PLA6 2020 UP 01
Hot-Rolled Steel Plate
Conclusion of normal value review
Ottawa, October 19, 2020
The Canada Border Services Agency (CBSA) has today concluded a normal value review to update the normal values and export prices applicable to certain hot-rolled steel plate exported to Canada from Ukraine by the Metinvest Group of Companies (Metinvest Group), which includes Metinvest International S.A. (MISA).
The normal value review is part of the CBSA’s enforcement of the Canadian International Trade Tribunal’s (CITT) order issued on January 30, 2015, respecting the dumping of certain hot-rolled steel plate from Ukraine, 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’s order are contained in Appendix 1 (subject goods).
Period of Investigation
The Period of Investigation (POI) and the Profitability Analysis Period (PAP) for the normal value review were from October 1, 2018 to September 30, 2019.
Normal Value Review Process
At the initiation of the normal value review, the CBSA sent Requests for Information (RFIs) to companies within the Metinvest Group 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 applicable to subject goods exported to Canada by the Metinvest Group.
As part of the normal value review, case arguments and reply submissions were submitted by counsel on behalf of the Canadian producer, Algoma Steel Inc. (Algoma), and the exporter, the Metinvest Group. Issues raised in these submissions by both parties concerned the reliability and completeness of the information submitted by the Metinvest Group and how the information submitted by the Metinvest Group should be used by the CBSA in determining normal values and export prices. The case arguments and reply submissions submitted by both parties were given due consideration by the CBSA prior to the conclusion of this normal value review. The CBSA determined that the information provided by the Metinvest Group in its RFI and SFRI responses was sufficient for purposes of determining normal values and export prices in this review. Further, the normal values and export prices determined by the CBSA in this review were determined in accordance with both SIMA and the Special Import Measures Regulations (SIMR), as explained below.
The CBSA will normally not consider any new information submitted by participants subsequent to the closing of the record. However, in certain exceptional circumstances, it may be necessary to permit new information to be submitted. The CBSA considers a number of factors in deciding whether to accept new information submitted after the closing of the record including the availability of the information prior to the closing of the record and the relevance and materiality of the information.
With respect to this normal value review, the CBSA received a document from counsel on behalf of Algoma following the CBSA’s publication of the notice of the close of record. The CBSA decided not to accept the document after determining the information was available to be submitted weeks before the close of the record and that the information was immaterial with respect to the determination of normal values and export prices.
Normal Values for Future Shipments
The Metinvest Group includes a number of different companies which are responsible for producing and selling hot-rolled steel plate both domestically in Ukraine and to various export markets. MISA is the distribution arm of the Metinvest Group of Companies for non-CIS markets, including Canada, and is located in Switzerland. PJSC Azovstal Iron & Steel Works (Azovstal) and Ilyich Iron & Steel Works (Ilyich) both produce hot-rolled steel plate and other non-subject products at facilities located in Ukraine. Metinvest-SMC (SMC), also located in Ukraine, is the domestic distributor of hot-rolled steel plate in Ukraine for the Metinvest Group. All four of these companies are directly or indirectly wholly owned by the same parent company, Metinvest B.V. of the Netherlands. Given the roles of these four companies in the production and sales of the subject and like goods, they have collectively been determined to be the exporter for SIMA purposes.
A response to the RFI was received on-time by the CBSA from MISA on behalf of the Metinvest Group, but was initially determined to be insufficient for purposes of updating normal values and export prices. However, the Metinvest Group did provide sufficient information to the CBSA during the course of the normal value review by responding to the CBSA’s deficiency letters and supplemental requests for information (SRFIs). As a result, specific normal values for future shipments of certain hot-rolled steel plate have been determined for the Metinvest Group. The applicable normal values for particular models of subject goods were determined separately for each production facility, Azovstal and Ilyich, and only apply to those specific models manufactured by those two producers. Those specific normal values for future shipments of subject goods are effective today, October 19, 2020.
SMC had domestic sales of like goods produced by both Azovstal and Ilyich during the POI/PAP. As a result, some of the normal values determined by the CBSA were determined in accordance with section 15 of SIMA. For other products produced by either Azovstal or Ilyich, where there were not such a number of domestic sales of like goods made by SMC that complied with all the terms and conditions referred to in sections 15 and 16 of SIMA, the CBSA determined normal values in accordance with paragraph 19(b) of SIMA.
Normal values that were determined in accordance with paragraph 19(b) of SIMA for each separate producer, Azovstal and Ilyich, were each based on the aggregate of cost of production, a reasonable amount for administrative, selling and all other costs, and a reasonable amount for profits. As inputs significant in the production of the goods were acquired by both Azovstal and Ilyich from associated suppliers, the costs of the significant inputs acquired by each producer were determined pursuant to paragraphs 11.2(1)(a) or 11.2(1)(b) or sub-paragraph 11.2(1)(c)(i) of SIMR. The amount for profits applicable to goods produced by either Azovstal or Ilyich were determined separately and in accordance with subparagraph 11(1)(b)(ii) of the SIMR by using SMC’s profitable domestic sales of goods that were of the same general category and produced by either Azovstal or Ilyich.
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 this normal value 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 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.
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. For more information on how to file a request for re-determination please refer to the Guide for Appealing a Duty Assessment, on the CBSA’s website at: www.cbsa-asfc.gc.ca/sima-lmsi/rrd-drr-eng.html.
Any questions concerning the above should be directed to:
SIMA Registry and Disclosure Unit
Trade and Anti-dumping Programs Directorate
Canada Border Services Agency
11-100 Metcalfe St
Ottawa ON K1A 0L8
Officer’s name and contact information:
- Matthew Lerette 613-954-7398
- E-mail: email@example.com
Subject goods are:
"Hot-rolled carbon steel plate and high-strength low-alloy steel plate not further manufactured than hot-rolled, heat-treated or not, in cut lengths in widths from 24 inches (610 mm) to 152 inches (3,860 mm) inclusive and in thicknesses from 0.187 inches (4.75 mm) up to and including 3.0 inches (76.0 mm) inclusive (with all dimensions being plus or minus allowable tolerances contained in the applicable standards e.g. ASTM standards A6/A6M and A20/A20M), originating in/or exported from Ukraine; excluding universal mill plate, plate for use in the manufacture of pipe and plate having a rolled, raised figure at regular intervals on the surface (also known as floor plate)."
A list of all the goods that were excluded by the CITT’s order can be found on the CBSA’s website at: https://www.cbsa-asfc.gc.ca/sima-lmsi/mif-mev/pla6-eng.html
Classification of Imports
The subject goods are usually classified under the following 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.
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