Notice of conclusion of a re-investigation: Corrosion-resistant steel sheet (COR1 2022 RI)

Period of investigation

The period of investigation (POI) and the profitability analysis period (PAP) for the re-investigation were from July 1, 2021 to August 31, 2022.

Re-investigation process

At the initiation of the re-investigation, the CBSA sent a request for information (RFI) to 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 two exporters located in South Korea. Desk audits were conducted for the remaining responding exporters.

As part of the re-investigation, case briefs and reply submissions were provided by counsel representing the Canadian producers and responding exporters. Details of the representations are provided in Appendix 1. Details pertaining to the information submitted by the exporters in response to the RFI and supplemental RFI (SRFI) as well as the results of the CBSA’s re-investigation are provided below.

Specific normal values and export prices for future shipments of COR have been determined for exporters that submitted a complete response to the RFI, SRFIs, deficiency letters and for whom the verification was considered reliable.

Normal values and export prices

Normal values

Normal values are generally determined based on the domestic selling prices of like goods in the country of export, in accordance with 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 (full costs and profit), in accordance with paragraph 19(b) of SIMA.

Where, in the opinion of the CBSA, sufficient information has not been furnished or is not available, normal values are determined pursuant to ministerial specification in accordance with subsection 29(1) of SIMA.

Export prices

The export price of goods sold to importers in Canada is generally determined in accordance with 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.

Where, in the opinion of the CBSA, sufficient information has not been furnished or is not available, export prices are determined pursuant to ministerial specification in accordance with subsection 29(1) of SIMA.

China

As noted in the Notice of initiation of this re-investigation, on October 31, 2022, the CBSA reaffirmed its opinion that the conditions of section 20 of SIMA exist in China with respect to the COR sector. For a prescribed country under section 20 of SIMA, the section is applicable where, in the opinion of the CBSA, domestic prices are substantially determined by the government and there is sufficient reason to believe that they are not substantially the same as they would be if they were determined in a competitive market.

At the initiation of the re-investigation, interested parties were invited to provide comments and representations to the CBSA regarding the application of section 20 of SIMA. However, no submissions were received. As a result, the CBSA maintains its position that the conditions of section 20 of SIMA continue to exist in China with respect to the COR sector for purposes of this this re-investigation.

Where the conditions of section 20 of SIMA exist, the CBSA normally determines normal values using the selling prices, or the full costs and profit, of like goods of producers in a surrogate country pursuant to paragraph 20(1)(c) of SIMA, or paragraph 20(1)(d) of SIMA on a deductive basis starting with an examination of the prices of imported goods sold in Canada, from a surrogate country.

Where, in the opinion of the CBSA, sufficient information was not furnished or was not available to determine normal values under paragraph 20(1)(c) of SIMA as described above, normal values were determined pursuant to ministerial specification in accordance with subsection 29(1) of SIMA, using the domestic selling prices of the closest matching products, based on the consideration of the relevant characteristics, in the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (Chinese Taipei).

The CBSA determined specific normal values for future shipments of subject goods for the following exporters, effective on or after April 26, 2023.

Beijing Shougang Cold Rolling Co., Ltd. (Shougang CR) / Shougang Holding Trade (Hong Kong) Limited (Shougang HK)

Shougang CR is a producer of COR located in China. Shougang International Trade & Engineering Corporation (Shougang International) is a related company located in China who acted as an export agent for sales made from Shougang CR to Shougang HK. Shougang HK is a related company located in Hong Kong who is the vendor on all export sales to Canada produced by Shougang CR. Due to the relationship between Shougang CR and Shougang HK and their roles and responsibilities during the export sales process, the companies have collectively been determined to be the exporter for SIMA purposes. During the POI, the subject goods were shipped directly from China to Canada.

Shougang CR, Shougang International, and Shougang HK provided responses to the CBSA’s RFI and deficiency notice, as well as additional clarifying information. As there was insufficient information on the record in order to determine normal values pursuant to paragraph 20(1)(c) of SIMA, normal values for Shougang CR/Shougang HK were determined pursuant to subsection 29(1) of SIMA, using the domestic selling prices of the closest matching products, based on the consideration of the relevant characteristics, in the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (Chinese Taipei) during the PAP.

For the subject goods exported to Canada by Shougang CR/Shougang HK during the POI, the export prices were determined pursuant to section 24 of SIMA based on the exporter’s selling price less all costs, charges and expenses resulting from the exportation of the goods.

