Notice of Conclusion of Re-investigation

Certain Seamless Casing, Certain Oil Country Tubular Goods And Certain Pup Joints

Ottawa, December 14, 2015

The Canada Border Services Agency (CBSA) has today concluded a re-investigation of the normal values, export prices and amounts of subsidy of certain seamless casing, certain oil country tubular goods (OCTG) and certain pup joints originating in or exported from the People’s Republic of China (China), in accordance with the Special Import Measures Act (SIMA).

The CBSA also has concluded a re-investigation of the normal values and export prices of certain OCTG originating in or exported from Chinese Taipei, the Republic of India (India), the Republic of Indonesia (Indonesia), the Republic of the Philippines (Philippines), the Republic of Korea (Korea), the Kingdom of Thailand (Thailand), the Republic of Turkey (Turkey), Ukraine and the Socialist Republic of Vietnam (Vietnam).

The re-investigation was initiated on May 4, 2015, as part of the CBSA’s ongoing enforcement of the Canadian International Trade Tribunal’s (CITT) findings/orders of material injury respecting:

  • certain seamless carbon or alloy steel oil and gas well casing originating in or exported from China issued on March 10, 2008, in Inquiry No. NQ-2007-001, and continued on March 11, 2013, in Expiry Review No. RR-2012-002
    (Seamless Casing);
  • certain oil country tubular goods originating in or exported from China issued on March 23, 2010, in Inquiry No. NQ-2009-004, and continued on March 2, 2015, in Expiry Review No. RR-2014-003 (OCTG I);
  • certain oil country tubular goods pup joints originating in or exported from China issued on April 10, 2012, in Inquiry No. NQ-2011-001 (Pup Joints); and
  • certain oil country tubular goods originating in or exported from Chinese Taipei, India, Indonesia, the Philippines, Korea, Thailand, Turkey, Ukraine and Vietnam issued on April 2, 2015, in Inquiry No. NQ-2014-002 (OCTG II).

The goods subject to the CITT’s findings and their ten-digit Harmonized System classification numbers are contained in Appendix 1 of this notice.

China Dumping Re-investigation - Seamless Casing, Oil Country Tubular Goods & Pup Joints

At the initiation of the re-investigation, the CBSA sent a dumping Request for Information (RFI) to each known potential importer and exporter of subject goods to solicit information on the costs and selling prices of subject and like goods. The information was requested for purposes of updating the normal values and export prices for subject goods imported into Canada.

As part of this re-investigation, the CBSA also conducted an inquiry pursuant to section 20 of SIMA respecting the steel industries in China. Information available to the CBSA at the start of the re-investigation indicated that there was reason to believe that section 20 conditions exist in the steel OCTG sector in China. Section 20 of SIMA is applicable where, in the opinion of the CBSA, domestic prices are substantially determined by the government and there is sufficient reason to believe that they are not substantially the same as they would be if they were determined in a competitive market.

The CBSA sent a section 20 RFI to the Government of China (GOC) and to all known Chinese producers/exporters to examine this matter. During this same period, the CBSA continued to research and review publicly available information concerning the status of the Chinese steel industry.

While the GOC and exporters in China were welcome to submit information in respect of the Chinese steel industry, the GOC did not co-operate in this investigation and only nine producers/exporters from China co-operated in the inquiry.

At the conclusion of the section 20 inquiry, information on the administrative record revealed that section 20 conditions continue to exist in the Chinese OCTG steel industry sector. As a result, on December 14, 2015, the CBSA formed the opinion that the conditions of section 20 apply to the industry sector under investigation in China.

The following exporters/producers provided a complete response to the CBSA’s dumping RFI and co-operated in providing responses to supplementary RFIs. The CBSA determined normal values for future shipments of subject goods, effective on or after December 14, 2015, in accordance with ministerial specifications pursuant to section 29 of SIMA.

Exporters that have been Provided with Specific Normal Values Effective December 14, 2015

Exporter
Hengshui Weijia Petroleum Equipment Manufacturing Co., Ltd.
Hengyang Group (Hengyang Steel Tube Group Int’l Trading Inc. / Hengyang Valin MPM Co., Ltd. / Hengyang Valin Steel Tube Co., Ltd.)
HG Tubulars, Ltd.
Huludao City Steel Pipe Industrial Co., Ltd. / Huludao Bohai Steel Pipe
Jiangsu Changbao Group –
  • Jiangsu Changbao Precision Steel Tube Co., Ltd.
  • Jiangsu Changbao Steel Tube Co., Ltd.
  • Jiangsu Changbao Steel Tubulars Corporation
Jiangsu Chengde Steel Tube Share Co., Ltd.
Shandong Molong Petroleum Machinery Co., Ltd.
Shengli Oil Field Freet Petroleum Equipment Co., Ltd.
Freet Petroleum Equipment Co., Ltd. of Shengli Oil Field the Thermal Recovery Equipment, Zibo Branch
Shengli Oil Field Freet Petroleum Steel Pipe Co., Ltd.
Shengli Oil Field Shengji Petroleum Equipment Co., Ltd.
Tianjin Pipe (Group) Corporation
Tianjin Tiangang Special Petroleum Pipe Manufacturing Co., Ltd.

Where an exporter of subject goods did not provide sufficient information to determine specific normal values or does not permit verification of information submitted, anti-dumping duties, in accordance with ministerial specifications pursuant to section 29 of SIMA, will be assessed at the all others rate listed in the table below, expressed as a percentage of the export price of the subject goods imported into Canada:

All Other Exporters Advance over Export price
Certain Seamless Casing 91%
Certain Oil Country Tubular Goods  166.9%
Certain Pup Joints 173.4%

Normal values previously in place expire on December 13, 2015.

China Subsidy Re-investigation - Seamless Casing, Oil Country Tubular Goods & Pup Joints

At the initiation of the re-investigation, the CBSA sent RFIs to exporters in China and to the GOC to request information regarding subsidies received by exporters during the period of re-investigation. Notwithstanding the fact that the GOC did not submit sufficient information to enable the determination of the amount of subsidy in accordance with subsection 30.4(1) of SIMA, exporters that provided sufficient information to the CBSA have been issued a specific amount of subsidy determined under the ministerial specifications in accordance with subsection 30.4(2) of SIMA. The amounts of subsidy calculated for each cooperative exporter in the table below will apply to importations of subject goods released from the CBSA on or after December 14, 2015.

Amounts of Subsidy for Co-operative Exporters Effective December 14, 2015

Exporter Amount of Subsidy RMB / MT
Hengyang Group (Hengyang Steel Tube Group Int’l Trading Inc. / Hengyang Valin MPM Co., Ltd. / Hengyang Valin Steel Tube Co., Ltd.) 65.14
HG Tubulars, Ltd. 219.96
Huludao City Steel Pipe Industrial Co., Ltd. / Huludao Bohai Steel Pipe 2.2
Jiangsu Changbao Group –
  • Jiangsu Changbao Precision Steel Tube Co., Ltd.
  • Jiangsu Changbao Steel Tube Co., Ltd.
  • Jiangsu Changbao Steel Tubulars Corporation
1,066.56
Jiangsu Chengde Steel Tube Share Co., Ltd. 616.52
Shandong Molong Petroleum Machinery Co., Ltd. 45.63
Shengli Oil Field Freet Petroleum Equipment Co., Ltd. 87.78*
Freet Petroleum Equipment Co., Ltd. of Shengli Oil Field the Thermal Recovery Equipment, Zibo Branch 473.20
Shengli Oil Field Freet Petroleum Steel Pipe Co., Ltd. 214.21
Shengli Oil Field Shengji Petroleum Equipment Co., Ltd. 35.95
Tianjin Pipe (Group) Corporation 183.75
Tianjin Tiangang Special Petroleum Pipe Manufacturing Co., Ltd. 106.78
  Amount of Subsidy RMB / piece
Hengshui Weijia Petroleum Equipment Manufacturing Co., Ltd. 0.04

* revised

For exporters that did not provide sufficient information to the CBSA to enable the determination of the amount of subsidy, countervailing duties, in accordance with ministerial specifications pursuant to subsection 30.4(2) of SIMA, will be assessed, expressed as an amount per metric tonne of the subject goods imported into Canada, at the rates indicated in the table below for all others.

