Conclusion of expedited review: Oil country tubular goods and seamless casing (OS 2022 XR)

Period of investigation

The period of investigation (POI) for the expedited review was from January 1, 2022 to August 31, 2022.

Expedited review process

At the initiation of the expedited review, the CBSA sent requests for information (RFIs) to Linzhou Fengbao, the Government of China (GOC) and the importer in order to solicit information for purposes of determining normal values and an amount of subsidy applicable to the subject goods.

Linzhou Fengbao submitted a response only to the subsidy RFI on November 28, 2022^{Footnote 1}. A deficiency letter was issued to Linzhou Fengbao on December 15, 2022, indicating that Linzhou Fengbao failed to provide a response to the dumping RFI and an associated supplier Henen Fengbao Special Steel Co., Ltd. (Fengbao SS) also failed to provide a response to the subsidy RFI.^{Footnote 2} Following the deficiency letter, Linzhou Fengbao submitted a complete response to the dumping RFI^{Footnote 3} and responded to subsequent supplemental requests for information (SRFIs)^{Footnote 4}.

Fengbao SS provided a response to the subsidy RFI on January 10, 2023.^{Footnote 5} Upon review, a SRFI was sent to Fengbao SS on January 16, 2023 with a due date of January 27, 2023.^{Footnote 6} The SRFI requested the necessary information to determine if Linzhou Fengbao was benefiting from upstream government subsidies potentially being received by Fengbao SS. Upon not receiving a response to the SRFI on its due date, the CBSA sent a follow up deficiency letter on February 1, 2023, indicating that if a response is not received imminently, the CBSA will be forced to close the record and treat Linzhou Fengbao’s submission as deficient.^{Footnote 7} As no response was received from Fengbao SS following the deficiency letter, the administrative record was closed on February 8, 2023.

The GOC did not respond to the CBSA’s government subsidy RFI.

A case brief was submitted by counsel on behalf of Evraz Inc. NA Canada (Evraz).^{Footnote 8} The case brief contends that normal values and an amount of subsidy for Linzhou Fengbao must be determined pursuant to a ministerial specification due to the fact that an associated supplier of a significant factor in the production of OCTG and seamless casing of Linzhou Fengbao failed to respond to the CBSA’s subsidy SRFI.

The CBSA did not receive any reply submissions.

Normal values and amount of subsidy

Specific normal values and an amount of subsidy for future shipments of OCTG and seamless casing have been determined for Linzhou Fengbao. The normal values and amount of subsidy are effective today, March 17, 2023.

Normal values are generally based on the domestic selling price of like goods in the country of export in accordance with section 15 of SIMA or on the full cost of the goods including administrative, selling and all other costs and a reasonable amount for profits in accordance with paragraph 19(b) of SIMA.

Where section 20 conditions exist, the CBSA normally determines normal values using the selling price, or the total cost and profit, of like goods sold by producers in a surrogate country pursuant to paragraph 20(1)(c) of SIMA. Alternatively, normal values may be determined under paragraph 20(1)(d) of SIMA, on a deductive basis starting with an examination of the prices of imported goods sold in Canada, from a surrogate country. However, should sufficient information not be available to determine normal values under these provisions, normal values will be determined pursuant to a ministerial specification in accordance with section 29 of SIMA.

For this expedited review, normal values were determined based on the results of the OS 2022 re-investigation that has concluded today, March 17, 2023.

The GOC did not respond to the CBSA’s government subsidy RFI, limiting the CBSA’s ability to determine the amount of subsidy in the prescribed manner as the required information relating to financial contribution, benefit and specificity were not provided. In addition, associated supplier Fengbao SS did not provide a response to the CBSA’s SRFI requesting pertinent information to establish an amount of subsidy in accordance with the normal provisions of SIMA. Accordingly, subsidy amounts for the exporter were determined pursuant to subsection 30.4(2) of SIMA, based on a ministerial specification, with a countervailing duty equal to 4,070 Renminbi per metric tonne for OCTG, and 3,381 Renminbi per metric tonne for seamless casing.

Exporter responsibility

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. 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.

Importer responsibility

Importers are reminded that it is their responsibility to calculate and declare their anti-dumping and/or 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 anti-dumping and/or countervailing duty liability, importers should contact the exporters to obtain the applicable normal values and amount 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/or 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.

Contact us

• Telephone:
• Aaron Maidment: 343-553-1633

Email: SIMA_Disclosure_and_Registry_Unit@cbsa-asfc.gc.ca

Appendix 1: Product definition