Shougang Jingtang United Iron & Steel Co., Ltd. (Shougang JIS) / Shougang Holding Trade (Hong Kong) Limited (Shougang HK)

Shougang JIS is a producer of COR located in China. Shougang International Trade & Engineering Corporation (Shougang International) is a related company located in China who acted as an export agent for sales made from Shougang JIS to Shougang HK. Shougang HK is a related company located in Hong Kong who is the vendor on all export sales to Canada produced by Shougang JIS. Due to the relationship between Shougang JIS and Shougang HK and their roles and responsibilities during the export sales process, the companies have collectively been determined to be the exporter for SIMA purposes. During the POI, the subject goods were shipped directly from China to Canada.

Shougang JIS, Shougang International, and Shougang HK provided responses to the CBSA’s RFI and deficiency notice, as well as additional clarifying information. As there was insufficient information on the record in order to determine normal values pursuant to paragraph 20(1)(c) of SIMA, normal values for Shougang JIS/Shougang HK were determined pursuant to subsection 29(1) of SIMA, using the domestic selling prices of the closest matching products, based on the consideration of the relevant characteristics, in the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (Chinese Taipei) during the PAP.

For the subject goods exported to Canada by Shougang JIS/Shougang HK during the POI, the export prices were determined pursuant to section 24 of SIMA based on the exporter’s selling price less all costs, charges and expenses resulting from the exportation of the goods.

Yieh Phui (China) Technomaterial Co., Ltd. (YPC)

YPC is a producer and exporter of COR located in China. YPC sold the subject goods to Canada through an unrelated trading company located in a third country. During the POI, the subject goods were shipped directly from China to Canada.

YPC provided responses to the CBSA’s RFI and two SRFIs. As there was insufficient information on the record in order to determine normal values pursuant to paragraph 20(1)(c) of SIMA, normal values for YPC were determined pursuant to subsection 29(1) of SIMA, using the domestic selling prices of the closest matching products, based on the consideration of the relevant characteristics, in the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (Chinese Taipei) during the PAP.

For the subject goods exported to Canada by YPC during the POI, the export prices were determined pursuant to section 24 of SIMA based on the exporter’s selling price less all costs, charges and expenses resulting from the exportation of the goods.

All other exporters in China

For all other exporters of subject goods from China, normal values for future shipments, are determined at the rate 53.3%, expressed as a percentage of the export price, in accordance with the ministerial specification pursuant to subsection 29(1) of SIMA.

Normal values previously in place expire on April 26, 2023.

Chinese Taipei

The CBSA determined specific normal values for future shipments of subject goods for the following exporters, effective on or after April 26, 2023.

Prosperity Tieh Enterprise Co., Ltd. (PT)

PT is a producer and exporter of COR located in Chinese Taipei. During the POI, the subject goods were shipped directly from Chinese Taipei to Canada.

PT provided responses to the CBSA’s RFI and three SRFIs. PT did not have domestic sales that met the conditions of sections 15 and 16 of SIMA during the PAP. As such, normal values were determined in accordance with 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 amount for profits was determined in accordance with subparagraph 11(1)(b)(ii) of the Special Import Measures Regulations (SIMR) by using PT’s profitable domestic sales of goods that were of the same general category as the subject goods shipped to Canada during the POI.

For the subject goods exported to Canada by PT, the export prices were determined pursuant to section 24 of SIMA based on the exporter’s selling price less all costs, charges and expenses resulting from the exportation of the goods.

Sheng Yu Steel Co., Ltd. (SYSCO)

SYSCO is a producer and exporter of COR located in Chinese Taipei. During the POI, the subject goods were shipped directly from Chinese Taipei to Canada.

SYSCO provided responses to the CBSA’s RFI and one SRFI. SYSCO had domestic sales of like goods during the PAP and as a result normal values were determined in accordance with section 15 of SIMA, where possible, based on domestic selling prices of like goods. Where sufficient domestic sales of like goods did not meet the conditions of section 15 and 16 of SIMA, normal values where determined in accordance with 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. The amount for profits was determined in accordance with subparagraph 11(1)(b)(ii) of SIMR by using SYSCO’s profitable domestic sales of goods that were of the same general category as the subject goods shipped to Canada during the POI.

For the subject goods exported to Canada by SYSCO, the export prices were determined pursuant to section 24 of SIMA based on the exporter’s selling price less all costs, charges and expenses resulting from the exportation of the goods.

Yieh Phui Enterprise Co., Ltd. (YPE)

YPE is a producer and exporter of COR located in Chinese Taipei. YPE has a production facility in Kaohsiung and in Ping Tung City, Chinese Taipei. During the POI, the subject goods were produced in these two production facilities and were shipped directly from Chinese Taipei to Canada.

YPE provided responses to the CBSA’s RFI, one deficiency letter and three SRFIs. YPE had domestic sales of like goods during the PAP and as a result normal values were determined in accordance with section 15 of SIMA, where possible, based on domestic selling prices of like goods. Where sufficient domestic sales of like goods did not meet the conditions of section 15 and 16 of SIMA, normal values where determined in accordance with 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. The amount for profits was determined in accordance with subparagraph 11(1)(b)(ii) of SIMR by using YPE’s profitable domestic sales of goods that were of the same general category as the subject goods shipped to Canada during the POI.

For the subject goods exported to Canada by YPE, the export prices were determined pursuant to section 24 of SIMA based on the exporter’s selling price less all costs, charges and expenses resulting from the exportation of the goods.

All other exporters in Chinese Taipei

For all other exporters of subject goods from Chinese Taipei, normal values for future shipments, are determined at the rate 33.2%, expressed as a percentage of the export price, in accordance with the ministerial specification pursuant to subsection 29(1) of SIMA.

Normal values previously in place expire on April 26, 2023.

India

As no exporters from India participated in this re-investigation, the CBSA did not determine specific normal values for future shipments of subject goods.

For all exporters of subject goods from India, normal values for future shipments, are determined at the rate 40.0%, expressed as a percentage of the export price, in accordance with the ministerial specification pursuant to subsection 29(1) of SIMA.

Normal values previously in place expire on April 26, 2023.

South Korea

The CBSA determined specific normal values for future shipments of subject goods for the following exporters, effective on or after April 26, 2023.

Dongkuk Steel Mill Co., Ltd. (Dongkuk)

Dongkuk is a producer and exporter of COR located in South Korea. During the POI, Dongkuk did not ship the subject goods to Canada.

Dongkuk provided responses to the CBSA’s RFI and two SRFIs. Dongkuk had domestic sales of like goods during the PAP and as a result normal values were determined in accordance with section 15 of SIMA, where possible, based on domestic selling prices of like goods. Where sufficient domestic sales of like goods did not meet the requirements of section 15 and 16 of SIMA, normal values where determined in accordance with 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. As inputs significant in the production of the goods were acquired from an associated supplier, the cost of the inputs was determined pursuant to subparagraph 11.2(1)(c)(ii) of SIMR. The amount for profits was determined in accordance with subparagraph 11(1)(b)(ii) of SIMR by using Dongkuk’s profitable domestic sales of goods that were of the same general category as the subject goods shipped to Canada during the POI.

KG Dongbu Steel Co., Ltd. (KG Dongbu)

KG Dongbu is a producer and exporter of COR located in South Korea. KG Dongbu has a production facility in Dangjin and in Incheon, South Korea. During the POI, the subject goods were produced in these two production facilities and were shipped directly from South Korea to Canada.

KG Dongbu provided responses to the CBSA’s RFI and two SRFIs. KG Dongbu had domestic sales of like goods during the PAP and as a result normal values were determined in accordance with section 15 of SIMA where possible, based on domestic selling prices of like goods. Where sufficient domestic sales of like goods did not meet the requirements of section 15 and 16 of SIMA, normal values where determined in accordance with 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. The amount for profits was determined in accordance with subparagraph 11(1)(b)(ii) of SIMR by using KG Dongbu’s profitable domestic sales of goods that were of the same general category as the subject goods shipped to Canada during the POI.

For the subject goods exported to Canada, the export prices were determined pursuant to section 24 of SIMA based on the exporter’s selling price less all costs, charges and expenses resulting from the exportation of the goods.

All other exporters in South Korea

For all other exporters of subject goods from South Korea, normal values for future shipments, are determined at the rate 40.0%, expressed as a percentage of the export price, in accordance with the ministerial specification pursuant to subsection 29(1) of SIMA.

Normal values previously in place expire on April 26, 2023.

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. All parties are cautioned that where there are increases in domestic prices, and/or costs as noted above, the export price for sales to Canada 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. Where 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 of anti-dumping duty may be warranted.

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

• Telephone:
• Wu Ping Wei: 343-553-1642
• Jin Hyuck Lee: 343-553-1728

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

Appendix 1: Representations

Representations were received from counsel representing the Canadian producers and the responding exporters during the course of the re-investigation.

Following the closing of the record on March 13, 2023, case briefs were received from counsel representing the following parties: ArcelorMittal Dofasco G.P. and Stelco Inc. (AMD and Stelco),^{Footnote 1} Sheng Yu Steel Co., Ltd. (SYSCO),^{Footnote 2} Prosperity Tieh Enterprises Co., Ltd. (PT)^{Footnote 3} and KG Dongbu Steel Co., Ltd. (KG Dongbu).^{Footnote 4}

The Canada Border Services Agency (CBSA) received reply submissions from counsel on behalf of AMD and Stelco,^{Footnote 5} SYSCO,^{Footnote 6} PT^{Footnote 7} and KG Dongbu.^{Footnote 8}

Certain details provided in case briefs and reply submissions were designated as confidential by the submitting counsel. This has restricted the ability of the CBSA to discuss all issues raised in these representations.

The material issues raised by the parties are summarized as follows and the CBSA has provided responses to representations below.

Section 20 of the Special Import Measures Act: China

Case briefs

Counsel for AMD and Stelco indicated that no interested person had introduced any information suggesting that the application of section 20 of SIMA is unfounded or inappropriate for this re-investigation. As such, section 20 of SIMA is presumed to apply in China and the CBSA must calculate normal values for Chinese exporters of subject goods using sections 20 or 29 of SIMA.

CBSA’s response

As no comments or representations were received by Chinese exporters and/or the Government of China regarding the application of section 20 of SIMA, the CBSA maintains its position that the conditions of section 20 of SIMA continue to exist in China with respect to the COR sector for the purposes of this re-investigation. As explained above, the normal values for Chinese exporters were either determined pursuant to paragraph 20(1)(c) of SIMA or pursuant to subsection 29(1) of SIMA.

Completeness and reliability of information provided

Case briefs

Counsel for AMD and Stelco submitted various concerns pertaining to the responses to the RFIs, SRFIs and deficiency letters provided by Beijing Shougang Cold Rolling Co., Ltd., Shougang Jingtang Iron and Steel Co., Ltd., Shougang Qian’an Iron & Steel Company, and China Shougang International Trade & Engineering Corp. (collectively the Shougang group of companies), YPC, PT, SYSCO, YPE, Dongkuk and KG Dongbu. The issues raised included: the cost of production reporting methodologies; the GS&A calculations; the normal value adjustments; as well as completeness. Counsel submitted that as a result of issues raised, the CBSA should determine the responses from the aforementioned exporters to be unreliable and deficient and, as such, determine normal values pursuant to section 29 of SIMA where appropriate to do so.

Counsel for AMD and Stelco also submitted that the CBSA has discretion to select an appropriate 60-day period to calculate normal values for PT, SYSCO, YPE, Dongkuk and KG Dongbu.

Counsel for PT submitted that PT has co-operated fully in this re-investigation and responded to the RFI and three SRFIs.

Reply submissions

Counsel for AMD and Stelco reiterated some of the issues raised in their case briefs for PT, SYSCO and KG Dongbu.

Counsel for PT, SYSCO and KG Dongbu submitted that they have provided complete responses that were sufficient for purposes of determining normal values and export prices in this re-investigation.

CBSA’s response

The CBSA determined that the information provided by Shougang group of companies, YPC, PT, SYSCO, YPE, Dongkuk and KG Dongbu in their RFIs, SRFIs responses and on-site verifications/desk-audit responses were sufficient for purposes of determining normal values and export prices in this re-investigation. Further, normal values and export prices calculated by the CBSA in this re-investigation were determined in accordance with both SIMA and SIMR.

Due consideration has been given to the issues raised in the case briefs 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 notices.

Company-specific margin of dumping

Case briefs

Counsel for KG Dongbu submitted that a co-operative exporter is entitled not only to an update of prospective normal values but also an update of its company-specific margin of dumping in a re-investigation. Counsel argued that under Canada’s prospective anti-dumping duty assessment system, updating of normal values must be accompanied by an update of the company-specific margin of dumping; otherwise, exports of any new products from a co-operative exporter would be assessed under an old margin of dumping from an original anti-dumping investigation.

Reply submissions

Counsel for AMD and Stelco submitted that Canada operates a prospective duty enforcement system and an exporter’s margin of dumping is determined at the final determination phase of the original anti-dumping investigation, not in a re-investigation.

CBSA’s response

An exporter’s margin of dumping is calculated at the final determination of an original investigation and is not determined in a re-investigation.

Retroactive duty assessment

Case briefs

Counsels for AMD and Stelco noted that in order to ensure that normal values accurately reflect changing market conditions, exporters with normal values are required to inform the CBSA of changes to domestic prices, costs, market conditions or terms of sale associated with the production and sale of COR. Where an exporter fails to properly notify the CBSA of such changes, fails to properly adjust their export prices, or fails to provide the CBSA with the information needed to make the relevant adjustments to normal values, the CBSA is authorized to impose retroactive anti-dumping duties on the subject goods.

Counsels for AMD and Stelco argued that while it is reasonable to expect that the increases in the hot-rolled coil and COR prices in China, Chinese Taipei and South Korea had a significant impact on normal values, the exporters in those countries failed to notify the CBSA of such significant changes. They further argued that, given these circumstances, the CBSA should issue retroactive anti-dumping duty assessments.

CBSA’s response

Upon completion of the re-investigation, the CBSA will be conducting an analysis of subject imports of COR during the POI to determine whether retroactive assessments are warranted.