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FAS 2021 UP5: Carbon steel fasteners
Conclusion of normal value review

Ottawa,

The Canada Border Services Agency (CBSA) has today concluded a normal value review (review) to determine normal values and export prices applicable to certain carbon steel fasteners (fasteners) originating in or exported from the People’s Republic of China (China) by Robertson Inc. (Jiaxing) (Robertson Jiaxing).

The review follows requests for re-determination filed by importers and is part of the CBSA’s enforcement of the Canadian International Trade Tribunal’s (CITT) order issued on September 2, 2020 in Expiry Review No. RR-2019-002, respecting the dumping of fasteners originating in or exported from the People’s Republic of China (China) and Chinese Taipei, and the subsidizing of such goods, originating in or exported from China, excluding fasteners specifically designed for application in the automotive or aerospace industry, 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

For this review, the Period of Investigation (POI) was from September 1, 2018 to November 30, 2020 and the Profitability Analysis Period (PAP) was from September 1, 2018 to November 30, 2020.

Normal value review process

At the initiation of this review, on January 25, 2021, the CBSA sent Requests for Information (RFIs) to Robertson Jiaxing and importers in order to solicit information for purposes of re-determining normal values and export prices applicable to the goods subject to requests for re-determination filed by importers.

The responses to the CBSA’s RFIs and Supplemental RFIs were received accordingly from Robertson Jiaxing and importers.

As part of the review, counsel on behalf of Leland Industries Inc. (Leland), a Canadian producer, submitted comments on the submissions filed by Robertson Jiaxing and importers prior to the close of the record as well as a case brief.

The issues raised in the commentsFootnote 1 and case briefFootnote 2 submitted on behalf of Leland concerned the deficiencies and completeness of Robertson Jiaxing’s responses and the importers’ responses. Other representations made by Leland include: the failure of Robertson Jiaxing to prove their payments for the subcontracting services to be at the fair market value and the increase in prices of wire rod since the end of the POI.

The representations submitted by all parties were given due consideration by the CBSA prior to the conclusion of this review. All the information submitted on the record was used for the conclusion of this review.

Normal values for future shipments

Robertson Jiaxing is a manufacturer and exporter of subject goods located in Jiashan, Zhejiang, China. Robertson Jiaxing was established in 2002 and is a private limited liability company. The goods subject to requests for re-determination were produced by Robertson Jiaxing.

During the course of the review, Robertson Jiaxing provided responses to the CBSA’s Dumping RFI as well as four Supplemental RFIs (SRFIs).

Robertson Jiaxing did not have any domestic sales of like goods during the PAP to determine the normal values in accordance with section 15 of SIMA.

No information is available to determine the normal values for Robertson Jiaxing under paragraph 19(a) of SIMA.

The normal values for Robertson Jiaxing also could not be determined under paragraph 19(b) of SIMA as no information is available to determine an amount for profits for the application of paragraph 19(b) of SIMA.

For this review, Robertson Jiaxing provided the requested cost of production information, general administrative and selling cost information and all other costs information for certain goods subject to requests for re-determination.

As such, with regard to those goods which are subject to requests for re-determination and for which sufficient information has been provided to the CBSA during this review, specific normal values were determined pursuant to section 29 of SIMA using a method similar to that of paragraph 19(b), based on the aggregate of cost of production of the goods, a reasonable amount for administrative, selling and all other costs, and a reasonable amount for profits determined by ministerial specification. These specific normal values for future shipments are effective today, July 8, 2021.

With regard to those goods which are subject to requests for re-determination but for which sufficient information has not been provided to the CBSA during this review, the normal values will continue to be determined in accordance with the Ministerial Specification in place, pursuant to subsection 29(1) of SIMA, based on the export price of the goods advanced by an amount equal to 170%.

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.

Export prices for future shipments

During the POI, Robertson Jiaxing sold the goods subject to requests for re-determination to a related importer. The importer provided responses to the CBSA’s Importer RFI and three SRFIs. A reliability test was performed on the goods subject to requests for re-determination 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 result of this reliability test revealed that the section 24 export price continued to be reliable. Therefore, export prices for sales to this related importer on or after July 8, 2021 will continue to be determined in accordance with section 24 of SIMA.

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. 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.

Importer responsibility

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 exporter(s) 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.

Information

Any questions concerning the above should be directed to:

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

Appendix 1—Product definition

Subject goods definition

“Certain carbon steel fasteners originating in or exported from the People’s Republic of China and the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (Chinese Taipei), excluding fasteners specifically designed for application in the automotive or aerospace industry.”

The following table is a list of subject products included in the Canadian International Trade Tribunal's (CITT) findings/orders for certain carbon steel fasteners.

  Imperial Metric
  Diameter Length Diameter Length
Wood screws #4 to #24
(0.112" to 0.386")
3/8 to 8 in. M3 to M10 10 mm to 200 mm
Square and hex lag screws #14 to #24
(1/4" to 0.386")
3/4 to 4 in. M6 to M10 20 mm to 100 mm
Sheet metal/tapping screws #4 to #24
(0.112" to 0.386")
3/8 to 8 in. M3 to M10 10 mm to 200 mm
Thread forming screws #4 to #24
(0.112" to 0.386")
3/8 to 3 in. M3 to M10 10 mm to 75 mm
Thread cutting screws #4 to #24
(0.112" to 0.386")
3/8 to 3 in. M3 to M10 10 mm to 75 mm
Thread rolling screws #4 to #24
(0.112" to 0.386")
3/8 to 3 in. M3 to M10 10 mm to 75 mm
Self-drilling tapping screws #4 to #24
(0.112" to 0.386")
3/8 to 3 in. M3 to M10 10 mm to 75 mm
Machine screws #4 to 3/8 in
(0.112" to 3/8")
3/8 to 8 in. M3 to M10 10 mm to 200 mm
Flange screws 1/4 to 5/8 in 3/8 to 4 in. M6 to M16 10 mm to 100 mm

The following products are excluded by the CITT in Inquiry No. NQ-2004-005, in Expiry Reviews No. RR-2009-001 and RR-2014-001, and in Interim Reviews No. RD-2016-001 and RD-2016-003 and, therefore, are not subject to anti-dumping duty or countervailing duty.

The following products are excluded by the CITT's in Expiry Review No. RR-2019-002 and, therefore, are not subject to anti-dumping duty or countervailing duty.

Additional product information

Tariff classification numbers

The importation of the subject goods are usually classified under the following tariff classification numbers:

  1. 7318.11.00.00
  2. 7318.12.00.00
  3. 7318.14.00.00
  4. 7318.15.00.10
  5. 7318.15.00.49

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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