OCTG2 2020 UP1: Oil country tubular goods
Conclusion of normal value review
Ottawa, December 22, 2020
The Canada Border Services Agency (CBSA) has today concluded a normal value review to update the normal values and export prices applicable to certain oil country tubular goods (OCTG) exported to Canada from the United States of America by Conestoga Supply Corporation (Conestoga).
The normal value review is part of the CBSA’s enforcement of the Canadian International Trade Tribunal’s (CITT) finding of a threat of injury issued on April 2, 2015, respecting the dumping of certain OCTG from the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (Chinese Taipei), India, Indonesia, the Philippines, South Korea, Thailand, Turkey, Ukraine, and Vietnam, in accordance with the Special Import Measures Act (SIMA).
The product definition and the applicable tariff classification numbers of the goods subject to the CITT’s order are contained in Appendix 1 (subject goods).
Period of investigation
The Period of Investigation (POI) and the Profitability Analysis Period (PAP) for the normal value review were from January 1, 2018 to December 31, 2018.
Normal value review process
At the initiation of the normal value review, on July 23, 2020, the CBSA sent Requests for Information (RFIs) to the exporter, Conestoga, its related importer, Conestoga Pipes and Supply Canada (CPS) and to the manufacturer of subject goods, Borusan Mannesmann Boru Sanayi ve Ticaret A.Ş (Borusan) to solicit information on the costs and selling prices of subject goods and like goods. The information was requested for purposes of determining the normal values and export prices applicable to subject goods exported to Canada by Conestoga.
On August 17, 2020, due to pressures brought on by the COVID-19 pandemic, the CBSA granted a three week extension to CPS and a two week extension to Conestoga and Borusan for them to provide responses to the RFIs.
The CBSA did not receive any case arguments or reply submissions following the November 24, 2020 close of record.
Normal values for future shipments
The responses to the RFIs were received from the three parties on September 14, 2020. The CBSA determined that the response to the RFI from Borusan was substantially complete. However, information provided by Conestoga and CPS in their responses to the RFI was insufficient for purposes of determining normal values and export prices.
On October 7, 2020, the CBSA sent a deficiency letter to Conestoga and CPS outlining the critical information that was missing and many incomplete or inaccurate responses. On October 22, 2020, in response to the deficiency letter, Conestoga submitted revised information and documentation. A review of the information provided revealed that many of the identified deficiencies in Conestoga’s response remained.
On October 30, 2020, the CBSA sent a final deficiency letter to Conestoga. On November 9, 2020, a response to the final deficiency letter was received. The review of the information revealed that the response was still greatly deficient. As a result, the CBSA has determined that the information provided by Conestoga was insufficient for the purposes of determining normal values.
The normal values for goods subject to this review, and released by the CBSA on or after December 22, 2020, will be determined in accordance with a ministerial specification based on the export price of the goods advanced by 37.4%.
Exporter responsibility
Please note that exporters with normal values are required to promptly inform the CBSA in writing of changes to domestic prices, costs, market conditions or terms of sale associated with the production and sales of the goods. If there are changes to the exporter’s domestic prices, costs, market conditions or terms of sale associated with the production and sales of the goods, and where the CBSA considers such changes to be significant, the normal values and export prices will be updated to reflect current conditions. All parties are cautioned that where there are increases in domestic prices, and/or costs as noted above, the export price should be increased accordingly to ensure that any sale made to Canada is not only above the normal value but at or above selling prices and full costs and profit of the goods in the exporter’s domestic market. If exporters do not properly notify the CBSA of any such changes, do not adjust export prices accordingly, or do not provide the information required to make any necessary adjustments to normal values and export prices, retroactive assessments will be applied where such action is warranted.
Importer responsibility
Importers are reminded that it is their responsibility to calculate and declare their anti-dumping 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. To determine their anti-dumping liability, importers should contact the exporters to obtain the applicable normal values. For further information on this matter, refer to Memorandum D14-1-2, Disclosure of Normal Values, Export Prices, and Amounts of Subsidy Established under the Special Import Measures Act.
The Customs Act applies, with any modifications that the circumstances require, with respect to the accounting and payment of anti-dumping duties. As such, failure to pay the 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. For more information on how to file a request for re-determination please refer to the Guide for appealing a duty assessment.
Information
Any questions concerning the above should be directed to:
SIMA Registry and Disclosure Unit
Trade and Anti-dumping Programs Directorate
Canada Border Services Agency
11-100 Metcalfe St
Ottawa ON K1A 0L8
Officer’s name and contact information:
- Telephone:
- Jonathan Thiffault: 343-553-1639
Email: simaregistry-depotlmsi@cbsa-asfc.gc.ca
Appendix 1
Product definition
Subject goods are defined as:
"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, India, Indonesia, the Philippines, South Korea, Thailand, Turkey, Ukraine and Vietnam, except for goods exported from South Korea by Hyundai Steel Company, and goods exported from Turkey by Borusan Mannesmann Boru Sanayi ve Ticaret A.Ş."
Tariff classification numbers
The subject goods are generally classified under the following 10-digit tariff 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
- 7304.39.00.60
- 7304.59.00.50
- 7306.29.00.11
- 7306.29.00.19
- 7306.29.00.21
- 7306.29.00.31
- 7306.29.00.29
- 7306.29.00.39
- 7306.29.00.61
- 7306.29.00.69
- 7306.30.00.20
- 7306.30.00.30
- 7306.50.00.00
- 7306.90.00.10
- 7306.90.00.20
This listing of tariff classification numbers is for convenience of reference only. Refer to the product definition for authoritative details regarding the subject goods.
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