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Subsidy case number: 4218-23
Subsidy file number: CV/122
Subsidy case number:4218-27
Subsidy file number: CV/125
Ottawa, November 7, 2011
The Canada Border Services Agency (CBSA) has today concluded a re-investigation to update the amounts of subsidy, pursuant to the Special Import Measures Act (SIMA), in respect of certain seamless steel casing and certain oil country tubular goods originating in or exported from the People's Republic of China (China).
The re-investigation was initiated on June 9, 2011, as part of the ongoing enforcement of the Canadian International Trade Tribunal's findings 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
certain oil country tubular goods (OCTG) originating in or exported from China issued on March 23, 2010 in Inquiry No. NQ-2009-004.
The goods subject to the Tribunal's findings and the applicable ten-digit Harmonized System classification numbers are described in the attached appendix.
At the initiation of the re-investigation, the CBSA sent questionnaires to exporters in China and to the Government of China to request information regarding subsidies received by exporters during the period of re-investigation. Notwithstanding the fact that the Government of China 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 following amounts of subsidy calculated for each cooperative exporter below will apply to importations of subject goods released from the CBSA on or after November 7, 2011.
|Exporter||Amount of Subsidy
|Faray Petroleum Steel Pipe Co., Ltd.||223.41|
|HG Tubulars, Ltd||162.32|
|Huludao City Steel Pipe Industrial Co., Ltd.||170.77|
|Jiangsu Changbao Precision Steel Tube Co., Ltd.||24.25|
|Jiangsu Changbao Steel Tube Co., Ltd.||65.30|
|Jiangsu Chengde Steel Share Tube Co., Ltd.||54.51|
|Jiangsu Valin-Xigang Special Steel Co. Ltd.||42.05|
|Shandong Molong Petroleum Machinery Co., Ltd.||137.82|
|Shengli Oil Field Freet Petroleum Equipment Co., Ltd. / Freet Petroleum Equipment Co., Ltd. of Shengli Oil Field the Thermal Recovery Equipment, Zibo Branch||85.52|
|Shengli Oil Field Freet Petroleum Steel Pipe Co., Ltd.||55.23*|
|Shengli Oilfield Shengji Petroleum Equipment Co., Ltd.||204.92|
|Tianjin Pipe (Group) Corporation||97.05|
|Tianjin Seamless Pipe Plant||252.51|
|Tianjin Tiangang Special Petroleum Pipe Manufacture Co. Ltd.||53.97|
For exporters that did not provide sufficient information to the CBSA to enable the determination of the amount of subsidy, countervailing duty will be assessed at a rate of 3,381 RMB per metric tonne in the case of certain seamless steel casing and at a rate of 4,070 RMB per metric tonne in the case of certain oil country tubular goods.
All amounts of subsidy previously in place will expire on November 7, 2011.
Although the CBSA did not initiate a re-investigation of the normal values, it should be noted that the following exporters qualify for normal values, for exports of subject goods from the CBSA on or after November 7, 2011, determined using the Pipe Logix methodology set out in the ministerial specifications in accordance with section 29 of SIMA.
|Dalipal Pipe Company|
|Faray Petroleum Steel Pipe Co., Ltd.|
|HG Tubulars, Ltd.|
|Huludao City Steel Pipe Industrial Co., Ltd.|
|Jiangsu Changbao Precision Steel Tube Co., Ltd.|
|Jiangsu Changbao Steel Tube Co., Ltd.|
|Jiangsu Chengde Steel Share Tube Co., Ltd.|
|Jiangsu Valin-Xigang Special Steel 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 Oilfield Shengji Petroleum Equipment Co., Ltd.|
|Tianjin Pipe (Group) Corporation|
|Tianjin Seamless Pipe Plant|
|Tianjin Tiangang Special Petroleum Pipe Manufacture Co. Ltd.|
|Wuxi Seamless Oil Pipe Co., Ltd.|
Normal values for imports of subject goods from all exporters other than those listed above will be determined in accordance with the ministerial specifications by advancing the export price by 91% in the case of certain seamless steel casing and by 166.9% in the case of certain oil country tubular goods.
Case arguments were received from counsel representing the Government of China as well as from various exporters in China. A reply submission was received from counsel representing a Canadian producer. The case arguments submitted on behalf of the Government of China pertained to its cooperative status with respect to the re-investigation, the CBSA's treatment of state owned enterprises (SOE) as public bodies, and the issue of double counting when anti-dumping and countervailing duties are applied simultaneously. The case arguments submitted on behalf of the exporters pertained primarily to how the amount of subsidy received during the period of re-investigation should be calculated. The reply submission submitted on behalf of the Canadian producer pertained to all of the issues raised above. The information submitted in the case arguments and in the reply submission were given due consideration by the CBSA.
With respect to the public bodies issue, the standard used by the CBSA for treating SOEs as public bodies was set out by the Dispute Settlement Body in Korea – Commercial Vessels, where an entity was considered to be a public body if it was controlled by the government, and majority government ownership was a sufficient indicator of such control. This was the standard that was widely accepted and applied at the time of the CBSA's investigations and final determinations in respect of certain oil country tubular goods and certain seamless steel casing. When these determinations were made, the Appellate Body report on DS379 had not yet been issued.
Since the Appellate Body's decision in DS379, the CBSA is considering the possible implications of the decision on the treatment of SOEs. The CBSA was not in a position to make changes to its practices in this matter at the initiation of the current re-investigation.
With respect to the double counting issue, the CBSA is in the process of assessing any possible implications of the Appellate Body decision in DS379, but is, at this time, not in a position to make any further comments.
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 and/or amounts of subsidy 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 and/or countervailing duty.
Importers are reminded that it is their responsibility to calculate and declare their anti-dumping and/or 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 anti-dumping and/or countervailing duty measures and be provided with sufficient information necessary to clear the shipments. In order to determine their anti-dumping and/or countervailing duty liability, importers should contact their suppliers who can provide information on normal values and/or amounts of subsidy (where applicable). 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/or 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, Anti-dumping and Countervailing Directorate, Ottawa, ON, 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:
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:
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 ? inches to 13 ? 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
Pup-joints, welded or seamless, heat-treated or not heat-treated, in lengths of up to 3.66m (12 feet); and
The product definition includes certain casing and tubing products for use in the production of oil country tubular goods (green tubes) and non-prime and secondary pipes (limited service products).
The subject goods are normally classified under the following Harmonized System classification numbers: