Conclusion of a normal value review: Carbon steel fasteners (FAS 2023 UP1)
The Canada Border Services Agency (CBSA) has today concluded a normal value review (review) to establish normal values, export prices and amounts of subsidy applicable to certain carbon steel fasteners (fasteners) originating in or exported from China by Pinghu Gete Auto Fastener Co., Ltd. (Pinghu).
The review follows a request for re-determination filed by an importer and is part of the CBSA’s enforcement of the Canadian International Trade Tribunal’s (CITT) order issued on September 2, 2020 in Expiry Review No. RR-2019-002, respecting the dumping of fasteners originating in or exported from China and Chinese Taipei, and the subsidizing of such goods, originating in or exported from China, excluding fasteners specifically designed for application in the automotive or aerospace industry, 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’s order (subject goods) can be found on the CBSA’s Measures in Force.
Period of investigation
For this review, the period of investigation (POI) and profitability analysis period (PAP) were from January 1, 2022 to March 31, 2023.
Normal value review process
At the initiation of this review, on May 18, 2023, the CBSA sent requests for information (RFIs) to Pinghu, the Government of China (GOC) and an importer in order to solicit information on the costs, selling prices of subject goods and like goods and subsidy programs. The information was requested for purposes of determining normal values, export prices and an amount of subsidy applicable to subject goods exported to Canada.
The responses to the CBSA’s RFIs were received accordingly from Pinghu and the importer. Pinghu also provided responses to three dumping supplemental RFIs (SRFI) and two subsidy SRFIs. Additionally, the importer provided a response to one importer SRFI.
The GOC did not provide a response to the government subsidy RFI.
The CBSA did not receive any case briefs or reply submissions from interested parties with respect to this review. All the information submitted on the record was considered for the conclusion of this review.
Normal values and amount of subsidy for future shipments
Specific normal values and an amount of subsidy for future shipments of fasteners have been determined for Pinghu. These normal values and amount of subsidy are effective today, December 21, 2023.
Pinghu’s response included a database of domestic sales of like goods. As such, where Pinghu had sufficient domestic sales, that met the requirements of section 15 and 16 of SIMA, normal values were determined pursuant to section 15 of SIMA, based on the company’s domestic selling prices of like goods. Where there were insufficient domestic sales of like goods that met the requirements of section 15 and 16 of SIMA, normal values were determined pursuant to section 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 profits.
As the GOC did not respond to the CBSA’s Government Subsidy RFI, it limited 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 was not provided. Therefore, subsidy amounts for the exporter were determined pursuant to subsection 30.4(2) of SIMA, based on a ministerial specification. The amount of subsidy determined for Pinghu for future shipments is 1.25 Renminbi per kilogram.
The normal values, export prices and amount of subsidy 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 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 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 appropriately, 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 duty and countervailing duty liabilities. 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 countervailing liabilities, importers should contact the exporter(s) 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 duties 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.
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