TR 2018 UP 01
Liquid dielectric transformers
Notice of Conclusion of Normal Value Review and Export Price
Ottawa, July 25, 2019
The Canada Border Services Agency (CBSA) has today concluded a normal value and export price review of certain liquid dielectric transformers (transformers) having a top power handling capacity equal to or exceeding 60,000 kilovolt amperes (60 megavolt amperes), exported from South Korea to Canada by Hyundai Electric & Energy Systems Co., Ltd. (Hyundai Energy).
This review is part of the CBSA’s enforcement of the Canadian International Trade Tribunal’s (CITT) finding of injury issued on November 20, 2012 continued without amendment by the order made on May 31, 2016, and continued without amendment by the Expiry Review order made on May 31, 2018, respecting the dumping of transformers from South Korea, 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 finding are contained in Appendix 1 (subject goods). Additional product information explaining which products are subject to duties is also provided in the appendix.
Normal Values for Future Shipments
Effective July 25, 2019, specific normal values for future shipments of subject transformers to Canada will be determined based on updated information provided by Hyundai Energy.
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.
Where sufficient information is not available to determine a specific normal value, normal values for future shipments will be determined by ministerial specification, which is calculated by advancing the export price of the goods by 101%.
During the course of this review, case arguments and reply submissions were submitted on behalf of ABB Inc., Hyundai Energy, Hyundai Corporation, Hyundai Canada Inc. and Remington Sales. The main focus of these representations involved the identity of the exporter, comparability of Hyundai Energy’s domestic sales, application of certain export price adjustments and the amount for industry profit. In addition, the CBSA also received representations related to certain procedural issues. The information submitted in these case arguments and reply submissions were given due consideration by the CBSA.
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 with the Director General, Trade and Anti-dumping Programs Directorate, 11th Floor, 100 Metcalfe St., Ottawa, Ontario, K1A 0L8. Such a request must be received within 90 days from the making of the determination in the form and manner outlined in Memorandum D14-1-3, Re-determinations and Appeals Under the Special Import Measures Act, on the CBSA’s website at: www.cbsa-asfc.gc.ca/publications/dm-md/d14-eng.html.
- Laurie Trempe: 613-954-7337
For the purpose of this review, the subject goods are defined as:
Liquid dielectric transformers having a top power handling capacity equal to or exceeding 60,000 kilovolt amperes (60 megavolt amperes), whether assembled or unassembled, complete or incomplete, originating in or exported from the Republic of Korea.
Liquid dielectric transformers having a top power handling capacity equal to or exceeding 60,000 kilovolt amperes (KVA) (60 megavolt amperes (MVA)), whether assembled or unassembled, complete or incomplete, will hereafter be referred to as Power Transformers.
Additional Product Information:
Power Transformers are used to increase, maintain or decrease electric voltage in high voltage transmission and distribution systems. Incomplete Power Transformers are subassemblies consisting of the active part and any other parts attached to, imported with or invoiced with the active part of the Power Transformer. The active part of the Power Transformer consists of one or more of the following when attached to or otherwise assembled with one another: the steel core or shell, the windings, electrical insulation between the windings and/or the mechanical frame for a Power Transformer.
The product definition encompasses all Power Transformers regardless of name designation, including but not limited to: step-up transformers, step-down transformers, auto-transformers, interconnection transformers, voltage regulator transformers, high voltage direct current transformers and rectifier transformers.
Classification of Imports:
Imports of the subject goods are usually classified in Section XV of the Customs Tariff under the following Harmonized System (HS) classification numbers:
- 8504.23.00.00 - Liquid dielectric transformers, having a power handling capacity exceeding 10,000 kVA
Unassembled or incomplete subject goods may also be imported under the following HS codes:
- 8504.90.90.10 – Parts - Printed circuit assemblies, of electric transformers and other inductors, other, of electric transformers
- 8504.90.90.82 – Parts - Having a power handling capacity of 500 kVA or more
- 8504.90.90.90 – Parts - Other
The listing of HS codes is for convenience of reference only. The HS codes listed may include non-subject goods. Also, subject goods may fall under HS codes that are not listed. Refer to the product definition for authoritative details regarding the subject goods.
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