TR 2018 UP 01
Liquid dielectric transformers
Notice of Initiation of Normal Value and Export Price Review
Ottawa, November 15, 2018
The Canada Border Services Agency (CBSA) has today initiated a normal value and export price review to update the normal values and export prices 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).
The normal value and export price 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).
Should the exporter decide to participate in this normal value and export price review, it is required to provide a complete and accurate response to the CBSA’s dumping Request for Information (RFI) by December 21, 2018. The exporter will be considered co-operative if the requested information is complete, submitted on time and the exporter permits verification of the data.
If the exporter does not provide a complete response to the RFI by the deadline date, normal values for subject goods exported by Hyundai Energy will be determined by advancing the export price of the goods by 101%, pursuant to a ministerial specification.
The schedule for this normal value and export price review is available at: www.cbsa-asfc.gc.ca/sima-lmsi/up/menu-eng.html. The CBSA will close the record for this normal value and export price review once it has been determined that sufficient information has been received to make a decision. The CBSA will update the website to announce that the record has been closed. Interested parties will have seven days from the close of the record to file submissions concerning the normal value and export price review.
Normal values established during this review will apply to subject goods released from the CBSA on or after the date of the conclusion of the normal value and export price review. 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 the normal value and export price 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 and channel of sale associated with the production and sales of the goods. All parties are cautioned that where there are increases in domestic prices and/or costs as noted above, the export price for sales to Canada 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 did not properly notify the CBSA of any such changes, did not adjust export prices accordingly, or did not provide the information required to make any necessary adjustments to normal values and export prices, retroactive assessments of anti-dumping duties may be warranted.
In situations where related parties are involved, companies are cautioned that they must increase resale pricing to their unrelated customers in Canada in order to avoid secondary dumping. If it is determined that the company has raised its selling prices in Canada to levels necessary to eliminate all secondary dumping, the export prices will be calculated under section 24 of SIMA. Price reviews would continue to be conducted to ensure that an appropriate selling price is maintained in the Canadian market. However, if as a result of a review, a company is still found to be in a secondary dumping situation, the CBSA will re calculate the export prices and the margins of dumping by deducting the anti-dumping duties already paid or payable from the previously determined export prices. This will result in increased margins of dumping and additional retroactive assessments of anti-dumping duties.
- Johnny Tong: 613-954-7350
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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