The Canada Border Services Agency (CBSA) has today concluded an expedited review of certain hollow structural sections (HSS) exported to Canada by Histeel Co. Ltd. (Histeel), in accordance with the Special Import Measures Act (SIMA).
This expedited review was initiated on July 26, 2023 and is part of the ongoing enforcement of the Canadian International Trade Tribunal’s (CITT) finding of material injury issued on December 23, 2003, respecting the dumping of HSS from South Korea and Türkiye. The finding was subsequently reviewed and continued by orders dated December 22, 2008, December 20, 2013, and October 16, 2019.
The product definition and the applicable tariff classification numbers of the goods subject to the CITT’s finding can be found on the CBSA’s Measures in force.
Period of Investigation
The period of investigation (POI) and the profitability analysis period (PAP) for the expedited review were from July 1, 2022 to June 30, 2023.
Expedited review process
At the initiation of the expedited review, the CBSA sent Requests for Information (RFIs) to the exporter Histeel and to the importer to solicit information on the costs and selling prices of subject and like goods. The information was requested for purposes of determining normal values and export prices for subject goods imported into Canada.
The exporter submitted a response to the CBSA’s dumping RFIFootnote 1 and responded to a supplemental requests for information (SRFI)Footnote 2.The importer also submitted a response to the CBSA’s RFIFootnote 3.
On-site verifications were conducted at the premises of Histeel in South Korea in November 2023Footnote 4.
During the course of the expedited review, counsel on behalf of the Canadian producer Welded Tube Corporation of Canada (Welded Tube) submitted commentsFootnote 5. Following the close of record, case briefs and reply submissions were submitted on behalf of Welded TubeFootnote 6 and the responding exporterFootnote 7. Atlas Tube Canada ULC submitted a letter supporting Welded Tube’s case brief submissionFootnote 8.
During the expedited review, counsel for the Canadian producers and the responding exporter discussed various concerns pertaining to the responses to the exporter’s and importer’s RFIs and to one SRFI provided by the exporter.
The counsel representing Welded Tube asserts that the CBSA lacks adequate information to determine normal values under Section 15 of SIMA. They propose that the CBSA should establish normal values based on paragraph 19(b) of SIMA, specifically relying on costs incurred in producing sales to Canada. Additionally, they argue that the CBSA should only issue normal values for goods exported to Canada over the POI.
Counsel for Histeel argues that profit should be based on Histeel’s profits on profitable domestic sales of goods comparable to goods exported to Canada as listed in Appendix 2, as well as the various other types of HSS which have been produced and sold for consumption in South Korea. This counsel asserts Histeel's full cooperation with the CBSA throughout the expedited review, emphasizing good faith in their dealings. The counsel also contends that the CBSA can issue normal values for models not exported to Canada during the POI. They argue there are no restrictions in SIMA preventing the CBSA from issuing both model-specific normal values for sales to Canada and those intended for future export. Additionally, Histeel’s counsel argues that they should receive a company-specific margin of dumping.
Certain details provided in the representations were designated as confidential information by the submitting counsel. This has restricted the ability of the CBSA to discuss all issues raised in these submissions.
The submissions made have been duly considered. The CBSA thoroughly reviewed and validated the information provided by both the exporter and importer in their RFI and SRFI responses. These responses are deemed substantially accurate, and complete for the purpose of this expedited review.
The CBSA's expedited review aims, in part, to determine normal values for subject goods either currently imported or anticipated for import into Canada. Consequently, an exporter may request normal values for models not exported to Canada as long as those goods were produced and/or sold during the POI. It is customary for the CBSA to establish normal values for such goods, provided the exporter has supplied adequate information regarding costs, selling prices, and the production/sale of these specific products during the POI, regardless of their export status to Canada during that time.
Upon reviewing all information submitted by the exporter, the CBSA identified certain goods sold domestically as similar to those exported to Canada or intended for future export. The exporter adequately furnished details regarding these domestic sales of like goods, enabling the CBSA to establish specific normal values under Section 15 of SIMA. Furthermore, these sales of similar goods suffice for determining a profit amount under Special Import Measures Regulations (SIMR) 11(1)(b)(i).
For the remaining models, normal values were determined under paragraph 19(b) of SIMA. This determination was 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. Where applicable, adjustments were made in accordance with SIMA and SIMR.
With regard to Histeel's proposition advocating for a company-specific margin of dumping, the CBSA does not determine a margin of dumping during an expedited review, under 13.2(1) of SIMA, the expedited review is a review of the normal value and export price of the subject goods.
Normal values and export prices
Specific normal values for sales to Canada and for future shipments of subject goods have been determined for Histeel.
Some normal values were determined in accordance with section 15 of SIMA based on domestic selling prices of like goods, where Histeel had a sufficient number of domestic sales of like goods that met the conditions of sections 15 and 16 of SIMA. For the remaining models, normal values 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.
These specific normal values for future shipments are effective today, January 18, 2024. The normal values and export prices determined as a result of this expedited 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.
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. 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. Where 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 and countervailing 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 liability for anti-dumping and countervailing duty, importers should contact the exporters to obtain the applicable normal values and amounts of subsidy. 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 and countervailing 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.
- Andy Fei: 343-553-1866
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