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Conclusion of normal value review: Oil country tubular goods and seamless casing (OS 2022 UP1)

Ottawa,

The Canada Border Services Agency (CBSA) has today concluded a normal value review to update normal values, export prices and amounts of subsidy applicable to certain oil country tubular goods (OCTG) and seamless casing exported to Canada from China by Dalipal Pipe Company (Dalipal).

The review follows a request for re-determination filed by an importer and is part of the CBSA’s enforcement of the Canadian International Trade Tribunal’s (CITT) orders issued on:

The product definitions and the applicable tariff classification numbers of the goods subject to the CITT’s orders are contained in Appendix 1.

Period of investigation

The period of investigation (POI) for the normal value review was from January 1, 2022 to August 31, 2022.

Normal value review process

At the initiation of the normal value review, the CBSA sent requests for information (RFIs) to Dalipal, the Government of China (GOC) and an importer in order to solicit information for purposes of re-determining normal values, export prices and amounts of subsidy applicable to the goods subject to a request for re-determination filed by the importer.

Dalipal submitted responses to the dumpingFootnote 1 and subsidyFootnote 2 RFIs on December 5, 2022. After reviewing the responses, the CBSA determined that additional information was required. Subsequently, Dalipal responded on January 4Footnote 3, February 10Footnote 4, and March 1Footnote 5, 2023 to the three supplemental requests for information (SRFIs), and together these responses were considered substantially complete.

The GOC did not respond to the CBSA’s government subsidy RFI.

Case argumentsFootnote 6 and reply submissionsFootnote 7 were submitted by counsel on behalf of the Canadian producers. Case argumentsFootnote 8 and reply submissionsFootnote 9 were also submitted by counsel on behalf of Dalipal as well as reply submissions on behalf of an importerFootnote 10, Continental Steel Corporation (CSTL).

Certain issues raised in the case arguments and reply submissions concerned the existence of section 20 conditions in the Chinese OCTG sector and the basis for determining normal values. Those issues are addressed in the next section of this conclusion notice. Case arguments and reply submissions were also received concerning the determination of a company specific subsidy amount.

With regards to an amount of subsidy, Counsel for Canadian producers argued that the lack of response from the GOC prevents the CBSA from determining a company specific amount of subsidy. Counsel for Dalipal argues that Dalipal provided full cooperation and complete answers to the RFI and subsequent SRFIs and should be provided a company specific subsidy rate based on the information that they provided. The CBSA recognizes that the GOC’s failure to respond prevents the determination of an amount of subsidy in the prescribed manner, however Dalipal’s level of cooperation and completeness of their responses should afford them the opportunity to receive a company specific subsidy rate.

The representations submitted by all parties were given due consideration by the CBSA prior to the conclusion of this review.

Normal values and amount of subsidy

Specific normal values and an amount of subsidy for future shipments of OCTG and seamless casing have been determined for Dalipal. The normal values were determined based on the results of the OS 2022 re-investigation and became effective on March 17, 2023. The specific amount of subsidy is effective today, April 11, 2023.

Normal values are generally based on the domestic selling price of like goods in the country of export in accordance with section 15 of SIMA or on the full cost of the goods including administrative, selling and all other costs and a reasonable amount for profits in accordance with paragraph 19(b) of SIMA.

Where section 20 conditions exist, the CBSA normally determines normal values using the selling price, or the total cost and profit, of like goods sold by producers in a surrogate country pursuant to paragraph 20(1)(c) of SIMA. Alternatively, normal values may be determined under paragraph 20(1)(d) of SIMA, on a deductive basis starting with an examination of the prices of imported goods sold in Canada, from a surrogate country. However, should sufficient information not be available to determine normal values under these provisions, normal values will be determined pursuant to a ministerial specification in accordance with section 29 of SIMA. Normal values were determined as part of the OS 2022 re-investigation and further information on methodology can found on the Notice of conclusion of that process.

The GOC did not respond to the CBSA’s Government Subsidy RFI, which limited the CBSA’s ability to determine the amount of subsidy in the prescribed manner as the required information relating to financial contribution, benefit and specificity was not provided. It also limited the CBSA’s ability to determine whether producers or other suppliers of goods and services are public bodies. Therefore, subsidy amounts for the exporter were determined pursuant to subsection 30.4(2) of SIMA, based on a ministerial specification.

In consideration of the fact that the exporter provided sufficient information in response to their Subsidy RFI, an amount of subsidy was determined based on the information provided in response to the Subsidy RFI and obtained through additional SRFIs. The amount of subsidy determined for Dalipal for future shipments is 21.31 RMB per metric tonne (MT).

The normal values and amounts of subsidy 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 normal value review, regardless of the date that the requests were received. The normal values and amounts of subsidy determined as a result of this review may be applied retroactively where the conditions described below are met.

