Notice of conclusion of normal value review: Carbon and Alloy Steel Line Pipe 2 (LP2 2024 UP2)

Period of investigation

The period of investigation (POI) and the profitability analysis period (PAP) for the normal value review were from May 1, 2023 to April 30, 2024.

Normal value review process

At the initiation of the normal value review, the CBSA sent a request for information (RFI) to the exporter SeAH and to the importer to solicit information on the costs and selling prices of subject and like goods. The information was requested for purposes of determining normal values and export prices for subject goods imported into Canada.

The exporter submitted a response to the CBSA’s dumping RFI as well as all supplemental requests for information (SRFIs).

The importer also submitted a response to the CBSA’s RFI and SRFIs.

As part of the normal value review, case briefs and reply submissions were submitted on behalf of the Canadian producers and the responding exporter.

Representations

During the course of the normal value review, counsel for the Canadian producers discussed various concerns pertaining to the responses to the RFIs and SRFIs provided by the exporter and importer. Issues raised included: the cost of acquired inputs from related suppliers, the application of paragraph 15 of SIMA, the methodology to determine the amount of profit in the domestic market and other various alleged inconsistencies and deficiencies within the responses.

Certain details provided in the representations were designated as confidential information by the submitting counsel. This has restricted the ability of the CBSA to discuss all issues raised in these submissions.

Due consideration has been given to submissions on the topics raised in case representations. The CBSA has reviewed and verified the information submitted by the exporter and importer in their RFI and SRFI responses and considers the responses to be substantially true, accurate and complete for purposes of this normal value review. Where appropriate, the CBSA has applied adjustments in accordance with SIMA and SIMR. Additional information on the calculation of normal values and export prices is provided to the exporter in the confidential exporter conclusion letter.

Normal values and export prices

The exporter’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 pursuant to paragraph 19(b) of SIMA, based on the aggregate of the cost of production of the goods, a reasonable amount for administrative, selling and all other costs, and a reasonable amount for profits.

During the POI, all of the subject goods exported to Canada by SeAH were sold to a related importer. Due to the relationship between the two 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 amount for profit used for the section 25 calculations was determined in accordance with paragraph 22(a) of the SIMR, based on the profit information provided in the 2022 re-investigation and relating to vendors that operated at a profit during the POI and are at the same or substantially the same trade level as the importer. The test revealed that the export prices determined in accordance with section 24 of SIMA were reliable. Therefore, export prices for sales to SeAH Steel America Inc. will be determined in accordance with section 24 of SIMA.

These specific normal values and export prices for future shipments are effective today, April 9, 2025. The normal values and export prices determined as a result of this normal value 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.

Exporter responsibility

All parties are cautioned that, where there are increases in domestic prices and/or costs, 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 adjust export prices accordingly, retroactive assessments of anti-dumping duties may be warranted. Please refer to the CBSA’s Memorandum D14-1-8: Administrative Review Policy – Special Import Measures Act (SIMA) for details.

Importer responsibility

Importers are reminded that it is their responsibility to calculate and declare their anti-dumping and countervailing 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 liability for anti-dumping and countervailing duty, importers should contact the exporters to obtain the applicable normal values and amounts of subsidy. 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 and countervailing 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.

Contact us

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