Statement of Reasons—Preliminary determination: Oil and Gas Well Casing 6 (OCTG6 2026 IN)
Concerning the preliminary determination with respect to the dumping of oil and gas well casing and green tube casing, made of carbon or alloy steel, welded or seamless, heat-treated or not heat-treated, regardless of end finish, having an outside diameter from 4 ½” inches to 9 5/8” inches (114.3 mm to 245.2 mm), meeting or supplied to meet American Petroleum Institute (API) specification 5CT or equivalent and/or enhanced proprietary standards, in all grades, originating in or exported from the Republic of Austria.
Decision
Ottawa,
Pursuant to subsection 38(1) of the Special Import Measures Act, the Canada Border Services Agency made a preliminary determination on May 4, 2026, respecting the dumping of certain oil and gas well casing originating in or exported from the Republic of Austria.
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Summary
[1] As a result of a written complaint from Tenaris Canada (Calgary, Alberta), on February 2, 2026, pursuant to subsection 31(1) of the Special Import Measures Act (SIMA), the CBSA initiated an investigation respecting the dumping of certain oil and gas well casing originating in or exported from the Republic of Austria (Austria). Oil and gas well casing is a subset of the industry category “oil country tubular goods”.
[2] Upon receiving notice of the initiation of the investigation, the Canadian International Trade Tribunal (CITT) commenced a preliminary injury inquiry, pursuant to subsection 34(2) of SIMA, into whether the evidence discloses a reasonable indication that the dumping of the above mentioned are threatening to cause injury to the Canadian industry producing the like goods.
[3] On April 2, 2026, pursuant to subsection 37.1(1) of SIMA, the CITT made a preliminary determination that there is evidence that discloses a reasonable indication that the dumping of certain oil and gas well casing from Austria is threatening to cause injury to the domestic industry.
[4] On May 4, 2026, as a result of the CBSA’s preliminary investigation and pursuant to subsection 38(1) of SIMA, the CBSA made a preliminary determination of dumping of certain oil and gas well casing originating in or exported from Austria.
Period of investigation
[5] The period of investigation (POI) for the investigation is December 1, 2024, to November 30, 2025.
Interested parties
[6] Interested parties were notified at the initiation of the investigation and were sent requests for information (RFI). Refer to the Initiation Statement of Reasons for additional information on interested parties.
Exporters
[7] One exporter, Voestalpine Tubulars GmbH & Co KG (VAT) of Austria, provided a substantially complete response to the CBSA’s dumping RFI in sufficient time to be considered for the preliminary determination.Footnote 1
[8] One related input supplier to VAT, Voestalpine Stahl Donawitz GmbH (VASD), also provided information related to the costing of a significant factor input provided to VAT for their production of oil and gas well casing.Footnote 2
Importers
[9] The CBSA identified one importer of the subject goods from CBSA import documentation and from information submitted in the complaint. The importer, Trimark Tubulars Ltd., was sent the CBSA’s Importer request for information (RFI) in respect of imports of oil and gas well casing from Austria, and it provided a response to the Importer RFI.Footnote 3
Product information
Product definition
[10] For the purpose of this investigation, subject goods are defined as:
Oil and gas well casing and green tube casing, made of carbon or alloy steel, welded or seamless, heat-treated or not heat-treated, regardless of end finish, having an outside diameter from 4 ½” inches to 9 5/8” inches (114.3 mm to 245.2 mm), meeting or supplied to meet American Petroleum Institute (API) specification 5CT or equivalent and/or enhanced proprietary standards, in all grades, originating in or exported from the Republic of Austria but excluding the following:
- drill pipe
- pup joints
- unattached couplings
- coupling stock
- insulated tubing and vacuum insulated tubing and
- stainless steel casing containing 10.5 percent or more by weight of chromium
[11] For additional product information, the production process, the classification of imports, like goods and classes of goods, and information on the Canadian industry, refer to the Initiation Statement of Reasons.
Imports into Canada
[12] During the preliminary phase of the investigation, the CBSA refined the estimated volume and value of imports based on information from CBSA import entry documentation and other information received from exporters and importers.
[13] The following table presents the CBSA’s analysis of imports of certain oil and gas well casing for the purposes of the preliminary determination:
| Country | % of total import volume |
|---|---|
| Austria | 11.6% |
| United States | 40.6% |
| Mexico | 31.2% |
| Other | 16.6% |
| Total | 100% |
Investigation process
[14] Regarding the dumping investigation, information was requested from all known and potential exporters, producers, vendors and importers, concerning shipments of certain oil and gas well casing shipped to Canada during the POI.
[15] Exporters/producers were also notified that failure to submit all required information and documentation, including non-confidential versions, failure to comply with all instructions contained in the RFI, failure to permit verification of any information or failure to provide documentation requested during the verification visits or the desk audits may result in the margin of dumping and the assessment of dumping duties on subject goods being based on facts available to the CBSA. Further, they were notified that determinations on the basis of facts available could be less favorable to them than if complete, verifiable information was made available.
[16] After reviewing the RFI responses, supplemental RFIs (SRFIs) were sent to responding parties, in order to clarify information provided in the responses and request additional information, where necessary. Responses from both the producer and related input supplier in relation to the SRFIs were submitted. Given the timing of their response in relation to the preliminary determination, these responses will be taken into account in the final phase of the investigation.
[17] The preliminary determination is based on the information available to the CBSA at the time of the preliminary determination. During the final phase of the investigation, the CBSA will continue to collect and verify information, the results of which will be incorporated into the CBSA’s final decision, which must be made by August 4, 2026.
Representations
[18] There were no representations made during the preliminary phase of the investigation. Any arguments and evidence submitted during the final phase of the investigation will be taken into consideration in the course of verifying and analyzing information for the purposes of the final decision.
Dumping investigation
Normal value
[19] Normal values, at the preliminary determination, are generally estimated based on the domestic selling prices of like goods in the country of export, in accordance with the methodology of section 15 of SIMA, or on the aggregate of the cost of production of the goods, a reasonable amount for administrative, selling and all other costs, plus a reasonable amount for profits, in accordance with the methodology of paragraph 19(b) of SIMA.
Export price
[20] The export price of goods sold to importers in Canada is generally estimated in accordance with the methodology of section 24 of SIMA based on the lesser of the adjusted exporter’s sale price for the goods or the adjusted importer’s purchase price. These prices are adjusted where necessary by deducting the costs, charges, expenses, duties and taxes resulting from the exportation of the goods as provided for in subparagraphs 24(a)(i) to 24(a)(iii) of SIMA.
[21] Where there are sales between associated persons and/or a compensatory arrangement exists, the export price is estimated based on the importer’s resale price of the imported goods in Canada to unrelated purchasers, less deductions for all costs incurred in preparing, shipping and exporting the goods to Canada that are additional to those incurred on the sales of like goods for use in the country of export, all costs included in the resale price that are incurred in reselling the goods (including duties and taxes) or associated with the assembly of the goods in Canada and an amount representative of the average industry profit in Canada as provided for in paragraphs 25(1)(c) and 25(1)(d) of SIMA.
Margin of dumping
[22] The estimated margin of dumping by exporter is equal to the amount by which the total estimated normal value exceeds the total estimated export price of the goods, expressed as a percentage of the total estimated export price. All subject goods imported into Canada during the POI are included in the estimation of the margins of dumping of the goods. In the event where the total estimated normal value of the goods does not exceed the total estimated export price of the goods, the margin of dumping is zero.
Preliminary results of the dumping investigation
Cooperative exporter
[23] There was one exporter, VAT, that submitted a substantially complete response to the dumping RFI. Their normal values were estimated using a methodology that follows paragraph 19(b) of SIMA, based on the aggregate of cost of production, a reasonable amount for administrative, selling and all other costs, and a reasonable amount for profits.
