LP2 2022 XR: Line pipe 2
Notice of conclusion of Expedited Review
The Canada Border Services Agency (CBSA) has today concluded an expedited review of certain carbon and alloy steel line pipe (line pipe) exported to Canada by Histeel Co. Ltd. (Histeel), in accordance with the Special Import Measures Act (SIMA).
This expedited review was initiated on October 26, 2022 and is part of the CBSA’s ongoing enforcement of the Canadian International Trade Tribunal’s (CITT) finding issued on January 4, 2018, respecting the dumping of line pipe originating in or exported from South Korea.
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 September 1, 2021 to August 31, 2022.
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 RFI as well as all supplemental requests for information (SRFIs).
The importer also submitted a response to the CBSA’s RFI and SRFI.
As part of the expedited review, case briefs and reply submissions were submitted on behalf of the Canadian producers, the importer and the responding exporter.
During the expedited review, counsel for the Canadian producers, the importer and the responding exporter discussed various concerns pertaining to the responses to the RFIs and SRFIs provided by the exporter and importer. Issues raised included: cost of production reporting methodologies, pricing and other various alleged inconsistencies and deficiencies within the responses.
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.
Due consideration has been given to submissions on the topics raised in case representations. The CBSA has reviewed and verified the information submitted by the exporter and importer in their RFI and SRFI responses and considers the responses to be substantially true, accurate and complete for purposes of this expedited review. Where appropriate, the CBSA has applied adjustments in accordance with SIMA and SIMR. Additional information on the calculation of normal values and export prices is provided to the exporter in the confidential exporter conclusion letter.
Normal Values and Export Prices
Normal values are generally determined based on the domestic selling prices of like goods in the country of export, in accordance with section 15 of SIMA, or 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, in accordance with paragraph 19(b) of SIMA.
Where, in the opinion of the CBSA, sufficient information has not been furnished or is not available, normal values are determined pursuant to a Ministerial specification in accordance with subsection 29(1) of SIMA.
The export price of goods sold to importers in Canada is generally determined in accordance with section 24 of SIMA, based on the lesser of the adjusted exporter’s sale price for the goods or the adjusted importer’s purchase price. These prices are adjusted where necessary by deducting the costs, charges, expenses, duties and taxes resulting from the exportation of the goods as provided for in subparagraphs 24(a)(i) to 24(a)(iii) of SIMA.
Where, in the opinion of the CBSA, sufficient information has not been furnished or is not available, export prices are determined pursuant to a Ministerial specification under subsection 29(1) of SIMA.
Histeel Co. Ltd. (Histeel)
Histeel is located in South Korea and is a manufacturer and exporter of subject goods. Histeel is a public company and has been publically listed on the Korean Stock Exchange since 2003. The company headquarters is located in Seoul. All subject goods shipped to Canada during the POI were produced at the same production facility.
The exporter had domestic sales of like goods during the PAP, however, normal values could not be determined in accordance with section 15 of SIMA as there were not such a number of sales of like goods that complied with all the terms and conditions referred to in sections 15 and 16 of SIMA as to permit a proper comparison with the sales of the goods to the importer in Canada.
As such, 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, and a reasonable amount for profit. The amount for profit was determined pursuant to paragraph 11(1)(b) of Special Import Measures Regulations (SIMR).
For the subject goods exported by Histeel to Canada, export prices were determined in accordance with section 24 of SIMA, based on the lesser of the exporter’s selling price and the importer’s purchase price less all costs, charges and expenses resulting from the exportation of the goods.
These specific normal values and export prices for future shipments are effective today, August 3, 2023. 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. 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. 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.
- Jacob Saulnier: 343‑553‑1412
- Date modified: