Carbon and alloy steel line pipe - LP2 2020 UP2
Notice of normal value and export price review

Ottawa, July 21, 2020

The Canada Border Services Agency (CBSA) has today initiated a normal value and export price review to update all normal values and export prices of certain carbon and alloy steel line pipe (line pipe) exported from the Republic of Korea to Canada by Husteel Co., Ltd (Husteel).

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 January 4, 2018, respecting the dumping of line pipe from the Republic of Korea, 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).

Should the exporter decide to participate in this normal value and export price review, it is required to provide a complete and accurate response to the CBSA’s dumping Request for Information (RFI) by August 27, 2020.

If the exporter does not provide a complete response to the RFI by the deadline date, any previous normal values issued to the exporter will be immediately revoked and normal values for subject goods exported by Husteel will be determined by advancing the export price of the goods by 88.1%, pursuant to a Ministerial specification.

The schedule for this normal value and export price review is available on the CBSA’s website at: www.cbsa-asfc.gc.ca/sima-lmsi/up/menu-eng.html. The CBSA will close the record for this normal value review at any time during the proceeding, without advanced notice, once it has been determined that sufficient information has been received to make a decision. Therefore, interested parties are encouraged to provide any and all information that they feel is relevant to this review to the CBSA as early as possible. The CBSA will update the website to announce that the record has been closed. Interested parties will have seven days from the close of the record to file case arguments concerning the normal value and export price review and 14 days from the close of the record to file reply submissions in respect of the case arguments.

Normal values established during this review will apply to subject goods released from the CBSA on or after the conclusion date. 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 the 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 and channel 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. If exporters did not properly notify the CBSA of any such changes, did not adjust export prices accordingly, or did not provide the information required to make any necessary adjustments to normal values and export prices, retroactive assessments of anti‑dumping duties may be warranted.

In situations where related parties are involved, companies are cautioned that they must increase resale pricing to their unrelated customers in Canada in order to avoid secondary dumping. If it is determined that the company has raised its selling prices in Canada to levels necessary to eliminate all secondary dumping, the export prices will be calculated under section 24 of SIMA. Price reviews will continue to be conducted to ensure that an appropriate selling price is maintained in the Canadian market. However, if as a result of a review, a company is found to be in a secondary dumping situation, anti‑dumping duties may be assessed retroactively.

Any questions concerning the above should be directed to:

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

Appendix 1 - Product definition

Certain carbon and alloy steel line pipe from the Republic of Korea

Subject goods are defined as:

Carbon and alloy steel line pipe originating in or exported from the Republic of Korea, welded or seamless, having a nominal outside diameter from 2.375 inches (60.3 mm) up to and including 24 inches (610 mm) (with all dimensions being plus or minus allowable tolerances contained in the applicable standards), including line pipe meeting or supplied to meet any one or several of API 5L, CSA Z245.1, ISO 3183, ASTM A333, ASTM A106, ASTM A53-B or their equivalents, in all grades, whether or not meeting specifications for other end uses (e.g. single-, dual-, or multiple certified, for use in oil and gas or other applications), and regardless of end finish (plain ends, beveled ends, threaded ends, or threaded and coupled ends), surface finish (coated or uncoated), wall thickness, or length, excluding galvanized line pipe and excluding stainless steel line pipe (containing 10.5 percent or more by weight of chromium), and excluding goods covered by the Canadian International Trade Tribunal’s Finding in Inquiry No. NQ-2012-003.

For greater certainty, the product definition includes:

  1. unfinished line pipe (including pipe that may or may not already be tested, inspected, and/or certified to line pipe specifications) originating in the Republic of Korea 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
  2. non-prime and secondary pipes (“limited service products”).

Exclusions

The Canadian International Trade Tribunal (CITT) excludes from its finding welded line pipe having nominal outside diameters from and including 18 inches to 24 inches (610 mm) (with all dimensions being plus or minus allowable tolerances contained in the applicable standards), regardless of grade and wall thickness, with a manganese content of no less than 16% by weight, for exclusive use in slurry, tailings, and pressure piping systems in oil sands projects, and marked “Not for CSA Z-662 Applications”. For greater certainty, use in a pipeline meeting CSA Z-662 is not permitted under this exclusion.

Tariff classification numbers

The subject goods are properly classified under the following 10-digit tariff classification numbers:

  1. 7304.19.00.11
  2. 7304.19.00.12
  3. 7304.19.00.21
  4. 7304.19.00.22
  5. 7305.11.00.12
  6. 7305.11.00.13
  7. 7305.11.00.14
  8. 7305.11.00.15
  9. 7305.12.00.12
  10. 7305.12.00.13
  11. 7305.12.00.14
  12. 7305.12.00.15
  13. 7305.19.00.12
  14. 7305.19.00.13
  15. 7305.19.00.14
  16. 7305.19.00.15
  17. 7306.19.00.10
  18. 7306.19.00.90

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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