive” export price, based on the importer’s resale price of the imported goods in Canada, less deductions for all costs incurred in preparing, shipping and exporting the goods to Canada, all costs incurred in re-selling the goods (including duties and taxes), and an amount representative of the average industry profit in Canada.  (Further details of the calculation of the average industry profit in Canada can be found in the “Industry Profit in Canada” section below.)

  2. The results of the reliability analysis revealed that URI’s export prices determined pursuant to section 24 of SIMA were generally reliable.  As a result, export prices were determined using the methodology in section 24 of SIMA, on the basis of the exporter's selling price less all costs, charges and expenses arising from the exportation of the goods.
c) Margin of Dumping
  1. The total normal value was compared with the total export price for all subject goods imported into Canada during the POI.  It was found that the goods exported by URI were dumped by a weighted average margin of dumping of 28%, expressed as a percentage of export price.  The margins of dumping ranged from 1% to 201%, expressed as a percentage of export price.

Other Exporters of Subject Goods Originating in the United States

  1. The margin of dumping for exporters of goods originating in the United States that were not part of the CBSA’s selection and were not requested to provide a response to the CBSA is determined to be 37%, and is based on the weighted average margin of dumping determined for cooperative exporters, in the United States, as provided for in paragraph 25.2(2)(a) of the SIMR.  In determining the weighted average margin of dumping for cooperative exporters, those exporters with an insignificant margin of dumping (less than 2% of the export price) were excluded, pursuant to subsection 25.2(3) of the SIMR.

  2. The normal values for exporters of subject goods in the United States that were part of the CBSA’s selection of exporters, and either did not respond to the CBSA’s RFI, or did not provide a complete response to the RFI, were determined pursuant to a ministerial specification under section 29 of SIMA.  According to the ministerial specification, normal values were based on the export price of the goods plus an advance of 242%, representing the amount expressed in percentage terms, by which the normal value exceeded the export price on an individual sales transaction during the POI.  Therefore the resulting weighted average margin of dumping for these exporters was determined to be 242% as a percentage of the export price.

  3. The summary of results relating to the dumping investigation involving the United States reveals that approximately 80% of the volume of subject goods was dumped by a weighted average margin of dumping of 108%, expressed as a percentage of the export price.

Industry Profit in Canada

  1. When an exporter sells product to a related importer in Canada an analysis must be conducted in order to determine if the export price as determined pursuant to section 24, based on the lesser of the exporter’s selling price or importer’s purchase price, is reliable.  This analysis is conducted by comparing the section 24 export price with the section 25 “deductive” export price, based on the importer’s resale price of the imported goods in Canada, less deductions for all costs incurred in preparing, shipping and exporting the goods to Canada, all costs incurred in re-selling the goods (including duties and taxes), and an amount representative of the average industry profit in Canada.

  2. Section 22, paragraphs (a) to (c), of the SIMR prescribes the methods by which the amount for the average industry profit may be determined.

    • Paragraph (a) refers to the amount of profit that generally results from sales of like goods in Canada by vendors, who are at the same or substantially the same trade level as the importer, to purchasers who are not related with those vendors;

    • Paragraph (b) refers to the amount of profit that generally results from sales of goods of the same general category in Canada by vendors, who are at the same or substantially the same trade level as the importer, to purchasers in Canada who are not associated with those vendors, and;

    • Paragraph (c) refers to the amount of profit that generally results from sales of goods that are of the next largest to the category referred to in paragraph (b); by vendors in Canada who are not associated with those vendors.

  3. Paragraphs 22 (a) to (c) of the SIMR are applied in sequence.  Thus, it is the CBSA policy to always consider and examine the profits on the narrowest group or range of goods of the same class or kind, for which sufficient information can be obtained.

  4. All known importers of the subject goods were sent a RFI at the time of the initiation of the investigation.  That RFI contained a request for financial statement information in order that an industry profit might be determined for the POI.  This also resulted in information being requested from the Canadian producers, as they are also importers of some of the subject goods.

  5. Of the responses received, 7 vendors were determined to have operated at a profit during the POI.  Two responses, involve vendors that fall within paragraph 22(b) of the SIMR – “same general category”.  Both companies operated at a profit during the POI, however, were the CBSA to base the amount for profit solely on these two companies, confidential information could be released due to the limited number of companies involved.

  6. The remaining 5 responses involve vendors that fall within paragraph 22(c) of the SIMR – “the next largest category”.  All of these firms operated at a profit during the POI.

  7. If no amount for profits can be ascertained under either paragraphs 22(a) or (b), then paragraph 22(c) authorizes the use of profits realized on sales in Canada on goods of a broader range than under the previous method, that is, on goods that are of the group or range of goods that is next largest to the goods of the same general category. This category of goods should include the imported goods as well as goods of the same general category as those under investigation.

  8. Therefore, the industry profit amount was determined in the manner described in paragraph 22(c) of the SIMR, based on the profit information relating to the 7 vendors that operated at a profit during the POI and was calculated to be 8.31%.

RESULTS OF THE DUMPING INVESTIGATION - KOREA

  1. The CBSA sent RFI’s to 15 selected exporters at the initiation of the investigation.  Responses were received from five of these exporters.  All five responses were initially determined to be incomplete.  Supplementary RFI’s were sent to each of the five exporters.  Responses to the supplemental RFIs were received from four of the five exporters, however three of these were also deemed incomplete by the CBSA.  As such, the CBSA received only one complete response to its RFI’s as follows:

    Company Name Designation Location
    Jungwoo Metal Industry Co., Ltd. Producer Seoul, Korea

Jungwoo Metal Industry Co., Ltd.

  1. Submissions were received from Jungwoo in response to the CBSA’s original and supplemental RFI’s.  The submissions were deemed to be comprehensive and acceptable for purposes of the final determination.  On-site verification of the submissions took place during the first week of November 2006.

  2. Jungwoo is an international manufacturer and distributor of copper pipe fittings, with head offices located in Seoul, Korea.  Jungwoo is a privately owned company.

a) Normal Value
  1. Jungwoo produces the subject goods for both its domestic market in Korea and for export.  Since Jungwoo had sales of like goods in Korea, normal values were determined for many of its products pursuant to section 15 of SIMA, based on profitable domestic sales.  In situations in which there were no domestic sales, or domestic sales were not made at a profit, normal values were determined pursuant to paragraph 19(b) of SIMA, based on the aggregate of the full cost of production of the goods, plus a reasonable amount for all general, selling, administrative and other costs, plus a reasonable amount for profits.  For purposes of the final determination, the amount for profit was based on the profit earned by Jungwoo on sales of similar models sold in the domestic market.

  2. Adjustments were made to the price of the like goods pursuant to section 5 of SIMR for differences in structure, design, warranty and credit terms between the product sold domestically and the exported goods.  Adjustments were made pursuant to section 7 of SIMR to account for delivery costs in the domestic market.  Adjustments were also made pursuant to section 10 of SIMR to account for duty drawback received on exported goods.
b) Export Price
  1. As Jungwoo sold subject goods to unrelated importers in Canada, export prices were determined under section 24 of SIMA, based on the exporter's selling price, less costs, charges and expenses arising from the exportation of the goods.
c) Margin of Dumping
  1. The total normal value was compared with the total export price for all subject goods imported into Canada during the POI.  It was found that 100% of the subject goods exported by Jungwoo were dumped by a weighted average margin of dumping of 1.9%, expressed as a percentage of the section 24 export price.  The margins of dumping ranged from less than 1% to 261% of the section 24 export price.

Other Exporters of Subject Goods Originating in Korea

  1. For those exporters that were not part of the CBSA’s selection, normal values were established by advancing the export price by the weighted average margin of dumping found for the sampled cooperative exporters.  This approach is consistent with the methodology set out in section 30.3 of SIMA, which is used to determine the margin of dumping for non-selected exporters.  When conducting an investigation using sampling, the legislation does not permit any margin of dumping that is insignificant to be taken into account in the determination of the weighted average margin of dumping.  Furthermore, the legislation requires that the weighted average margin of dumping for non-sampled exporters be determined based on the sampled cooperative exporters of that country, and where this cannot be done, the weighted average is then determined based on the sampled cooperative exporters from all other countries involved in the investigation.

  2. Due to insignificant margins involving the selected exporters in Korea and China, there is only one rate based on United States exporters, as provided for in paragraph 25.2(2)(b) of the SIMR.  As, such the margin of dumping for exporters of goods originating in Korea that were not part of the CBSA’s selection and were not requested to provide a response to the CBSA is determined to be 37%, on the basis of information provided by cooperating exporters in the United States.   In determining the weighted average margin of dumping for cooperative exporters, those exporters with an insignificant margin of dumping (less than 2% of the export price) were excluded, pursuant to subsection 25.2(3) of the SIMR.

  3. The margin of dumping for exporters of goods originating in Korea that were part of the CBSA’s selection and either did not respond to the CBSA’s RFI, or provided an incomplete response, is based on the highest margin of dumping determined for cooperative exporters (excluding anomalies), based on a ministerial specification pursuant to section 29 of SIMA. The margin of dumping has been determined to be 242%, expressed as a percentage of the export price.

  4. The summary of results relating to the dumping investigation involving Korea reveals that approximately 100% of the volume of subject goods was dumped by a weighted average margin of dumping of 104%, expressed as a percentage of the export price.  The margins of dumping for the goods range from less than 1% to 261%, expressed as a percentage of the export price.

RESULTS OF THE DUMPING INVESTIGATION - CHINA

  1. Of those selected exporters requested to provide a response to the CBSA’s RFI, complete responses were received from 2 companies as follows:

    Company Name Designation Location
    Tianli Pipe Fitting Co. Ltd. Producer Zhejiang, China
    Zhuji City Howhi Air Conditioners Made Co., Ltd. Producer Zhejiang, China

Tianli Pipe Fitting Co. Ltd

  1. A submission in response to the RFI was received from Tianli Pipe Fitting Co. Ltd.  (Tianli).  On-site verification of the submission took place during the week of October 30, 2006, and the submission was deemed to be comprehensive and acceptable for purposes of the final determination.
a) Normal Value
  1. Tianli produces the subject goods for both its domestic market in China and for export.  Since Tianli had sales of like goods in China, normal values were determined for a portion of its products pursuant to section 15 of SIMA, based on profitable domestic sales.  In situations in which there were no domestic sales, or domestic sales were not made at a profit, normal values were determined pursuant to paragraph 19(b) of SIMA, based on the aggregate of the full cost of production of the goods, plus a reasonable amount for all general, selling, administrative and other costs, plus a reasonable amount for profits.  For purposes of the final determination, the amount for profit was based on the profit earned by Tianli on sales of similar models sold in the domestic market.

  2. An adjustment pursuant to section 5 of SIMR was made to the normal values to account for quality differences between domestic sales and sales to Canada.
b) Export Price
  1. As Tianli sold subject goods to an unrelated importer in Canada, export prices were determined under section 24 of SIMA, on the basis of the exporter's selling price less all costs, charges and expenses arising from the exportation of the goods.  A downward adjustment under subparagraph 24(a)(i) was made for the higher export packing costs incurred in preparing the goods for shipment to Canada that were additional to packing costs incurred on sales of likes goods in China.
c) Margin of Dumping
  1. The total normal value was compared with the total export price for all subject goods imported into Canada during the POI.  The total export price exceeded the total normal value, and as a result, the subject goods exported to Canada by Tianli were not dumped.

Zhuji City Howhi Air Conditioners Made Co., Ltd.

  1. A submission in response to the RFI was received from Zhuji City Howhi Air Conditioners Made Co., Ltd. (Howhi).  On-site verification of the submission took place during the week of November 6, 2006, and the submission were deemed to be comprehensive and acceptable for purposes of the final determination.
a) Normal Value
  1. Howhi produces the subject goods primarily for export with very insignificant domestic sales.  Since there were insignificant domestic sales, normal values were determined pursuant to paragraph 19(b) of SIMA, based on the aggregate of the full cost of production of the goods, plus a reasonable amount for all general, selling, administrative and other costs, plus a reasonable amount for profits.  For purposes of the final determination, the amount for profit was based on the profit earned by Howhi on sales of all products, which included non-subject goods.
b) Export Price
  1. As Howhi sold subject goods to an unrelated importer in Canada, export prices were determined under section 24 of SIMA, based on the exporter's selling price, less costs, charges and expenses arising from the exportation of the goods.
c) Margin of Dumping
  1. The total normal value was compared with the total export price for all subject goods imported into Canada during the POI.  The total export price exceeded the total normal value, and as a result, the subject goods exported to Canada by Howhi were not dumped.

Other Exporters of Subject Goods Originating in China

  1. For those exporters that were not part of the CBSA’s selection, normal values were established by advancing the export price by the weighted average margin of dumping found for the sampled cooperative exporters.  This approach is consistent with the methodology set out in section 30.3 of SIMA, which is used to determine the margin of dumping for non-selected exporters.  When conducting an investigation using sampling, the legislation does not permit any margin of dumping that is insignificant to be taken into account in the determination of the weighted average margin of dumping.  Furthermore, the legislation requires that the weighted average margin of dumping for non-sampled exporters be determined based on the sampled cooperative exporters of that country, and where this cannot be done, the weighted average is then determined based on the sampled cooperative exporters from all other countries involved in the investigation.

  2. Due to insignificant margins involving the selected exporters in Korea and China, there is only one rate based on United States exporters, as provided for in paragraph 25.2(2)(b) of the SIMR.  As, such the margin of dumping for exporters of goods originating in China that were not part of the CBSA’s selection and were not requested to provide a response to the CBSA is determined to be 37%, on the basis of information provided by cooperating exporters in the United States.   In determining the weighted average margin of dumping for cooperative exporters, those exporters with an insignificant margin of dumping (less than 2% of the export price) were excluded, pursuant to subsection 25.2(3) of the SIMR.

  3. The margin of dumping for exporters of goods originating in China that were part of the CBSA’s selection and either did not respond to the CBSA’s RFI, or provided an incomplete response, is based on the highest margin of dumping determined for cooperative exporters (excluding anomalies), based on a ministerial specification pursuant to section 29 of SIMA. The margin of dumping has been determined to be 242%, expressed as a percentage of the export price.

  4. The summary of results relating to the dumping investigation involving China reveals that approximately 93% of the volume of subject goods was dumped by a weighted average margin of dumping of 226%, expressed as a percentage of the export price.

SUMMARY OF RESULTS - DUMPING

Country Dumped Goods as Percentage of Country Imports Weighted Average Margin of Dumping * Country Imports as a Percentage of Total Imports Dumped Goods as a Percentage of Total Imports
United States 80% 108% 32% 25%
Korea 100% 104% 24% 24%
China 93% 226% 23% 22%

* as a percentage of export price

  1. In making a final determination of dumping in relation to goods imported from a country in the investigation, the President must be satisfied that the subject goods have been dumped and that the margin of dumping is not insignificant. Subsection 2(1) of SIMA defines insignificant as being less than 2% of the export price of the goods.  The table above indicates that the margin of dumping is not insignificant.

  2. For purposes of the preliminary determination of dumping, the President has responsibility for determining whether the actual or potential volume of dumped goods is negligible.  After a preliminary determination of dumping, the Tribunal assumes this responsibility.  In accordance with subsection 42(4.1) of SIMA, the Tribunal is required to terminate its injury inquiry in respect of any goods if the Tribunal determines that the volume of dumped goods from a country is negligible.

  3. Details regarding the margins of dumping determined by exporter and country are provided in Appendix 2.

Representations Concerning the Dumping Investigation

  1. Subsequent to the preliminary determination, the CBSA received representations from the complainants (Cello and Bow) relating to the CBSA’s preliminary determination of dumping for Nibco, Elkhart and Mueller.

NIBCO:

1. Failure to Provide a Complete Database of Domestic Sales

  1. A representation was made that since CBSA failed to obtain a complete database of all domestic sales for Nibco, it was not possible for CBSA to properly calculate normal values under section 15.

CBSA Response:

  1. After the exporter’s submission was received, CBSA had discussions with Nibco in order to determine if the domestic sales provided in the original response satisfied all of the conditions set out in section 15 of SIMA. In particular, that the customers selected were not associated with the exporter and that they were at the same or substantially the same level of trade as the major importer in Canada. After these discussions, CBSA was satisfied that the domestic sales included in the original submission were appropriate. As a result, it was not necessary for Nibco to provide information on all other domestic sales.

2. Selection of Domestic Customers for Major Importer

  1. A representation was made that, based on the selling activities performed by Nibco on sales to the major importer and on sales to the domestic customers included in the original submission, such domestic customers were not at the same trade level at the major importer.

CBSA Response:

  1. CBSA examined the selling activities performed by the importer on sales in Canada and the selling activities performed by the selected domestic customers in the home market, as well as the hierarchy of sales in both the domestic and export markets. As a result, CBSA is satisfied that the domestic customers used to determine normal values are at the same or substantially the same trade level as the major importer in Canada.

3. Selection of Domestic Customers for Other Importers

  1. It was noted that, in addition to the major importer, there were also two other importers in Canada during the period of investigation. Consequently, CBSA should have requested domestic sales to other customers at the same or substantially the same trade level as these two other importers in order to calculate normal values.

CBSA Response:

  1. As the total volume of importations made by these two other importers were less than one tenth of one percent of the total during the period of investigation, CBSA was of the opinion that such information was not necessary, as any difference in the overall margin of dumping would be insignificant.

4. Sales to A Single Customer

  1. Representations were made that even if the domestic customers selected by CBSA were at the same trade level as the major importer, sales of some products should not have been used to determine normal values under section 15, as such sales involved sales to a single customer in a 60 day period. These sales do not meet the requirements of paragraph 16(2)(a) of SIMA.

CBSA Response:

  1. CBSA is of the opinion that, due to the nature of the goods and the fact that there were only two domestic customers at the same or substantially the same trade level as the major importer, the requirements of paragraph 16(2)(a) would be satisfied if Nibco could demonstrate domestic sales of the same model to other customers in the same 60 day period. Where such sales did not occur, normal values were determined under paragraph 19(b) of SIMA.

5. Domestic Sales At Point of Direct Shipment

  1. Contrary to subsection 15(e) of SIMA, some domestic sales used to calculate normal values did not occur at the same point of direct shipment as the exports to Canada. Such sales should not have been used to calculate normal values under section 15.

CBSA Response:

  1. Paragraph 15(e) of SIMA requires that domestic sales must be made at the place where the goods under investigation were shipped directly to Canada. However, paragraph 16(1)(a) states that if there are not such a number of domestic sales to make a proper comparison, other domestic sales at different places of direct shipment may be used. CBSA was of the opinion that, as there were only two domestic customers at the same trade level as the major importer and that there were several hundred different models of subject goods, domestic sales at different places of direct shipment should be included in order to properly determine normal values under section 15 of SIMA.

6. Profitability Analysis for Each Nibco Plant

  1. A representation was made that since Nibco has multiple manufacturing plants, each manufacturing facility should be treated as a separate exporter for purposes of the profitability analysis and resulting normal value calculations.

CBSA Response:

  1. For purposes of this investigation, Nibco Inc., was treated as a single exporter, and the profitability analysis was performed on a model-by-model basis, as required by paragraph 16(2)(b) of SIMA. It should also be noted that the vast majority of models were only produced in a single Nibco plant.

7. Purchase Price of Subject Goods from Other Manufacturers

  1. Nibco’s submission indicated that some subject goods exported to Canada were purchased from other manufacturers. A representation was made that since CBSA cannot determine whether Nibco’s purchase price was above the other producer’s costs, such prices cannot be used to determine normal values.

CBSA Response:

  1. A small quantity of subject goods exported to Canada were purchased by Nibco from other manufacturers. As part of the final determination, a comparison was made between Nibco’s acquisition price and the other manufacturer’s cost of goods sold. As a result of this comparison, CBSA is satisfied that Nibco’s acquisition price is acceptable for purposes of determining normal values under section 15 and paragraph 19(b) of SIMA.

8. Financial Information

  1. A representation was made to the CBSA that since some of Nibco’s financial statements were not provided, Nibco should be treated as a non-cooperative exporter.

CBSA Response:

  1. CBSA is of the opinion that all financial statements necessary to determine normal values for the subject goods were provided by the exporter. Furthermore, Nibco was fully cooperative in all aspects of the investigation.

9. Cost of Production Information

  1. A representation was made to the CBSA that some of Nibco’s material and factory overhead costs were not provided. As a result, Nibco should be treated as a non-cooperative exporter.

CBSA Response:

  1. CBSA is of the opinion that all information respecting material and factory overhead costs required to determine normal values were provided by the exporter. Furthermore, Nibco was fully cooperative in all aspects of the investigation.

ELKHART:

1. Selection of Domestic Sales for Normal Value:

  1. A representation was made to the CBSA that it incorrectly selected the domestic sales that formed the basis of the normal value, and further compounded the problem by basing its selection on sales value. The complainants argue that the selection of domestic sales by the CBSA for normal value should have been based on all of Elkhart’s domestic customers rather than the subset of customers chosen by the CBSA.

CBSA Response:

  1. Elkhart provided the CBSA with a complete database of domestic sales during the POI for all customers. From this database the CBSA selected those customers that satisfied all of the conditions set out in section 15 of SIMA, in particular, those customers that were not associated with the exporter, that were at the same or substantially the same level of trade as the importer, in the same or substantially the same quantities as the importer at the place from which the goods were shipped directly to Canada. In determining the quantities of the domestic customers, the CBSA examined the value and volume of product purchased in order to ensure that the domestic customers purchased the subject goods in substantially the same quantities as the importer.

2. Elkhart’s Multiple Plant Operations

  1. The CBSA received a representation that since Elkhart has multiple manufacturing plants, each manufacturing facility must be treated as a separate exporter for purposes of the profitability analysis and resulting normal value calculations. Representations were further made that since each plant must be treated as a separate exporter, undumped sales from one manufacturing facility cannot offset dumped sales from another facility.

CBSA Response:

  1. Paragraph 15(e) of SIMA requires that the domestic sales must have been made at the place where the goods under investigation were shipped directly to Canada. If there are not such a number of domestic sales by the exporter at the point of direct shipment to Canada to make a proper comparison with exports to Canada, but there are domestic sales by the exporter at one other place or several other places, these sales at that other place or at the nearest of the several other places to the place of direct shipment to Canada shall be included with the sales at the place of direct shipment to Canada in accordance with paragraph 16(1)(a) of SIMA.

  2. All sales to Canada were shipped from Elkhart’s warehouse facility in Elkhart, Indiana. Similarly, the vast majority of domestic sales were shipped from the warehouse facility in Elkhart, Indiana, as such there is no issue involving sales from other Elkhart locations. (As was noted earlier in this document, a number of products Elkhart sold to Canada involve cast copper pipe fittings sourced from an unrelated producer in the United States and shipped directly to Canada from this unrelated producer. These transactions were removed from the Elkhart margin of dumping calculation for purposes of the final determination as the unrelated producer is considered the exporter for SIMA purposes).

3. Elkhart’s Costs

  1. The CBSA received a representation that the cost of production determined for Elkhart products was incorrect as it was based on standard costs, not actual costs of production. An additional representation was made concerning the allocation of freight costs.

