LLP 2019 UP1
Large Diameter Carbon and Alloy Steel Line Pipe
Conclusion of Normal Value and Export Price Review
Ottawa, February 13, 2020
The Canada Border Services Agency (CBSA) has today concluded a normal value and export price review of certain welded large diameter carbon and alloy steel line pipe (large line pipe) exported from Japan to Canada by Sumitomo Corporation (Sumitomo).
The normal value and export price review is part of the CBSA’s enforcement of the Canadian International Trade Tribunal’s (CITT) finding of injury issued on October 20, 2016, respecting the dumping of large line pipe from Japan, 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 finding are contained in Appendix 1 (subject goods). Additional product information explaining which products are subject to duties is also provided in the appendix.
Normal Values for Future Shipments
The CBSA received a response to the Dumping Request for Information (RFI) from Sumitomo, the exporter of the subject goods. However, the company that produced the goods exported to Canada by Sumitomo did not respond to the CBSA’s RFI.
Exporters that are not the manufacturer of the subject goods (e.g. trading companies, vendors, etc.) will receive normal values only to the extent that their supplier(s)/manufacturer(s) provide sufficient information to permit the determination of normal values and export prices.
As the producer of the subject goods did not provide a response to the RFI, the CBSA is not able to determine normal values pursuant to SIMA. Accordingly, normal values for subject goods exported by Sumitomo Corporation will be determined by advancing the export price of the goods by 95.0%, pursuant to a ministerial specification. Normal values previously issued to Sumitomo are no longer effective.
The ministerial specification will be applicable for subject goods released from the CBSA as of today, February 13, 2020. In addition, this methodology for determining normal values may be applied to any importations of subject goods under appeal that have yet to be re-determined at the time of the conclusion of this normal value review.
During the course of this review, case arguments were submitted on behalf of Sumitomo and Sumitomo Canada. The main focus of these representations involved the calculation and application of the ministerial specification. Specifically, Sumitomo and Sumitomo Canada argued for the application of a ministerial specification which reflected the margin of dumping determined for Sumitomo at the conclusion of the original investigation.
The information submitted in the case arguments was given due consideration by the CBSA. The CBSA attempted to determine specific normal values for the goods sold to Canada by Sumitomo. Since the producer of the goods did not provide any information to the CBSA, specific normal values could not be determined. Under such circumstances, normal values are determined pursuant to the Ministerial Specification on the basis of the export price of the goods advanced by 95.0%, which represents the highest amount by which the normal value exceeded the export price found on an individual transaction (expressed as a percentage of the export price), during the original investigation.
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, on the CBSA’s website at: www.cbsa-asfc.gc.ca/publications/dm-md/d14-eng.html.
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 with the Director General, Trade and Anti-dumping Programs Directorate, 11th Floor, 100 Metcalfe St., Ottawa, Ontario, K1A 0L8. Such a request must be received within 90 days from the making of the determination in the form and manner outlined in Memorandum D14-1-3, Re-determinations and Appeals Under the Special Import Measures Act, on the CBSA’s website at: www.cbsa-asfc.gc.ca/publications/dm-md/d14-eng.html.
- Shawn Ryan: 902-943-1849
- Rebecca Akuoko-Asibey: 613-954-7370
Appendix 1 - Product Definitions
Certain Welded Large Diameter Carbon and Alloy Steel Line Pipe from Japan
Subject goods are defined as:
Welded large diameter carbon and alloy steel line pipe originating in or exported from 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”).
- 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.
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.
- Date modified: