The Canada Border Services Agency (CBSA) has today concluded a normal value review (review) to establish the normal values, export prices and amount of subsidy applicable to certain steel piling pipe (piling pipe) exported to Canada from the People’s Republic of China (China) by Coronet Group Suzhou Co., Ltd. (Coronet).
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) order issued on , in Expiry Review No. RR-2017-003, respecting the dumping and subsidizing of piling pipe originating in or exported from China, 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).
At the final determination of the investigationFootnote 1, the CBSA was of the opinion that the domestic prices of piling pipe in China were being substantially determined by the Government of China (GOC) and the steel pipe sector in China, which includes steel piling pipe sector, was operating under conditions where the prices were not substantially the same as they would be if they were determined in a competitive market. The conditions of section 20 of SIMA were found to exist, but sufficient information had not been furnished or was not available to determine normal values as provided for in section 20 of SIMA. Therefore, the normal values for the exporters that provided a complete and reliable submission were determined using an alternate methodology under a ministerial specification, pursuant to subsection 29(1) of SIMA.
The normal values determined were based on the average price of hot-rolled steel for all regions, excluding China, for the 60-day period immediately preceding the date of sale to Canada as reported on SteelBenchmarker, plus added to these hot-rolled steel prices were amounts for the i) conversion costs of the hot-rolled steel into a finished piling pipe product and ii) profit (the Steelbenchmarker methodology).
With respect to the subsidy portion of the investigation, as the GOC did not provide a submission, the CBSA, under a ministerial specification, pursuant to subsection 30.4(2) of SIMA, issued individual amounts of subsidy for the exporters that provided a complete and reliable submission.
The amounts of subsidy determined were based on the total amount of benefits found for the exporter distributed over the total quantity of goods to which the benefits are attributable.
Period of investigation
For this review, the period of investigation (POI) and the profitability analysis period were from to .
Normal value review process
At the initiation of this review, on , the CBSA sent the requests for informationFootnote 2 (RFIs) to Coronet and the importer in order to solicit information on the costs and selling prices of subject goods, like goods and subsidy programs. The information was requested for purposes of determining normal values, export prices and an amount of subsidy applicable to subject goods exported to Canada.
As part of the review, counsel on behalf of the importer filed a case briefFootnote 5.
Representations and case briefs
Through their case brief, counsel on behalf of the importer argued that the goods subject to their request for re-determination are not piling pipes. Counsel on behalf of the importer also further submitted that Coronet has fully cooperated with the CBSA in this review and as such the normal values and the amount of subsidy for their exported subject goods should be established based on the methodologies as provided in the ministerial specifications for the cooperative exporters.
The representations submitted by the importer were given due consideration by the CBSA prior to the conclusion of this review. Further, the CBSA considers the responses to be substantially complete for purposes of this review.
Normal values and amount of subsidy for future shipments
Specific normal values for future shipments of subject goods have been determined for Coronet. These normal values are effective today, .
The normal values for Coronet were determined based on the methodology as provided in the dumping Ministerial Specification for exporters that provide a complete and reliable submission, as described above.
The amount of subsidy for future shipments of subject goods by Coronet is determined to be 0.0 CNY per metric tonne as the CBSA found no evidence of subsides for Coronet during the POI of this review.
The normal values and amount 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 review, regardless of the date that the requests were received.
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 and countervailing duty liabilities. 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 countervailing liabilities, importers should contact the exporter 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 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 Guide for appealing a duty assessment.
- Wu Ping Wei: 343-553-1642
Appendix 1: product definition
Subject goods definition
Carbon and alloy steel pipe piles, commonly identified as piling pipe, in outside diameter ranging from 3 1/2 inches up to and including 16 inches (8.9 cm to 40.6 cm) inclusive, in commercial quality and in various forms and finishes, usually supplied to meet ASTM A252, ASTM A500, CSA G.40.21 or comparable specifications or standards, whether single, dual or multiple certified, excluding carbon steel welded pipe, in the nominal size range of 3 1/2 inches up to and including 6 inches (89 mm to 168.3 mm) in outside diameter, in various forms and finishes, usually supplied to meet ASTM A252 or equivalent specifications, other than carbon steel welded pipe in the nominal size range of 3 1/2 inches up to and including 6 inches, dual-stencilled to meet the requirements of both specification ASTM A252, Grades 1 to 3, and specification API 5L, with bevelled ends and in random lengths, for use as foundation piles, originating in/or exported from the People's Republic of China.
Classification of imports
Beginning , under the revised customs tariff schedule, subject goods are normally classified under the following tariff classification number:
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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