Conclusion of normal value review: Carbon and Alloy Steel Line Pipe 2 (LP2 2024 UP3)

Period of investigation

The period of investigation (POI) and the profitability analysis period (PAP) for the normal value review was from November 1, 2023 to October 31, 2024.

Normal value review process

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

As part of the normal value review, case briefs and reply submissions were provided by counsel representing the Canadian industry, exporter and importer. Details of the representations are provided in Appendix 1.

Details pertaining to the information submitted by the exporter in response to the RFIs as well as the results of the CBSA’s normal value review are provided below.

Normal values and export prices

Husteel is a manufacturer and exporter of line pipe who exported subject goods to Canada during the POI. All of the subject goods shipped to Canada during the POI were produced at the Dangjin and Daebul plants. The company headquarters is located in Seoul, South Korea.

Husteel provided a response to the CBSA’s dumping RFI. Supplemental RFIs were sent to Husteel to gather additional information and to seek clarification for certain questions. Husteel’s related importer also provided a response to the CBSA RFI and supplemental RFI.

The exporter had domestic sales of like goods during the POI/PAP and as a result, normal values were determined pursuant to section 15 of SIMA where possible, based on the company’s weighted average domestic selling prices of line pipe in South Korea. Where sufficient domestic sales of like goods did not meet the requirements of section 15 and 16 of SIMA, normal values were determined pursuant to section 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 plus a reasonable amount for profits. The amount for profit was determined pursuant to paragraph 11(1)(b) of SIMR.

Since all sales of subject goods exported to Canada by Husteel during the POI were sold to Canadian customers via related importer, Husteel Canada, 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.

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 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 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 anti-dumping and countervailing 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.

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

Appendix 1: Representations

Representations

During the course of the administrative review, counsel for the Canadian industry^{Footnote 1} and the exporters and importer^{Footnote 2} discussed various concerns pertaining to the responses to the RFIs and SRFIs. Issues raised included: cost of production reporting methodologies, input purchases, pricing and other various alleged inconsistencies and deficiencies within the responses, and retroactive duty assessments.

Counsel for the complainant alleged deficiencies with respect to the submissions of the exporters and importer. Counsel for the exporters submitted that complete responses were provided, and the CBSA has sufficient information to calculate normal values.

There were a number of exporter specific issues that were raised. In order to respect the confidentiality designations made by interested parties, the CBSA is limited in the information that can be divulged in response to arguments made concerning certain topics.

CBSA response

Due consideration has been given to submissions on the topics raised in case briefs on a case by case basis and appropriate adjustments were made, as applicable, in accordance with SIMA and SIMR. Additional information on the calculation of normal values is provided to exporters in the confidential exporter conclusion letters.

Upon completion of the administrative review, the CBSA will be conducting an analysis of subject imports from exporters of subject goods during the POI, to determine whether retroactive assessments are warranted. The analysis will rely on information provided via RFI and supplemental RFI responses received, representations submitted by parties, and any other available relevant information.