CBSA Response:

  1. The costs of production determined by the CBSA were based on Elkhart’s standard costs plus variances for the fiscal periods encompassed by the POI. Furthermore, the CBSA included all costs attributable to the production of the goods including selling, general, administrative and other costs not included in standard costs. As such, the CBSA included all relevant costs in determining the total cost of the goods. As to the issue of freight costs, the CBSA cannot comment on the specifics of this matter, as it would result in the release of confidential information. The CBSA is satisfied, however, that the freight costs were properly allocated.

MUELLER:

Use of the highest margin of dumping

  1. On November 21, 2006, the CBSA received written representations from counsel on behalf of Mueller. In these representations, counsel for Mueller provided arguments that the CBSA should not have selected the highest margin of dumping found for a cooperative exporter to estimate the normal values and margins of dumping for Mueller for purposes of the preliminary determination.

CBSA Response:

  1. At the time of the preliminary determination, the CBSA found that information outstanding from Mueller was necessary to estimate normal values for subject goods exported to Canada by Mueller. At the time of the preliminary determination, it was the opinion of the CBSA that the outstanding information could be provided by Mueller.

  2. For purposes of the preliminary determination, the CBSA considered the alternative method proposed by Mueller to estimate normal values. However, there was no evidence on the record at the time of the preliminary determination to confirm that the alternative method proposed by Mueller would have been representative of the facts specific to Mueller. During the final phase of the investigation, Mueller provided information that was used by the CBSA to determine normal values for Mueller, for the most part, based upon the company’s domestic sales and cost information.

SUBSIDY INVESTIGATION

  1. In accordance with SIMA, a subsidy exists if there is a financial contribution by a government of a country other than Canada that confers a benefit on persons engaged in the production, manufacture, growth, processing, purchase, distribution, transportation, sale, export or import of goods. A subsidy also exists in respect of any form of income or price support within the meaning of Article XVI of the General Agreement on Tariffs and Trade, 1994, being part of Annex 1A to the WTO Agreement, that confers a benefit.

  2. Pursuant to subsection 2(1.6) of SIMA, a financial contribution exists where:

    • practices of the government involve the direct transfer of funds or liabilities or the contingent transfer of funds or liabilities;

    • amounts that would otherwise be owing and due to the government are exempted or deducted or amounts that are owing and due to the government are forgiven or not collected;

    • the government provides goods or services, other than general governmental infrastructure, or purchases goods; or

    • the government permits or directs a nongovernmental body to do any thing referred to in any of paragraphs (a) to (c) where the right or obligation to do the thing is normally vested in the government and the manner in which the nongovernmental body does the thing does not differ in a meaningful way from the manner in which the government would do it.

  3. If a subsidy is found to exist, it may be subject to countervailing measures if it is specific. A subsidy is considered to be specific when it is limited, in law, to a particular enterprise or is a prohibited subsidy. An "enterprise" is defined under SIMA as also including a "group of enterprises, an industry and a group of industries". A prohibited subsidy includes an export subsidy which is contingent, in whole or in part, on export performance or a subsidy or portion of a subsidy that is contingent, in whole or in part, on the use of goods that are produced or that originate in the country of export.

  4. Notwithstanding that a subsidy is not specific in law, a subsidy may also be considered specific having regard as to whether

    • there is exclusive use of the subsidy by a limited number of enterprises;

    • there is predominant use of the subsidy by a particular enterprise;

    • disproportionately large amounts of the subsidy are granted to a limited number of enterprises; and

    • the manner in which discretion is exercised by the granting authority indicates that the subsidy is not generally available

  5. For purposes of a countervailing duty investigation, the CBSA refers to a subsidy that has been found to be specific as an "actionable subsidy" meaning that it is subject to countervailing measures if the imported goods under investigation have benefited from the subsidy.

  6. Prior to the initiation of the investigation, the complainant submitted allegations that the subject goods from China are eligible for government programs that may constitute actionable subsidies.

  7. In support of its allegations, the complainant provided a number of documents detailing support offered by the Government of China (GOC), primarily to exporting enterprises and to those operating in Special Economic Zones, and identified various programs from previous CBSA subsidy investigations.

  8. At the initiation, the CBSA identified 36 potential subsidy programs in the following ten categories:

    1. Special economic zone (SEZ) incentives.
    2. Grants provided for export performance and employing common workers.
    3. Preferential loans.
    4. Loan guarantees by the GOC.
    5. Grants
    6. Preferential income tax programs.
    7. Relief from duties and taxes on materials and machinery.
    8. Reductions in land use fees.
    9. Purchase of goods from State-owned Enterprises.
    10. Zhejiang Province - Strategic Plan for Local Copper Processing Industry.

  9. Appendix 3 provides further details regarding the subsidy programs that were identified at the initiation of the investigation.

  10. In conducting its investigation, the CBSA sent questionnaires to identified exporters located in China, as well as to the GOC. These questionnaires requested information necessary to establish whether there had been financial contributions made by any level of government and, if so, to establish if a benefit had been conferred on persons engaged in the production, manufacture, processing, purchase, distribution, transportation, sale, export or import of the subject goods; and whether any resulting subsidy was specific in nature. The GOC was also requested to forward the questionnaires to all subordinate levels of government that had jurisdiction over the identified exporters.

  11. As China is listed under Part I of the DAC List of Aid Recipients3 maintained by the Organization for Economic Co-operation and Development (OECD), the CBSA has extended developing country status to China for purposes of this investigation. Therefore, China is eligible for the higher insignificance and negligibility thresholds for the termination of a subsidy investigation involving a developing country.

RESULTS OF THE SUBSIDY INVESTIGATION

  1. Responses to the CBSA’s subsidy questionnaires were received from two companies located in Zhejiang province, China, as well as from the GOC.

  2. For purposes of this investigation, the "Government of the People’s Republic of China" refers to all levels of government, including federal, central, provincial/state, regional, municipal, city, township, village, local, legislative, administrative or judicial levels. Benefits provided by state-owned enterprises operating under the direct or indirect control or influence of the GOC may also be considered to be provided by the GOC for purposes of this investigation.

  3. As noted above, the GOC provided a response to the subsidy questionnaire that was issued by the CBSA at the initiation of the investigation. Two separate supplemental questionnaires were also sent to the GOC after receiving the initial response. These supplemental questionnaires were sent to obtain further information other than that which was provided in the GOC’s initial response, as well as clarifications relating to the information received. In addition, on-site verification meetings were held in Hangzhou, the capital of Zhejiang province in November 2006, and involved representatives from various government departments at the provincial, municipal and township levels.

  4. At the conclusion of the preliminary determination, the CBSA has determined that seven alleged subsidy programs identified at the initiation were not further subject to the final phase of this investigation. For more details regarding the seven programs, please refer to the SOR issued for the preliminary determination of this investigation. The remaining 29 alleged subsidy programs were reviewed during the verification.

  5. Based on the CBSA’s review of the information submitted by the GOC, the cooperative exporters and the results of a verification, the CBSA has determined that the following 11 additional subsidy programs under investigation were not applicable to this investigation:

  6. These 3 programs are location-specific programs and none of the identified exporters shipping the subject goods are located in these specific zones.

    • Income tax refund of amounts further invested in the Hainan SEZ;

    • Preferential tax policies for enterprises with foreign investment recognized as high or new technology enterprises established in the State high or new technology industrial development zones, and for advanced technology enterprises invested in and operated by foreign businesses;

    • Preferential tax policies for enterprises recognized as high or new technology enterprises established in the State high or new technology industrial development zones;

  7. These 4 programs have been removed by the CBSA because none of the identified exporters are listed in the Annexes of the relevant Circulars to be eligible for the benefits under each of these programs.

    • Refund of import VAT of raw copper materials;
    • Preferential tax treatment for casting and forging products;
    • Preferential tax treatment for dies products;
    • Preferential tax treatment for numerically controlled machine tool products

  8. These 2 programs have been removed because the copper pipe fittings industry is not the targeted industry for each of the two programs.

    • Exemption/reduction in local income tax for SEZ enterprises;
    • Preferential tax policies for township enterprises;

  9. This program has not been found available to any of the Chinese exporters based on CBSA’s previous subsidy investigations involving China and this investigation.

    • Loan guarantees by the GOC;

  10. This program has been removed because the Strategic Plan has never been issued as an official document.

    • Zhejiang province – Strategic plan for local copper processing industry (Strategic Plan).

  11. For more details regarding the findings of all of the subsidy programs, please refer to Appendix 4.

AMOUNT OF SUBSIDY

  1. Based on the information provided by the co-operative exporters, the GOC and the results of the verification, it was determined that both Tianli and Howhi did not receive any benefits associated with the alleged subsidy programs during the POI. The amount of subsidy determined for Tianli and Howhi is zero.

  2. Due to the fact that only Tianli and Howhi responded to the CBSA’s subsidy questionnaire and these two exporters accounted for a small percentage of total imports from China during the POI, it is not appropriate to apply the results of Tianli and Howhi to uncooperative exporters. Therefore, the amount of subsidy determined for uncooperative exporters was determined according to ministerial specification pursuant to subsection 30.4(2) of SIMA.

  3. The amount of subsidy was determined by comparing the average export prices of six benchmark products with their respective costs of production (i.e. raw material and processing cost) of the same six benchmark products as determined by the CBSA. The amount of subsidy is equal to the highest amount of subsidy of the six benchmark products, which is 17.73 Renminbi per kilogram or 54%, expressed as a percentage of the export price.

  4. It was found that 91% of the goods exported were subsidized. The weighted average amount of subsidy is equal to 51%, expressed as a percentage of the export price. The amounts of subsidy for the goods range from 6% to 54%.

SUMMARY OF RESULTS - SUBSIDY

Country Subsidized Goods as a Percentage of Total Subject Goods Imported Weighted Average Amount ofSubsidy as a Percentage of Export Price Subsidized Goods as a Percentage of Total Imports from all Countrie
China 91% 51% 20%


  1. In making a final determination of subsidizing under subsection 41(1) of SIMA, the President must be satisfied that the subject goods have been subsidized and that the amount of subsidy on the goods of a country is not insignificant. According to subsection 2(1) of SIMA, an amount of subsidy that is less than 1% of the export price of the goods is considered insignificant.

  2. However, section 41.2 of SIMA directs the President to take into account the provisions of Article 27 of the Subsidies Agreement when conducting subsidy investigations, and these provisions stipulate that any investigation involving a developing country must be terminated as soon as the President determines that the total amount of subsidy for a developing country does not exceed 2% of the export price of the goods.

  3. The CBSA normally makes reference to Part I of the DAC List of Aid Recipients, maintained by the Organization for Economic Co-operation and Development, to determine eligibility for the differential amounts for developing countries in subsidy investigations. As China is a developing country according to this list, the 2% threshold for insignificance would apply. As the table above illustrates, the amount of subsidy found during this investigation is not insignificant. Details regarding the amounts of subsidy determined by exporter are provided in Appendix 2.

  4. For purposes of the preliminary determination of subsidizing, the President has responsibility for determining whether the actual or potential volume of subsidized goods is negligible. After a preliminary determination of subsidizing, the Tribunal assumes this responsibility. In accordance with subsection 42(4.1) of SIMA, the Tribunal is required to terminate its inquiry in respect of any goods if the Tribunal determines that the volume of subsidized goods from a country is negligible.

Representations Concerning the Subsidy Investigation

  1. Following the preliminary determination of subsidizing, the CBSA received representations from counsel for the GOC on various issues discussed below.

  2. The GOC stated that the program Development Fund for SMEs which was removed and not subject to the final phase of this investigation was not found to be limited, in law, to a particular enterprise, pursuant to paragraph 2(7.2)(a) of SIMA. The GOC also stated that the CBSA erred in its SOR issued for the preliminary determination for a "similar" program Funds for International Market Exploration by SMEs. The eligibility criteria for this program are objective and apply in a manner that does not favour to or is limited to a particular enterprise. The GOC stated that this program is not specific.

  3. In Appendix 4 of the SOR issued for the preliminary determination regarding the program Funds for International Market Exploration by SMEs, it was stated that "the international market development fund is considered to be an export subsidy pursuant to paragraph 2(1) of SIMA, as it is contingent, in whole or in part, on export performance". According to SIMA, a subsidy is considered to be specific when it is limited, in law, to a particular enterprise or is a prohibited subsidy. A "prohibited subsidy" includes an export subsidy which is contingent, in whole or in part, on export performance. The program Funds for International Market Exploration by SMEs is considered to be an export subsidy and therefore, it is considered to be specific.

  4. With respect to the program Purchase of Goods from State-owned Enterprises (SOEs), the GOC stated that SOEs are independent entities and are responsible for their own operations and losses. The GOC also stated that the GOC has no interference with SOEs and information requested by the CBSA regarding SOEs is not available to the GOC. The GOC further stated that information regarding utility services should not be requested by the CBSA as the price charged for utilities is determined based on market price and applies uniformly to all enterprises. The GOC concluded by stating that the program fails to meet the definition of "specificity" and should be removed from the investigation.

CBSA response:

  1. It is clearly stated in the CBSA’s subsidy questionnaire that, for purposes of this investigation, the GOC refers to all levels of government and includes any person, agency, state-owned enterprise, or institution acting for, on behalf of, or under the authority of any law passed by, the government of that country or that provincial, state, municipal or other local or regional government. Benefits provided by SOEs operating under the direct or indirect control or influence of the GOC are also considered to be provided by the GOC for purposes of this investigation.

  2. Based on the information provided by the co-operative exporters, it was determined that these exporters did obtain utility services from SOEs and these SOEs operate under the control of the municipality or province. In accordance with SIMA, goods or services provided by a government confer a benefit when they are provided at less than the fair market value of the goods or services in the territory of the government providing this subsidy. It is the CBSA’s responsibility to verify all information provided by the co-operative exporters as well as the GOC including state-owned utility companies and to determine whether any subsidy exists as a result of the provision of goods or services provided by SOEs.

  3. Regarding the methodology employed by the CBSA to estimate the amount of subsidy for the preliminary determination, the GOC stated that the CBSA has used a "constructed value" methodology in anti-dumping proceedings to determine the amount of subsidy, which is not permissible and inconsistent with the SCM Agreement of the WTO. The GOC also stated that the amount of subsidy should be determined based on the information provided by the Chinese co-operative exporters and the GOC.

  4. Prior to the preliminary determination of subsidizing, the information provided by the two co-operative exporters as well as the GOC was not verified, and the CBSA was unable to calculate specific subsidy amount for each exporter on a per program basis. Therefore, the CBSA used the best information available at the time of the preliminary determination to estimate the amount of subsidy for the Chinese exporters. With respect to the methodology used by the CBSA to estimate the amount of subsidy, it was based on the information provided by the complainant at the initiation of this investigation, and is reasonable and the best information available to the CBSA at the preliminary determination.

DECISION

  1. On the basis of the results of the investigation, the President is satisfied that certain copper pipe fittings originating in or exported from the United States, Korea and China have been dumped and that the margins of dumping are not insignificant. Consequently, on January 18, 2007, the President made a final determination of dumping pursuant to paragraph 41(1)(a) of SIMA.

  2. Similarly, the President is satisfied that certain copper pipe fittings originating in or exported from China have been subsidized and that the amounts of subsidy are not insignificant. As a result, on January 18, 2007, the President also made a final determination of subsidizing pursuant to paragraph 41(1)(a) of SIMA.

FUTURE ACTION

  1. The provisional period began on October 20, 2006, and will end on the date the Tribunal issues it’s finding. The Tribunal is expected to issue its decision by February 19, 2007. Subject goods imported during the provisional period will continue to be assessed provisional duty as determined at the time of the preliminary determination of dumping. For further details on the application of provisional duty, refer to the Statement of Reasons issued for the preliminary determination of dumping, which is available on the CBSA Web site at http://www.cbsa-asfc.gc.ca/sima-lmsi/menu-eng.html.

  2. If the Tribunal finds that the dumped goods have not caused injury and do not threaten to cause injury, all proceedings relating to this investigation will be terminated. In this situation, all provisional duty paid or security posted by importers will be returned.

  3. If the Tribunal finds that the dumped and/or subsidized goods have caused injury, the anti dumping and/or countervailing duty payable on subject goods released from customs during the provisional period will be finalized, pursuant to section 55 of SIMA. Imports released from customs after the date of the Tribunal’s finding will be subject to anti-dumping duty equal to the margin of dumping and/or countervailing duty equal to the amount of subsidy. In that event, the importer in Canada shall pay all such duty. If the importers of such goods do not indicate the required SIMA code or do not correctly describe the goods in the customs documents, an administrative monetary penalty (AMP) could be imposed. The provisions of the Customs Act apply with respect to the payment, collection or refund of any duty collected under SIMA. As a result, failure to pay duty within the prescribed time will result in the application of interest.

  4. Specific normal values and amounts of subsidy for the subject goods have been provided to the co-operating exporters. Should the Tribunal make an injury finding, these normal values and amounts of subsidy will come into effect the day after the date of the injury finding. Exporters that were not part of the CBSA’s selection of exporters will have normal values established by advancing the export price by 37%, based on a ministerial specification pursuant to section 29 of SIMA. Exporters that were part of the CBSA’s selection and either did not respond to the CBSA’s RFI, or provided an incomplete response, will have normal values established by advancing the export price by 242% based on a ministerial specification pursuant to section 29 of SIMA. Anti-dumping duty will apply based on the amount by which the normal value exceeds the export price of the subject goods.

  5. For exporters in China that did not respond to the CBSA’s subsidy RFI, a countervailing duty amount of 17.73 Chinese Renminbi per kilogram will be payable on imports of subject goods originating in or exported China, based on a ministerial specification pursuant to section 29 of SIMA.

RETROACTIVE DUTY ON MASSIVE IMPORTATIONS

  1. Under certain circumstances, anti-dumping duty can be imposed retroactively on subject goods imported into Canada. When the Tribunal conducts its inquiry on material injury to the Canadian industry, it may consider if dumped goods that were imported close to or after the initiation of the investigation constitute massive importations over a relatively short period of time and have caused injury to the Canadian industry. Should the Tribunal issue a finding that there were recent massive importations of dumped goods that caused injury, imports of subject goods released by the CBSA in the 90 days preceding the day of the preliminary determination could be subject to anti-dumping duty.

  2. In respect of importations of subsidized goods that have caused injury, however, this provision is only applicable where the President has determined that the whole or any part of the subsidy on the goods is a prohibited subsidy. In such a case, the amount of countervailing duty applied on a retroactive basis will equal the amount of subsidy on the goods that is a prohibited subsidy. As the President has not determined that any part of the subsidy on the goods is a prohibited subsidy, countervailing duty will not be imposed retroactively on subject goods imported into Canada.

PUBLICATION

  1. A notice of this final determination of dumping and subsidizing will be published in the Canada Gazette pursuant to paragraph 41(3)(a) of SIMA.

INFORMATION

  1. This Statement of Reasons has been provided to persons directly interested in these proceedings. It is also posted on the Directorate’s Web site at the address below. For further information, please contact the following officers:

    Telephone: Peter Dupuis 613-954-7341
    Scott Felx 613-954-7359
    Jody Grantham 613-954-7405
    Fax: 613-948-4844
    Email: simaregistry-depotlmsi@cbsa-asfc.gc.ca
    Mail: Canada Border Services Agency
    AntiDumping and Countervailing Program
    Trade Programs Directorate
    100 Metcalfe Street, 11th Floor
    Ottawa, Ontario  K1A 0L8
    Canada
    Web site: http://www.cbsa-asfc.gc.ca/sima


Darwin Satherstrom
A/Director General
Trade Programs Directorate


1. While the goods are properly classified under the applicable HS classification numbers identified above, the CBSA took into consideration HS classification numbers 7412.10.00.90 - Other and 7412.20.00.90 - Other, with the understanding that subject goods are on occasion misclassified. Importers are cautioned that declaring an incorrect HS code is subject to penalties under the CBSA’s Administrative Monetary Penalty System (AMPS).
2. OECD, Development Assistance Committee List of Aid Recipients - As at 1 January 2003, online: http://www.oecd.org/dataoecd/35/9/2488552.pdf
3. OECD, Development Assistance Committee List of Aid Recipients - As at 1 January 2003, online: http://www.oecd.org/dataoecd/35/9/2488552.pdf


APPENDIX 1 - LISTING OF COPPER PIPE FITTINGS UNDER INVESTIGATION

Solder joint pressure pipe fittings and solder joint drainage, waste and vent pipe fittings, made of cast copper alloy, wrought copper alloy or wrought copper, for use in heating, plumbing, air conditioning and refrigeration applications, originating in or exported from the United States of America, the Republic of Korea and the People’s Republic of China

The following information is to be taken into consideration in identifying copper pipe fittings (subject goods) being investigated by the Canada Border Services Agency (CBSA):

  1. The subject goods are identified in terms of imperial measurement, i.e. inches. The CBSA is also investigating subject goods that encompass the metric equivalents of the imperial measurement. The term metric equivalent refers to those fittings that are soft converted equivalents of the imperial sized fittings and does not include fittings made specifically in metric dimensions.

  2. The subject goods are identified either as a wrought product or as a cast product. Where a subject good contains an asterisk
    ("* ") the CBSA is investigating both the wrought product and the cast product.

  3. The subject goods are identified in terms of nominal size. Plumbing and heating fittings are marked according to nominal sizes that correspond to the inside diameters, while fittings for air conditioning and refrigeration are based on actual outer diameter sizes. The CBSA is also investigating subject goods that are described in terms of their outside diameter size. To determine the nominal size of a fitting that is measured in terms of it’s outside diameter size, always subtract ?" from the outside diameter size.