All Other Exporters Countervailing Duty Rate RMB / MT
Certain Seamless Casing 3,381
Certain Oil Country Tubular Goods  4,070
Certain Pup Joints 9,125.6

All amounts of subsidy previously in place expire on December 13, 2015.

As a result of this re-investigation, new subsidy programs were identified. At the initiation of this re-investigation, the CBSA had named 67 potentially actionable subsidy programs available to exporters and producers in China. An additional 46 programs were subsequently identified through the CBSA’s examination and verification of information submitted by the participating exporters in this re-investigation. The new programs are listed in Appendix 2.

OCTG II Countries Dumping Re-investigation

The following exporters/producers provided a complete response to the CBSA’s RFI and further co-operated in providing responses to Supplementary RFIs. Normal values and export prices were established as per sections 15 to 30 of SIMA.

Exporters that have been Provided with Specific Normal Values Effective December 14, 2015

Country Exporter
Chinese Taipei Chung Hung Steel
Shin Yang Steel Co. Ltd
Tension Steel Industries Co. Ltd
India GVN Fuels/Maharashtra Steel
Jindal Saw Limited
Philippines HLD Clark Steel Pipe
Republic of Korea Daewoo International Corporation
Hyundai Hysco
Nexteel Co. Ltd
Nexteel QNT Co. Ltd
SeAH Steel Corporation
Turkey Borusan (BMB)
Ukraine Interpipe Ukraine
USA* IMCO
Pan Meridian Tubular
North American Interpipe
Daewoo International (American) Corp

* Although goods originating in the USA are not subject to this re-investigation, such goods, originating in the countries subject to the findings, have been sold to importers located in the USA and subsequently exported to Canada. These goods are therefore subject to the re-investigation.

At initiation of the re-investigation, the CBSA initiated a section 20 inquiry in respect of the Vietnamese steel industry. However, due to the lack of cooperation from the Government of Vietnam and the exporters located in Vietnam, there was insufficient information for the CBSA to form an opinion with respect to section 20 of SIMA at the conclusion of the re-investigation.

Where an exporter of subject goods did not provide sufficient information to determine specific normal values or does not permit verification of information submitted, anti-dumping duties, in accordance with ministerial specifications pursuant to section 29 of SIMA, will be assessed at the all others rate listed in the table below, expressed as a percentage of the export price of the subject goods imported into Canada.

OCTG Subject Countries Advance over export price rate
All Other Exporters 37.4%

Normal values previously in place expire on December 13, 2015

During the course of the re-investigation, the CBSA also requested and received representations on behalf of the complainant and cooperative exporters regarding the need to update normal values for future shipments. The CBSA has carefully considered the various comments; however, the CBSA will not be updating the normal values for future shipments which have been determined pursuant to sections 15 to 30 of SIMA.

Representations, case arguments, and reply submissions were received from counsel representing the Canadian producers and the co-operative exporters. Some of the issues raised include section 20, surrogate country options and amounts for profit. The information submitted in the representations, case arguments and reply submissions were given due consideration by the CBSA.

Where a producer or exporter becomes aware that there have been substantial changes to domestic prices, market conditions or costs associated with production and sales of subject goods, the CBSA should be advised in order that normal values can be reviewed, and updated if required, to reflect current conditions. Similarly, the amount of export charges to be deducted from the export price may also need revision to reflect current conditions. Where changes have occurred and the CBSA has not been advised in a timely manner, the extent of these changes could warrant retroactive assessments of anti-dumping or countervailing duties.

Importers are reminded that it is their responsibility to calculate and declare their anti-dumping and countervailing duty liability. If importers are using the services of a customs broker to clear importations, the brokerage firm should be advised that the goods are subject to SIMA measures and be provided with sufficient information necessary to clear the shipments. In order to determine their anti-dumping and countervailing duty liability, importers should contact their suppliers who can provide information on normal values and amounts of subsidy. Under limited circumstances, the CBSA may make this information available to importers. Please refer to Memorandum D14-1-2, Disclosure of Normal Values Export Prices, and Amounts of Subsidy established under the Special Import Measures Act to importers, for more information.