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 and/or 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 anti-dumping and/or countervailing duty liability, importers should contact the exporters to obtain the applicable normal values and amount 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 (Act) applies, with any modifications that the circumstances require, with respect to the accounting and payment of anti-dumping and/or 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

  • Telephone:
  • Heath McKenzie: 343-574-9246

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

Appendix 1: Product definition

Oil country tubular goods

Subject goods definition

“Oil country tubular goods including, in particular, casing and tubing, made of carbon or alloy steel, welded or seamless, heat-treated or not heat treated, regardless of end finish, having an outside diameter from 2 3/8 inches to 13 3/8 inches (60.3 mm to 339.7 mm), meeting or supplied to meet API specification 5CT or equivalent standard, in all grades, excluding drill pipe, seamless casing up to 11 3/4 inches (298.5 mm) in outside diameter, pup joints, welded or seamless, heat-treated or not heat-treated, in lengths of up to 3.66 m (12 feet), and coupling stock originating in or exported from China.”

Classification of imports

Beginning January 1, 2022, under the revised customs tariff schedule, subject goods are normally classified under the following tariff classification numbers:

  1. 7304.29.00.12
  2. 7304.29.00.13
  3. 7304.29.00.14
  4. 7304.29.00.15
  5. 7304.29.00.16
  6. 7304.29.00.17
  7. 7304.29.00.19
  8. 7304.29.00.22
  9. 7304.29.00.23
  10. 7304.29.00.24
  11. 7304.29.00.25
  12. 7304.29.00.26
  13. 7304.29.00.27
  14. 7304.29.00.29
  15. 7304.29.00.32
  16. 7304.29.00.33
  17. 7304.29.00.34
  18. 7304.29.00.35
  19. 7304.29.00.36
  20. 7304.29.00.37
  21. 7304.29.00.39
  22. 7304.29.00.42
  23. 7304.29.00.43
  24. 7304.29.00.44
  25. 7304.29.00.45
  26. 7304.29.00.46
  27. 7304.29.00.47
  28. 7304.29.00.49
  29. 7304.29.00.52
  30. 7304.29.00.53
  31. 7304.29.00.54
  32. 7304.29.00.55
  33. 7304.29.00.56
  34. 7304.29.00.57
  35. 7304.29.00.59
  36. 7304.29.00.62
  37. 7304.29.00.63
  38. 7304.29.00.64
  39. 7304.29.00.65
  40. 7304.29.00.66
  41. 7304.29.00.67
  42. 7304.29.00.69
  43. 7304.29.00.72
  44. 7304.29.00.73
  45. 7304.29.00.74
  46. 7304.29.00.75
  47. 7304.29.00.76
  48. 7304.29.00.77
  49. 7304.29.00.79
  50. 7306.29.00.12
  51. 7306.29.00.13
  52. 7306.29.00.14
  53. 7306.29.00.15
  54. 7306.29.00.16
  55. 7306.29.00.17
  56. 7306.29.00.19
  57. 7306.29.00.22
  58. 7306.29.00.23
  59. 7306.29.00.24
  60. 7306.29.00.25
  61. 7306.29.00.26
  62. 7306.29.00.27
  63. 7306.29.00.29
  64. 7306.29.00.32
  65. 7306.29.00.33
  66. 7306.29.00.34
  67. 7306.29.00.35
  68. 7306.29.00.36
  69. 7306.29.00.37
  70. 7306.29.00.39
  71. 7306.29.00.42
  72. 7306.29.00.43
  73. 7306.29.00.44
  74. 7306.29.00.45
  75. 7306.29.00.46
  76. 7306.29.00.47
  77. 7306.29.00.49
  78. 7306.29.00.52
  79. 7306.29.00.53
  80. 7306.29.00.54
  81. 7306.29.00.55
  82. 7306.29.00.56
  83. 7306.29.00.57
  84. 7306.29.00.59
  85. 7306.29.00.62
  86. 7306.29.00.63
  87. 7306.29.00.64
  88. 7306.29.00.65
  89. 7306.29.00.66
  90. 7306.29.00.67
  91. 7306.29.00.69
  92. 7306.29.00.72
  93. 7306.29.00.73
  94. 7306.29.00.74
  95. 7306.29.00.75
  96. 7306.29.00.76
  97. 7306.29.00.77
  98. 7306.29.00.79

This listing of tariff classification numbers is for convenience of reference only. Refer to the product definition for authoritative details regarding the subject goods.

Seamless casing

Subject goods definition

“Certain seamless carbon or alloy steel oil and gas well casing, whether plain end, bevelled, threaded or threaded and coupled, heat-treated or non-heat-treated, meeting American Petroleum Institute (API) specification 5CT, with an outside diameter not exceeding 11.75 inches (298.5 mm), in all grades, including proprietary grades, originating in or exported from the People’s Republic of China.”

Classification of imports

Beginning January 1, 2022, under the revised customs tariff schedule, subject goods are normally classified under the following tariff classification numbers:

  1. 7304.29.00.12
  2. 7304.29.00.22
  3. 7304.29.00.13
  4. 7304.29.00.23
  5. 7304.29.00.14
  6. 7304.29.00.24
  7. 7304.29.00.15
  8. 7304.29.00.25
  9. 7304.29.00.16
  10. 7304.29.00.26
  11. 7304.29.00.17
  12. 7304.29.00.27
  13. 7304.29.00.19
  14. 7304.29.00.29

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: