Conclusion of normal value review: Steel piling pipe
The Canada Border Services Agency (CBSA) has concluded a normal value review (review) to establish the normal values, export prices and amount of subsidy applicable to certain steel piling pipe (piling pipe) exported to Canada from the People’s Republic of China (China) by Qingdao Wangbaoqiang Industry Co., Ltd. (WBQ).
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 July 4, 2018, in Expiry Review No. RR-2017-003, respecting the dumping and subsidizing of piling pipe originating in or exported from China, 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 are contained in Appendix 1 (subject goods).
During the last proceeding, the CBSA was of the opinion that the domestic prices of piling pipe in China were being substantially determined by the Government of China (GOC) and the steel pipe sector in China, which includes steel piling pipe, was operating under conditions where the prices were not substantially the same as they would be if they were determined in a competitive market. The conditions of section 20 of SIMA were found to exist, but sufficient information had not been furnished or was not available to determine normal values as provided for in section 20 of SIMA. Therefore, the normal values for the exporters that provided a complete and reliable submission were determined using an alternate methodology under a ministerial specification, pursuant to subsection 29(1) of SIMA.
The normal values determined were based on the average price of hot-rolled steel for all regions, excluding China, for the 60-day period immediately preceding the date of sale to Canada as reported on SteelBenchmarker, plus added to these hot-rolled steel prices were amounts for the i) conversion costs of the hot-rolled steel into a finished piling pipe product and ii) profit (the Steelbenchmarker methodology).
With respect to the subsidy portion of the investigation, as the GOC did not provide a submission, the CBSA, under a ministerial specification, pursuant to subsection 30.4(2) of SIMA, issued individual amounts of subsidy for the exporters that provided a complete and reliable submission.
The amounts of subsidy determined were based on the total amount of benefits found for the exporter distributed over the total quantity of goods to which the benefits are attributable.
Period of investigation
For this review, the period of investigation was from January 1, 2020 to December 31, 2020. The profitability analysis period was from January 1, 2020 to December 31, 2020.
Normal value review process
At the initiation of this review, on June 8, 2022, the CBSA sent the dumping and subsidy requests for information (RFIs) to the parties involved in the transactions in order to solicit information on the costs and selling prices of subject goods and like goods and on 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 and supplemental RFIs (SRFIs) were received accordingly from WBQ and its related manufacturer Qingdao Baoqiang Solar Tech Co., Ltd. (BQ Solar).
As part of the review, counsel on behalf of Nova Steel Inc. and Nova Tube Inc. (Canadian producers) submitted comments prior to the close of the record and filed a case brief. Counsel on behalf of WBQ and BQ Solar also provided comments and a case brief. Subsequently, reply submissions were received by the Canadian producers and WBQ and BQ Solar.
The main focus of the representations provided by the Canadian Producers relate to the incomplete or otherwise deficient responses filed by WBQ and BQ Solar to the CBSA’s RFIs and SRFIs.
In addition, the Canadian Producers submitted that the various programs are countervailable, and these subsidies received by WBQ and BQ Solar are specific.
The Canadian Producers concluded that the responses from all of the respondents must be rejected, and the ministerial specifications must be applied in this review.
In its case brief and reply submission, WBQ and BQ Solar submitted that the responses to the RFIs and related documentation received from all parties to the review are complete. It further indicated that unless a subsidy is specific, it is not subject to being countervailable and concluded that it appears that none of the subsidy programs in question give rise to any countervailing duty for WBQ and BQ Solar.
Both the Canadian Producers and WBQ and BQ Solar made comments as to the identity of the exporter under SIMA.
The representations provided by the Canadian Producers and WBQ and BQ Solar were given due consideration by the CBSA prior to the conclusion of the review.
The CBSA considers the responses to the Dumping and Subsidy RFIs and to other CBSA requests made by WBQ and BQ Solar to be substantially complete for purposes of this review. The CBSA also considers that the subsidies received are specific and countervailable.
Normal values and amount of subsidy for future shipments
Specific normal values and an amount of subsidy for future shipments of subject goods have been determined for WBQ. These normal values and amount of subsidy are effective today, March 1, 2023.
Pursuant to the dumping ministerial specification, the normal values are based on the SteelBenchmarker methodology, and to the subsidy ministerial specification, the amount of subsidy is based on WBQ and BQ Solar’s submissions.
The normal values 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. 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.
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 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 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 Guide for appealing a duty assessment.
- Telephone: Manshun Tong: 343-553-1727
- Email: SIMA_Disclosure_and_Registry_Unit@cbsa-asfc.gc.ca
Source: Canada Border Services Agency (CBSA)
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