  4. The subject goods are identified using abbreviated terms provided by the complainant (Cello Products Inc.). The following is a list of the terms:

    Abbreviation Chart
    WP Wrought Pressure FTG Fitting End (Street End)
    WD Wrought Drainage LT Long Turn
    CP Cast Pressure MJ Mechanical Joint
    CD Cast Drainage DE Drop Ear
    C Copper Tube Cupped End or Sweat End DWV Drainage, Waste, Vent
    M Male NPT Thread TY 90˚ Drainage Tee
    FE Female NPT Thread Y 45˚ Drainage Tee
    SJ Slip Joint End    


Subject Copper Pipe Fittings Female Adapters

11/4 CXFE CD ADAPTER * 11/2 FTGXFE CD ADAPTER *
11/2 CXFE CD ADAPTER * 11/2 X 11/4 CXFE CD ADAPTER *
3 FTGXFE CD ADAPTER * 2 CXFE CD ADAPTER *
3 CXFE CD ADAPTER * 4 CXFE CD ADAPTER *
1/2 CXFE CP ADAPTER * 1/2 X 3/8 CXFE CP ADAPTER *
1/2 X 3/4 CXFE CP ADAPTER * 3/4 CXFE CP ADAPTER *
3/4 X 1/2 CXFE CP ADAPTER * 3/4 X 1 CXFE CP ADAPTER *
3/4 X 11/4 CXFE CP ADAPTER * 3/4 X 11/2 CXFE CP ADAPTER *
1 C X FE CP ADAPTER * 1 X 1/2 CXFE CP ADAPTER *
1 X 3/4 C X FE CP ADAPTER * 1 X 11/4 CXFE CP ADAPTER *
11/4 CXFE CP ADAPTER * 11/4 X 1/2 CXFE CP ADAPTER *
11/4 X 3/4 CXFE CP ADAPTER * 11/4 X 1 CXFE CP ADAPTER *
3/4 X 1/2 FTGXFE CP ADAPTER * 1 FTGXFE CP ADAPTER *
11/2 CXFE CP ADAPTER * 11/2 X 3/4 CXFE CP ADAPTER *
11/2 X 1 CXFE CP ADAPTER * 11/2 X 2 CXFE CP ADAPTER *
2 CXFE CP ADAPTER * 21/2 C X FE CP ADAPTER *
3 CXFE CP ADAPTER * 1/2 CXFE CP DROP EAR ADAPTER
3/4 CXFE CP DROP EAR ADAPTER 1/2 CXFE CP HIGH EAR ADAPTER *
4 CXFE CP ADAPTER * 5 C X FE CP ADAPTER *
6 C X FE CP ADAPTER * 11/4 CXFE WD ADAPTER *
11/4 X 11/2 CXFE WD ADAPTER * 11/4 FTGXFE WD ADAPTER *
11/2 FTGXFE WD ADAPTER * 2 FTGXFE WD ADAPTER *
11/2 CXFE WD ADAPTER * 11/2 X 11/4 CXFE WD ADAPTER *
11/2 X 2 CXFE WD ADAPTER * 3 FTGXFE WD ADAPTER *
2 C X FE WD ADAPTER * 2 X 11/2 CXFE WD ADAPTER *
3 C X FE WD ADAPTER * 1/4 C X FE WP ADAPTER *
3/8 C X FE WP ADAPTER * 3/8 X 1/4 CXFE WP ADAPTER *
3/8 X 1/2 CXFE WP ADAPTER * 1/2 C X FE WP ADAPTER *
1/2 X 1/4 CXFE WP ADAPTER * 1/2 X 3/8 CXFE WP ADAPTER *
1/2 X 3/4 CXFE WP ADAPTER * 1/2 X 1 CXFE WP ADAPTER *
5/8 X 1/2 CXFE WP ADAPTER * 5/8 X 3/4 CXFE WP ADAPTER *
3/4 C X FE WP ADAPTER * 3/4 X 1/2 CXFE WP ADAPTER *
3/4 X 1 CXFE WP ADAPTER * 3/4 X 11/4 CXFE WP ADAPTER *
3/4 X 11/2 CXFE WP ADAPTER * 1 C X FE WP ADAPTER *
1 X 1/2 CXFE WP ADAPTER * 1 X 3/4 CXFE WP ADAPTER *
1 X 11/4 CXFE WP ADAPTER * 1 X 11/2 CXFE WP ADAPTER *
11/4 C X FE WP ADAPTER * 11/4 C X 3/4 FE WP ADAPTER *
11/4 X 1 CXFE WP ADAPTER * 11/4 X 11/2 CXFE WP ADAPTER *
11/4 X 2 CXFE WP ADAPTER * 1/4 FTGXFE WP ADAPTER *
3/8 FTGXFE WP ADAPTER * 3/8 X 1/4 FTGXFE WP ADAPTER *
1/2 FTGXFE WP ADAPTER * 1/2 X 1/4 FTGXFE WP ADAPTER *
1/2 X 3/8 FTG X FE ADAPTER * 1/2 FTG X 3/4 FE WP ADAPTER *
3/4 FTGXFE WP ADAPTER * 3/4 FTG X 1/2 FE WP ADAPTER *
1 FTGXFE WP ADAPTER * 1 FTG X 3/4 FE WP ADAPTER *
11/4 FTGXFE WP ADAPTER * 11/2 FTGXFE WP ADAPTER *
2 FTGXFE WP ADAPTER * 11/2 C X FE WP ADAPTER *
21/2 FTGXFE WP ADAPTER * 11/2 C X 1 FE WP ADAPTER *
11/2 X 11/4 CXFE WP ADAPTER * 11/2 X 2 CXFE WP ADAPTER *
3 FTGXFE WP ADAPTER * 2 C X FE WP ADAPTER *
2 X 1 C X FE WP ADAPTER * 2 X 11/4 CXFE WP ADAPTER *
2 X 11/2 CXFE WP ADAPTER * 21/2 C X FE WP ADAPTER *
3 C X FE WP ADAPTER *  

Subject Copper Pipe Fittings Male Adapters

11/4 CXM CD ADAPTER* 11/4X11/2 CXM CD ADAPTER*
11/2 FTGXM CD ADAPTER* 11/2 CXM CD ADAPTER*
11/2X11/4 CXM CD ADAPTER* 2 CXM CD ADAPTER*
2 X 11/2 CXM CD ADAPTER* 3 CXM CD ADAPTER*
4 CXM CD ADAPTER* 1/2 CXM CP ADAPTER*
1/2 X 3/4 CXM CP ADAPTER* 3/4 CXM CP ADAPTER*
3/4 X 1/2 CXM CP ADAPTER* 3/4 X 11/4 CXM CP ADAPTER*
1 CXM CP ADAPTER* 1 X 1/2 CXM CP ADAPTER*
1 X 11/4 CXM CP ADAPTER* 1 X 11/2 CXM CP ADAPTER*
11/4 CXM CP ADAPTER* 11/4 X 1/2 CXM CP ADAPTER*
11/4 X 1 CXM CP ADAPTER* 11/2 CXM CP ADAPTER*
11/2 X 3/4 CXM CP ADAPTER* 2 CXM CP ADAPTER*
2 X 11/2 C X M CP ADAPTER* 21/2 CXM CP ADAPTER*
3 CXM CP ADAPTER* 4 CXM CP ADAPTER*
5 CXM CP ADAPTER 6 CXM CP ADAPTER
11/2 M X 11/2 OD WD ADAPTER* 11/4 CXM WD ADAPTER*
11/4X11/2 CXM WD ADAPTER* 11/2 FTGXM WD ADAPTER*
2 FTGXM WD ADAPTER* 11/2 CXM WD ADAPTER*
11/2 X 11/4 CXM WD ADAPTER* 11/2 X 2 CXM WD ADAPTER*
2 CXM WD ADAPTER* 2 X 11/2 CXM WD ADAPTER*
3 CXM WD ADAPTER* 4 CXM WD ADAPTER*
11/4 CXM WD FLUSH TRAP ADAPTER* 11/2 CXM WD FLUSH TRAP ADAPTER*
2 CXM WD FL TRAP ADAPTER* 11/2 CXM WD SCULLY BUSHING*
2 CXM WD SCULLY BUSHING* 1/4 CXM WP ADAPTER*
1/4 X 3/8 CXM WP ADAPTER* 1/4 X 1/2 CXM WP ADAPTER*
3/8 CXM WP ADAPTER* 3/8 X 1/4 CXM WP ADAPTER*
3/8 X 1/2 CXM WP ADAPTER* 1/2 CXM WP ADAPTER*
1/2 X 1/4 CXM WP ADAPTER* 1/2 X 3/8 CXM WP ADAPTER*
1/2 X 3/4 CXM WP ADAPTER* 1/2 X 1 CXM WP ADAPTER*
5/8 X 1/2 CXM WP ADAPTER* 5/8 X 3/4 CXM WP ADAPTER*
3/4 CXM WP ADAPTER* 3/4 C X 3/8 WP M ADAPTER*
3/4 X 1/2 CXM WP ADAPTER* 3/4 X 1 CXM WP ADAPTER*
3/4 X 11/4 CXM WP ADAPTER* 3/4 X 11/2 CXM WP ADAPTER*
1 CXM WP ADAPTER* 1 X 1/2 CXM WP ADAPTER*
1 X 3/4 CXM WP ADAPTER* 1 X 11/4 CXM WP ADAPTER*
1 X 11/2 CXM WP ADAPTER* 1 X 2 CXM WP ADAPTER*
11/4 CXM WP ADAPTER* 11/4 X 3/4 CXM WP ADAPTER*
11/4 X 1 CXM WP ADAPTER* 11/4 X 11/2 CXM WP ADAPTER*
11/4 X 2 CXM WP ADAPTER* 1/4 FTGXM WP ADAPTER*
3/8 FTGXM WP ADAPTER* 1/2 FTGXM WP ADAPTER*
1/2 X 3/8 FTGXM WP ADAPTER* 1/2 X 3/4 FTGXM WP ADAPTER*
3/4 FTGXM WP ADAPTER* 3/4 X 1/2 FTGXM WP ADAPTER*
1 FTGXM WP ADAPTER* 1 X 3/4 FTGXM WP ADAPTER*
11/4 FTGXM WP ADAPTER* 11/2 FTGXM WP ADAPTER*
2 FTGXM WP ADAPTER* 11/2 CXM WP ADAPTER*
21/2 FTGXM WP ADAPTER* 11/2 X 1 CXM WP ADAPTER*
11/2 X 11/4 CXM WP ADAPTER* 11/2 X 2 CXM WP ADAPTER*
3 FTG X M WP ADAPTER* 2 CXM WP ADAPTER*
2 X 11/4 CXM WP ADAPTER* 2 X 11/2 CXM WP ADAPTER*
2 X 21/2 C X M WP ADAPTER* 21/2 CXM WP ADAPTER*
21/2 X 2 CXM WP ADAPTER* 3 CXM WP ADAPTER*
4 CXM WP ADAPTER* 1/2 X 3/4 C X HOSE WP ADAPTER*

Subject Copper Pipe Fittings - Other Adapters

11/4 X 2 CXSP CD FERRULE* 11/2 X 2 CXSP CD FERRULE*
11/2 X 3 CXSP CD FERRULE* 2 CXSP CD FERRULE*
2 X 3 CXSP CD FERRULE* 2 X 4 CXSP CD FERRULE*
3 CXSP CD FERRULE* 3 X 4 CXSP CD FERRULE*
4 CXSP CD FERRULE* 3 X 4 CXSP CD ECCENTRIC FERRULE*
11/4 X 2 CXMJ CD ADAPTER* 11/4 X 3 CXMJ CD ADAPTER*
11/2 X 2 CXMJ CD ADAPTER* 11/2 X 3 CXMJ CD ADAPTER*
11/2 X 4 CXMJ CD ADAPTER* 2 X 3 CXMJ CD ADAPTER*
2 X 4 CXMJ CD ADAPTER* 3 CXMJ CD ADAPTER*
3 X 4 CXMJ CD ADAPTER* 4 CXMJ CD ADAPTER*
6 C X M J CD ADAPTER* 11/4 FTGXSJ CD ADAPTER*
4 ACT(3S)X11/2C30 CD ROOF ADAPTER* 4 ACT(3S) X 2C30 CD ROOF ADAPTER*
4 SOIL(5A)X 11/2 C CD ROOF ADAPTER* 4 SOIL(5A)X 2 C CD ROOF ADAPTER*
5ACT 4SX 3C CD ROOF ADAPT CALGARY* 5S X 3C CD ROOF ADAPT REGINA*
11/2 SJXODX3/4M/1/2FE CD CONDENSATE TEE 2 C X SJ CD ADAPTER*
2 C X MJ WD ADAPTER* 11/4 FE X SJ WD ADAPTER*
11/2 FE X SJ WD ADAPTER* 11/2 X11/4 FE X SJ WD ADAPTER*
11/4 FTG X SJ WD ADAPTER* 11/2 FTG X SJ WD ADAPTER*
11/2 X 11/4 FTG X SJ ADAPTER* 11/4 M X SJ WD ADAPTER*
11/2 M X SJ WD ADAPTER* 11/2 X 11/4 M X SJ WD ADAPTER*
11/4 C X SJ WD ADAPTER* 11/4 X 11/2 CXSJ WD ADAPTER*
11/2 C X SJ WD ADAPTER* 11/2 X 11/4 CXSJ WD ADAPTER*
2 C X SJ WD ADAPTER* 1/2 CXM WP FLUSH VALVE ADAPTER*
3/4 CXM WP FLUSH VALVE ADAPTER*  

Subject Copper Pipe Fittings - Bushings

3 X 11/2 FTGXC CD BUSHING* 5 X 4 FTGXC CP BUSHING*
6 X 2 FTGXC CP BUSHING* 6 X 3 FTGXC CP BUSHING*
6 X 4 FTGXC CP BUSHING* 6 X 5 FTGXC CP BUSHING*
1 X 1/2 FTGXFE CP FLUSH BUSHING* 11/4 X 1 FTGXFE CP FLUSH ADAPTER*
1 1/2 FTG X 1 FE C CP FLUSH BUSHING* 11/2X11/4 FTGXC W WD BUSHING*
2 X 11/4 FTGXC WD BUSHING* 2 X 11/2 FTGXC WD BUSHING*
3 X 11/4 FTGXC WD BUSHING* 3 X 11/2 FTGXC WD BUSHING*
3 X 2 FTGXC WD BUSHING* 4 X 2 FTGXC WD BUSHING*
4 X 3 FTGXC WD BUSHING* 11/4 CXM WD TRAP BUSHING*
11/2 CXM WD TRAP BUSHING* 2 CXM WD TRAP BUSHING*
3/8 X 1/8 FTGXC WP BUSHING* 3/8 X 1/4 FTGXC WP BUSHING*
1/2 X 1/4 FTGXC WP BUSHING* 1/2 X 3/8 FTGXC WP BUSHING*
5/8 X 1/4 FTGXC WP BUSHING* 5/8 X 3/8 FTGXC WP BUSHING*
5/8 X 1/2 FTGXC WP BUSHING* 3/4 X 1/4 FTGXC WP BUSHING*
3/4 X 3/8 FTGXC WP BUSHING* 3/4 X 1/2 FTGXC WP BUSHING*
3/4 X 5/8 FTGXC WP BUSHING* 1 X 3/8 FTGXC WP BUSHING*
1 X 1/2 FTGXC WP BUSHING* 1 X 5/8 FTGXC WP BUSHING*
1 X 3/4 FTGXC WP BUSHING* 11/4 X 1/2 FTGXC WP BUSHING*
11/4 X 3/4 FTGXC WP BUSHING* 11/4 X 1 FTGXC WP BUSHING*
11/2 X 1/2 FTGXC WP BUSHING* 11/2 X 3/4 FTGXC WP BUSHING*
11/2 X 1 FTGXC WP BUSHING* 11/2 X11/4 FTGXC WP BUSHING*
2 X 1/2 FTGXC WP BUSHING* 2 X 3/4 FTGXC WP BUSHING*
2 X 1 FTGXC WP BUSHING* 2 X 11/4 FTGXC WP BUSHING*
2 X 11/2 FTGXC WP BUSHING* 21/2 X 1 FTGXC WP BUSHING*
21/2 X 11/4 FTGXC WP BUSHING* 21/2 X 11/2 FTGXC WP BUSHING*
21/2 X 2 FTGXC WP BUSHING* 3 X 1/2 FTGXC WP BUSHING*
3 X 3/4 FTGXC WP BUSHING* 3 X 1 FTGXC WP BUSHING*
3 X 11/4 FTGXC WP BUSHING* 3 X 11/2 FTGXC WP BUSHING*
3 X 2 FTGXC WP BUSHING* 3 X 21/2 FTGXC WP BUSHING*
31/2 X 2 FTGXC WP BUSHING* 31/2 X 21/2 FTGXC WP BUSHING*
31/2 X 3 FTGXC WP BUSHING* 4 X 11/4 FTGXC WP BUSHING*
4 X 11/2 FTGXC WP BUSHING* 4 X 2 FTGXC WP BUSHING*
4 X 21/2 FTGXC WP BUSHING* 4 X 3 FTGXC WP BUSHING*
4 X 31/2 FTGXC WP BUSHING* 1/2 X 1/4 FTGXC WP FLUSH BUSHING*
1/2 X 3/8 FTGXC WP FLUSH BUSHING* 5/8 X 3/8 FTGXC WP FLUSH BUSHING*
3/4 X 1/2 FTGXC WP FLUSH BUSHING* 1 X 1/2 FTGXC WP FLUSH BUSHING*
1 X 3/4 FTGXC WP FLUSH BUSHING* 11/4X3/4 FTGXC W FL BUSHING*
11/4 X 1 FTGXC WP FLUSH BUSHING* 11/2 X 1 FTGXC WP FLUSH BUSHING*
11/2 X 11/4 FTGXC WP FLUSH BUSHING* 2 X 11/2 FTGXC WP FLUSH BUSHING*
1 X 1/2 FE WP FLUSH BUSHING* 11/4 X 3/4 FE WP FLUSH BUSHING*
11/4 X 1 FTGXFE WP FLUSH BUSHING* 11/2 X 1 FTGXFE WP FLUSH BUSHING*

Subject Copper Pipe Fittings - Couplings

3/4 CXC CP COUPLING* 11/4 CXC CP COUPLING*
4 CXC CP COUPLING* 5 X 3 CXC CP COUPLING*
5 X 4 CXC CP COUPLING* 6 X 2 CXC CP COUPLING*
6 X 3 CXC CP COUPLING* 6 X 4 CXC CP COUPLING*
6 X 5 CXC CP COUPLING* 1/2 CXC CP JET DRAIN COUPLING
3/4 CXC CP JET DRAIN COUPLING 1 CXC CP JET DRAIN COUPLING
3/4 X 1/2 CXC CP ECCENTRIC COUPLING* 1 X 1/2 CP ECCENTRIC COUPLING*
1 X 3/4 CXC CP ECCENTRIC COUPLING* 11/4 X 1/2 CP ECCENTRIC COUPLING*
11/2 X 1 CXC CP ECCENTRIC COUPLING* 11/2 X 11/4 CXC CP ECCENTRIC COUPLING*
2 X 11/4 CXC CP ECCENTRIC COUPLING* 2 X 11/2 CXC CP ECCENTRIC COUPLING*
3 X 2 CXC CP ECCENTRIC COUPLING* 3/4 CXC CP CROSSOVER COUPLING*
1/2C X 1M X 1/2 FE CP BOILER COUPLING 1/2 X 1 X 1/2 CXMXFE CP BOILER COUPLING
11/4 CXC WD COUPLING* 11/2 CXC WD COUPLING*
11/2X 11/4 CXC WD COUPLING* 2 CXC WD COUPLING*
2 X 11/4 CXC WD COUPLING* 2 X 11/2 CXC WD COUPLING*
3 CXC WD COUPLING* 3 X 11/4 CXC WD COUPLING*
3 X 11/2 CXC WD COUPLING* 3 X 2 CXC WD COUPLING*
4 CXC WD COUPLING* 4 X 11/2 CXC WD COUPLING*
4 X 2 CXC WD COUPLING* 4 X 3 CXC WD COUPLING*
4 X 11/2 CXC CD COUPLING* 4 X 3 CXC CD COUPLING*
6 CXC WD COUPLING* 11/4 CXC WD COUPLING NO STOP*
11/2 CXC WD COUPLING NO STOP* 2 CXC WD COUPLING NO STOP*
3 CXC WD COUPLING NO STOP* 4 CXC WD COUPLING NO STOP*
1/8 CXC WP COUPLING* 1/4 CXC WP COUPLING*
1/4 X 1/8 CXC WP COUPLING* 3/8 CXC WP COUPLING*
3/8 X 1/4 CXC WP COUPLING* 1/2 CXC WP COUPLING*
1/2 X 1/8 CXC WP COUPLING* 1/2 X 1/4 CXC WP COUPLING*
1/2 X 3/8 CXC WP COUPLING* 5/8 CXC WP COUPLING*
5/8 X 1/4 CXC WP COUPLING* 5/8 X 3/8 CXC WP COUPLING*
5/8 X 1/2 CXC WP COUPLING* 3/4 CXC WP COUPLING*
3/4 X 1/4 CXC WP COUPLING* 3/4 X 3/8 CXC WP COUPLING*
3/4 X 1/2 CXC WP COUPLING* 3/4 X 5/8 CXC WP COUPLING*
1 CXC WP COUPLING* 1 X 3/8 CXC WP COUPLING*
1 X 1/2 CXC WP COUPLING* 1 X 5/8 CXC WP COUPLING*
1 X 3/4 CXC WP COUPLING* 11/4 CXC WP COUPLING*
11/4 X 1/2 CXC WP COUPLING* 11/4 X 3/4 CXC WP COUPLING*
11/4 X 1 CXC WP COUPLING* 11/2 CXC WP COUPLING*
11/2 X 1/2 CXC WP COUPLING* 11/2 X 3/4 CXC WP COUPLING*
11/2 X 1 CXC WP COUPLING* 11/2 X 11/4 CXC WP COUPLING*
2 CXC WP COUPLING* 2 X 1/2 CXC WP COUPLING*
2 X 3/4 CXC WP COUPLING* 2 X 1 CXC WP COUPLING*
2 X 11/4 CXC WP COUPLING* 2 X 11/2 CXC WP COUPLING*
21/2 CXC WP COUPLING* 21/2 X 3/4 CXC WP COUPLING*
21/2 X 1 CXC WP COUPLING* 21/2 X 11/4 CXC WP COUPLING*
21/2 X 11/2 CXC WP COUPLING* 21/2 X 2 CXC WP COUPLING*
3 CXC WP COUPLING* 3 X 3/4 CXC WP COUPLING*
3 X 1 CXC WP COUPLING* 3 X 11/4 CXC WP COUPLING*
3 X 11/2 CXC WP COUPLING* 3 X 2 CXC WP COUPLING*
3 X 21/2 CXC WP COUPLING* 31/2 CXC WP COUPLING*
31/2 X 3 CXC WP COUPLING* 4 CXC WP COUPLING*
4 X 11/2 CXC WP COUPLING* 4 X 2 CXC WP COUPLING*
4 X 21/2 CXC WP COUPLING* 4 X 3 CXC WP COUPLING*
4 X 31/2 CXC WP COUPLING* 5 CXC WP COUPLING*
6 CXC WP COUPLING* 6 X 21/2 WP COUPLINGS*
11/4 X 3/4 CXC WP ECCENTRIC COUPLING* 11/4 X 1 CXC WP ECCENTRIC COUPLING*
1/8 CXC WP COUPLING NO STOP* 1/4 CXC WP COUPLING NO STOP*
3/8 CXC WP COUPLING NO STOP* 1/2 CXC WP COUPLING NO STOP*
5/8 CXC WP COUPLING NO STOP* 3/4 CXC WP COUPLING NO STOP*
1 CXC WP COUPLING NO STOP* 11/4 CXC WP COUPLING NO STOP*
11/2 CXC WP COUPLING NO STOP* 2 CXC WP COUPLING NO STOP*
21/2 CXC WP COUPLING NO STOP* 3 CXC WP COUPLING NO STOP*
4 CXC WP COUPLING NO STOP* 5 CXC WP COUPLING NO STOP*
6 CXC WP COUPLING NO STOP* 1/2 X 3 CXC WP REPAIR COUPLING
1/2 X 6 C X C WP REPAIR COUPLING 3/4 X 3 C X C WP REPAIR COUPLING
1/8 CXC WP RING COUPLING* 1/4 CXC WP RING COUPLING*
3/8 CXC WP RING COUPLING* 1/2 CXC WP RING COUPLING*
5/8 CXC WP RING COUPLING* 3/4 CXC WP RING COUPLING*
1 CXC WP RING COUPLING* 11/4 CXC WP RING COUPLING*
11/2 CXC WP RING COUPLING* 2 CXC WP RING COUPLING*
21/2 CXC WP RING COUPLING* 3 CXC WP RING COUPLING*
4 CXC WP RING COUPLING* 1/2 X 31/4 FTGXC WP SLIDE COUPLING
3/4 X 5 FTGXC WP SLIDE COUPLING 1/2 CXC WP CROSSOVER COUPLING*
3/4 CXC WP CROSSOVER COUPLING*  

Subject Copper Pipe Fittings - Elbows

11/4 CXC 111/4 CD ELBOW* 11/2 CXC 111/4 CD ELBOW*
2 CXC 111/4 CD ELBOW* 3 CXC 111/4 CD ELBOW*
4 C X C 111/4 CD ELBOW* 11/4 CXC 221/2 CD ELBOW*
11/2 CXC 221/2 CD ELBOW* 2 CXC 221/2 CD ELBOW*
3 CXC 221/2 CD ELBOW* 4 CXC 221/2 CD ELBOW*
3 FTGXC 45 CD ELBOW* 4 FTGXC 45 CD ELBOW*
2 CXM CD 45 ELBOW* 11/4 CXC 45 CD ELBOW*
11/2 CXC 45 CD ELBOW* 2 CXC 45 CD ELBOW*
3 CXC 45 CD ELBOW* 4 CXC 45 CD ELBOW*
11/4 CXC 60 CD ELBOW* 11/2 CXC 60 CD ELBOW*
2 CXC 60 CD ELBOW* 3 CXC 60 CD ELBOW*
4 CXC 60 CD ELBOW* 11/4 CXC CD 90 ELBOW*
11/4 FTGXC CD 90 ELBOW* 11/2 FTGXC CD 90 ELBOW*
2 FTGXC CD 90 ELBOW* 11/2 CXC CD 90 ELBOW*
11/2 X 11/4 CXC CD 90 ELBOW* 3 CD FTGXC 90 ELBOW*
4 FTGXC CD 90 ELBOW* 2 CXC CD 90 ELBOW*
2X 11/4 CXC CD 90 ELBOW* 2 X 11/2 CXC CD 90 ELBOW*
11/2 CXFE CD 90 ELBOW* 2 CXFE CD 90 ELBOW*
11/2 CXM CD 90 ELBOW 2 CXM CD 90 ELBOW
3 CXC CD 90 ELBOW 4 CXC CD 90 ELBOW
11/2 CXSJ CD 90 ELBOW 1/2 X 1 CXC CP CLOSE RETURN BEND
3/4 13/8 CXC CP CLOSE RETURN BEND 1 X 13/4 CXC CP CLOSE RETURN BEND
1/2 C X M CP 45 ELBOW 3/4 C X M CP 45 ELBOW
11/4 C X M CP 45 ELBOW 4 CXC CP 45 ELBOW
6 CXC CP 45 ELBOW 1/2 C X C CP 90 ELBOW
11/4 CXC CP 90 ELBOW 11/4 X 1/2 CXC CP 90 ELBOW
11/4 X 3/4 CP 90 ELBOW 11/4 X 1 CP 90 ELBOW
11/2 X 1/2 CP 90 ELBOW 11/2 X 3/4 CXC CP 90 ELBOW
11/2 X 1 CXC CP 90 ELBOW 1/4 C X FE CP 90 ELBOW
1/2 CXFE CP 90 ELBOW 1/2 X 3/8 CXFE CP 90 ELBOW
1/2 X 3/4 CXFE CP 90 ELBOW 1/2 X 1 CXFE CP 90 ELBOW
3/4 CXFE CP 90 ELBOW 3/4 X 1/2 CXFE CP 90 ELBOW
3/4 X 1 CXFE CP 90 ELBOW 1 CXFE CP 90 ELBOW
1 X 1/2 C X FE CP 90 ELBOW 1 X 3/4 CXFE CP 90 ELBOW
11/4 CXFE CP 90 ELBOW 11/4 X 1/2 CXFE CP 90 ELBOW
11/4 X 3/4 CXFE CP 90 ELBOW 11/4 X 1 CXFE CP 90 ELBOW
2 X 3/4 CXC CP 90 ELBOW 2 X 1 CXC CP 90 ELBOW
2 X 11/4 CXC CP 90 ELBOW 11/2 CXFE CP 90 ELBOW
11/2 X 1 C X FE CP 90 ELBOW 2 CXFE CP 90 ELBOW
3 C X FE CP 90 ELBOW 1/2 CXFE CP 90 DROP EAR ELBOW
1/2C X 3/8FE CP 90 DROP EAR ELBOW 1/2 X 3/4 CXFE CP 90 DROP EAR ELBOW
3/4 CXFE CP 90 DROP EAR ELBOW 3/4C X 1/2FE CP 90 DROP EAR ELBOW
1 CXFE CP 90 DROP EAR ELBOW 1/2 CXFE CP DROP EAR IMPORT 90 ELBOW
1/2 CXFE CP HIGH EAR 90 ELBOW 3/4 CXFE CP HIGH EAR 90 ELBOW
1/2 CXFE CP FLANGE SINK 90 ELBOW 1/2 CXM CP 90 ELBOW
1/2 X 3/8 CXM CP 90 ELBOW 1/2 X 3/4 CXM CP 90 ELBOW
3/4 CXM CP 90 ELBOW 3/4 X 1/2 CXM CP 90 ELBOW
3/4 C X 1 M CP 90 ELBOW 1 CXM CP 90 ELBOW
1 X 3/4 CXM CP 90 ELBOW 11/4 CXM CP P 90 ELBOW
11/4 X 1 CXM CP 90 ELBOW 11/2 CXM CP 90 ELBOW
2 CXM CP 90 ELBOW 1/2 CXC CP DROP EAR 90 ELBOW
3/4 CXC CP 90 DROP EAR ELBOW 1 CXC CP 90 DROP EAR ELBOW
1/2 CXC CP HIGH EAR 90 ELBOW 3/4 CXC CP HIGH EAR 90 ELBOW
6 CXC CP 90 ELBOW 1/2C X 1/8FE X 1/2C CP BASE TEE*
1/2C X 1/8FE X 3/4C CP BASE TEE* 3/4C X 1/8FE X 3/4C CP BASE TEE*
1C X 1/8FE X 1 C CP BASE TEE* 11/4C X 1/8FEX11/4C CP BASE TEE*
3/4FE X 1/8FE X 3/4C CP BASE TEE 11/4 CXFTG WD 45 ELBOW*
11/2 FTGXC WD 45 ELBOW* 2 FTGXC WD 45 ELBOW*
3 C X FTG WD 45 ELBOW* 11/4 CXC WD 45 ELBOW*
11/2 CXC WD 45 ELBOW* 2 CXC WD 45 ELBOW*
3 CXC WD 45 ELBOW* 11/4 CXC WD 90 ELBOW*
11/4 FTGXC WD 90 ELBOW* 11/2 FTGXC WD 90 ELBOW*
2 FTGXC WD 90 ELBOW* 11/2 CXC WD 90 ELBOW*
2 CXC WD 90 ELBOW* 3 CXC WD 90 ELBOW*
11/2 CXC WD 90 LT ELBOW* 2 CXC WD 90 LT ELBOW*
1/4 CXC WP 45 ELBOW* 3/8 CXC WP 45 ELBOW*
1/2 CXC WP 45 ELBOW* 5/8 CXC WP 45 ELBOW*
3/4 CXC WP 45 ELBOW* 1 CXC WP 45 ELBOW*
11/4 CXC WP 45 ELBOW* 1/4 FTG X C WP 45 ELBOW*
3/8 FTGXC WP 45 ELBOW* 1/2 FTGXC WP 45 ELBOW*
5/8 FTGXC WP 45 ELBOW* 3/4 FTGXC WP 45 ELBOW*
1 FTGXC WP 45 ELBOW* 11/4 FTGXC WP 45 ELBOW*
11/2 FTGXC WP 45 ELBOW* 2 FTGXC WP 45 ELBOW*
11/2 CXC WP 45 ELBOW* 21/2 FTGXC WP 45 ELBOW*
2 CXC WP 45 ELBOW* 21/2 CXC WP 45 ELBOW*
3 CXC WP 45 ELBOW* 4 CXC WP 45 ELBOW*
1/4 CXC WP 90 ELBOW* 3/8 CXC WP 90 ELBOW*
1/2 CXC WP 90 ELBOW* 5/8 CXC WP 90 ELBOW*
3/4 CXC WP 90 ELBOW* 3/4 X 1/2 CXC WP 90 ELBOW*
1 CXC WP 90 ELBOW* 1 X 1/2 CXC WP 90 ELBOW*
1 X 3/4 CXC WP 90 ELBOW* 11/4 CXC WP 90 ELBOW*
11/4 X 1 CXC WP 90 ELBOW* 1/4 FTGXC WP 90 ELBOW*
3/8 FTGXC WP 90 ELBOW* 1/2 FTGXC WP 90 ELBOW*
5/8 FTGXC WP 90 ELBOW* 3/4 FTGXC WP 90 ELBOW*
1 FTGXC WP 90 ELBOW* 11/4 FTGXC WP 90 ELBOW*
1/2 FTGXFTG WP 90 ELBOW* 3/4 FTG X FTG WP 90 ELBOW*
11/2 FTGXC WP 90 ELBOW* 2 FTGXC WP 90 ELBOW*
11/2 CXC WP 90 ELBOW* 21/2 FTGXC WP 90 ELBOW*
11/2CX 11/4C WP 90 ELBOW* 2 CXC WP 90 ELBOW*
21/2 CXC WP 90 ELBOW* 3 CXC WP 90 ELBOW*
4 CXC WP 90 ELBOW* 1/2 CXC WP 90 VENT ELBOW*
3/4 CXC WP 90 VENT ELBOW* 1 CXC WP 90 VENT ELBOW*
1/4 CXC LT WP 90 ELBOW 3/8 CXC LT WP 90 ELBOW
1/2 CXC LT WP 90 ELBOW 5/8 CXC LT WP 90 ELBOW
3/4 CXC LT WP 90 ELBOW 1 CXC LT WP 90 ELBOW
11/4 CXC LT WP 90 ELBOW 1/4 CXFTG LT WP 90 ELBOW
3/8 C X FTG LT WP 90 ELBOW 1/2 C X FTG LT WP 90 ELBOW
5/8 CXFTG LT WP 90 ELBOW 3/4 CXFTG LT WP 90 ELBOW
1 CXFTG LT WP 90 ELBOW 11/4 CXFTG LT WP 90 ELBOW
11/2 CXFTG LT WP 90 ELBOW 2 CXFTG LT WP 90 ELBOW
11/2 CXC LT WP 90 ELBOW 2 CXC LT WP 90 ELBOW

Subject Copper Pipe Fittings - Flanges

3 X 4 CXC CD CLOSET FLANGE* 4 X 4 CXC CD CLOSET FLANGE*
4 CD CAULKING FLOOR FLANGE* 3 X 4 CD ECCENTRIC CLOSET FLANGE*
3 X 4 FITTING CD CLOSET FLANGE 4 CD LEAD 8 OZ CLOSET FLANGE
3 X 4 CD M J CLOSET FLANGE* 4 CD 14OZ LEAD CLOSET FLANGE
1/2 CP COMPANION FLANGE 125# 3/4 CP COMPANION FLANGE 125#
1 CP COMPANION FLANGE 125# 11/4 CP COMPANION FLANGE 125#
11/2 CP COMPANION FLANGE 125# 2 CP COMPANION FLANGE 125#
21/2 CP COMPANION FLANGE 125# 3 CP COMPANION FLANGE 125#
31/2 CP COMPANION FLANGE #125 4 CP COMPANION FLANGE 125#
5 CP COMPANION FLANGE 125# 6 CP COMPANION FLANGE 125#
8 CP COMPANION FLANGE 125# 1/2 CP COMPANION FLANGE 150#
3/4 CP COMPANION FLANGE 150# 1 CP COMPANION FLANGE 150#
11/4 CP COMPANION FLANGE 150# 11/2 CP COMPANION FLANGE 150#
2 CP COMPANION FLANGE 150# 21/2 CP COMPANION FLANGE 150#
3 CP COMPANION FLANGE 150# 31/2 CP COMPANION FLANGE #150
4 X 9 CP COMPANION FLANGE 150# 5 CP COMPANION FLANGE 150#
6 CP COMPANION FLANGE 150# 8 CP COMPANION FLANGE 150#
1/2 CP COMPANION FLANGE 300# 1 X 5 CP COMPANION FLANGE 300#
11/4 CP COMPANION FLANGE 300# 11/2 X 61/2 CP COMPANION FLANGE300#
2 CP COMPANION FLANGE 300# 21/2 CP COMPANION FLANGE 300#
3 X 81/4 CP COMPANION FLANGE 300# 4 CP COMPANION FLANGE 300#
11/2 CP BLIND COMPANION FLANGE 2 X 6 CP BLIND COMPANION FLANGE
3 X 71/2 CP BLIND COMPANION FLANGE 131/2 X 8 CP BLIND COMPANION FLANGE
8 COMP CP FLANGE 125# SILVER BRZD 3 COMP CP FLANGE 150# SILVER BRZD
8 COMP CP FLANGE 150# SILVER BRZD  

Subject Copper Pipe Fittings - Pressure Tees

1/2 CXCXC CP DROP EAR TEE 1/2 CXCXFE CP TEE
1/2 X 1/2 X 1/4 CXCXFE CP TEE 1/2C X 1/2C X 3/8FE CP TEE
1/2 X 1/2 X 3/4 CXCXFE CP TEE 3/4 CXCXFE CP TEE
3/4C X 1/2C X 1/2FE CP TEE 3/4 X 1/2 X 3/4 CXCXFE CP TEE
3/4 X 3/4 X 3/8 CCFE CP TEE 3/4C X 3/4C X 1/2FE CP TEE
3/4 X 3/4 X 1 CXCXFE CP TEE 1 CXCXFE CP CP TEE
1 X 1 X 1/2 CXCXFE CP TEE 1 X 1 X 3/4 CXCXFE CP TEE
11/4 CXCXFE CP TEE 11/4 X 11/4 X 1/2 CCFE CP TEE
11/4 X 11/4 X 3/4 CCFE CP TEE 11/4X11/4X1 CCFE CP TEE
11/2 CXCXFE CP TEE 11/2X11/2X1/2 CCFE CP TEE
11/2 X 11/2 X 3/4 CCFE CP TEE 11/2 X 11/2 X 1 CCFE CP TEE
1/2 CXFEXFE CP TEE 1/2C X 3/4FE X 1/2FE CP TEE
3/4 C X FE X FE CP TEE 3/4 C X 3/4 FE X 1/2 FE CP TEE
2 CXCXFE CP TEE 2 X 2 X 1/2 CXCXFE CP TEE
2 X 2 X 3/4 CXCXFE CP TEE 2 X 2 X 1 CXCXFE CP TEE
1/2 CXCXFE CP DROP EAR TEE 3/4 CXCXFE CP DROP EAR TEE
3/4C X 3/4C X 1/2FE W/B CP TEE 3/8 C X FE X C CP TEE
1/2 CXFEXC CP TEE 1/2C X 1/2FE X 3/4C CP TEE
1/2C X 3/4FE X 1/2C CP TEE 3/4 CXFEXC CP TEE
3/4 X 1/2 X 1/2 CXFEXC CP TEE 3/4C X 1/2FE X 3/4C CP TEE
3/4C X 3/4FE X 1/2C CP TEE 1 CXFEXC CP TEE
1C X 1/2FE X 1C CP TEE 1 X 3/4 X 1 CXFEXC CP TEE
11/4 CXFEXC CP TEE 11/4 X 1/2 X 11/4 CXFEXC CP TEE
11/4 X 3/4 X 11/4 CXFEXC CP TEE 11/2 C X FE X C CP TEE
11/2X1/2X11/2 CXFEXC CP TEE 11/2X3/4X11/2 CXFEXC CP TEE
1/2 FEXFEXC CP TEE 3/4 FEXFEXC CP TEE
3/4FE X 1/2FE X 1/2C CP TEE 3/4FE X 1/2FE X 3/4C CP TEE
3/4FE X 3/4FE X 1/2C CP TEE 2 C X FE X C CP TEE
2 X 1/2 X 2 CXFEXC CP TEE 2 X 3/4 X 2 CXFEXC CP TEE
1/2FE X 3/4M X 1/2C CP TEE 1/2 CXCXCXC CP CROSS*
3/4 CXCXCXC CP CROSS* 1 CXCXCXC CP CROSS*
11/2 CXCXCXC CP CROSSES* 2 CXCXCXC CP CROSS*
3/4 CXFTGXC CP TEE* 2 X 2 X 3 CXCXC CP TEE*
21/2 X 1/2 X 21/2 CP TEE* 21/2 X 11/2 X 11/2 CP TEE*
5 CXCXC CP TEE* 5 X 5 X 3 CXCXC CP TEE*
6 CXCXC CP TEE* 3/4FE X 1/8 FE X 3/4C WP BASEBOARD TEE*
1/8 CXCXC WP TEE* 1/4 CXCXC WP TEE*
3/8 CXCXC WP TEE* 1/2 CXCXC WP TEE*
1/2 X 1/2 X 3/4 CXCXC WP TEE* 3/4 CXCXC WP TEE*
3/4 X 1/2 X 1/2 CXCXC WP TEE* 3/4 X 1/2 X 3/4 CXCXC WP TEE*
3/4 X 3/4 X 1/4 CXCXC WP TEE* 3/4C X 3/4C X 3/8C CXCXC WP TEE*
3/4 X 3/4 X 1/2 CXCXC WP TEE* 1 CXCXC WP TEE*
1 X 1/2 X 1/2 CXCXC WP TEE* 1 X 1/2 X 3/4 CXCXC WP TEE*
1 X 1/2 X 1 CXCXC WP TEE* 1 X 3/4 X 1/2 CXCXC WP TEE*
1 X 3/4 X 3/4 CXCXC WP TEE* 1 X 3/4 X 1 CXCXC WP TEE*
1 X 1 X 3/8 CXCXC WP TEE* 1 X 1 X 1/2 CXCXC WP TEE*
1 X 1 X 3/4 CXCXC WP TEE* 11/4 CXCXC WP TEE*
11/4 X 1/2 X 1/2 CXCXC WP TEE* 11/4 X 1/2 X 3/4 CXCXC WP TEE*
11/4 X 1/2 X 1 CXCXC WP TEE* 11/4 X 1/2 X 11/4 CXCXC WP TEE*
11/4 X 3/4 X 1/2 CXCXC WP TEE* 11/4 X 3/4 X 3/4 CXCXC WP TEE*
11/4 X 3/4 X 1 CXCXC WP TEE* 11/4 X 3/4 X 11/4 CXCXC WP TEE*
11/4 X 1 X 1/2 CXCXC WP TEE* 11/4 X 1 X 3/4 CXCXC WP TEE*
11/4 X 1 X 1 CXCXC WP TEE* 11/4 X 1 X 11/4 CXCXC WP TEE*
11/4 X 11/4 X 1/2 CXCXC WP TEE* 11/4 X 11/4 X 3/4 CXCXC WP TEE*
11/4C X 11/4C X 1C CXCXC WP TEE* 11/2 CXCXC CXCXC WP TEE*
11/2 X 1/2 X 1/2 CXCXC WP TEE* 11/2 X 1/2 X 3/4 CXCXC WP TEE*
11/2 X 1/2 X 1 CXCXC WP TEE* 11/2 X 1/2 X 11/4 CXCXC WP TEE*
11/2 X 1/2 X 11/2 CXCXC WP TEE* 11/2 X 3/4 X 1/2 CXCXC WP TEE*
11/2 X 3/4 X 3/4 CXCXC WP TEE* 11/2 X 3/4 X 1 CXCXC WP TEE*
11/2 X 3/4 X 11/4 CXCXC WP TEE* 11/2 X 3/4 X 11/2 CXCXC WP TEE*
11/2 X 1 X 1/2 CXCXC WP TEE* 11/2 X 1 X 3/4 CXCXC WP TEE*
11/2 X 1 X 1 CXCXC WP TEE* 11/2 X 1 X 11/4 CXCXC WP TEE*
11/2 X 1 X 11/2 CXCXC WP TEE* 11/2 X 11/4 X 1/2 CXCXC WP TEE*
11/2 X 11/4 X 3/4 CXCXC WP TEE* 11/2 X 11/4 X 1 CXCXC WP TEE*
11/2 X 11/4 X 11/4 CXCXC WP TEE* 11/2 X 11/4 X 11/2 CXCXC WP TEE*
11/2 X 11/2 X 1/2 CXCXC WP TEE* 11/2 X 11/2 X 3/4 CXCXC WP TEE*
11/2 X 11/2 X 1 CXCXC WP TEE* 11/2 X 11/2 X 11/4 CXCXC WP TEE*
2 CXCXC CXCXC WP TEE* 2 X 1/2 X 2 CXCXC WP TEE*
2 X 3/4 X 2 CXCXC WP TEE* 2 X 1 X 3/4 CXCXC WP TEE*
2 X 1 X 1 CXCXC WP TEE* 2C X 1C X 11/4C CXCXC WP TEE*
2 X 1 X 11/2 CXCXC WP TEE* 2 X 1 X 2 CXCXC WP TEE*
2 X 11/4 X 1/2 CXCXC WP TEE* 2 X 11/4 X 3/4 CXCXC WP TEE*
2 X 11/4 X 1 CXCXC WP TEE* 2 X 11/4 X 11/4 CXCXC WP TEE*
2 X 11/4 X 11/2 CXCXC WP TEE* 2 X 11/4 X 2 CXCXC WP TEE*
2 X 11/2 X 1/2 CXCXC WP TEE* 2 X 11/2 X 3/4 CXCXC WP TEE*
2 X 11/2 X 1 CXCXC WP TEE* 2 X 11/2 X 11/4 CXCXC WP TEE*
2 X 11/2 X 11/2 CXCXC WP TEE* 2 X 11/2 X 2 CXCXC WP TEE*
2 X 2 X 1/2 CXCXC WP TEE* 2 X 2 X 3/4 CXCXC WP TEE*
2 X 2 X 1 CXCXC WP TEE* 2 X 2 X 11/4 CXCXC WP TEE*
2 X 2 X 11/2 CXCXC WP TEE* 21/2 CXCXC WP TEE*
21/2 X 1/2 X 21/2 CXCXC WP TEE* 21/2 X 3/4 X 11/2 CXCXC WP TEE*
21/2 X 3/4 X 21/2 CXCXC WP TEE* 21/2 X 1 X 11/4 CXCXC WP TEE*
21/2 X 1 X 11/2 CXCXC WP TEE* 21/2 X 1 X 2 CXCXC WP TEE*
21/2 X 1 X 21/2 CXCXC WP TEE* 21/2 X 11/4 X 11/4CXCXC WP TEE*
21/2 X 11/4 X 11/2 CXCXC WP TEE* 21/2 X 11/4 X 2 CXCXC WP TEE*
21/2 X 11/4 X 21/2 CXCXC WP TEE* 21/2 X 11/2 X 1 CXCXC WP TEE*
21/2 X 11/2 X 11/4 CXCXC WP TEE* 21/2 X 11/2 X 11/2 CXCXC WP TEE*
21/2 X 11/2 X 2 CXCXC WP TEE* 21/2 X 11/2 X 21/2 CXCXC WP TEE*
21/2 X 2 X 1/2 CXCXC WP TEE* 21/2 X 2 X 3/4 CXCXC WP TEE*
21/2 X 2 X 1 CXCXC WP TEE* 21/2 X 2 X 11/4 CXCXC WP TEE*
21/2 X 2 X 11/2 CXCXC WP TEE* 21/2 X 2 X 2 CXCXC WP TEE*
21/2 X 2 X 21/2 CXCXC WP TEE* 21/2 X 21/2 X 1/2 CXCXC WP TEE*
21/2 X 21/2 X 3/4 CXCXC WP TEE* 21/2 X 21/2 X 1 CXCXC WP TEE*
21/2 X 21/2 X 11/4 CXCXC WP TEE* 21/2 X 21/2 X 11/2 CXCXC WP TEE*
21/2 X 21/2 X 2 CXCXC WP TEE* 3 CXCXC WP TEE*
3 X 3/4 X 3 CXCXC WP TEE* 3 X 1 X 3 CXCXC WP TEE*
3 X 11/4 X 3 CXCXC WP TEE* 3 X 11/2 X 11/4 CXCXC WP TEE*
3 X 11/2 X 11/2 CXCXC WP TEE* 3 X 11/2 X 21/2 CXCXC WP TEE*
3 X 11/2 X 3 CXCXC WP TEE* 3 X 2 X 1/2 CXCXC WP TEE*
3 X 2 X 1 CXCXC WP TEE* 3 X 2 X 11/4 CXCXC WP TEE*
3 X 2 X 11/2 CXCXC WP TEE* 3 X 2 X 2 CXCXC WP TEE*
3 X 2 X 21/2 CXCXC WP TEE* 3 X 2 X 3 CXCXC WP TEE*
3 X 21/2 X 3/4 CXCXC WP TEE* 3 X 21/2 X 1 CXCXC WP TEE*
3 X 21/2 X 11/4 CXCXC WP TEE* 3 X 21/2 X 11/2 CXCXC WP TEE*
3 X 21/2 X 2 CXCXC WP TEE* 3 X 21/2 X 21/2 CXCXC WP TEE*
3 X 21/2 X 3 CXCXC WP TEE* 3 X 3 X 1/2 CXCXC WP TEE*
3 X 3 X 3/4 CXCXC WP TEE* 3 X 3 X 1 CXCXC WP TEE*
3 X 3 X 11/4 CXCXC WP TEE* 3 X 3 X 11/2 CXCXC WP TEE*
3 X 3 X 2 CXCXC WP TEE* 3 X 3 X 21/2 CXCXC WP TEE*
4 CXCXC WP TEE* 4 X 11/2 X 3 CXCXC WP TEE*
4 X 2 X 2 CXCXC WP TEE* 4 X 2 X 3 CXCXC WP TEE*
4 X 21/2 X 21/2 CXCXC WP TEE* 4 X 21/2 X 3 CXCXC WP TEE*
4 X 3 X 2 CXCXC WP TEE* 4 X 3 X 21/2 CXCXC WP TEE*
4 X 3 X 3 CXCXC WP TEE* 4 X 4 X 1/2 CXCXC WP TEE*
4 X 4 X 3/4 CXCXC WP TEE* 4 X 4 X 1 CXCXC WP TEE*
4 X 4 X 11/4 CXCXC WP TEE* 4 X 4 X 11/2 CXCXC WP TEE*
4 X 4 X 2 CXCXC WP TEE* 4 X 4 X 21/2 CXCXC WP TEE*
4 X 4 X 3 CXCXC WP TEE* 5 X 5 X 2 CXCXC WP TEE*

Subject Copper Pipe Fittings - Unions

21/2 CXFE CP UNION* 21/2 CXC CP UNION*
2 CXM CP UNION* 21/2 C X M CP UNION*
3 CXC CP UNION* 3/4 CXM CP UNION ELBOW
3/4 CXC WP UNION* 1 CXC WP UNION*
11/4 CXC WP UNION* 11/2 C X C WP UNION*
1/2 C X FE WP UNION* 3/4 C X FE WP UNION*
1 C X FE WP UNION* 2 CXC WP UNION*
11/4 C X FE WP UNION* 11/2 C X FE WP UNION*
2 C X FE WP UNION* 1/2 C X M WP UNION*
3/4 C X M WP UNION* 1 C X M WP UNION*
11/4 C X M WP UNION* 11/2 C X M WP UNION*
2 C X M WP UNION*

Subject Copper Pipe Fittings - PTraps

11/4 CXC CD PTRAP BODY N/CO 11/2 C X C CD PTRAP BODY N/CO
2 C X C CD PTRAP BODY N/CO 3 C X C CD PTRAP BODY N/CO
11/4 CD P TRAP N/CO 11/4 CD P TRAPN/CO ELBOW
11/2 P TRAP N/CO 11/2 CD P TRAPN/COELBOW
2 CD P TRAP N/CO 2 CD P TRAPN/COELBOW
3 CD P TRAP N/CO 3 CD P TRAPSN/COELBOW
1 1/4 CD S TRAP N/CO 1 1/2 CD S TRAP N/CO
11/4 CD S TRAP W/CO 11/2 CD S TRAP W/CO
2 CD S TRAP W/CO 11/2 C X C CD PTRAP BODY W/CO
2 C X C CD PTRAP BODY W/CO 11/4 CD P TRAP W/CO
11/4 CD P TRAPW/COELBOW 11/2 CD P TRAP W/CO
11/2 CD P TRAPW/COELBOW 2 CD P TRAP W/CO
2 CD P TRAPW/COELBOW 3 CD P TRAP W/CO
3 CD P TRAPW/COELBOW 3 X 6 X 11/2 X 11/2 CD DRUM TRAP
11/2 CD P TRAP L/CO GROUND SWIVEL 11/2 CD P TRAP W/CO GROUND SWIVEL

Subject Copper Pipe Fittings - DWV TY's

11/4 CXCXCXC CD DOUBLE WASTE FTG 11/2 CXCXCXC CD DOUBLE WASTE FTG
11/2 11/4 11/4 11/4 CXCXCXC CD DOUBLE WASTE FTG 11/2 11/4 11/2 11/2 CXCXCXC CD DOUBLE WASTE FTG
11/2 11/2 11/4 11/4 CXCXCXC CD DOUBLE WASTE FTG 2 11/211/411/4 CXCXCXC CD DOUBLE WASTE FTG
2 11/2 11/2 11/2 CXCXCXC CD DOUBLE WASTE FTG 11/4 CXCXC CD TY*
11/2 CXCXC CD TY* 11/2 X 11/4 X 11/4 CXCXC CD TY*
11/2 X 11/4 X 11/2 CXCXC CD TY* 11/2 X 11/2 X 11/4 CXCXC CD TY*
3 FTG X C X C CD TY* 3 X 3 X 11/4 FTGXCXC CD TY*
3 X 3 X 11/2 FTGXCXC CD TY* 3 X 3 X 2 FTGXCXC CD TY*
2 CXCXC CD TY* 2 X 11/4 X 11/4 CXCXC CD TY*
2 X 11/4 X 11/2 CXCXC CD TY* 2 X 11/4 X 2 CXCXC CD TY*
2 X 11/2 X 11/4 CXCXC CD TY* 2 X 11/2 X 11/2 CXCXC CD TY*
2 X 11/2 X 2 CXCXC CD TY* 2 X 2 X 11/4 CXCXC CD TY*
2 X 2 X 11/2 CXCXC CD TY* 11/2 CXCXFE CD TY*
2 CXCXFE CD TY 2 X 11/2 X 11/2 CXCXF CD TY
3 CXCXC CD TY* 3 X 11/2 X 11/4 CXCXC CD TY*
3 X 2 X 11/2 CXCXC CD TY* 3 X 3 X 11/4 CXCXC CD TY*
3 X 3 X 11/2 CXCXC CD TY* 3 X 3 X 2 CXCXC CD TY*
4 CXCXC CD TY* 4 X 4 X 11/2 CXCXC CD TY*
4 X 4 X 2 CXCXC CD TY* 4 X 4 X 3 CXCXC CD TY*
11/4 CXCXCXC CD DOUBLE TY 11/2 CXCXCXC CD DOUBLE TY
11/2 11/2 11/4 11/4 CXCXCXC CD DOUBLE TY 11/2 11/4 11/4 11/4 CXCXCXC CD DOUBLE TY
2 CXCXCXC CD DOUBLE TY 2 X 2 X 11/4 X 11/4 CXCXCXC CD DOUBLE TY
2 X 2 X 11/2 X 11/2 CXCXCXC CD DOUBLE TY 3 CXCXCXC CD DOUBLE TY
3 X 3 X 11/4 X 11/4 CXCXCXC CD DOUBLE TY 3 X 3 X 11/2 X 11/2 CXCXCXC CD DOUBLE TY
3 X 3 X 2 X 2 CXCXCXC CD DOUBLE TY 4 CXCXCXC CD DOUBLE TY
4 X 4 X 2 X 2 CXCXCXC CD DOUBLE TY 4 X 4X 3 X 3 CXCXCXC CD DOUBLE TY
11/4 CXCXCXC CD DOUBLE LONG TURN TY 11/2 CXCXCXC CD DOUBLE LONG TURN TY
11/2 11/2 11/4 11/4 CXCXCXC CD DLT TY 2 CXCXCXC CD DOUBLE LONG TURN TY
2 X 2 X 11/4 X 11/4 CXCXCXC CD DLT TY 2 X 2 X 11/2 X 11/2 CXCXCXC CD DLT TY
11/2 CXCXC LONG TURN CD TY 2 CXCXC LONG TURN CD TY
3X3X3X11/2 CXCXCXC SIDEOUT RH CD TY 3X3X3X11/2 CXCXCXC SIDEOUT LH CD TY

Subject Copper Pipe Fittings - DWV Y's

11/4 CXCXC CD 45 Y* 11/2 CXCXC CD 45 Y*
11/2CX 11/4CX 11/4C CD 45 Y* 11/2CX 11/4CX 11/2C CD 45 Y*
11/2CX 11/2CX 11/4C CD 45 Y* 2 CXCXC 45 CD Y*
2CX 11/4CX 11/4C CD 45 Y* 2CX 11/4CX 11/2C CD 45 Y*
2CX 11/4CX 2C CD 45 Y* 2CX 11/2CX 11/4C CD 45 Y*
2CX 11/2CX 11/2C CD 45 Y* 2CX 11/2CX 2C CD 45 Y*
2CX 2CX 11/4C CD 45 Y* 2CX 2CX 11/2C CD 45 Y*
3 CXCXC CD 45 Y* 3C X 2C X 2C CD 45 Y*
3CX 3CX 11/4C CD 45 Y* 3CX 3CX 11/2C CD 45 Y*
3CX 3CX 2C CD 45 Y* 4 CXCXC CD 45 Y*
4CX 4CX 2C CD 45 Y* 4CX 4CX 3C CD 45 Y*
11/4 CXCXCXC CD 45 DOUBLE Y 11/2 CXCXCXC CD 45 DOUBLE Y
11/2 11/2 11/4 11/4 CXCXCXC CD DOUBLE Y 2 CXCXCXC CD 45 DOUBLE Y
2 X 2 X 11/4 X 11/4 CXCXCXC CD DOUBLE Y 2 X 2 X 11/2 X 11/2 CXCXCXC CD DOUBLE Y
3 CXCXCXC CD 45 DOUBLE Y 3 X 3 X 11/2 X 11/2 CXCXCXC CD DOUBLE Y

Subject Copper Pipe Fittings - Caps and Cleanouts

5 CP TUBE END CAP* 6 CP TUBE END CAP*
11/2 CXC/O CD TUBE END CLEANOUT* 3 CD CXC/O TUBE END CLEANOUT*
3 FTGXC/O CD CLEANOUT FLUSH TYPE* 4 FTGXC/O CD CLEANOUT FLUSH TYPE*
11/4 FTGXC/O CD CLEANOUT FULL PLUG* 11/2 FTGXC/O CD CLEANOUT FULL PLUG*
2 FTGXC/O CD CLEANOUT FULL PLUG* 3 FTGXC/O CD CLEANOUT FULL PLUG*
4 FTGXC/O CD CLEANOUT FULL PLUG* 11/4 CXCXCO CD LINE CLEANOUT
11/2 CXCXCO CD LINE CLEANOUT 2 CXCXCO CD LINE CLEANOUT
3 CXCXCO CD LINE CLEANOUT 4 CXCXCO CD LINE CLEANOUT
11/2 CXCXCO CLEANOUTFULL PLUG 2 CXCXCO CD CLEANOUT FULL PLUG
3 CXCXCO CD CLEANOUT FULL PLUG 11/4 CXCO WD TUBE END CLEANOUT*
11/2 CXCO WD TUBE END CLEANOUT* 2 CXCO WD TUBE END CLEANOUT*
3 CXCO WD TUBE END CLEANOUT* 11/4 WD FLUSH FTGXCO CLEANOUT*
11/2 FTGXCO WD CLEANOUTFLUSH TYPE* 11/2 X 1 FTGXCO WD CLEANOUT FLUSH*
2 FTGXCO WD CLEANOUTFLUSH TYPE* 11/4 FTGXCO WD CLEANOUT FULL PLUG*
11/2 FTGXCO WD CLEANOUT FULL PLUG* 2 FTGXCO WD CLEANOUT FULL PLUG*

APPENDIX 2 MARGIN OF DUMPING BY EXPORTER/COUNTRY

CERTAIN COPPER PIPE FITTINGS MARGIN OF DUMPING BY EXPORTER/COUNTRY

Country of Origin Weighted Average Margin of Dumping1
United States
Barnes Distribution, Inc. 221%
Elkhart Products Corp. 0%
Mueller Industries, Inc. 47%
Nibco Inc. 26%
United Refrigeration, Inc. 27.5%
Companies Not Selected 37%
Incomplete Submission / NonCooperative: 242%
United States Total/Average 108%
Korea
Jungwoo Metal Industry Co., Ltd. 1.9%
Companies Not Selected 37%
Incomplete Submission / NonCooperative: 242%
Korea Total/Average 104%
China
Tianli Pipe Fitting Co., Ltd. 0%
Zhuji City Howhi Air Conditioners Made Co., Ltd. 0%
Companies Not Selected 37%
Incomplete Submission / NonCooperative: 242%
China Total/Average 226%

1 As a percentage of export pricen

CERTAIN COPPER PIPE FITTINGS
AMOUNTS OF SUBSIDY BY EXPORTER

Country of Origin Weighted Average Amount of Subsidy1 Amount of Subsidy (Renminbi per Kilogram)
United States n/a n/a
Korea n/a n/a
China    
Tianli Pipe Fitting Co., Ltd. 0% 0
Zhuji City Howhi Air Conditioners Made Co., Ltd. 0% 0
Incomplete Submission / NonCooperative: n/a 17.73
China Total/Average 51% n/a

1 As a percentage of export price

APPENDIX 3 - DESCRIPTION OF IDENTIFIED PROGRAMS AND INCENTIVES AT INITIATION

  1. SPECIAL ECONOMIC ZONE (SEZ) INCENTIVES

    In its recent WTO notification, China identified the following programs:

    X. Preferential tax policies for enterprises with foreign investment established in special economic zones (excluding Shanghai Pudong area)

    XI. Preferential tax policies for enterprises with foreign investment established in the coastal economic open areas and in the economic and technological development zones

    XII. Preferential tax policies for enterprises with foreign investment established in Pudong area of Shanghai

    XIII. Preferential tax policies for enterprises with foreign investment established in the Three Gorges of Yangtze River Economic Zone

    XIV. Preferential tax policies in the Western regions

    It is also our understanding that the GOC may provide various benefits and incentives to enterprises in China located within SEZs. The various benefits and incentives are outlined below:

    • Tariff exemptions on imported materials;
    • Reduction of corporate income tax;
    • Value Added Tax (VAT) exemptions;
    • Special land tax and land use exemptions;
    • Preferential costs of services and infrastructure provided by government bodies or state-owned enterprises;
    • Exemption/Reduction in Local Income tax for SEZ Enterprises; and
    • Income Tax Refund of Amounts Further Invested in SEZs.


  2. GRANTS PROVIDED FOR EXPORT PERFORMANCE AND EMPLOYING COMMON WORKERS

    In its recent WTO notification, the GOC identified the following program:

    XXIV. Preferential tax policies for enterprises which provide employment for unemployed people

    It is also our understanding that the GOC may be providing grants to enterprises in China based upon export performance and the employment of common workers.

  3. PREFERENTIAL LOANS

    There is information that the GOC may be providing loans to enterprises in China at preferential interest rates and financing terms. These loans may be being made directly by the GOC or indirectly via financial institutions in China

  4. LOAN GUARANTEES BY THE GOVERNMENT OF CHINA

    There is information that the GOC may be providing loan guarantees to enterprises in China. These loan guarantees may be made directly by the GOC or indirectly via financial institutions in China

  5. GRANTS

    In its recent WTO notification, China identified the following programs:

    XXXII.  Development funds for SMEs;

    XXXIII. Fund for international market exploration by SMEs;

    The CBSA has also identified other grants in its past investigations, specifically:

    1. Grants from Development Zone Management Committees Under the Authority of Town Governments;
    2. Grants Provided to Companies Newly Established in the Pudong New Area of Shanghai;


  6. PREFERENTIAL INCOME TAX PROGRAMS:

    In its recent WTO notification, China identified the following programs:

    I. Preferential Tax Policies for Foreign-Invested Enterprises;

    II. Preferential Tax Policies for Foreign-Invested Export Enterprises;

    VI. Preferential tax policies for enterprises with foreign investment which are technology intensive and knowledge-intensive;

    VIII. Preferential tax policies for enterprises with foreign investment recognized as high or new technology enterprises established in the State high or new technology industrial development zones, and for advanced technology enterprises invested in and operated by foreign businesses;

    IX. Preferential tax policies for enterprises recognized as high or new technology enterprises established in the State high or new technology industrial development zones;

    XXIII. Preferential tax policies for township enterprises;

    XXVII. Preferential tax policies for the research and development of foreigninvested enterprises;

    LVIII. Preferential tax policies for foreign invested enterprises and foreign enterprises which have establishments or place in China and are engaged in production or business operations purchasing domestically produced equipments;

    LIX. Preferential tax policies for domestic enterprises purchasing domestically produced equipments for technology upgrading purpose;

  7. RELIEF FROM DUTIES AND TAXES ON MATERIALS AND MACHINERY

    In its recent WTO notification, China identified the following programs:

    LX. Exemption of tariff and import VAT for the imported technologies and equipments;

    LXXV. Refund of import VAT of raw copper materials;

    LXXVI. Preferential tax treatment for casting and forging products;

    LXXVII. Preferential tax treatment to dies products;

    LXXVIII. Preferential tax treatment to numerically controlled machine tool products;

    There is information that the GOC may be providing relief from duties and taxes on inputs.

  8. REDUCTION IN LAND USE FEES

    There is information that the GOC may be providing a reduction in land use fees to enterprises in China.

  9. PURCHASE OF GOODS FROM STATEOWNED ENTERPRISES

    There is information that the GOC may be providing goods and/or services to enterprises in China. These goods and/or services may be being provided directly by the GOC or indirectly via state-owned enterprises.

  10. ZHEJIANG PROVINCE - STRATEGIC PLAN FOR LOCAL COPPER PROCESSING INDUSTRY

    There is information that the Zhejiang Economic and Trade Commission may be providing benefits to manufacturers in the copper industry that are located in the Zhejiang Province by means of policy, tax and financial measures.

APPENDIX 4 - SUMMARY OF FINDINGS FOR NAMED SUBSIDY PROGRAMS

  1. SPECIAL ECONOMIC ZONE (SEZ) INCENTIVES

    X. Preferential tax policies for enterprises with foreign investment established in special economic zones (excluding Shanghai Pudong area)

    General Information:

    This program was established in the Income Tax Law of the People's Republic of China for Enterprises with Foreign Investment and Foreign Enterprise, which was promulgated on April 9, 1991, and came into effect on July 1, 1991. This program was established in order to absorb foreign investment, expand the open-up policy and enhance development in Special Economic Zones (SEZs).

    The authority responsible for administering this program is the State Administration of Taxation of the PRC.  The local tax offices are responsible for implementing State policy and all relevant matters related to income tax assessment and collection, including examination and approval of applications relating to preferential tax treatment.

    Under this program, non-wholly foreign owned FIEs established in SEZs and FEs (wholly foreign owned FIEs) established in SEZs engaging in production or business operations shall pay income tax at a reduced rate of 15%.

    The program was in operation during the POI and continues to be in operation to date.

    Legal Basis:

    The income tax reduction for FIEs under this program is provided for in Article 7 of the Income Tax Law of the People's Republic of China for Enterprises with Foreign Investment and Foreign Enterprises.

    The GOC has stated that none of the companies identified by the CBSA has applied for or has received preferential tax treatment under this program during the POI.  The CBSA has identified at least two uncooperative exporters located in the Xiamen SEZ.  These two uncooperative exporters may have received benefits under this program.

    Eligibility Criteria:

    The eligibility criteria for this program can be found in Article 69 of the Rules for the Implementation of the Income Tax Law of the People's Republic of China for Enterprises with Foreign Investment and Foreign Enterprises.

    Article 69 defines SEZs as the SEZs of Shenzhen, Zhuhai, Shantou and Xiamen and the Hainan SEZ established by law or established upon approval of the State Council.

    Determination of Subsidy:

    On the basis of available information, this program would likely constitute a financial contribution pursuant to paragraph 2(1.6)(b) of SIMA, i.e. amounts that would otherwise be owing and due to the government are reduced and/or exempted, and would confer a benefit to the recipient equal to the amount of the reduction/exemption.

    Determination of Specificity:

    Preferential tax rates provided to FIEs were found to be limited, in law, to a particular enterprise, pursuant to paragraph 2(7.2)(a) of SIMA, i.e. as it is limited, pursuant to a legislative, regulatory, or administrative instrument or other public document, in this case, as set forth in the Rules for the Implementation of the Income Tax Law of the People's Republic of China for Enterprises with Foreign Investment and Foreign Enterprises. In addition, the CBSA believes that the subsidy is further limited to a group of enterprises, which is comprised of FIEs that meet the abovementioned eligibility criteria.

    XI. Preferential tax policies for enterprises with foreign investment established in the coastal economic open areas and in the economic and technological development zones

    General Information:

    This program was established in the Income Tax Law of the People's Republic of China for Enterprises with Foreign Investment and Foreign Enterprise, which was promulgated on April 9, 1991, and came into effect on July 1, 1991. This program was established in order to encourage foreign investment in Economic and Technical Development Zones (ETDZs) in open coastal cities and encourage some districts to take the lead in development. The authority responsible for administering this program is the State Administration of Taxation and local tax offices.

    Under this program, FIEs of a productive nature established in coastal economic open zones or in the old urban districts of cities where the SEZs or the ETDZs are located shall pay income tax at a reduced rate of 24%.

    FIEs established in coastal economic open zones or in the old urban districts of cities where the SEZs or the ETDZs are located or in any other regions defined by the State Council, who are engaged in activities relating to energy, communications, harbour, wharf or other projects encouraged by the State, may be levied at the reduced rate of 15%.

    The program was in operation during the POI and continues to be in operation to date.

    Legal Basis:

    The income tax reduction for FIEs under this program is provided for in Article 7 of the Income Tax Law of the People's Republic of China for Enterprises with Foreign Investment and Foreign Enterprises.

    The GOC has stated that none of the companies identified by the CBSA has applied for or has received preferential tax treatment under this program during the POI.  The CBSA has identified at least two uncooperative exporters located in the Ningbo coastal economic open zone.  These two uncooperative exporters may have received benefits under this program.

    Eligibility Criteria:

    The eligibility criteria for this program can be found in the following articles of the Rules for the Implementation of the Income Tax Law of the People's Republic of China for Enterprises with Foreign Investment and Foreign Enterprises.

    Article 69 defines ETDZs as the economic and technological development zones in the coastal port cities established upon approval of the State Council.

    FIEs established in ETDZs that are eligible for preferential tax treatment under this program are located in the following ETDZ areas: Changchun, Wuhan, Haerbin, Nanchang, Changsha, Zhengzhou, Taiyuan, Hefei, Wuhu, Xi’an, Chongqing, Chengdu, Hohhot, Kunming, Nanning, Yinchuan, Guiyang, Shihezi, Urumchi, Lanzhou, Xining, Tianjin, Kunshan, Suzhou Industrial Park, Guangzhou, Jinqiao, Beijing, Nanjing, Dalian, Caohejing, Qingdao, Hangzhou, Ningbo, Yantai, Shenyang, Haichang Xiamen, Rongqiao Fuqing, Minhang, Fuzhou, Nansha, Xiaoshan, Nantong, Qinghuangdao, Yingkou, Wenzhou, Lianyungang, Weihai, Daxie Ningbo, Zhanjiang, Dayawai Huizhou, Yangpu Hainan, Dongshan and Hongqiao.

    Article 70 defines coastal economic open zones as "those cities, counties and districts established as coastal economic open zones upon approval of the State Council".

    FIEs of a productive nature are defined in Article 72 of the Rules for the Implementation of the Income Tax Law of the People's Republic of China for Enterprises with Foreign Investment and Foreign Enterprises as FIEs engaged in the following industries:

    (a) Machine manufacturing and electronics industries;
    (b) Energy resource industries (not including exploitation of oil and natural gas);
    (c) Metallurgical, chemical and building material industries;
    (d) Light industries, and textiles and packaging industries;
    (e) Medical equipment and pharmaceutical industries;
    (f) Agriculture, forestry, animal husbandry, fisheries and water conservation;
    (g) Construction industries;
    (h) Communications and transportation industries (not including passenger transport);
    (i) Development of science and technology, geological survey and industrial information consultancy directly for services in respect of production and services in respect of repair and maintenance of production equipment and precision instruments;
    (j) Other industries as specified by the tax authorities under the State Council.

    Determination of Subsidy:

    On the basis of available information, this program would likely constitute a financial contribution pursuant to paragraph 2(1.6)(b) of SIMA, i.e. amounts that would otherwise be owing and due to the government are reduced and/or exempted, and would confer a benefit to the recipient equal to the amount of the reduction/exemption.

    Determination of Specificity:

    Preferential tax rates provided to FIEs were found to be limited, in law, to a particular enterprise, pursuant to paragraph 2(7.2)(a) of SIMA, i.e. as it is limited, pursuant to a legislative, regulatory, or administrative instrument or other public document, in this case, as set forth in the Rules for the Implementation of the Income Tax Law of the People's Republic of China for Enterprises with Foreign Investment and Foreign Enterprises. In addition, the CBSA believes that the subsidy is further limited to a group of enterprises, which is comprised of FIEs that meet the abovementioned eligibility criteria.

    XII. Preferential tax policies for enterprises with foreign investment established in Shanghai Pudong area

    This program was removed and not considered for the final phase of the investigation.  Please refer to the SOR issued for the preliminary determination of this investigation for more information.

    XIII. Preferential tax policies for enterprises with foreign investment established in the Three Gorges of Yangtze River Economic Zone

    This program was removed and not considered for the final phase of the investigation.  Please refer to the SOR issued for the preliminary determination of this investigation for more information.

    XIV. Preferential tax policies in the Western regions

    This program was removed and not considered for the final phase of the investigation.  Please refer to the SOR issued for the preliminary determination of this investigation for more information.

    Program: Tariff Exemptions on Imported Materials

    General Information:

    This program was established in the Regulations on Special Economic Zones in Guangdong Province and approved for implementation on August 26, 1980. The program was established to absorb investment in SEZs and encourage districts to take the lead in development. The program is administered by the General Administration of Customs of the PRC and local customs authorities.

    Under this program, machinery and equipment, spare parts, raw and semi-processed materials, means of transportation and other capital goods necessary for production that are imported by enterprises in special zones shall be exempted from import duties.

    The program was in operation during the POI and continues to be in operation to date.

    Legal Basis:

    The import duty exemption is detailed in Article 13 of the Regulations on Special Economic Zones in Guangdong Province.

    The GOC has stated that none of the companies identified by the CBSA has applied for or has received preferential treatment under this program during the POI.  The CBSA is unable to determine whether any uncooperative companies have received preferential treatment under this program.

    Eligibility Criteria:

    The eligibility criteria are stated in Article 13 of the Regulations on Special Economic Zones in Guangdong Province.

    Any enterprise located in the special zones may receive the import duty exemption.

    Determination of Subsidy:

    On the basis of available information, this program would likely constitute a financial contribution pursuant to paragraph 2(1.6)(b) of SIMA, i.e. amounts that would otherwise be owing and due to the government are reduced and/or exempted, and would confer a benefit to the recipient equal to the amount of the reduction/exemption.

    Determination of Specificity:

    Import duty exemptions provided to enterprises in SEZs in Guangdong province were found to be limited, in law, to a particular enterprise, pursuant to paragraph 2(7.2)(a) of SIMA, i.e. as it is limited, pursuant to a legislative, regulatory, or administrative instrument or other public document, in this case, as set forth in the Regulations on Special Economic Zones in Guangdong Province.

    Program: Reduction of Corporate Income Tax

    General Information:

    This program was established in the Regulations on Special Economic Zones in Guangdong Province and approved for implementation on August 26, 1980. The program was established to absorb investment in SEZs and encourage districts to take the lead in development. The program is administered by the State Administration of Taxation of the PRC and local tax authorities.

    Under this program, all eligible enterprises may receive a reduced corporate income tax rate of 15%.

    The program was in operation during the POI and continues to be in operation to date.

    Legal Basis:

    The program is described under Article 14 of the Regulations on Special Economic Zones in Guangdong Province.

    The GOC has stated that none of the companies identified by the CBSA has applied for or has received preferential tax treatment under this program during the POI.  The CBSA is unable to determine whether any uncooperative companies have received preferential treatment under this program.

    Eligibility Criteria:

    The eligibility criteria can be found in Article 14 of the Regulations on Special Economic Zones in Guangdong Province.  Special preferential treatment is given to enterprises established within two years of the promulgation of the Regulations on Special Economic Zones in Guangdong Province, to enterprises with an investment of US$5 million or more and to enterprises involving higher technology or having a longer period of capital turnover.

    Determination of Subsidy:

    On the basis of available information, this program would likely constitute a financial contribution pursuant to paragraph 2(1.6)(b) of SIMA, i.e. amounts that would otherwise be owing and due to the government are reduced and/or exempted, and would confer a benefit to the recipient equal to the amount of the reduction/exemption.

    Determination of Specificity:

    Preferential tax rates provided to enterprises in SEZs were found to be limited, in law, to a particular enterprise, pursuant to paragraph 2(7.2)(a) of SIMA, i.e. as it is limited, pursuant to a legislative, regulatory, or administrative instrument or other public document, in this case, as set forth in the Regulations on Special Economic Zones in Guangdong Province. In addition, the CBSA believes that the subsidy is further limited to a group of enterprises, which is comprised of enterprises that meet the abovementioned eligibility criteria.

    Program: Value-added Tax (VAT) Exemptions

    The GOC has stated that this program is not available in the SEZs.  The CBSA is unable to determine whether any uncooperative companies have received preferential treatment under this program.

    Program: Special land tax and land use exemptions

    The GOC has stated that this program is not available in the SEZs.  The CBSA is unable to determine whether any uncooperative companies have received preferential treatment under this program.

    Program: Preferential costs of services and infrastructure provided by government bodies or stateowned enterprises

    The GOC has stated that this program is not available in the SEZs.  The CBSA is unable to determine whether any uncooperative companies have received preferential treatment under this program.

    Program: Exemption/Reduction in Local Income Tax for SEZ Enterprises

    General Information:

    This program was established in the Income Tax Law of the People’s Republic of China for Enterprises with Foreign Investment and Foreign Enterprises, which was promulgated on April 9, 1991 and came into force on July 1, 1991.  This program was established to provide preferential tax treatment to FIEs to accelerate the development of local economy.  The program is administered by the State Administration of Taxation and local tax authorities.

    Under this program, any enterprise with foreign investment that operates in an industry or undertakes a project encouraged by the State may receive an exemption or reduction in local income taxes at the discretion of the relevant provincial, autonomous region or municipality under the Central Government.

    The program was in operation during the POI and continues to be in operation to date.

    Legal Basis:

    The program is described under Article 9 of the Income Tax Law of the People’s Republic of China for Enterprises with Foreign Investment and Foreign Enterprises.

    The GOC has stated that none of the companies identified by the CBSA has applied for or has received preferential tax treatment under this program during the POI.

    Eligibility Criteria:

    The eligibility criteria can be found in Article 9 of the Income Tax Law of the People’s Republic of China for Enterprises with Foreign Investment and Foreign Enterprises.

    The program is only available to enterprises with foreign investment that are operating in an encouraged industry or project, that is those enterprises identified in the “Current Catalogue of Key Industries, Products and Technologies the Development of Which is Encouraged by the State (Revised in 2000)”.

    Based on the CBSA’s review of the Catalogue, the copper pipe fittings industry is not an encouraged industry.  This program is not considered applicable to this investigation.

    Program:  Income Tax Refund Of Amounts Further Invested In SEZs

    Income Tax Refund Of Amounts Further Invested In the Hainan SEZ

    General Information:

    This program was established in the Income Tax Law of the People's Republic of China for Enterprises with Foreign Investment and Foreign Enterprise.  This program was established to encourage foreign investors to reinvest profits into infrastructure projects and agriculture development enterprises in the Hainan SEZ.  The authority responsible for administering this program is the State Administration of Taxation and the local tax authorities.

    Under this program, profits of foreign investors earned from enterprises established in the Hainan SEZ that are directly reinvested in the Hainan SEZ into infrastructure projects and agriculture development enterprises for which enterprise income tax has already been paid on the reinvested amount may have 100% of the amount refunded. 

    The program was in operation during the POI and continues to be in operation to date.

    Legal Basis:

    The income tax reduction for foreign investors in Hainan SEZ is provided for in Article 10 of the Income Tax Law of the People's Republic of China for Enterprises with Foreign Investment and Foreign Enterprises and is administered in accordance with Articles 80, 81 and 82 of the Rules for the Implementation of the Income Tax Law of the People's Republic of China for Enterprises with Foreign Investment and Foreign Enterprises.

    The GOC has stated that none of the companies identified by the CBSA has applied for or has received preferential tax treatment under this program during the POI.

    Eligibility Criteria:

    This program is available to foreign investors who directly reinvest profits earned from enterprises established in the Hainan SEZ into infrastructure projects and agriculture development enterprises located in the Hainan SEZ, according to Article 81 of the Rules for the Implementation of the Income Tax Law of the People's Republic of China for Enterprises with Foreign Investment and Foreign Enterprises.

    Determination of Subsidy:

    On the basis of available information, this program would likely constitute a financial contribution pursuant to paragraph 2(1.6)(b) of SIMA, i.e. amounts that would otherwise be owing and due to the government are reduced and/or exempted, and would confer a benefit to the recipient equal to the amount of the reduction/exemption.

    Determination of Specificity:

    Preferential tax rates provided to foreign investors obtaining profits from the Hainan SEZ were found to be limited, in law, to a particular enterprise, pursuant to paragraph 2(7.2)(a) of SIMA, i.e. as it is limited, pursuant to a legislative, regulatory, or administrative instrument or other public document, in this case, as set forth in the Rules for the Implementation of the Income Tax Law of the People's Republic of China for Enterprises with Foreign Investment and Foreign Enterprises.

    Given that none of the identified companies are located in the Hainan SEZ, this program is not considered applicable to this investigation.

    Income Tax Refund Of Amounts Further Invested In the SEZs in Guangdong Province

    General Information:

    This program was established in the Regulations on Special Economic Zones in Guangdong Province and approved for implementation on August 26, 1980.  This program was established to encourage investors to reinvest profits into businesses in the SEZs in Guangdong province.  The authority responsible for administering this program is the State Administration of Taxation.  The local tax offices are responsible for implementing State policy and all relevant matters related to income tax assessment and collection, including examination and approval of applications relating to preferential tax treatment.

    Under this program, investors that reinvest their profits derived in the SEZs in Guangdong province for a period of five years or longer may apply for a reduction of or an exemption from income tax on the reinvested portion. 

    The program was in operation during the POI and continues to be in operation to date.

    Legal Basis:

    The income tax reduction for investors in SEZs in Guangdong province is provided for in Article 16 of the Regulations on Special Economic Zones in Guangdong Province.

    The GOC has stated that none of the companies identified by the CBSA has applied for or has received preferential tax treatment under this program during the POI.  The CBSA is unable to determine whether any uncooperative companies have received preferential treatment under this program.

    Eligibility Criteria:

    This program is available to any investors that reinvest their share of the profit in the special zones for a period of five years or longer, according to Article 16 of the Regulations on Special Economic Zones in Guangdong Province.

    Determination of Subsidy:

    On the basis of available information, this program would likely constitute a financial contribution pursuant to paragraph 2(1.6)(b) of SIMA, i.e. amounts that would otherwise be owing and due to the government are reduced and/or exempted, and would confer a benefit to the recipient equal to the amount of the reduction/exemption.

    Determination of Specificity:

    Preferential tax rates provided to enterprises located in the SEZs in Guangdong province were found to be limited, in law, to a particular enterprise, pursuant to paragraph 2(7.2)(a) of SIMA, i.e. as it is limited, pursuant to a legislative, regulatory, or administrative instrument or other public document, in this case, as set forth in the Regulations on Special Economic Zones in Guangdong Province.

  2. GRANTS PROVIDED FOR EXPORT PERFORMANCE AND EMPLOYING COMMON WORKERS

    Program: Exemption of Income Tax for Employing Unemployed People

    General Information:

    This program was established in the Notice on Some Preferential Policies for Enterprise Income Tax Cai Shui Zi [94] No. 1 of 1994. This program was established to increase and encourage employment by encouraging newly established labour employment service enterprises in cities or towns that employ unemployed people.  The authority responsible for administering this program is the State Administration of Taxation and local tax authorities.

    Under this program, the income tax of the newly established labour employment service enterprises may be exempted for three years if they employ unemployed people over sixty percent of total employees within the year.  For the aforementioned enterprises that newly employ unemployed people over thirty percent of original total employees, the income tax payable may be reduced by one half for an additional two years after the three-year period.

    The program was in operation during the POI and continues to be in operation to date.

    Legal Basis:

    The income tax exemption and reduction for newly established labour employment service enterprises that employ unemployed people is provided for in Article I (vii) of the Notice on Some Preferential Policies for Enterprise Income Tax Cai Shui Zi [94] No. 1 of 1994.

    The GOC has stated that none of the companies identified by the CBSA has applied for or has received preferential tax treatment under this program during the POI.  The CBSA is unable to determine whether any uncooperative companies have received preferential treatment under this program.

    Eligibility Criteria:

    The eligibility criteria can be found in the Notice on Some Preferential Policies for Enterprise Income Tax Cai Shui Zi [94] No. 1 of 1994.

    The GRPC defines a newly established labour employment service enterprise as a totally new enterprise and would not include enterprises that have been reorganized or formerly belonging to an integrated company or one that has changed its name.

    These enterprises also must reach the aforementioned employment percentages to obtain the exemptions and reductions of income tax.

    Determination of Subsidy:

    On the basis of available information, this program would likely constitute a financial contribution pursuant to paragraph 2(1.6)(b) of SIMA, i.e. amounts that would otherwise be owing and due to the government are reduced and/or exempted, and would confer a benefit to the recipient equal to the amount of the reduction/exemption.

    Determination of Specificity:

    Preferential tax rates provided to newly established labour employment service enterprises that employ unemployed people were found to be limited, in law, to a particular enterprise, pursuant to paragraph 2(7.2)(a) of SIMA, i.e. as it is limited, pursuant to a legislative, regulatory, or administrative instrument or other public document, in this case, as set forth in the Notice on Some Preferential Policies for Enterprise Income Tax Cai Shui Zi [94] No. 1 of 1994.

    Program:  Grants Provided for Export Performance

    The GOC has stated that this program is not available.  The CBSA is unable to determine whether any uncooperative companies have received preferential treatment under this program.

  3. PREFERENTIAL LOANS

    Program: Preferential Loans provided to Qualified Small-sized Enterprises

    This program was removed and not considered for the final phase of the investigation.  Please refer to the SOR issued for the preliminary determination of this investigation for more information.

  4. LOAN GUARANTEES BY THE GOC

    The GOC has stated that this program does not exist.  According to Article 8 of the Guarantee Law of the PRC, which was promulgated on June 30, 1995, and came into effect on October 1, 1995, state organs including government bodies cannot act as guarantors.

    Based on CBSA’s previous subsidy investigations involving China and this investigation, none of the Chinese exporters has been found to have received benefits under this program.  This subsidy program is not considered applicable to this investigation.

  5. GRANTS

    Program:  Development Funds for SMEs

    This program was removed and not considered for the final phase of the investigation.  Please refer to the SOR issued for the preliminary determination of this investigation for more information.

    Program:  Funds for International Market Exploration by SMEs

    General Information:

    This program was established in the Circular of the Ministry of Finance, the Ministry of Foreign Trade and Economic Cooperation Concerning Printing and Distributing the measures for the Administration of International Market Developing Funds of SMEs (for Trial Implementation) Cai Qi No. 467 of 2000, which was promulgated and came into force on October 24, 2000 and the Rules for Implementation of the Measures for Administration of International Market Developing Funds of SMEs (trial implementation).

    This program was established to support the development of SMEs, to encourage SMEs to join in the competition of international markets, to reduce the business risks of the enterprises, and to promote the development of the national economy.

    The program is administered by the foreign trade and economic departments and the financial departments at all levels.  The market developing funds are divided into two parts: one for central use and the other for local use.

    Under this program, SMEs that submit applications for project funds plans, applications for project implementation and applications for project funds appropriation respectively during three different phases, together with relevant materials requested by the laws and regulations may receive funding for the projects.

    The projects applied for are for the purpose of: (i) holding or participating in overseas exhibitions, (ii) accreditation fee for quality management system, environment management system or for the product, (iii) promotion in the international market, (iv) exploring a new market, (v) holding trainings and symposiums, (vi) overseas bidding.

    The funds given to each project shall not be more than RMB 300,000 at the most. In case of organization project application, the funds given to each project shall not be more than RMB 3 million at the most.  The support proportion of market developing funds shall not exceed 50% of the amount the supported project needs in principle.

    The program was in operation during the POI and continues to be in operation to date.

    Legal Basis:

    The international market development fund available to qualified SMEs is provided for in the Circular of the Ministry of Finance, the Ministry of Foreign Trade and Economic Cooperation Concerning Printing and Distributing the measures for the Administration of International Market Developing Funds of SMEs (for Trial Implementation) Cai Qi No. 467 of 2000 and the Rules for Implementation of the Measures for Administration of International Market Developing Funds of SMEs (trial implementation).

    The GOC has stated that none of the companies identified by the CBSA has applied for or has received preferential treatment under this program during the POI.  The CBSA is unable to determine whether any uncooperative companies have received preferential treatment under this program.

    Eligibility Criteria:

    The eligibility criteria can be found in Article 5 of the Circular of the Ministry of Finance, the Ministry of Foreign Trade and Economic Cooperation Concerning Printing and Distributing the measures for the Administration of International Market Developing Funds of SMEs (for Trial Implementation) Cai Qi No. 467 of 2000.

    Enterprises applying for funds from the international market development fund must meet the following criteria:

    • Qualification of enterprise as legal person according to law and having the power to manage the import and export businesses;
    • Customs statistics of export value of the enterprise of last year is US $15 million or less and the enterprise has sound financial management system and good financial management records; and
    • Having the employees who specialize in foreign trade and economic businesses and who possess the basic skills of foreign trade and economic and having definite work arrangements and market developing plans.

    Determination of Subsidy:

    On the basis of available information, this program would likely constitute a financial contribution pursuant to paragraph 2(1.6)(b) of SIMA, i.e. amounts that would otherwise be owing and due to the government are reduced and/or exempted, and would confer a benefit to the recipient equal to the amount of the reduction/exemption.

    Determination of Specificity:

    The international market development fund is considered to be an export subsidy pursuant to paragraph 2(1) of SIMA, as it is contingent, in whole or in part, on export performance.

    Program:  Grants From Development Zone Committees Under The Authority Of Town Governments

    This program was removed and not considered for the final phase of the investigation.  Please refer to the SOR issued for the preliminary determination of this investigation for more information.

    Program: Grants Provided to Companies Newly Established in the Shanghai Pudong Area

    This program was removed and not considered for the final phase of the investigation.  Please refer to the SOR issued for the preliminary determination of this investigation for more information.

  6. PREFERENTIAL INCOME TAX PROGRAMS

    Program:  Preferential Tax Policies for FIEs

    Reduced Tax Rate for Productive FIEs Scheduled to Operate for a period not less than 10 Years

    General Information:

    This program was established in the Income Tax Law of the People's Republic of China for Enterprises with Foreign Investment and Foreign Enterprise, which was promulgated on April 9, 1991, and came into effect on July 1, 1991.

    This program was established in order to encourage foreign investment.  The authority responsible for administering this program is the State Administration of Taxation and local tax authorities. 

    Under this program, from the year an FIE begins to make a profit, they may apply for and receive an exemption from income tax in the first and second years and a 50% reduction in the third, fourth, and fifth years of profitable operation. Should an FIE cease operation following a period of less than 10 years, that enterprise will be responsible for repaying the amount of tax that has been reduced or exempted under this program.

    If the FIEs business license prescribes a scope that encompasses both business of a productive nature and of a non-productive nature, the FIE may only apply for and receive benefits under this program in years where the income from productive business exceeds 50% of its total income.  Should the scope of the FIE not include business of a productive nature in the scope prescribed by its business license, it may not receive benefits under this program under any circumstance, regardless if it has productive business income that exceeds 50% of total income.

