CSWP3 2021 UP1: Carbon steel welded pipe 3
Conclusion of normal value and export price review
The Canada Border Services Agency (CBSA) has today concluded a normal value and export price review to update the normal values and export prices of certain carbon steel welded pipe (CSWP) exported to Canada from Vietnam by SeAH Steel Vina Corporation (SeAH Vietnam).
The review follows requests for re-determination filed by an importer and is part of the CBSA’s enforcement of the Canadian International Trade Tribunal’s (CITT) injury finding issued on February 15, 2019, respecting the dumping of CSWP from Pakistan, the Philippines, Turkey and Vietnam, 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 finding 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 and export price review were from March 1, 2020 to February 28, 2021.
Normal value review process
At the initiation of the normal value and export price review, the CBSA sent requests for information (RFIs) to SeAH Vietnam to solicit information on the costs and selling prices of subject goods and like goods for purposes of updating the normal values for goods exported to Canada by SeAH Vietnam. RFIs were also sent to SeAH Steel America. Inc. (SSA), a related non-resident importer located in the U.S, as well as State Pipe and Supply Inc. (SPS), a related purchaser located in Canada, for purposes of reviewing the export prices applicable to the subject goods during the POI.
All parties submitted substantially complete responses to the RFI, and subsequently responded to the various supplemental RFIs that were issued by the CBSA as part of the review.
As part of the review, initial representationsFootnote 1 were submitted on behalf of Canadian producer Nova Steel Inc. and Nova Tube Inc. (collectively referred to as “Nova”). The representations were received over three months after the first RFI response was placed on the CBSA’s exhibit list for this proceeding, which fell two days prior to the close of the record that took place on July 30, 2021. Subsequently, case argumentsFootnote 2 and reply submissionsFootnote 3 were submitted by counsel for Nova. Counsel on behalf of SeAH Vietnam, SSA and SPS also submitted a case briefFootnote 4 and a reply submissionFootnote 5.
The issues raised in the comments, case briefs and reply submissions by the parties involved concerned the reliability and completeness of the information submitted by SeAH Vietnam and its related affiliates. The parties involved also touched on the designation of the exporter as well as the timing of the CBSA’s closing of the record and the impact it has on whether an RFI response is considered by the CBSA to be substantially complete.
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 information provided by the respondents was sufficient for purposes of determining normal values and export prices.
Parties submitting representations are encouraged to make all efforts to submit them as early as possible in the process. This will ensure that the CBSA has time to review, analyze, request additional information or clarification, and verify (if necessary) the additional information as needed.
Normal values for future shipments
Specific normal values for future shipments of CSWP have been determined for the participating exporter, SeAH Vietnam. These normal values are effective today, November 12, 2021.
SeAH Vietnam’s RFI response included a domestic sales database of like goods, as such, normal values were determined in accordance with paragraph 15 of SIMA where possible. Where there were insufficient domestic sales of like goods that met the requirements of sections 15 and 16 of SIMA, normal values were determined using paragraph 19(b) of SIMA, based on the aggregate of the 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 the Special Import Measures Regulations, based on the exporter’s sales of goods that are of the same general category as the goods sold to Canada during the PAP.
During the POI, all of the subject goods exported to Canada by SeAH Vietnam were sold to SSA and eventually to SPS. Due to the relationship between the companies, 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.
The normal values and export prices 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 review, regardless of the date that the requests were received. The normal values and export prices 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 (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
- Sean Robertson: 343-553-1584
Appendix 1—product definition
Subject goods definition
Carbon steel welded pipe, commonly identified as standard pipe, in the nominal size range from ½ 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 the Islamic Republic of Pakistan, the Republic of the Philippines, the Republic of Turkey (excluding those goods exported by Erbosan Erciyas Boru Sanayii ve Ticaret A.S.) and the Socialist Republic of Vietnam.
Tariff classification numbers
The subject goods are properly 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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