CSWP2 2021 UP1: Carbon steel welded pipe 2
Conclusion of normal value review
The Canada Border Services Agency (CBSA) has today concluded a normal value review to update the normal values applicable to certain carbon steel welded pipe exported to Canada from the United Arab Emirates by Universal Tube & Plastic Industries Ltd. (UTP).
The normal value review is part of the CBSA’s enforcement of the Canadian International Trade Tribunal’s (CITT) order issued on October 15, 2018, in Expiry Review No. RR‑2017‑005, respecting the dumping of certain carbon steel welded pipe from the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (Chinese Taipei), India, Oman, South Korea, Thailand and the United Arab Emirates, in accordance with the Special Import Measures Act (SIMA).
The product definition and the applicable tariff classification numbers of the goods subject to the CITT’s order are contained in Appendix 1 (subject goods).
Period of investigation
The Period of Investigation (POI) and the Profitability Analysis Period (PAP) for the normal value review were from July 1, 2020 to December 31, 2020.
Normal value review process
At the initiation of the normal value review, the CBSA sent a Request for Information (RFI) to UTP 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 for subject goods imported into Canada.
UTP submitted a response on May 24, 2021 that was substantially complete. UTP also responded adequately to the CBSA’s two Supplemental RFI and the verification questionnaire.
As part of the review, commentsFootnote 1 on the submissions filed by UTP prior to the close of the record as well as a case briefFootnote 2 and a reply submissionFootnote 3 were submitted by counsel on behalf of two Canadian producers, Nova Steel Inc. and Nova Tube Inc. Counsel on behalf of UTP also submitted a case briefFootnote 4 and a reply submission.Footnote 5
The issues raised in the comments, case briefs and reply submissions by the parties mostly concerned the reliability and completeness of the information submitted by UTP, but also touched on whether ASTM A500 pipes are subject goods.
The representations submitted by all parties were given due consideration by the CBSA prior to the conclusion of this review. The CBSA determined that the verified information provided by UTP was sufficient for purposes of determining normal values.
In relation to the subjectivity of ASTM A500 pipes, the CBSA’s position is that the ASTM A500 pipes exported by UTP during the POI are not subject to this review, consistent with the enforcement of the CITT Order issued on October 15, 2018, in Expiry Review No. RR‑2017‑005Footnote 6. The CBSA notes that the CITT, in its Finding and Reasons regarding CSWP3 issued on March 4, 2019, in Inquiry No. NQ‑2018‑003, found that “the correct interpretation of the product definition is that it does not include ASTM A500”Footnote 7.
In the event that interested parties disagree with the CBSA’s position regarding ASTM A500, the CBSA notes that under SIMA, parties may file a written application for a Scope Ruling.
Normal values for future shipments
Specific normal values for future shipments of certain carbon steel welded pipe have been determined for the participating exporter, UTP. These normal values are effective today, October 15, 2021.
UTP’s response included a database of domestic sales of CSWP. However, there were insufficient domestic sales of like goods that met the requirements of sections 15 and 16 of SIMA, and as a result it was not possible to estimate normal values based on the methodology of section 15 of SIMA using domestic sales of like goods. As such, normal values were 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.
In this regard, the amount for profits was determined in accordance with subparagraph 11(1)(b)(i) of the Special Import Measures Regulations, based UTP’s profitable sales of like goods in the UAE, during the PAP.
The normal values determined as a result of this review may be applied to any requests for re‑determination of importations of subject goods that have not been processed prior to the conclusion of this normal value review, regardless of the date that the requests were received. The normal values determined as a result of this review may be applied retroactively where the conditions described below are met.
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. If there are changes to the exporter’s domestic prices, costs, market conditions or terms of sale associated with the production and sales of the goods, and where the CBSA considers such changes to be significant, the normal values and export prices will be updated to reflect current conditions. All parties are cautioned that where there are increases in domestic prices, and/or costs as noted above, 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 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 will be applied where such action is warranted.
Importers are reminded that it is their responsibility to calculate and declare their anti‑dumping 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 SIMA measures and be provided with sufficient information necessary to clear the shipments. To determine their anti‑dumping liability, importers should contact the exporters to obtain the applicable normal values. 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 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.
Any questions concerning the above should be directed to:
SIMA Registry and Disclosure Unit
Trade and Anti-dumping Programs Directorate
Canada Border Services Agency
11-100 Metcalfe St
Ottawa ON K1A 0L8
- Aaron Maidment: 343‑553‑1633
Appendix 1—product definition
Subject goods are defined as
“Carbon steel welded pipe, commonly identified as standard pipe, in the nominal size range from 1/2 inch up to and including 6 inches (12.7 mm to 168.3 mm in outside diameter) inclusive, in various forms and finishes, usually supplied to meet ASTM A53, ASTM A135, ASTM A252, ASTM A589, ASTM A795, ASTM F1083 or Commercial Quality, or AWWA C200‑97 or equivalent specifications, including water well casing, piling pipe, sprinkler pipe and fencing pipe, but excluding oil and gas line pipe made to API specifications exclusively, originating in or exported from Chinese Taipei (excluding goods exported from Chinese Taipei by Chung Hung Steel Corporation and Shin Yang Steel Co. Ltd), the Republic of India, the Sultanate of Oman, the Republic of Korea, Thailand and the United Arab Emirates (excluding goods exported from the United Arab Emirates by Conares Metal Supply Ltd.).”
- 1 mm thick carbon steel tubing (SPCC‑1, 25.6 mm in outside diameter), double coated (first coated with acrylonitrile butadiene styrene, then with polyvinyl chloride) and
- non‑galvanized, ASTM A53, Grade B, Schedule 80 pipe, with an inside diameter of 1 ¼ inches to 1 ½ inches, in 22‑ft. lengths, with the inside weld scarfed, originating in/or exported from the Republic of Korea, and produced with AISI C1022M steel with a carbon content of 0.18 percent to 0.23 percent and a manganese content of 0.80 percent to 1.00 percent
Classification of imports
The subject goods are usually classified under the following 10‑digit tariff classification numbers:
This listing of tariff classification numbers is for convenience of reference only. Refer to the product definition for authoritative details regarding the subject goods.
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