RB3 2021 UP1: Concrete reinforcing bar
Conclusion of normal value and export price review
The Canada Border Services Agency (CBSA) has today concluded a normal value review (review) to update normal values and export prices applicable to certain concrete reinforcing bar (rebar) exported to Canada from Vietnam by Hoa Phat Dung Quat Steel Joint Stock Company (Hoa Phat).
The normal value review is part of the CBSA’s enforcement of the Canadian International Trade Tribunal’s (CITT) order issued on June 4, 2021, respecting the dumping of certain concrete reinforcing bar originating in or exported from Algeria, Egypt, Indonesia, Italy, Malaysia, Singapore and Vietnam, 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
For this review, the Period of Investigation (POI) and the Profitability Analysis Period (PAP) was 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 Hoa Phat 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.
The responses to the CBSA’s RFIs and Supplemental RFIs (SRFI) were received accordingly from Hoa Phat. Input suppliers Hoa Phat Energy Joint Stock Company, Hoa Phat Hai Duong Steel Joint Stock Company, Hoa Phat Trading International Pte. Ltd. and An Thong Mineral Investment Joint Stock Company also provided responses to Part D of the dumping RFI.
As part of the review, counsel on behalf of AltaSteel Inc. (AltaSteel) and ArcelorMittal Long Products Canada, G.P. (AMLPC), Canadian producers, submitted comments on the submissions filed by Hoa Phat prior to the close of the record as well as a case brief and reply submission. Responses to the Canadian producers’ comments were submitted by counsel on behalf of Hoa Phat. A case brief and reply submission were submitted by counsel on behalf of Hoa Phat and an importer, LMS Limited Partnership.
The issues raised in the commentsFootnote 1, case briefFootnote 2 and reply submissionFootnote 3 submitted on behalf of AltaSteel and AMLPC, concerned the deficiencies and completeness of Hoa Phat and its related input suppliers’ responses. In its commentsFootnote 4, case briefFootnote 5 and reply submissionFootnote 6 Hoa Phat submitted that the responses to the RFI, SRFIs and related documentation received from all parties for the review were complete.
The comments and representations were given due consideration by the CBSA for the conclusion of this review.
Normal values for future shipments
Hoa Phat is a manufacturer and exporter of subject goods located in Binh Dong, Vietnam. Hoa Phat was established in 2017 and is a private corporation. The goods subject to the request for re-determination were produced by Hoa Phat. During the course of the review, Hoa Phat provided responses to the CBSA’s Dumping RFI as well as two SRFIs.
Specific normal values for future shipments of rebar have been determined for Hoa Phat. These normal values are effective today, August 18, 2022.
Hoa Phat did not have any domestic sales of like goods to unrelated customers during the PAP to determine the normal values in accordance with section 15 of SIMA.
Normal values for Hoa Phat were determined pursuant to paragraph 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 profits was determined in accordance with subparagraph 11(1)(b)(v) of the Special Import Measures Regulations, based on Hoa Phat’s profitable domestic sales of goods that were of the group or range of goods that is the next largest to the same general category as the subject goods exported to Canada during the POI.
For the subject goods exported by Hoa Phat to Canada, export prices were determined in accordance with section 24 of SIMA.
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 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.
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:
- Manshun Tong: 343-553-1727
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 the People’s Democratic Republic of Algeria, the Arab Republic of Egypt, the Republic of Indonesia, the Italian Republic, the Federation of Malaysia, the Republic of Singapore, and the Socialist Republic of Vietnam.
10 mm diameter (10M) rebar produced to meet the requirements of CSA G30 18.09 (or equivalent standards) that is 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).
Additional product information
For greater clarity, the rebar considered to be subject goods includes all hot-rolled deformed bar, rolled from billet steel, rail steel, axle steel, low alloy-steel and other alloy steel that does not comply with the definition of stainless steel.
Uncoated rebar, sometimes referred to as black rebar, is generally used for projects in non-corrosive environments where anti-corrosion coatings are not required. On the other hand, anti-corrosion coated rebar is used in concrete projects that are subjected to corrosive environments, such as road salt. Examples of anti-corrosion coated rebar are epoxy or hot-dip galvanized rebar. The subject goods include uncoated rebar and rebar that has a coating or finish applied.
Fabricated rebar products are generally engineered using Computer Automated Design programs and are made to the customer’s unique project requirements. The fabricated rebar products are normally finished with either a protective or corrosion resistant coating. Rebar that is simply cut-to-length is not considered to be a fabricated rebar product excluded from the definition of subject goods.
Rebar is produced in Canada in accordance with the National Standard of Canada CAN/CSA-G30.18-09(R2019) - Carbon Steel Bars for Concrete Reinforcement, (the “National Standard”) published by the CSA Group and approved by the Standards Council of Canada.
The standard lengths for rebar are 6 metres (20 feet), 12 metres (40 feet) and 18 metres (60 feet); although rebar can be cut and sold in other lengths as specified by customers or old in coils.
Classification of imports
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.
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