RB1 2021 UP1: Concrete reinforcing bar
Conclusion of normal value review
The Canada Border Services Agency (CBSA) has today concluded a normal value review to update the normal values and export prices applicable to certain concrete reinforcing bar (rebar) exported to Canada from Turkey by Çolakoğlu Metalurji A.S. (Çolakoğlu).
The normal value review is part of the CBSA’s enforcement of the Canadian International Trade Tribunal’s (CITT) ) order issued on October 14, 2020, respecting the dumping of certain concrete reinforcing bar from China, Korea, and Turkey and the subsidizing of certain concrete reinforcing bar 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.
Period of investigation
The Period of Investigation (POI) and the Profitability Analysis Period (PAP) for the normal value review were from November 1, 2020 to April 30, 2021.
Normal value review process
At the initiation of the normal value review, the CBSA sent a request for information (RFI) to Çolakoğlu to solicit information on the costs and selling prices of subject goods and like goods.Footnote 1 The information was requested for purposes of updating the normal values and export prices for subject goods imported into Canada.
Çolakoğlu requested a one-day extension to the initial RFI deadline. The CBSA allowed the requested extensionFootnote 2, and Çolakoğlu submitted a responseFootnote 3 within the new time frame that was substantially complete. The company fully responded to all supplemental requests for information (SFRIs).Footnote 4
As part of the normal value review, case arguments and reply submissions were submitted on behalf of counsel for the Canadian producersFootnote 5 and ÇolakoğluFootnote 6. Details of these submissions are provided in Appendix 2. The representations submitted by all parties were given due consideration by the CBSA prior to the conclusion of this normal value and export price review.
Normal values for future shipments
Specific normal values for future shipments of rebar have been determined for the participating exporter, Çolakoğlu. These normal values are effective today, May 2, 2022.
Çolakoğlu’s RFI response included a database of domestic sales of like goods. Consequently, normal values were determined in accordance with section 15 of SIMA based on domestic selling prices of like goods, as there were a sufficient number of domestic sales of like goods that met the conditions of sections 15 and 16 of SIMA.
The normal values 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 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.
The Customs Act (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.
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:
- Hifza Saleem: 343-574-2090
Appendix 1: Product definition
Subject goods are defined as
Hot-rolled deformed steel concrete reinforcing bar in straight lengths or coils, commonly identified as rebar, in various diameters up to and including 56.4 millimeters, in various finishes, excluding plain round bar and fabricated rebar products, originating in or exported from the People’s Republic of China, the Republic of Korea and the Republic of Turkey.
10-mm-diameter (10M) rebar produced to meet the requirements of CSA G30 18.09 (or equivalent standards) and coated to meet the requirements of epoxy standard ASTM A775/A 775M 04a (or equivalent standards) in lengths from 1 foot (30.48 cm) up to and including 8 feet (243.84 cm).
Classification of imports
As of Jannuary 1, 2022, the subject goods are usually imported 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.
Appendix 2: Representations
The material issues raised by the parties are summarized as follows and, to the extent possible, the Canada Border Services Agency (CBSA) has provided responses to representations below.
Normal value adjustment
Counsel for the Canadian producers argued that the CBSA should adjust future normal values determined for Çolakoğlu upwards to account for increased domestic selling prices and costs of production for rebar in Turkey. They noted that significant increases in both domestic selling prices and costs of production for rebar have occurred in Turkey since the Period of Investigation (POI)/Profitability Analysis Period (PAP) which would impact the determination of normal values. They argued that the CBSA should adjust normal values to ensure that the normal values issued reflect current market conditions and are not out of date by the time they come into effect.
In their reply submission, counsel for Çolakoğlu argued that such an adjustment to normal values is not permissible under SIMA.
In dumping investigative proceedings, the CBSA selects a relevant POI and PAP at the initiation of the proceeding. The CBSA requests exporters provide information concerning costs and selling prices of subject goods and like goods during these periods when responding to the RFI. These periods therefore govern and frame the gathering of relevant information from parties to the proceeding. For this normal value review, the CBSA determined future normal values for Çolakoğlu based on information submitted for the PAP of November 1, 2020 to April 30, 2021.
Currency denomination of normal values
Counsel for the Canadian producers argued that the CBSA should issue future normal values to Çolakoğlu denominated in U.S. Dollars. Counsel noted that the Turkish Lira has exhibited large volatility since 2018, with significant fluctuations continuing during the POI of this normal value review. They noted that the Turkish Lira has been prone to abrupt depreciations during the past five years, has lost two-thirds of its value during that time, and reached an all time low vis-à-vis the U.S. Dollar by September of 2021. Counsel therefore argued that issuing normal values in U.S. Dollars is warranted given the frequent and volatile changes impacting the Turkish Lira. Counsel also noted that issuing normal values in U.S. dollars because of the volatility of the Turkish Lira would be consistent with previous normal value reviews for other Turkish producers of rebar.
In their reply submission, counsel for Çolakoğlu argued that denominating normal values in U.S. Dollars is not permissible under SIMA.
The CBSA’s policy concerning the currency denomination for normal values is published in Memorandum D14-1-8, Re-investigation and Normal Value Review Policy – Special Import Measures Act (SIMA). This policy notes:
27. Normal values are usually stated in the domestic currency of the country of export or the country of origin. Where the exchange rate for the domestic currency is subject to frequent and volatile changes, and there is indication that normal values will need to be frequently updated if stated in the domestic currency as a result of this volatility, the normal values will be stated in Canadian dollars. For example, if the domestic currency of the country of export has depreciated considerably over the past two-year period and this volatility is expected to continue in the future, the CBSA would issue the normal values in Canadian dollars. However, if the majority of export transactions are carried out in another stable currency, for example in U.S. dollars, the normal values may be stated in that currency. Information on the applicable prevailing rate of exchange can be found in the Currency Exchange for Customs Valuation Regulations.
The information on the record for this normal value review demonstrates a volatile and depreciating exchange rate for the Turkish Lira. To address these factors the CBSA issued the normal values to Çolakoğlu in U.S. Dollars, as export transactions for subject goods sold to Canada are typically sold in U.S. Dollars in this industry.
Retroactive anti-dumping duty assessments
Counsel for the Canadian producers argued that Çolakoğlu has failed to notify the CBSA of changes in market circumstances, including rising selling prices for like goods and costs of production. Counsel argued that, given these circumstances, the CBSA should issue retroactive anti-dumping duty assessments.
Anti-dumping duty enforcement issues concerning importations of subject goods and CBSA re-determinations under SIMA are not part of the scope of this normal value review.
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