[24] The costs of production were estimated pursuant to SIMR subsection 11.2(1)(a) to account for the supply of raw materials purchased from an associated supplier.
[25] The following table summarizes the estimated margin of dumping.
| Country | Exporter | Sufficient domestic sales of like goods | Normal values (SIMA provision) |
Profits (SIMR provision) |
Margin of dumping (% of export price) |
|---|---|---|---|---|---|
| Austria | Voestalpine (VAT) | No | 19(b) and 29Footnote 4 | N/A | 22.6% |
[26] During the POI, all of the subject goods exported to Canada by VAT were sold to an unrelated importer. Export prices for those subject goods were estimated using the methodology of section 24 of SIMA, as described in the Export price section.
All exporters: Austria
[27] As discussed above, exports of subject goods by Voestalpine represent 100% of the volume of subject goods exported to Canada from Austria during the POI. Accordingly, there are no other exporters, or goods, for which the CBSA must estimate a margin of dumping. As noted later in this summary, no provisional duties will be imposed on all exports of subject goods from Austria released by the CBSA on or after May 4, 2026. As such, the CBSA did not need to estimate a provisional duty rate for any goods exported from Austria by any exporter other than Voestalpine.
Summary of preliminary results: Dumping
[28] A summary of the preliminary results of the dumping investigation respecting all subject goods released into Canada during the POI are as follows:
| Country of origin or export | Exporter | Estimated margin of dumping (% of export price) |
Estimated % of total imports (by volume) |
|---|---|---|---|
| Austria | Voestalpine Tubulars | 22.6% | 11.6% |
| USA | N/A | 40.6% | |
| Mexico | N/A | 31.2% | |
| All other countries | N/A | 16.6% | |
| Total | 100% |
Negligibility
[29] Under section 35 of SIMA, the CBSA is required to terminate an investigation prior to the preliminary determination if the volume of goods of a country is negligible.
[30] Pursuant to subsection 2(1) of SIMA, the volume of goods of a country is considered negligible if it accounts for less than 3% of the total volume of all goods of the same description that are released into Canada from all countries.
[31] The table above confirms that the volume of imports from Austria are all above 3% of the total volume of goods released into Canada. Based on the definition above, the volume of imports from Austria are not negligible.
Insignificance
If, in making a preliminary determination, the CBSA determines that the margin of dumping of the goods of an exporter is insignificant pursuant to section 38 of SIMA, the investigation will continue in respect of those goods, but provisional anti-dumping duties will not be imposed on goods of the same description imported during the provisional period. Pursuant to subsection 2(1) of SIMA, a margin of dumping of less than 2% of the export price of the goods is defined as insignificant.
[32] For the exporter in Austria, the estimated margin of dumping, expressed as a percentage of the export price, is above 2% and is, therefore, not insignificant.
Decisions
[33] On May 4, 2026, pursuant to subsection 38(1) of SIMA, the CBSA made a preliminary determination of dumping respecting certain oil and gas well casing from Austria.
Provisional duty
[34] Pursuant to subsection 8(1) of SIMA, provisional duties may be payable by the importer in Canada and applied to dumped imports of subject goods that are released from the CBSA during the period commencing on the day the preliminary determination was made and ending on the earlier of the day on which the CBSA causes the investigation in respect of any goods to be terminated, in accordance with subsection 41(1), or the day on which the CITT makes an order or finding.
[35] On April 2, 2026, in its preliminary inquiry, the CITT determined that the evidence did not disclose a reasonable indication that the dumping of the subject goods had caused injury to the domestic industry, but found that there was evidence that disclosed a reasonable indication that the dumping of the subject goods is threatening to cause injury. Further, the evidence on the administrative record of the CBSA’s dumping investigation only includes allegations of threat of injury.
[36] Where the CITT makes an order or finding of threat of injury without a finding of injury or retardation, any provisional duties imposed under SIMA are to be returned in accordance with the Act.
[37] At this stage of the investigation, and in light of the CITT’s preliminary determination, the CBSA has not identified evidence on the record indicating that a threat of injury is likely to materialize prior to the conclusion of the investigation. Accordingly, the CBSA does not consider the imposition of provisional duties to be necessary to prevent injury, retardation or threat of injury during the period of investigation.
Future action
The Canada Border Services Agency
[38] The CBSA will continue its investigation of the dumping of certain oil and gas well casing from Austria and will make final decision by August 4, 2026.
[39] If the margin of dumping of any exporter is found to be insignificant, the CBSA will terminate the investigation in respect of goods of that exporter. If the CBSA is satisfied that the goods were dumped, a final determination will be made.
The Canadian International Trade Tribunal
[40] The CITT has begun its inquiry into the question of injury to the Canadian industry. The CITT is expected to issue its finding by September 1, 2026.
[41] If the CITT finds that the dumping has not caused injury, retardation or is not threatening to cause injury, the proceedings will be terminated.
[42] If the CITT makes a finding that the dumping has caused injury, retardation or is threatening to cause injury, anti-dumping duty in an amount equal to the margin of dumping will be levied, collected and paid on imports of certain oil and gas well casing that are of the same description as goods described in the CITT’s finding.
[43] For purposes of the preliminary determination of dumping, the CBSA has responsibility for determining whether the actual and potential volume of goods is negligible. After the preliminary determination of dumping, the CITT assumes this responsibility. In accordance with subsection 42(4.1) of SIMA, the CITT is required to terminate its inquiry in respect of any goods if the CITT determines that the volume of dumped goods from a country is negligible.
Retroactive duty on massive importations
[44] Under certain circumstances, anti-dumping duty can be imposed retroactively on subject goods imported into Canada. When the CITT conducts its inquiry on material injury to the Canadian industry, it may consider if dumped goods that were imported close to or after the initiation of the investigation constitute massive importations over a relatively short period of time and have caused injury to the Canadian industry. Should the CITT issue a finding that there were recent massive importations of dumped goods that caused injury, imports of subject goods released by the CBSA in the 90 days preceding the day of the preliminary determination could be subject to anti-dumping duty.
Undertakings
[45] After a preliminary determination of dumping by the CBSA, other than a preliminary determination in which a determination was made that the margin of dumping of the goods is insignificant, an exporter may submit a written undertaking to revise selling prices to Canada so that the margin of dumping or the injury caused by the dumping is eliminated.
[46] In view of the time needed for consideration of undertakings, written undertaking proposals should be made as early as possible, and no later than 60 days after the preliminary determination of dumping. Further details regarding undertakings can be found in the CBSA’s Memorandum D14-1-9: Information Pertaining to the Acceptance, Enforcement and Renewal of Undertakings in Dumping and Subsidy Investigations.
[47] Interested parties may provide comments regarding the acceptability of undertakings within nine days of the receipt of an undertaking by the CBSA. The CBSA will maintain a list of parties who wish to be notified should an undertaking proposal be received. Those who are interested in being notified should provide their name, telephone, mailing address and email address to the CBSA using the contact information identified in the Contact us section of this document.
[48] If undertakings were to be accepted, the investigation would be suspended. Notwithstanding the acceptance of an undertaking, an exporter may request that the CBSA’s investigation be completed and that the CITT complete its injury inquiry.
Publication
[49] A notice of the preliminary determination of dumping will be published in the Canada Gazette pursuant to paragraph 38(3)(a) of SIMA.
Contact us
[50] For further information, please contact the email address identified below:
Email: trade_remedies_registry-registre_recours_commerciaux@cbsa-asfc.gc.ca
Sean Borg
A/Executive Director
Trade Remedies Directorate
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