Dumping (China and Japan) and subsidizing (China)
Measure in force code (MIF code)
“Welded large diameter carbon and alloy steel line pipe originating in or exported from the People’s Republic of China and Japan with an outside diameter greater than 24 inches (609.6 mm), and less than or equal to 60 inches (1524 mm), regardless of wall thickness, length, surface finish (coated or uncoated), end finish (plain end or beveled end), or stenciling and certification (including multiple-stenciled/multiple-certified line pipe for oil and gas transmission and other applications).”
For greater certainty, the product definition includes:
- line pipe produced to American Petroleum Institute (“API”) specification 5L, in Grades A25, A, B and X grades up to and including X100, or equivalent specifications and grades, including specification CSA Z245.1 up to and including Grade 690;
- unfinished line pipe (including pipe that may or may not already be tested, inspected, and/or certified to line pipe specifications) originating in China and Japan, and imported for use in the production or finishing of line pipe meeting final specifications, including outside diameter, grade, wall-thickness, length, end finish, or surface finish; and
- non-prime and secondary pipes (“limited service products”).
The Canadian International Trade Tribunal (CITT) excludes the following products from its finding:
- ASME SA 672 or ASME SA 691 electric-fusion welded steel pipe as certified under the ASME “Boiler and Pressure Vessel Code” rules (and stencilled with at least one of the aforementioned standards), of a length not to exceed 15 feet (4.572 m), for use other than in a CSA Z-662 pipeline application and imported with authorized inspection certificates and applicable ASME Partial Data Reports;
- line pipe, regardless of grade, outside diameter and wall thickness, single stenciled as “DNV-OS-F101” for exclusive use in offshore applications and marked “For Offshore Applications Only”;
- submerged arc longitudinal welded line pipe, regardless of grade, outside diameter and wall thickness, in lengths of 60 feet (18.288 m) with no girth welds for exclusive use in slurry or tailings piping systems in oil sands projects and marked “For Use as Slurry/Tailings Pipe Only”; for greater certainty, use in a pipeline meeting CSA Z-662 or as pressure piping meeting CSA B51 Code is not permitted under this exclusion; and
- submerged arc longitudinal welded line pipe, regardless of outside diameter, wall thickness and length, for exclusive use in high-temperature steam distribution pipelines and marked “For Steam Distribution Only”, certified to meet the requirements of CSA Z662-15 Clause 14 and/or Annex I and certified to have proven fatigue/creep test properties as provided in sections I.2.3.2 and I.3.2.1 of CSA Z662-15 as established by means of a creep test of no less than 10,000 hours carried out in accordance with ASTM E139.
On April 16, 2021, the CITT amended its finding to exclude the following goods:
- Longitudinally submerged arc welded line pipe with a double submerged arc weld, stenciled with grade API 2B whether or not stenciled to any other grade, regardless of outside diameter, with wall thicknesses greater than 1” for exclusive use in production of debarker rotors and marked “For Use in Production of Debarker Rotor Only”
On August 3, 2022, the CITT made an order excluding the following goods:
- longitudinally submerged arc welded line pipe with a double submerged arc weld, certified to CSA Z245.1 (Grade 483 or higher), regardless of outside diameter or wall thickness with fracture propagation resistance of CSA Category II M45C or equivalent produced in Japan and marked (by stenciling or otherwise) as “Station Pipe” and for the following exclusive uses: (i) for above-ground applications; (ii) above-ground facility or fabricated assembly; and (iii) below-ground applications within and for up to a distance of 100 metres from any facility or assembly (the “M45C exclusion”) and
- longitudinally submerged arc welded line pipe with a double submerged arc weld, certified to CSA Z245.1 (Grade 483 or higher), regardless of outside diameter, with wall thicknesses greater than 23 mm produced in Japan (the “Heavy Wall exclusion”)
Additional Product Information
Large line pipe is used in the oil and gas sector primarily in pipelines for the transmission of oil and natural gas products over long distances, but also in a variety of mining applications, including as slurry pipe in oil sands operations.
The Canadian market for large line pipe is governed by applicable line pipe specifications including Canadian Standards Association (CSA) specification Z245.1 for line pipe used in pipeline applications. Oil and gas transmission pipelines must, in turn, for example, conform to CSA Z662 (Oil and Gas Pipeline Systems). Nevertheless, international trade in line pipe is governed primarily by API specification 5L. For example, CSA Z245.1 Grade 448 pipe is considered to be equivalent to API 5L Grade X65. The API 5L X grade numbers define the minimum yield strength required of the grade in kilopounds per square inch. This equivalency applies to other specifications, including International Organization for Standardization (ISO), which means that a particular line pipe may be certified and stenciled as complying with multiple standards if all the requirements of each standard/grade are met (leading to dual-, triple-, and further multiple stenciled line pipe). It is common practice to certify multiple grades of pipe on a Mill Test Report. It is also common practice to substitute grades other than that initially requested by a customer with an equivalent grade. Mill Test Reports are provided to show that the properties of the supplied pipe meet the requirements of the actual grade ordered.
The complainant manufactures or is capable of manufacturing line pipe to API 5L specifications in grades up to and including X100 and to all equivalent grades under CSA Z245.1, and in all outside diameter sizes covered by the product definition.
