Notice of conclusion of administrative review: Carbon steel welded pipe 3 (CSWP3 2025 UP1)

Period of investigation

The period of investigation (POI) and the profitability analysis period (PAP) for the administrative review is January 1, 2024 to August 31, 2025.

Administrative review process

At the initiation of the administrative review (review), the CBSA sent a dumping request for information (RFI) to exporters and importers to solicit information on the costs and selling prices of subject goods and like goods. The information was requested for purposes of updating the normal values and export prices for subject goods imported into Canada. Normal values determined on the basis of the review will also be applied to any entries of subject goods under appeal.

As part of the review, representations were provided by counsel representing parties to the proceeding, including exporters and producers. Details of the representations are provided in Appendix 1.

In the course of the review, the CBSA investigated allegations that a particular market situation exists in the Turkish carbon steel welded pipe sector and with respect to each of the Turkish carbon steel welded pipe exporters. The Government of Türkiye was requested to complete the particular market situation RFI.

Details pertaining to the information submitted by the exporters, producers and the Government of Türkiye in response to the RFIs as well as the results of the CBSA’s administrative review are provided below.

Normal values and export prices

Türkiye

Borusan Birleşik Boru Fabrikalari Sanayi Ve Ticaret A.Ş.

Borusan Birleşik Boru Fabrikalari Sanayi Ve Ticaret A.Ş. (Borusan) is a producer and exporter of subject goods located in Türkiye. Borusan provided a response to the CBSA’s dumping RFI. Supplemental RFIs were sent to Borusan to gather additional information and to seek further clarifications. A verification was performed at Borusan’s premises in Türkiye.

Borusan did not have sufficient domestic sales of like goods that complied with all the terms and conditions referred to in sections 15 and 16 of the SIMA as to permit a proper comparison with the sales of the goods to the importer in Canada. As such, normal values were determined pursuant to paragraph 19(b) of SIMA, based on 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.

For subject goods exported to Canada by Borusan during the POI, export prices were determined pursuant to section 24 of SIMA, based on the lesser of the exporter’s selling price and the importer’s purchase price, adjusted by deducting the costs, charges and expenses incurred in preparing the goods for shipment to Canada and resulting from the exportation and shipment of the goods.

Çayırova Boru ve Sanayi Ticaret A.Ş.

Çayırova Boru ve Sanayi Ticaret A.Ş. (Çayırova) is a producer and exporter of subject goods located in Türkiye. Çayırova provided a response to the CBSA’s dumping RFI. Supplemental RFIs were sent to Çayırova to gather additional information and to seek further clarifications. A verification was performed at Çayırova’s premises in Türkiye.

Çayırova did not have sufficient domestic sales of like goods that complied with all the terms and conditions referred to in sections 15 and 16 of SIMA as to permit a proper comparison with the sales of the goods to the importer in Canada. As such, normal values were determined pursuant to paragraph 19(b) of SIMA, based on 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.

For subject goods exported to Canada by Çayırova during the POI, export prices were determined pursuant to section 24 of SIMA, based on the lesser of the exporter’s selling price and the importer’s purchase price, adjusted by deducting the costs, charges and expenses incurred in preparing the goods for shipment to Canada and resulting from the exportation and shipment of the goods.

Particular market situation

In accordance with paragraph 16(2)(c) of SIMA, the CBSA will not consider any sales of like goods for use in the country of export that do not permit a proper comparison with the goods sold to Canada due to the existence of a particular market situation (PMS). A PMS may be found to exist in respect of any goods of a particular exporter or of a particular country, as appropriate in the circumstances.

In order to form an opinion that a PMS exists that impacts the subject goods, the CBSA must determine that there is a PMS and that it has caused a differentiated impact on the domestic and export prices that precludes a proper comparison. Where the CBSA is of the opinion that a PMS does not permit a proper comparison, the normal value of those goods will not be determined under section 15 of SIMA.

Further, data relied upon in the constructed normal values may not allow for a proper comparison between the subject goods and the sale of the subject goods to Canada due to distortions caused by the existence of a PMS. For instance, a PMS may be found where evidence shows that the acquisition cost of the distorted input in question represents a significant portion in the cost of production of the goods of a particular exporter or a particular country.

In these circumstances, to disregard certain acquisition prices used in the cost of production, the CBSA has to form the opinion that, when constructing a normal value in accordance with section 19 of SIMA, a PMS distorts the costs of inputs used in the production of subject goods sold to the importer in Canada such that they do not allow for a proper comparison.

The related Canadian producers, Nova Tube Inc. and Nova Steel Inc. (“Nova”), submitted allegations that a PMS exists in the Turkish carbon steel welded pipe sector and with respect to each of the Turkish carbon steel welded pipe exporters that participated in this administrative review. Nova also alleged that the PMS distorts the costs of the primary inputs used in the production of subject goods sold to Canadian importers such that they do not allow for a proper comparison.

As part of its PMS allegations, Nova alleged with supporting evidence that: inputs for carbon steel welded pipe in Türkiye are distorted due to, an inward processing regime (IPR) which allows producers to use dumped inputs in carbon steel welded pipe that is re-exported but not sold domestically, the use of low-priced Russian inputs in producing carbon steel welded pipe, and unreliable costs financial records given the lack of inflation accounting adjustments; government support programs that affected the price of the inputs to the subject goods and the price of like goods in Türkiye; volatile economic conditions, including hyperinflation, currency depreciation and the Government of Türkiye’s interventionist monetary policy; and government regulations including price ceilings and import regulations that encourage exports.

During the review, the CBSA investigated whether a particular market situation exists in the Turkish carbon steel welded pipe sector and/or with respect to each of the Turkish carbon steel welded pipe exporters. The CBSA requested and collected additional information from Turkish exporters and the Government of Türkiye relating to the existence of a PMS. The two participating Turkish exporters and the Government of Türkiye submitted complete responses to the CBSA’s RFIs and SRFIs.

The CBSA’s analysis of the information on the record suggests that Borusan and Çayırova, the two cooperative exporters in Türkiye: were not impacted by a substantial distortion in the price of inputs of carbon steel welded pipe; did not use Russian-sourced inputs in the production of subject goods; did not or benefited to an immaterial degree from potential government support programs; made sales in their export and domestic markets without any meaningful price or import controls; and despite hyperinflation and the depreciation of the Turkish lira found to be present during the POI, adjusted selling and accounting practices which materially lowered the effective impact of the volatility in Turkish monetary policy.

Based on the CBSA’s analysis in the course of the review, there is insufficient evidence to show that any single factor is creating a PMS in Türkiye nor that these factor are working together to create a PMS. Further, there is insufficient evidence that there may be an exporter-specific PMS impacting one of the cooperative exporters.

Based on the information on the record, the CBSA has not formed the opinion that the conditions of a particular market situation, as described in paragraph 16(2)(c) of SIMA, existed in the Turkish carbon steel welded pipe sector or with respect to any of the Turkish carbon steel welded pipe exporters during the POI.

Pakistan

International Industries Limited

International Industries Limited (IIL) is a producer and exporter of subject goods located in Pakistan. IIL provided a response to the CBSA’s dumping RFI. Supplemental RFIs were sent to IIL to gather additional information and to seek further clarifications.

IIL had sufficient domestic sales of like goods during the PAP and, as such, normal values for future shipments were determined pursuant to paragraph 15 of SIMA where possible, based on the weighted average domestic selling prices of like goods in Pakistan. Where there were insufficient domestic sales of like goods that met the requirements of sections 15 and 16 of SIMA, normal values were determined pursuant to paragraph 19(b) of SIMA, based on 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.

For subject goods exported to Canada by IIL during the POI, export prices were determined pursuant to section 24 of SIMA, based on the lesser of the exporter’s selling price and the importer’s purchase price, adjusted by deducting the costs, charges and expenses incurred in preparing the goods for shipment to Canada and resulting from the exportation and shipment of the goods.

Philippines

HLD Clark Steel Pipe Co. Inc.

HLD Clark Steel Pipe Co. Inc. (HLD Clark) is a producer and exporter of subject goods located in the Philippines. HLD Clark provided a response to the CBSA’s dumping RFI. Supplemental RFIs were sent to IIL to gather additional information and to seek further clarifications.

The company did not have any domestic sales of like goods during the PAP. As a result, normal values were determined pursuant to subsection 29(1) of SIMA, based on the methodology of paragraph 19(b) of SIMA. The cost of production of the goods and the amount for administrative, selling and all other costs were calculated using HLD Clark’s information.

The amount for profits was determined based on domestic sales of like goods by producers located in Pakistan, Türkiye and Vietnam, within the same general category as the subject goods sold to Canada, during the PAP.

For subject goods exported to Canada by HLD Clark during the POI, export prices were determined pursuant to section 24 of SIMA, based on the lesser of the exporter’s selling price and the importer’s purchase price, adjusted by deducting the costs, charges and expenses incurred in preparing the goods for shipment to Canada and resulting from the exportation and shipment of the goods.

Vietnam

Hoa Phat Steel Pipe Company Limited - Hung Yen Branch

Hoa Phat Steel Pipe Company Limited - Hung Yen Branch (HPHY), a branch of Hoa Phat Steel Pipe Company Limited, is a producer and distributor of subject goods located in Vietnam. HPHY provided a response to the CBSA’s dumping RFI. Supplemental RFIs were sent to HPHY to gather additional information and to seek further clarification. HPHY purchased inputs from several related suppliers in significant quantities. Responses to the CBSA’s related supplier questionnaires were received from all required parties.

HPHY had sufficient domestic sales of like goods during the POI and, as such, normal values for future shipments were determined pursuant to paragraph 15 of SIMA where possible, based on the weighted average domestic selling prices of like goods in Vietnam. Where there were insufficient domestic sales of like goods that met the requirements of sections 15 and 16 of SIMA, normal values were determined pursuant to paragraph 19(b) of SIMA, based on 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. As HPHY acquired inputs from associated suppliers, the CBSA investigated whether adjustments should be made pursuant to paragraph 11.2 (1) of the Special Import Measures Regulations (SIMR); however no adjustments were required.

For subject goods exported to Canada by HPHY during the POI, export prices were determined pursuant to section 24 of SIMA, based on the lesser of the exporter’s selling price and the importer’s purchase price, adjusted by deducting the costs, charges and expenses incurred in preparing the goods for shipment to Canada and resulting from the exportation and shipment of the goods.

SeAH Steel Vina Corporation

SeAH Steel Vina Corporation (SSVC) is a producer and distributor of subject goods located in Vietnam. SSVC provided a response to the CBSA’s dumping RFI. Supplemental RFIs were sent to SSVC to gather additional information and to seek further clarifications.

SSVC had domestic sales of like goods in Vietnam during the PAP and, as such, normal values were determined pursuant to paragraph 15 of SIMA where possible, based on the weighted average domestic selling prices of CSPW in Vietnam. Where there were insufficient domestic sales of like goods that met the requirements of sections 15 and 16 of SIMA, normal values were determined pursuant to paragraph 19(b) of SIMA, based on 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.

During the POI, the subject goods exported to Canada by SSVC were sold to a related importer in Canada. Due to the relationship between the companies, a reliability test was conducted by comparing the section 24 export prices with the section 25 export prices. The test revealed that the export prices determined in accordance with section 24 were reliable.

Exporter responsibility

All parties are cautioned that, where there are increases in domestic prices and/or costs, 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 adjust export prices accordingly, retroactive assessments of anti-dumping duties may be warranted. Please refer to the Memorandum D14-1-8: Administrative Review Policy – Special Import Measures Act (SIMA) for details.

Importer responsibility

Importers are reminded that it is their responsibility to 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 anti-dumping and countervailing measures and be provided with sufficient information necessary to clear the shipments. To determine their liability for anti-dumping and countervailing duty, importers should contact the exporters to obtain the applicable normal values and amounts of subsidy. 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 and countervailing 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.

Contact us

Email: simaregistry-depotlmsi@cbsa-asfc.gc.ca

Appendix 1

Representations

During the course of the administrative review, counsel representing parties to the proceeding, including exporters and a Canadian producer, discussed various concerns pertaining to the responses to the RFIs and SRFIs. Issues raised included: reporting methodologies of costs and export prices, various alleged inconsistencies and deficiencies within the responses, and allegations of a particular market situation in Türkiye.

There were a number of exporter and importer specific issues that were raised. In order to respect the confidentiality designations made by interested parties, the CBSA is limited in the information that can be divulged in response to arguments made concerning certain topics.

CBSA response

In order to respect the confidentiality designations made by interested parties, the CBSA is limited in the information that can be divulged in response to arguments made concerning these topics.

Due consideration has been given to submissions on the topics raised in the case representations received before the close of record, in the case brief and in the reply submissions. Appropriate adjustments were made, as applicable on a case-by-case basis, in accordance with SIMA and SIMR. Additional information on the calculation of normal values and export prices is provided to exporters in the confidential exporter conclusion letters.