    The program was in operation during the POI and continues to be in operation to date.

    Legal Basis:

    The income tax reduction and exemption for FIEs under this program is provided for in Article 8 of the Income Tax Law of the People's Republic of China for Enterprises with Foreign Investment and Foreign Enterprises.  The program is administered in accordance with the Rules for the Implementation of the Income Tax Law of the People’s Republic of China for Enterprises with Foreign Investment and Foreign Enterprises.

    The GOC has stated that none of the companies identified by the CBSA has applied for or has received preferential tax treatment under this program during the POI.  The CBSA has identified at least one uncooperative exporter may have received benefits under this program.

    Eligibility Criteria:

    As noted above, FIEs of a productive nature are eligible for this program as long as they are scheduled to operate for a period not less than ten years. FIEs of a productive nature are defined in Article 72 of the Rules for the Implementation of the Income Tax Law of the People's Republic of China for Enterprises with Foreign Investment and Foreign Enterprises as FIEs engaged in the following industries:

    (a) Machine manufacturing and electronics industries;
    (b) Energy resource industries (not including exploitation of oil and natural gas);
    (c) Metallurgical, chemical and building material industries;
    (d) Light industries, and textiles and packaging industries;
    (e) Medical equipment and pharmaceutical industries;
    (f) Agriculture, forestry, animal husbandry, fisheries and water conservation;
    (g) Construction industries;
    (h) Communications and transportation industries (not including passenger transport);
    (i) Development of science and technology, geological survey and industrial information consultancy directly for services in respect of production and services in respect of repair and maintenance of production equipment and precision instruments;
    (j) Other industries as specified by the tax authorities under the State Council.

    For further clarification regarding the definition of enterprises with a productive nature, the GOC provided the following supplemental definition:

    "Enterprise(s) with foreign investment which specialize in the sales business by purchasing commodities to carry out simple assembly, separate loading, packaging, cleaning, selecting and arranging and which do not change the forms, properties and components of the original commodities all belong to engaging in the commodity sales business and should not be designated as productive enterprise with foreign investment".

    Determination of Subsidy:

    On the basis of available information, this program would likely constitute a financial contribution pursuant to paragraph 2(1.6)(b) of SIMA, i.e. amounts that would otherwise be owing and due to the government are reduced and/or exempted, and would confer a benefit to the recipient equal to the amount of the reduction/exemption.

    Determination of Specificity:

    Preferential tax rates provided to FIEs were found to be limited, in law, to a particular enterprise pursuant to paragraph 2(7.2)(a) of SIMA, i.e. as it is limited, pursuant to a legislative, regulatory, or administrative instrument or other public document, in this case, as set forth in the Rules for the Implementation of the Income Tax Law of the People's Republic of China for Enterprises with Foreign Investment and Foreign Enterprises. In addition, the CBSA believes that the subsidy is further limited to a group of enterprises, which is comprised of FIEs that meet the abovementioned eligibility criteria.

    Program:  Reinvestment of Profits by Foreign Investor

    This program was established in the Income Tax Law of the People's Republic of China for Enterprises with Foreign Investment and Foreign Enterprise, which was promulgated on April 9, 1991, and came into effect on July 1, 1991.  This program was established in order to encourage foreign investors to reinvest profits into businesses in the PRC.  The authority responsible for administering this program is the State Administration of Taxation and the local tax offices.

    Under this program, foreign investors who reinvest their profits received from an FIE back into that FIE by increasing its registered capital, or use their FIE derived profit to establish another FIE which is planned to operate for a period not less than five years, are eligible to receive a refund of the income tax already paid on the profit that was reinvested.

    Article 10 of the Income Tax Law of the People's Republic of China for Enterprises with Foreign Investment and Foreign Enterprises clearly identifies that any foreign investors who directly reinvest their after tax profit into the organization from which they received the profit from, or use the profits to establish a new foreign enterprise, will be refunded 40% of the tax paid on the profit amount directly reinvested.  Further, if the direct reinvestment is in a new foreign enterprise and the investor withdraws the investment before five years have passed, the tax refunded must be repaid.  It also states that should State Council pass regulations relating to the provision of this preferential treatment, the provisions of those regulations will be applied.

    Article 80 of the Rules for the Implementation of the Income Tax Law of the People's Republic of China for Enterprises with Foreign Investment and Foreign Enterprises refers to "direct reinvestment" as using the profits referred to above, prior to their receipt, to increase registered capital in the FIE who provided the profits, or, following receipt of those profits, establishing another FIE.

    Article 81 of the Rules for the Implementation of the Income Tax Law of the People's Republic of China for Enterprises with Foreign Investment and Foreign Enterprises addresses the preferential provisions passed by State Council, as referred to above.  It states that where a foreign investor directly reinvests profits to establish or expand export oriented enterprises or advanced technology enterprises, 100% of the income tax paid on the reinvested profit will be refunded.

    Legal Basis:

    The income tax reduction for FIEs under this program is provided for in Article 10 of the Income Tax Law of the People's Republic of China for Enterprises with Foreign Investment and Foreign Enterprises and is administered in accordance with Articles 80, 81 and 82 of the Rules for the Implementation of the Income Tax Law of the People's Republic of China for Enterprises with Foreign Investment and Foreign Enterprises.

    The GOC has stated that none of the companies identified by the CBSA has applied for or has received preferential tax treatment under this program during the POI.  The CBSA is unable to determine whether any uncooperative companies have received preferential treatment under this program.

    Eligibility Criteria:

    In order for a foreign investor to obtain this preferential tax treatment, 100% of the shares of the foreign investor enterprise must be foreign-owned and located outside the PRC. Therefore, foreign-funded enterprises inside the PRC that act as investors in other enterprises will not be considered foreign investors for the purposes of preferential treatment under this program.

    Determination of Subsidy:

    On the basis of available information, this program would likely constitute a financial contribution pursuant to paragraph 2(1.6)(b) of SIMA, i.e. amounts that would otherwise be owing and due to the government are reduced and/or exempted, and would confer a benefit to the recipient equal to the amount of the reduction/exemption.

    Determination of Specificity:

    Preferential tax rates provided to FIEs were found to be limited, in law, to a particular enterprise, pursuant to paragraph 2(7.2)(a) of SIMA, i.e. as it is limited, pursuant to a legislative, regulatory, or administrative instrument or other public document, in this case, as set forth in the Income Tax Law of the People's Republic of China for Enterprises with Foreign Investment and Foreign Enterprises. In addition, the CBSA believes that the subsidy is further limited to a group of enterprises, which is comprised of FIEs that meet the abovementioned eligibility criteria.

    Program:  Preferential Tax Policies for ForeignInvested Export Enterprises

    General Information:

    This program was established in the Income Tax Law of the People's Republic of China for Enterprises with Foreign Investment and Foreign Enterprise, which was promulgated on April 9, 1991, and came into effect on July 1, 1991.  This program was established to expand foreign economic cooperation.  The authority responsible for administering this program is the State Administration of Taxation and local tax authorities.

    Under this program, export oriented enterprises invested in and operated by foreign businesses may pay a reduced income tax rate of 15% if their annual output value of all export products amounts to 70% or more of the output value of the products of the enterprise for that year.  Export oriented enterprises in the SEZs and ETDZs and other such enterprises subject to enterprise income tax at the tax rate of 15% that qualify under the abovementioned conditions shall pay enterprise income tax at the tax rate of 10%.

    Legal Basis:

    The income tax reduction for foreign invested export enterprises under this program is provided for in Article 8 of the Income Tax Law of the People's Republic of China for Enterprises with Foreign Investment and Foreign Enterprises and is administered in accordance with Article 75.7 of the Rules for the Implementation of the Income Tax Law of the People's Republic of China for Enterprises with Foreign Investment and Foreign Enterprises.

    The GOC has stated that none of the companies identified by the CBSA has applied for or has received preferential tax treatment under this program during the POI.  The CBSA is unable to determine whether any uncooperative companies have received preferential treatment under this program.

    Eligibility Criteria:

    To obtain this preferential tax treatment, 70% of the sales of the foreign business must be for export.

    Determination of Subsidy:

    On the basis of available information, this program would likely constitute a financial contribution pursuant to paragraph 2(1.6)(b) of SIMA, i.e. amounts that would otherwise be owing and due to the government are reduced and/or exempted, and would confer a benefit to the recipient equal to the amount of the reduction/exemption.

    Determination of Specificity:

    Preferential tax rates provided to foreign invested export enterprises were found to be limited, in law, to a particular enterprise, pursuant to paragraph 2(7.2)(a) of SIMA, i.e. as it is limited, pursuant to a legislative, regulatory, or administrative instrument or other public document, in this case, as set forth in the Income Tax Law of the People's Republic of China for Enterprises with Foreign Investment and Foreign Enterprises.  In addition, the CBSA believes that the subsidy is an export subsidy, as defined in paragraph 2(1) of SIMA, as it is contingent, in whole or in part, on export performance.

    Program: Preferential tax policies for enterprises with foreign investment which are technology intensive and knowledge intensive

    General Information:

    This program was established in the Income Tax Law of the People's Republic of China for Enterprises with Foreign Investment and Foreign Enterprise, which was promulgated on April 9, 1991, and came into effect on July 1, 1991.  This program was established to further utilize foreign capital, introduce foreign advanced technology and equipment and accelerate industry structural adjustment.  The authority responsible for administering this program is the State Administration of Taxation and local tax authorities.

    Under this program, production oriented enterprises with foreign investment established in the coastal economic open zones, SEZs, and in the old urban districts of municipalities where ETDZs are located and which are engaged in technology intensive and knowledge intensive projects, may receive a reduced income tax rate of 15%.

    Legal Basis:

    The income tax reduction for production oriented enterprises with foreign investment under this program is provided for in Article 7 of the Income Tax Law of the People's Republic of China for Enterprises with Foreign Investment and Foreign Enterprises and is administered in accordance with Article 73(1)(a) of the Rules for the Implementation of the Income Tax Law of the People's Republic of China for Enterprises with Foreign Investment and Foreign Enterprises.

    The GOC has stated that none of the companies identified by the CBSA has applied for or has received preferential tax treatment under this program during the POI.  The CBSA is unable to determine whether any uncooperative companies have received preferential treatment under this program.

    Eligibility Criteria:

    As stated previously, this program is limited to production oriented enterprises with foreign investment established in the coastal economic open zones, SEZs, and in the old urban districts of municipalities where ETDZs are located and which are engaged in technology intensive and knowledge intensive projects.

    According to the Circular of the State Administration of Taxation Concerning the Tax Preferential Policy Applicable to Enterprises with Foreign Investment with Regard to Technology Intensive and Knowledge Intensive Projects Guo Shui Fa [2003] No. 135, technology intensive and knowledge intensive projects are those involving leading products listed in the China Catalogue of High and New Technological Products (promulgated in 2000), promulgated by the Ministry of Science and Technology (formerly known as Commission of Science and Technology).  The income from the sales of the leading products for the year must be more than 50% of the total income from sales of all products of the enterprise for the same year.

    Determination of Subsidy:

    On the basis of available information, this program would likely constitute a financial contribution pursuant to paragraph 2(1.6)(b) of SIMA, i.e. amounts that would otherwise be owing and due to the government are reduced and/or exempted, and would confer a benefit to the recipient equal to the amount of the reduction/exemption.

    Determination of Specificity:

    Preferential tax rates provided to production oriented enterprises with foreign investment were found to be limited, in law, to a particular enterprise, pursuant to paragraph 2(7.2)(a) of SIMA, i.e. as it is limited, pursuant to a legislative, regulatory, or administrative instrument or other public document, in this case, as set forth in the Income Tax Law of the People's Republic of China for Enterprises with Foreign Investment and Foreign Enterprises.  In addition, the CBSA believes that the subsidy is further limited to a group of enterprises, which is comprised of FIEs that meet the abovementioned eligibility criteria.

    Program: Preferential tax policies for enterprises with foreign investment recognized as high or new technology enterprises established in the State high or new technology industrial development zones, and for advanced technology enterprises invested in and operated by foreign businesses.

    General Information:

    This program was established in the Income Tax Law of the People's Republic of China for Enterprises with Foreign Investment and Foreign Enterprise, which was promulgated on April 9, 1991, and came into effect on July 1, 1991.  This program was established to encourage high and new technology industrial development and enhance the technology progress.  The authority responsible for administering this program is the State Administration of Taxation and local tax authorities.

    Under this program, enterprises with foreign investment that meet the eligibility criteria described below and that are scheduled to operate for more than 10 years will be exempt from enterprise income tax in the first and second year, beginning with the first profit making year.

    Advanced technology enterprises with foreign investment may pay a reduced income tax rate of 15% for three years, following the first two years of exemption.

    Legal Basis:

    The income tax exemption for FIEs under this program is provided for in Article 8 of the Income Tax Law of the People's Republic of China for Enterprises with Foreign Investment and Foreign Enterprises and is administered in accordance with Article 75(6) of the Rules for the Implementation of the Income Tax Law of the People's Republic of China for Enterprises with Foreign Investment and Foreign Enterprises.

    The GOC has stated that none of the companies identified by the CBSA has applied for or has received preferential tax treatment under this program during the POI.

    Eligibility Criteria:

    This program is limited to Chinese foreign equity joint ventures recognized as high or new technology enterprises and established in the State high or new technology industrial development zones designated by the State Council.

    High or new technology enterprises must meet the following requirements:

    1. They are engaging in the research, development, production and technical service of one or more high technologies within the following categories of high and new technology and their products:

      (i) Electron and information technology;
      (ii)Biological engineering and new medicine technology;
      (iii)New materials and their application technology;
      (iv) Advanced manufacturing technology;
      (v) Aviation and space technology;
      (vi) Modern agricultural technology;
      (vii) New energy resources and high efficient energy conservation technology;
      (viii) Environmental protection new technology;
      (ix) Ocean engineering technology;
      (x) Nuclear application technology;
      (xi) Other new process or new technology applicable in the reconstruction of the traditional industries.

      However, sole trade of such technologies and products thereof are excluded.

    2. They are legal persons.
    3. The person in charge of the enterprises shall be the full time personnel of the enterprises who are familiar with the research, development, production and operation of the products in their enterprises and pay important attention to the technological innovation.
    4. Technical personnel with college and higher level education shall account for 30% and more of all the staffs of the enterprises; technical personnel engaged in the research and development of high and new technology products shall account for 10% and more of all the staffs of the enterprises. For those labourintensive high and new technology enterprises engaging in the production or service of high and new technology products, technical personnel with college and higher level education shall account for 20% and more of all the staffs of the enterprises.
    5. The annual expenses for the research and development of high and new technology and its products shall account for 5% and more of the total sales;
    6. The aggregate of technological income and sales income of the high and new technology products shall account for 60% and more of the annual gross revenue.

    The 26 State high or new technology industrial development zones are as follows:

    1. Donghu New Technology Development Zone, Wuhan;
    2. Pukou Export Oriented Development Zone for New and High Technologies, Nanjing;
    3. Nanhu Science and Technology Development Zone, Shenyang;
    4. Tianjin New Technology Industries Park;
    5. Xi'an Development Zone for New Technology Industries;
    6. Chengdu Development Zone for New and High Technology Industries;
    7. Weihai Torch Development Zone for High Technology Industries;
    8. Zhongshan Torch Development Zone for High Technology Industries;
    9. NanhuNanling New Technology Industries Park, Changchun;
    10. Harbin High Technology Development Zone;
    11. Changsha Experimental Zone for the Development of Science and Technology;
    12. Fuzhou Science and Technology Park;
    13. Tianhe Development Zone for New and High Technology Industries, Guangzhou;
    14. Hefei Science and Technology Industry Park;
    15. Chongqing Development Zone for New and High Technology Industries;
    16. Hangzhou Development Zone for New and High Technology Industries;
    17. Guilin Development Zone for New Technology Industries;
    18. Zhengzhou High Technology Development Zone;
    19. Ningwozhuang Experimental Zone for the Development of New Technology Industries, Lanzhou;
    20. Shijiazhuang Development Zone for New and High Technology Industries;
    21. Jinan Development Zone for High Technology Industries;
    22. Caohejin Development Zone for Newly Emerged Technologies in Shanghai;
    23. Dalian New and High Technology Industries Park;
    24. Shenzhen Science and Technology Industry Park;
    25. Xiamen Torch Development Zone for High Technology Industries; and
    26. Hainan International Science and Technology Industry Park.

    Advanced technology enterprises invested in and operated by foreign businesses may continue for an additional three years enterprise income tax at the tax rate specified in the Tax Law reduced by one half.

    Advanced technology enterprises are FIEs that meet the following requirements:

    1. They belong to the foreign invested projects of a production nature encouraged by the State;
    2. They adopt international advanced and applicable process, technique and equipments; and
    3. The quality and technical performance of their products are playing a leading role in China. 

    Determination of Subsidy:

    On the basis of available information, this program would likely constitute a financial contribution pursuant to paragraph 2(1.6)(b) of SIMA, i.e. amounts that would otherwise be owing and due to the government are reduced and/or exempted, and would confer a benefit to the recipient equal to the amount of the reduction/exemption.

    Determination of Specificity:

    Exemption and reduction of income taxes provided to the enterprises described above were found to be limited, in law, to a particular enterprise, pursuant to paragraph 2(7.2)(a) of SIMA, i.e. as it is limited, pursuant to a legislative, regulatory, or administrative instrument or other public document, in this case, as set forth in the Income Tax Law of the People's Republic of China for Enterprises with Foreign Investment and Foreign Enterprises.  In addition, the CBSA believes that the subsidy is further limited to a group of enterprises, which is comprised of FIEs that meet the abovementioned eligibility criteria.

    Given that none of the identified companies are located in the 26 State high and new technology industrial development zones, this program is not considered applicable to this investigation.

    Program: Preferential tax policies for enterprises recognized as high or new technology enterprises established in the State high or new technology industrial development zones

    General Information:

    This program was established in the Notice on Some Preferential Policies for Enterprise Income Tax (Cai Shui Zi (94) No. 001), which was promulgated on March 29, 1994, and came into effect on April 1, 1994.  This program was established to encourage high and new technology industrial development and enhance the technology progress.  The authority responsible for administering this program is the State Administration of Taxation and local tax authorities.

    Under this program, certain enterprises may receive a reduced tax rate of 15% or an exemption of income taxes for two years.

    Legal Basis:

    The income tax reduction for enterprises under this program is provided for in Article I.1 of the Notice on Some Preferential Policies for Enterprise Income Tax (Cai Shui Zi (94) No. 001).

    The GOC has stated that none of the companies identified by the CBSA has applied for or has received preferential tax treatment under this program during the POI.

    Eligibility Criteria:

    This program is limited to high tech enterprises in the high tech industrial development zones approved by the State Council and newly established high tech enterprises.  The newly established high tech enterprises will receive an exemption of income taxes for two years and the other high tech enterprises will receive the reduced tax rate of 15%.

    Determination of Subsidy:

    On the basis of available information, this program would likely constitute a financial contribution pursuant to paragraph 2(1.6)(b) of SIMA, i.e. amounts that would otherwise be owing and due to the government are reduced and/or exempted, and would confer a benefit to the recipient equal to the amount of the reduction/exemption.

    Determination of Specificity:

    Exemption and reduction of income taxes provided to the enterprises described above were found to be limited, in law, to a particular enterprise, pursuant to paragraph 2(7.2)(a) of SIMA, i.e. as it is limited, pursuant to a legislative, regulatory, or administrative instrument or other public document, in this case, as set forth in the Income Tax Law of the People's Republic of China for Enterprises with Foreign Investment and Foreign Enterprises.

    Given that none of the identified companies are located in the 26 State high and new technology industrial development zones, this program is not considered applicable to this investigation.

    Program:  Preferential Tax Policies for Township Enterprises

    General Information:

    This program was established in the Notice on Some Preferential Policies for Enterprise Income Tax (Cai Shui Zi (94) No. 001), which was promulgated on March 29, 1994, and came into effect on April 1, 1994.  This program was established to reduce the burden of township enterprises due to the imperfect social security system and to encourage the township enterprise to improve the living and working conditions of their employees.  The authority responsible for administering this program is the State Administration of Taxation and local tax authorities.

    Under this program, township enterprises can reduce 10% as per taxable sum for subsidizing the cost of social expenses.

    Legal Basis:

    The income tax reduction for township enterprises is provided for in Article I.10 of the Notice on Some Preferential Policies for Enterprise Income Tax (Cai Shui Zi (94) No. 001).

    The GOC has stated that none of the companies identified by the CBSA has applied for or has received preferential tax treatment under this program during the POI.

    Eligibility Criteria:

    This program is limited to township enterprises.  Township enterprises are “different types of enterprises that are established in townships (including the villages under their jurisdiction) with the bulk of their capital being invested by rural economic collectives or farmers and that undertake the obligations to support agriculture.” 

    The GOC has stated that none of the identified companies is classified as a township enterprise.  Given that the program is intended to support agriculture it is not considered applicable to this investigation.

    Program: Preferential Tax Policies for the Research and Development of FIEs

    General Information:

    This program was established in the Circular of the State Administration of Taxation on the Issues Related with the Offset Taxable Income on Technology Development Fee for Foreign Investment Enterprises (Guo Shui Fa [1999] No. 173), which was promulgated on September 17, 1999, and came into effect on January 1, 2000.  This program was established to encourage the research and development of enterprises.  The authority responsible for administering this program is the State Administration of Taxation and local tax authorities.

    Under this program, certain foreign investment enterprises may offset their taxable income by 150% of their R&D expenses for the same year, not to exceed the taxable income for the year.

    Legal Basis:

    The taxable income reduction for certain FIEs is provided for in Article 1 of the Circular of the State Administration of Taxation on the Issues Related with the Offset Taxable Income on Technology Development Fee for Foreign Investment Enterprises (Guo Shui Fa [1999] No. 173).

    The GOC has stated that none of the companies identified by the CBSA has applied for or has received preferential tax treatment under this program during the POI.  The CBSA is unable to determine whether any uncooperative companies have received preferential treatment under this program.

    Eligibility Criteria:

    This program is limited to FIEs that have increased their R&D expenses by 10% or greater from the previous year.  The applicable R&D expenses are as follows:

    • New products designing fee for R&D of new production, new skills and new technologies;
    • Technology process formulation fee;
    • Equipment test adjustment fee;
    • Trialproduction fee for raw materials and semiproducts;
    • Technology books and material fee;
    • Intermediate experiment fee not enlisted nto the State plan;
    • Staff members wages of the research institutions;
    • Depreciation fee for research equipment; and
    • Other fees related with trialproduction of new products and technology research

    Exclusions include the following:

    • Purchase fee or using fee for technology purchased from other units by the enterprise or technology using right transferred to the enterprises; and
    • Fees for operation costs and expenses paid by the enterprises engaged

    Determination of Subsidy:

    On the basis of available information, this program would likely constitute a financial contribution pursuant to paragraph 2(1.6)(b) of SIMA, i.e. amounts that would otherwise be owing and due to the government are reduced and/or exempted, and would confer a benefit to the recipient equal to the amount of the reduction/exemption.

    Determination of Specificity:

    The reduction of taxable income provided to FIEs was found to be limited, in law, to a particular enterprise, pursuant to paragraph 2(7.2)(a) of SIMA, i.e. as it is limited, pursuant to a legislative, regulatory, or administrative instrument or other public document, in this case, as set forth in the Circular of the State Administration of Taxation on the Issues Related with the Offset Taxable Income on Technology Development Fee for Foreign Investment Enterprises (Guo Shui Fa [1999] No. 173).

    Program: Preferential tax policies for FIEs and foreign enterprises which have establishments or places in China and are engaged in production or business operations purchasing domestically produced equipments

    General Information:

    This program was established in the Circular of the Ministry of Finance and State Administration
    of Taxation Concerning the Issue of Tax Credit for Business Income Tax for Homemade
    Equipment Purchased by Enterprises with Foreign Investment and Foreign Enterprises
    (Cai Shui Zi [2000] No. 49),
    which came into force on July 1, 1999.  This program was established to attract foreign investment and support technology renovation.  The authority responsible for administering this program is the State Administration of Taxation and local tax authorities.

    Under this program, certain FIEs and foreign enterprises are eligible to receive a refund of 40% of the investment for the homemade equipment purchase from the increased part of their enterprise income taxes of the purchasing year over those of the year before.

    Legal Basis:

    The income tax refund for certain FIEs and foreign enterprises is provided for in Article 1 of the Circular of the Ministry of Finance and State Administration of Taxation Concerning the Issue of Tax Credit for Business Income Tax for Homemade Equipment Purchased by Enterprises with Foreign Investment and Foreign Enterprises (Cai Shui Zi [2000] No. 49).

    The GOC has stated that none of the companies identified by the CBSA has applied for or has received preferential tax treatment under this program during the POI.  The CBSA is unable to determine whether any uncooperative companies have received preferential treatment under this program.

    Eligibility Criteria:

    This program is limited to FIEs and foreign enterprises that fall under the Encouraged Category and Restricted B Category listed in the Directive Category of the Industries of Enterprises with Foreign Investment stipulated in the Circular of the State Council concerning the Adjustment of Taxation Policies for Imported Equipments (Guo Fa [1997] No. 37).  

    Determination of Subsidy:

    On the basis of available information, this program would likely constitute a financial contribution pursuant to paragraph 2(1.6)(b) of SIMA, i.e. amounts that would otherwise be owing and due to the government are reduced and/or exempted, and would confer a benefit to the recipient equal to the amount of the reduction/exemption.

    Determination of Specificity:

    The income tax refund provided to FIEs and foreign enterprises was found to be limited, in law, to a particular enterprise, pursuant to paragraph 2(7.2)(a) of SIMA, i.e. as it is limited, pursuant to a legislative, regulatory, or administrative instrument or other public document, in this case, as set forth in the Circular of the Ministry of Finance and State Administration of Taxation Concerning the Issue of Tax Credit for Business Income tax for Homemade Equipment Purchased by Enterprises with Foreign Investment and Foreign Enterprises (Cai Shui Zi [2000] No. 49).

    Program: Preferential tax policies for domestic enterprises purchasing domestically produced equipments for technology upgrading purpose

    General Information:

    This program was established in the Circular Concerning Printing and Distributing Interim Measures on Business Income Tax Credit Applicable to Technological Transformation Domestic Equipment Investment (Cai Shui Zi [1999] No. 290), which came into force on July 1, 1999.  This program was established to encourage domestic investment and support the technology upgrading of enterprises.  The authority responsible for administering this program is the State Administration of Taxation and local tax authorities.

    Under this program, all enterprises with investment on the technological transformation projects conforming to the State Industrial policy in the nation, 40% of domestic equipment investment necessary for its projects may be offset from the newly added business income tax in the current year of purchasing the technological transformation project equipment of enterprises compared with the previous year.

    Legal Basis:

    The income tax refund for domestic enterprises is provided for in Article 2 of the Circular Concerning Printing and Distributing Interim Measures on Business Income Tax Credit Applicable to Technological Transformation Domestic Equipment Investment (Cai Shui Zi [1999] No. 290).

    The GOC has stated that none of the companies identified by the CBSA has applied for or has received preferential tax treatment under this program during the POI.  The CBSA is unable to determine whether any uncooperative companies have received preferential treatment under this program.

    Eligibility Criteria:

    The eligibility criteria can be found in Articles 2 and 11 of the Circular Concerning Printing and Distributing Interim Measures on Business Income Tax Credit Applicable to Technological Transformation Domestic Equipment Investment (Cai Shui Zi [1999] No. 290).

    This program is available to all enterprises with investment on the technological transformation projects conforming to the State industrial policy in the nation.  However, FIEs and foreign enterprises are not eligible for this program.

    Determination of Subsidy:

    On the basis of available information, this program would likely constitute a financial contribution pursuant to paragraph 2(1.6)(b) of SIMA, i.e. amounts that would otherwise be owing and due to the government are reduced and/or exempted, and would confer a benefit to the recipient equal to the amount of the reduction/exemption.

    Determination of Specificity:

    The income tax refund for purchasing domestically made equipment is considered to be a prohibited subsidy pursuant to paragraph 2(b) of SIMA, as it is contingent, in whole or in part, on the use of goods that are produced or that originate in the country of export.

  7. RELIEF FROM DUTIES AND TAXES ON MATERIALS AND MACHINERY

    Program: Exemption of tariff and import VAT for the imported technologies and equipments

    General Information:

    The exemptions of tariffs and import linked VAT is provided for and administered in accordance with the Circular of the State Council Concerning the Adjustment in the Taxation Policy of Import Equipment, which was established on December 29, 1997, and came into effect on January 1, 1998. This program was established to further expand foreign capital utilization, attract technologies and equipment from abroad, promote structural adjustments in industry and technological advancement and maintain the sustained, rapid and healthy development of the national economy.

    The authorities responsible for administering this program are the Ministry of Finance and the Customs General Administration of the PRC in cooperation with local provincial and municipal customs branches.

    Under this program, enterprises meeting the eligibility criteria set forth below may apply for exemption from tariffs and VAT on imported equipment and its related technologies, components, and parts. The enterprise must receive approval of its application from the appropriate authority, and subsequently that approval documentation is submitted to the local customs officials who verify that the documents presented are adequate and that the imported items are not listed in the catalogues of commodities that are not eligible for tax exemptions.

    The program was in operation during the POI and continues to be in operation to date.

    Legal Basis:

    The VAT exemption provided under this program is administered in accordance with the Circular of the State Council Concerning the Adjustment in the Taxation Policy of Import Equipment.

    The eligibility criteria related to this program also take into consideration the following documents:

    • The Current Catalogue of Key Industries, Products and Technologies The Development of Which is Encouraged by the State (2000);
    • Catalogue for the Guidance of Foreign Investment Industries;
    • Guiding Catalogue of the Industrial Restructuring (2005);
    • The Directory of Imported Commodities of NonTax Exemption to be Used in Domestic Invested Projects (2000);
    • The Directory of Imported Commodities of NonTax Exemption to be Used in Foreign Invested Projects.

    The GOC has stated that none of the companies identified by the CBSA has applied for or has received benefits from this program during the POI.  The CBSA is unable to determine whether any uncooperative companies have received preferential treatment under this program.

    Eligibility Criteria:

    In accordance with the Circular noted above, in order for a domestic invested enterprise (DIE) to be eligible for tariff and VAT exemptions on imported equipment, the domestic investment project that the equipment relates to must be listed in The Current Catalogue of Key Industries, Products and Technologies the Development of Which is Encouraged by the State (Provisional).  In addition, the equipment must be for the applicant's own use and the value of the equipment must be within the total amount of investment in the domestic project.  Finally, any type of equipment that is imported and listed in The Directory of Imported Commodities of Non-Tax Exemption to be Used in Domestic Invested Projects is not eligible for the exemptions under this program.

    In order for an FIE to be eligible for tariff and VAT exemptions on imported equipment, the foreign investment project that the equipment relates to must relate to the projects listed in the Guideline Catalogue for Foreign Investment Industries under the encouragement category or the restricted B category.  In addition, the equipment must be for the applicant's own use and the value of the equipment must be within the total amount of investment in the foreign project.  Finally, any type of equipment that is imported and listed in The Directory of Imported Commodities of Non-Tax Exemption to be Used in Foreign Invested Projects is not eligible for the exemptions under this program.

    Determination of Subsidy:

    On the basis of available information, this program would likely constitute a financial contribution pursuant to paragraph 2(1.6)(b) of SIMA, i.e. amounts that would otherwise be owing and due to the government are reduced and/or exempted, and would confer a benefit to the recipient equal to the amount of the reduction/exemption.

    Determination of Specificity:

    Based on the directories for commodities of non-tax exemption for both domestic and foreign invested projects, it appears that there is an inconsistency between the number and type of items listed in the directory for domestic projects in comparison to the directory for foreign projects.

    On the basis of available information, this program could give rise to a subsidy by means of providing reductions or exemptions of tariffs and VAT for equipment purchased by FIEs, and such reductions and exemptions would not be provided to DIEs purchasing the same equipment.  Conversely, a subsidy could also arise if DIEs received reductions or exemptions of tariffs and VAT for equipment purchased and such reductions and exemptions would not be provided to FIEs purchasing the same equipment.  Should a subsidy arise in either circumstance due to the inconsistency between the directories, it would likely constitute a specific subsidy pursuant to paragraph 2(7.2)(a) of SIMA, i.e. as it is limited to particular enterprises, pursuant to a legislative, regulatory, or administrative instrument or other public document, in this case, as set forth in the Circular of the State Council Concerning the Adjustment in the Taxation Policy of Import Equipment.  In addition, the CBSA believes that should this program give rise to a subsidy, it would be further limited to a group of enterprises, which would be comprised of solely FIEs or DIEs that meet the abovementioned eligibility criteria, particularly in relation to the commodity directories for non-tax exempt items.

    Program: Refund of Import VAT of Raw Copper Materials

    General Information:

    The refund of import VAT of raw copper materials is provided for and administered in accordance with the Notice of the Ministry of Finance and State Administration of Taxation about Some Issues Relating to the Refund after the Collection of Value-Added Tax on Imported Copper Raw Materials (Cai Shui [2003] No. 81), which was established on May 9, 2003 and its amendment on March 22, 2005, and the Notice of the Ministry of Finance and State Administration of Taxation about Some Issues Relating to the Refund after the Collection of Value-Added Tax on Imported Copper Raw Materials (Cai Guan [2005] No. 12).  This program was established to support the large and medium copper smelting enterprises of China and promote the sound development of the copper smelting industry of the PRC.   It was terminated on December 31, 2005.

    The authorities responsible for administering this program are the Ministry of Finance and the State Administration of Taxation in cooperation with local provincial and municipal customs branches.

    Under this program, enterprises meeting the eligibility criteria set forth below may apply for a refund of VAT on imports of raw copper materials.

    The program was in operation during the POI.

    Legal Basis:

    The VAT refund provided under this program is administered in accordance with the Notice of the Ministry of Finance and State Administration of Taxation about Some Issues Relating to the Refund after the Collection of Value-Added Tax on Imported Copper Raw Materials (Cai Shui [2003] No. 81) and the Notice of the Ministry of Finance and State Administration of Taxation about Some Issues Relating to the Refund after the Collection of Value-Added Tax on Imported Copper Raw Materials (Cai Guan [2005] No. 12).

    The GOC has stated that none of the companies identified by the CBSA has applied for or has received benefits this program during the POI.

    Eligibility Criteria:

    Under this program, major copper enterprises sign import contracts with Minmetals Non‑ferrous Metals Co., Ltd. (Minmetals) and, each year, Minmetals places orders according to the import quantity as ratified under this Circular and reports the quantity of the copper raw materials to be imported by each sub-enterprise to the Ministry of Finance.

    Imports of raw copper materials can only be used for the enterprises’ self-use in production and cannot be transferred or sold to others at a profit.  The raw copper materials include copper concentrate, waste copper and crude copper.

    Furthermore, no enterprise may illegally obtain tax refund by re-exporting any imported copper raw materials or re-importing any exported crude copper under processing trade. No enterprise may transfer or sell imported copper concentrate at a profit, or misuse any tax refund.

    The refunded VAT is to be used for the technical renovation of the enterprise.

    None of the companies in the Annex of the Circular have been identified by the CBSA or the GOC.

    Determination of Subsidy:

    On the basis of available information, this program would likely constitute a financial contribution pursuant to paragraph 2(1.6)(b) of SIMA, i.e. amounts that would otherwise be owing and due to the government are reduced and/or exempted, and would confer a benefit to the recipient equal to the amount of the reduction/exemption.

    Determination of Specificity:

    The VAT refund for certain copper enterprises was found to be limited, in law, to a particular enterprise, pursuant to paragraph 2(7.2)(a) of SIMA, i.e. as it is limited, pursuant to a legislative, regulatory, or administrative instrument or other public document, in this case, as set forth in the Notice of the Ministry of Finance and State Administration of Taxation about Some Issues Relating to the Refund after the Collection of Value-Added Tax on Imported Copper Raw Materials (Cai Shui [2003] No. 81) and the Notice of the Ministry of Finance and State Administration of Taxation about Some Issues Relating to the Refund after the Collection of Value-Added Tax on Imported Copper Raw Materials (Cai Guan [2005] No. 12).

    Given that this program was terminated on December 31, 2005, and none of the identified companies were listed in the Annex of the Circular, this program is not considered applicable to this investigation.

    Program: Preferential tax treatment for casting and forging products

    General Information:

    This program is administered in accordance with the Circular of the Ministry of Finance and the State Administration of Taxation Concerning the Refund of VAT after levy on Casting and Forging Products (Cai Shui No. 96 of 2003), which was established on May 27, 2003.  This program was established to encourage the technology upgrading of enterprises and the research and development of the casting and forging products.  It was terminated on December 31, 2005.

    The authorities responsible for administering this program are the Ministry of Finance and the State Administration of Taxation.

    Under this program, enterprises meeting the eligibility criteria set forth below may receive a refund of 35% of the VAT paid of casting and forging products. 

    The program was in operation during the POI.

    Legal Basis:

    The VAT refund provided under this program is administered in accordance with the Circular of the Ministry of Finance and the State Administration of Taxation Concerning the Refund of VAT after levy on Casting and Forging Products (Cai Shui No. 96 of 2003).

    The GOC has stated that none of the companies identified by the CBSA has applied for or has received benefits this program during the POI.

    Eligibility Criteria:

    Under this program, 35% of the VAT paid on casting and forging products manufactured by the enterprises named in the Annex of the Circular will be refunded.  The refund is to be used for technical renovation and research and development of the products.

    None of the companies in the Annex have been identified by the CBSA or the GOC.

    Determination of Subsidy:

    On the basis of available information, this program would likely constitute a financial contribution pursuant to paragraph 2(1.6)(b) of SIMA, i.e. amounts that would otherwise be owing and due to the government are reduced and/or exempted, and would confer a benefit to the recipient equal to the amount of the reduction/exemption.

    Determination of Specificity:

    The VAT refund provided to enterprises identified in the Annex of the Circular was found to be limited, in law, to a particular enterprise, pursuant to paragraph 2(7.2)(a) of SIMA, i.e. as it is limited, pursuant to a legislative, regulatory, or administrative instrument or other public document, in this case, as set forth in the Circular of the Ministry of Finance and the State Administration of Taxation Concerning the Refund of VAT after levy on Casting and Forging Products (Cai Shui No. 96 of 2003).

    Given that this program was terminated on December 31, 2005, and none of the identified companies were listed in the Annex of the relevant Circular, this program is not considered applicable to this investigation.

    Program: Preferential Tax Treatment for Dies Products

    General Information:

    This program is administered in accordance with the Circular of the Ministry of Finance and the State Administration of Taxation Concerning the Refund of VAT after levy on Dies Products (Cai Shui No. 95 of 2003), which was established on May 27, 2003.  This program was established to encourage the technology upgrading of enterprises and the research and development of the dies products.  It was terminated on December 31, 2005.

    The authorities responsible for administering this program are the Ministry of Finance and the State Administration of Taxation.

    Under this program, enterprises meeting the eligibility criteria set forth below may receive a refund of 70% of the VAT of dies products.

    The program was in operation during the POI.

    Legal Basis:

    The VAT refund provided under this program is administered in accordance with the Circular of the Ministry of Finance and the State Administration of Taxation Concerning the Refund of VAT after levy on Dies Products (Cai Shui No. 95 of 2003).

    The GOC has stated that none of the companies identified by the CBSA has applied for or has received benefits from this program during the POI.

    Eligibility Criteria:

    Under this program, 70% of the VAT paid on dies products manufactured and sold by 160 enterprises named in the Annex of the Circular will be refunded.  The refund is to be used for technical renovation and research and development of the products.

    None of the companies in the Annex have been identified by the CBSA or the GOC.

    Determination of Subsidy:

    On the basis of available information, this program would likely constitute a financial contribution pursuant to paragraph 2(1.6)(b) of SIMA, i.e. amounts that would otherwise be owing and due to the government are reduced and/or exempted, and would confer a benefit to the recipient equal to the amount of the reduction/exemption.

    Determination of Specificity:

    The VAT refund provided to enterprises identified in the Annex of the Circular was found to be limited, in law, to a particular enterprise, pursuant to paragraph 2(7.2)(a) of SIMA, i.e. as it is limited, pursuant to a legislative, regulatory, or administrative instrument or other public document, in this case, as set forth in the Circular of the Ministry of Finance and the State Administration of Taxation Concerning the Refund of VAT after levy on Dies Products (Cai Shui No. 95 of 2003).

    Given that this program was terminated on December 31, 2005, and none of the identified companies were listed in the Annex of the relevant Circular, this program is not considered applicable to this investigation.

    Program: Preferential Tax Treatment for Numerically Controlled Machine Tool Products

    General Information:

    This program is administered in accordance with the Circular of the Ministry of Finance and the State Administration of Taxation Concerning the Refund of VAT after levy on Numerically Controlled Machine Tool Products (Cai Shui No.97 of 2003), which was established on May 27, 2003.  This program was established to encourage the technology upgrading of enterprises and the research and development of the numerically controlled machine products.  It was terminated on December 31, 2005.

    The authorities responsible for administering this program are the Ministry of Finance and the State Administration of Taxation.

    Under this program, enterprises meeting the eligibility criteria set forth below may receive a refund of all of the VAT paid on the manufacture and sale of the numerically controlled machine products. 

    The program was in operation during the POI.

    Legal Basis:

    The VAT refund provided under this program is administered in accordance with the Circular of the Ministry of Finance and the State Administration of Taxation Concerning the Refund of VAT after levy on Numerically Controlled Machine Tool Products (Cai Shui No.97 of 2003).

    The GOC has stated that none of the companies identified by the CBSA has applied for or has received benefits from this program during the POI.

    Eligibility Criteria:

    Under this program, 100% of the VAT paid on numerically controlled machine products manufactured by enterprises named in the Annex of the Circular will be refunded.  The refund is to be used for technical renovation and research and development of the products.

    None of the companies in the Annex have been identified by the CBSA or the GOC.

    Determination of Subsidy:

    On the basis of available information, this program would likely constitute a financial contribution pursuant to paragraph 2(1.6)(b) of SIMA, i.e. amounts that would otherwise be owing and due to the government are reduced and/or exempted, and would confer a benefit to the recipient equal to the amount of the reduction/exemption.

    Determination of Specificity:

    The VAT refund provided to manufacturers of numerically controlled machine products was found to be limited, in law, to a particular enterprise, pursuant to paragraph 2(7.2)(a) of SIMA, i.e. as it is limited, pursuant to a legislative, regulatory, or administrative instrument or other public document, in this case, as set forth in the Circular of the Ministry of Finance and the State Administration of Taxation Concerning the Refund of VAT after levy on Numerically Controlled Machine Tool Products (Cai Shui No.97 of 2003).

    Given that this program was terminated on December 31, 2005, and none of the identified companies were listed in the Annex of the relevant Circular, this program is not considered applicable to this investigation.

  8. REDUCTION IN LAND USE FEES

    General Information:

    This program is administered in accordance with the Circular on Further Encouraging Foreign Investment Opinions of the Ministry of Foreign Trade and Economic Cooperation and Other Ministries Transmitted by the General Office of the State Council, which was established on August 20, 1999.  This program was established to attract foreign investors by providing a land use fees exemption to those enterprises with foreign investment that have acquired their lands from the GOC and have paid the transferring fee.

    The Administrative Office of the State Council is responsible for administering this program.  The program was in operation during the POI and continues to be in operation to date.

    Legal Basis:

    The land use fee exemption provided under this program is administered in accordance with Article 4.5 of the Circular on Further Encouraging Foreign Investment Opinions of the Ministry of Foreign Trade and Economic Cooperation and Other Ministries Transmitted by the General Office of the State Council.

    The GOC has stated that none of the companies identified by the CBSA has applied for or has received benefits from this program during the POI.  The CBSA is unable to determine whether any uncooperative companies have received preferential treatment under this program.

    Eligibility Criteria:

    This program is limited to FIEs that have purchased land from the GOC and have paid their transferring fee.

    Determination of Subsidy:

    On the basis of available information, this program would likely constitute a financial contribution pursuant to paragraph 2(1.6)(b) of SIMA, i.e. amounts that would otherwise be owing and due to the government are reduced and/or exempted, and would confer a benefit to the recipient equal to the amount of the reduction/exemption.

    Determination of Specificity:

    The land use fee exemption provided to FIEs was found to be limited, in law, to a particular enterprise, pursuant to paragraph 2(7.2)(a) of SIMA, i.e. as it is limited, pursuant to a legislative, regulatory, or administrative instrument or other public document, in this case, as set forth in

    Article 4.5 of the Circular on Further Encouraging Foreign Investment Opinions of the Ministry of Foreign Trade and Economic Cooperation and Other Ministries Transmitted by the General Office of the State Council.

  9. PURCHASE OF GOODS FROM STATE-OWNED ENTERPRISES

    The GOC has stated that none of the enterprises in the PRC has benefited from this program.  The CBSA is unable to determine whether any uncooperative companies have received preferential treatment under this program.

  10. ZHEJIANG PROVINCE – STRATEGIC PLAN FOR LOCAL COPPER  PROCESSING INDUSTRY

    The Strategic Plan for the Local Copper Processing Industry (Strategic Plan), prepared by the Zhejiang Economic and Trade Commission (ZETC), was drafted and released to relevant industries for comments in July 2004.  The purposes of the Strategic Plan were to protect environment, improve technology, save resources and to promote the sound development of the local copper processing industry in Zhejiang province.  The target industry of the Strategic Plan was the non-ferrous metal industry including the copper processing industry.  The copper pipe fittings industry does not fall under the copper processing industry; it’s under the pipe industry.

    At the end of 2004, the ZETC decided not to pursue the Strategic Plan based on the following reasons:

    • very few comments were received from the relevant industries;

    • certain recommendations provided in the Strategic Plan such as tax and financial incentives were beyond the control of the ZETC;

    • the ZETC had no budget and resources to implement the Strategic Plan; and

    • the ZETC had no implementing schedule for the Strategic Plan.

    Given that the Strategic Plan was never issued as an official document by any level of government body in Zhejiang province, nor did it come into effect. This program is not considered applicable to this investigation.