The product definition covers all large line pipe meeting or supplied to meet the above specifications and grades, as well as equivalent specifications and grades, regardless of whether the line pipe has been multiple stenciled to indicate that it meets or is supplied to meet additional end use specifications. For purposes of greater clarity, all large line pipe stenciled or otherwise marked as meeting or supplied to meet API 5L (or equivalent specifications) for use as oil and gas pipelines are included in the product definition regardless of whether the pipe is marked as meeting any other end-uses or is supplied to meet any other end-uses. Line pipe that is manufactured and tested to meet higher API specifications (or equivalent CSA and ISO specifications) automatically conforms to lower specifications and may therefore have multiple stencils identifying additional end uses, such as American Society for Testing and Materials (“ASTM”), and equivalent specifications for end use as standard pipe (for low-pressure conveyance of steam, water, natural gas, air and other liquids in plumbing and heating applications), piling pipe, and other such end uses.
Large line pipe has notable product characteristics that distinguish it from other pipe products. These include being more resistant to highly corrosive (“sour”) environments, which is accomplished by a secondary refining process in the production of the steel to increase the purity of the steel, thereby making it more resistant to corrosion from sour gas. The grain size of the steel plate used as an input into the production of large line pipe is also more refined, which affects the low temperature toughness of the steel. Large line pipe also typically is sold in API grades of X70 or greater, which speaks to higher strengths of steel. Finally, large line pipe is characterized by higher deformability and higher pressure crushing properties.
The dates of the investigative proceedings and findings concerning this case are:
|Initiation of Investigation||March 24, 2016|
|Preliminary Determination Notice||June 22, 2016|
|Final Determination||September 20, 2016|
|Canadian International Trade Tribunal's Finding||October 20, 2016|
|Initiation of Normal Value Review: Sumitomo Corporation||October 22, 2019|
|Conclusion of Normal Value Review: Sumitomo Corporation||February 13, 2020|
|Expiry review determination|
|Canadian International Trade Tribunal's Order|
Tariff classification numbers
The subject goods are normally classified under the following tariff classification numbers:
Please note that these tariff classification numbers may apply to goods which are not subject to SIMA measures, may change because of amendments to the Departmental Consolidation of the Customs Tariff, or the subject goods may be imported under tariff classification numbers that are not listed. Refer to the product definition for the authoritative details regarding the subject goods.
For more information on the tariff classification numbers, please refer to the CBSA's Harmonized Commodity Description and Coding System website.
Country of origin or export: China & Japan
The following table identifies the exporter(s) who currently have been issued normal values. Please refer to the Normal value model ID table for information relating to model IDs, model descriptions and units of measure. Information regarding specific normal values of subject goods should be obtained from the exporter. Please note that model information is posted only for exporters who have successfully enrolled in an Exporter ID.
|Country||Exporter||Exporter ID||Cooperative since||Last revised|
|Japan||Marubeni Itochu Steel Inc.||885343202RM0001|
|Metal One Corporation||776638405RM0001|
For importations of subject goods for which the exporter has not been issued normal values, the anti-dumping duty is equal to 95.0% of the export price.
Country of origin or export: China
Effective on imports of subject goods released by the CBSA on or after 2016-10-21:
No exporters in China currently have a specific amount of subsidy. For importations of subject goods from China, the countervailing duty is equal to 1,657.11 Renminbi per metric ton.
Disclosure of normal values and amounts of subsidy
The liability for anti-dumping and countervailing duty results from the proceedings conducted under SIMA and from the finding of the CITT. Information regarding the normal value and amount of subsidy of the subject goods in question and the amount of anti-dumping and countervailing duty payable should be obtained from the exporter. Related information may be made available to importers on a need-to-know basis in accordance with the provisions of Memorandum D14-1-2, Disclosure of Normal Values, Export Prices, and Amounts of Subsidy Established Under the Special Import Measures Act.
For information on duty assessment, refer to the Guide for self-assessing SIMA duties.
Information Required on Customs Documents
The import documentation should include the information listed below. Failure to provide this information may result in the application of penalties to the importer, pursuant to the Administrative Monetary Penalty System (AMPS).
The import documentation should clearly indicate the following:
- Confirmation whether the product is subject to SIMA duties
- Exporter ID
- Name and address of producer/manufacturer
- Location of plant/mill of production
- Place from which direct shipment to Canada began
- Name and address of vendor (if different from the producer)
- Country of origin
- Country of export
- Canadian customer's name and address
- Canadian importer's name and address (if different from the customer)
- full product description of the goods, including:
- model ID
- model description
- product type
- outside diameter (O.D.)
- nominal wall thickness
- end finish
- coating/surface finish
- other relevant characteristics
- Date of sale, date of shipment
- Quantity (state unit of measure)
- Unit selling price and total selling price to importer in Canada
- Currency of settlement used (e.g. US$, CDN$, etc.)
- Terms and conditions of sale (e.g. FOB, CIF, etc.)
- All costs, expenses, and charges incurred by the exporter and vendor in the shipment of the subject goods to Canada (includes inland and ocean freight, insurance, duties, port and handling charges, etc.) and,
- The amount of any export taxes applicable to the goods
Appeal decisions relating to subjectivity
Summaries of appeal decisions made by the CBSA respecting whether an imported good is subject to this measure in force can be found on the SIMA Appeals page.
Email for duty assessment questions
Important Prior to submitting a subjectivity opinion request, please review the “detailed product information”. Each request must be supported with essential information including, but not limited to, pictures, mill certificates, measurements, origin of the goods, etc. in relation to the specific product in question.
Failure to provide sufficient information will result in a rejection of the request by the CBSA.
CITT reference number(s)
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