Notice of conclusion of administrative review — Metal One Tubular Products Inc.: Large Line Pipe (LLP 2024 UP1)

Period of investigation

The period of investigation (POI) and the profitability analysis period (PAP) for the administrative review was from November 1, 2023 to October 31, 2024.

Administrative review process

At the initiation of the administrative review, the CBSA sent a request for information (RFI) to all known importers, exporters, producers and vendors 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. On-site verifications were conducted at the premises of one importer located in Canada as well as an exporter and a producer located in Japan.

As part of the administrative review, case briefs and reply submissions were provided by counsel representing the Canadian industry, exporter, producer and importer. Details of the representations are provided in Appendix 1.

Details pertaining to the information submitted by the exporter and producer in response to the RFIs as well as the results of the CBSA’s administrative review are provided below.

Normal values and export prices

Metal One is an exporter of subject goods and is located in Japan. During the POI, Metal One purchased the subject goods that it exported to Canada from unassociated Japanese producer.

Metal One provided a response to the CBSA’s dumping RFI. Supplemental RFIs were sent to Metal One to gather additional information and to seek clarification for certain questions. The producer of the goods provided the CBSA with information on the production of the subject goods exported by Metal One, including responses to the CBSA’s dumping RFI and supplemental RFIs. Officers of the CBSA met with representatives of Metal One and the producer of the goods at their offices in Japan to verify the information provided.

Metal One did not have domestic sales of like goods during the PAP and therefore normal values could not be determined in accordance with section 15 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. The CBSA received a complete response from the producer and was able to calculate the cost of production of the goods. An amount for administrative, selling and all other costs was calculated for both the producer and the exporter. Amounts for profits were calculated in accordance with subparagraph 11(1)(b)(vi) of the SIMR, based on the weighted average profits of the Japanese producer on sales of welded pipe that were made in the country of export during the PAP.

Since all sales of subject goods exported to Canada by Metal One during the POI were sold to Canadian customers via related importer, a reliability test was performed to determine whether the section 24 export prices were reliable as envisaged by SIMA. This 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, therefore, export prices were determined in accordance with section 24 of SIMA.

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 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 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

Representations

During the course of the administrative review, counsel for the Canadian industry^Footnote 1, the producer^Footnote 2 and for the exporter and importer^Footnote 3 discussed various concerns pertaining to the responses to the RFIs and SRFIs. Issues raised included: cost of production reporting methodologies, amounts for profits, export price and other various alleged inconsistencies and deficiencies within the responses.

There were a number of exporter, producer 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.

Counsel for the Canadian industry also made several arguments pertaining to retroactive assessment of duties. Counsel argued that, given these circumstances, the CBSA should consider issuing retroactive anti‑dumping duty assessments.

CBSA response

Due consideration has been given to submissions on the topics raised in case briefs on a case by case basis and appropriate adjustments were made, as applicable, in accordance with SIMA and SIMR. Additional information on the calculation of normal values is provided to exporters in the confidential exporter conclusion letters.

Upon completion of the administrative review, the CBSA will be conducting an analysis of subject imports from exporters of subject goods during the POI, to determine whether retroactive assessments are warranted. The analysis will rely on information provided via RFI and Supplemental RFI responses received, representations submitted by parties, on-site verifications and any other available relevant information.