The Customs Act applies, with any modifications that the circumstances require, with respect to the accounting and payment of anti-dumping and countervailing duties. As such, failure to pay duties within the prescribed time will result in the application of the interest provisions of the Act.

Should the importer disagree with the determination made on any importation of goods, a request for re-determination may be filed with the Director General, Trade and Anti-dumping Programs Directorate, 11th Floor, 100 Metcalfe St., Ottawa, Ontario, K1A 0L8. Such a request must be received within 90 days from the making of the determination, in the form and manner outlined in Memorandum D14-1-3, Procedures for Making a Request for a Re-determination (an Appeal) of Goods under the Special Import Measures Act.

Any questions concerning the above should be directed to:

  • Mail:

    • SIMA Registry and Disclosure Unit
      Trade and Anti-dumping Programs Directorate
      Canada Border Services Agency
      100 Metcalfe Street, 11th Floor
      Ottawa, Ontario K1A 0L8
      CANADA
  • Officers' names and contact information:

  • Fax:

    • 613-948-4844
  • E-mail:

Appendix 1

Subject Goods for Certain Seamless Casing:

“certain seamless carbon or alloy steel oil and gas well casing, whether plain end, bevelled, threaded or threaded and coupled, heat-treated or non-heat-treated, meeting American Petroleum Institute (API) specification 5CT, with an outside diameter not exceeding 11.75 inches (298.5 mm), in all grades, including proprietary grades, originating in or exported from the People’s Republic of China”

The subject goods are normally classified under the following Harmonized System classification numbers:

  • 7304.29.00.11
  • 7304.29.00.19
  • 7304.29.00.21
  • 7304.29.00.29

Subject Goods for OCTG I:

“oil country tubular goods made of carbon or alloy steel, welded or seamless, heat-treated or not heat-treated, regardless of end finish, having an outside diameter from 2 3/8 inches to 13 3/8 inches (60.3 mm to 339.7 mm), meeting or supplied to meet American Petroleum Institute specification 5CT or equivalent standard, in all grades, excluding drill pipe and excluding seamless casing up to 11 ¾ inches (298.5 mm) in outside diameter, originating in or exported from the People’s Republic of China”

The product definition includes tubular products for use in the production of OCTG (“green tubes”) and non prime and secondary pipes (“limited service products”). 

The following goods are excluded: pup-joints, welded or seamless, heat-treated or not heat-treated, in lengths of up to 3.66m (12 feet); and coupling stock.

The subject goods are normally classified under the following Harmonized System classification numbers:

  • 7304.29.00.31
  • 7304.29.00.39
  • 7304.29.00.51
  • 7304.29.00.59
  • 7304.29.00.61
  • 7304.29.00.69
  • 7304.29.00.71
  • 7304.29.00.79
  • 7306.29.00.11
  • 7306.29.00.19
  • 7306.29.00.21
  • 7306.29.00.29
  • 7306.29.00.31
  • 7306.29.00.39
  • 7306.29.00.41
  • 7306.29.00.49
  • 7304.39.00.10
  • 7304.59.00.10

Subject Goods for Certain Pup Joints:

“Oil country tubular goods pup joints, made of carbon or alloy steel, welded or seamless,
heat-treated or not heat-treated, regardless of end finish, having an outside diameter from 2 3/8 inches to 4 1/2 inches (60.3 mm to 114.3 mm), in all grades, in lengths from 2 feet to 12 feet (61 cm to 366 cm) originating in or exported from the People’s Republic of China”

The subject goods are normally classified under the following Harmonized System classification numbers:

  • 7304.29.00.51
  • 7304.29.00.59
  • 7304.29.00.61
  • 7304.29.00.69
  • 7304.29.00.71
  • 7304.29.00.79

Subject Goods for OCTG II:

“Oil country tubular goods, which are casing, tubing and green tubes made of carbon or alloy steel, welded or seamless, heat-treated or not heat-treated, regardless of end finish, having an outside diameter from 2 ⅜ inches to 13 ⅜ inches (60.3 mm to 339.7 mm), meeting or supplied to meet American Petroleum Institute (API) specification 5CT or equivalent and/or enhanced proprietary standards, in all grades, excluding drill pipe, pup joints, couplings, coupling stock and stainless steel casing, tubing or green tubes containing 10.5 percent or more by weight of chromium, originating in or exported from Chinese Taipei, the Republic of India, the Republic of Indonesia, the Republic of the Philippines, the Republic of Korea, the Kingdom of Thailand, the Republic of Turkey, Ukraine and the Socialist Republic of Vietnam”

The subject goods are normally imported under the following Harmonized System classification numbers:

  • 7304.29.00.11
  • 7304.29.00.19
  • 7304.29.00.21
  • 7304.29.00.29
  • 7304.29.00.31
  • 7304.29.00.39
  • 7304.29.00.41
  • 7304.29.00.49
  • 7304.29.00.51
  • 7304.29.00.59
  • 7304.29.00.61
  • 7304.29.00.69
  • 7304.29.00.71
  • 7304.29.00.79
  • 7306.29.00.11
  • 7306.29.00.19
  • 7306.29.00.21
  • 7306.29.00.29
  • 7306.29.00.31
  • 7306.29.00.39
  • 7306.29.00.41
  • 7306.29.00.49
  • 7304.39.00.10
  • 7304.59.00.10
  • 7306.30.00.29
  • 7306.30.00.39
  • 7306.50.00.90
  • 7306.90.00.10
  • 7306.90.00.20

Appendix 2

New Subsidy Programs in China Identified as a Result of the OSP Re-investigation

  1. Pre-tax deduction of research and development expenses of enterprises in the new and high-technology fields
  2. Loans from state-owned banks at preferential rates
  3. Shandong special fund to support development of foreign trade and economics
  4. Weifang special fund for support of foreign trade development
  5. Weifang special fund  - subsidy for export credit insurance premiums
  6. Special central budgetary investment plan for key industry revitalization and technology improvement
  7. Weifang city energy savings award
  8. Batch patent application subsidy fund
  9. Weifang science and technology award
  10. Shouguang award for introduction and training of highly-skilled personnel
  11. Shouguang subsidy for recruitment of personnel with difficulty in employment
  12. Shouguang "double-hundred plan" for high-level innovative and pioneering talents
  13. Weihai municipal fund for technical innovation and emission reduction
  14. Creation of a research and development institution
  15. Double creation fund
  16. Foreign trade fund
  17. Lvyang jinfeng fund
  18. Special fund for development of strategic emerging industry
  19. Key energy conservation projects
  20. Financial support for export credit insurance of 2013
  21. Special fund for the transformation and promotion of information technology
  22. Quality control fund
  23. Water-saving technology projects
  24. Award of qishuyan district for technology creation
  25. Foreign trade market development and export brands
  26. Award for patent licencing
  27. Award for "three in one"
  28. Award for contribution to industrial enterprise
  29. Financial discount interest funds for imports
  30. Grant for technical upgrade for comprehensive electricity system
  31. Vat refund for comprehensive resource usage
  32. Special fund for cleanup heavy-metal pollution
  33. Award to “beautiful enterprise
  34. Overseas market visit and investigation program
  35. Technical innovation program
  36. Award to “civilized enterprise”
  37. Development of technical small and medium enterprices fund
  38. Grants to validated enterprise technical centers of jinnan district
  39. Innovative method cooperative fund
  40. Design and development grant(industrial science and technology development special fund) (legitimate program but outside the product definition)
  41. Electricity expenses assistance (legitimate program but outside the product definition)
  42. Foreign investment cooperative fund (legitimate program but outside the product definition)
  43. International trade dispute assistance
  44. Enterprise upgrade assistance
  45. Technology renovation discount
  46. Special funds for science and technology innovation
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