TR 2021 UP1: Liquid dielectric transformers
Notice of export price review
The Canada Border Services Agency (CBSA) has today initiated a review of the export price 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 by Hyundai Electric & Energy Systems Co., Ltd. (Hyundai Energy) and imported into Canada by Hyundai Electric America Corporation (HE America).
The review follows the receipt of requests for re‑determination and 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 importer and exporter decide to participate in this export price review, it is required to provide a complete and accurate response to the CBSA’s Request for Information (RFI) by June 21, 2021.
If the importer or exporter does not provide a complete response to the RFI by the deadline, the export price for the subject goods imported by HE America from Hyundai Energy shall be the normal value as determined under section 15 to 23 of SIMA, less an amount equal to 50% of that normal value, pursuant to a ministerial specification.
The schedule for this export price review is now available. The CBSA will close the record 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 export price review.
The export price deductions established during this review will apply to subject goods released from the CBSA on or after the date of the conclusion of the export price review. The export price deductions 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 export price 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 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.
Any questions concerning the above should be directed to:
- Laurie Trempe: 343‑553‑1588
Appendix 1—Product definition
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
Beginning January 1, 2019, under the revised customs tariff schedule, subject goods are normally classified under the following tariff classification numbers:
- 8504.23.00.20 – Liquid dielectric transformers, having a power handling capacity exceeding 59,000 kVA but not exceeding 100,000 kVA
- 8504.23.00.30 – Liquid dielectric transformers, having a power handling a power handling capacity exceeding 100,000 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
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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