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Notice of conclusion of a re-investigation: Oil country tubular goods (OCTG 2024 RI)

Home News Notice of conclusion of a re-investigation: Oil country tubular goods (OCTG 2024 RI)

Notice of conclusion of a re-investigation: Oil country tubular goods (OCTG 2024 RI)

The Canada Border Services Agency (CBSA) has today concluded a re-investigation of the normal values and export prices of certain oil country tubular goods (OCTG) originating in or exported from the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (Chinese Taipei), India, Indonesia, South Korea, Thailand, Turkey and Vietnam (OCTG II), in accordance with the Special Import Measures Act (SIMA). As part of this re-investigation, the CBSA also updated the surrogate normal values of certain seamless carbon or alloy steel oil and gas well casing (SC) and certain OCTG (OCTG I) originating in or exported from China.

The re-investigation was initiated on June 27, 2024, as part of the CBSA’s ongoing enforcement of the Canadian International Trade Tribunal’s (CITT) orders respecting:

  • November 28, 2018, in Expiry Review No. RR-2017-006 (SC)
  • December 10, 2020, in Expiry Review No. RR-2019-005 (OCTG I) and
  • December 30, 2020, in Expiry Review No. RR-2019-006 (OCTG II)

The product definition of the goods subject to the CITT’s orders can be found on the CBSA’s Measures in Force.

For further information on administrative reviews, refer to Memorandum D14-1-8: Administrative Review Policy – Special Import Measures Act (SIMA).

Period of investigation

The period of investigation (POI) and the profitability analysis period (PAP) for the re-investigation was from May 1, 2023 to May 31, 2024.

Re-investigation process

At the initiation of the re-investigation, the CBSA sent a Request for Information (RFI) to all known importers, exporters, producers and vendors to solicit information on the costs and selling prices of subject goods and like goods. The CBSA sent a Surrogate Producer RFI to producers located in a number of surrogate countries including the United States (U.S).

The information was requested for purposes of updating the normal values and export prices for subject goods imported into Canada. On-site verifications were conducted at the premises of two exporters in India, two exporters in Thailand and three surrogate producers in U.S.

As part of the re-investigation, case briefs and reply submissions were provided by counsel representing the complainants and responding exporters. Details of the representations are provided in Appendix 1. Details of the results of the CBSA’s re-investigation are provided below.

Normal values and export prices

Normal value

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.

Normal values established during this re-investigation will be effective for the subject goods on the date of the conclusion of the re-investigation.

Export prices

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.

Where there are sales between associated persons or a compensatory arrangement exists, the export price may be determined based on the importer’s resale price of the imported goods in Canada to non-associated purchasers, less deductions for:

  • all costs incurred in preparing, shipping and exporting the goods to Canada that are additional to those incurred on the sales of like goods for use in the country of export
  • all costs that are incurred in reselling the goods (including duties and taxes) or associated with the assembly of the goods in Canada and
  • an amount representative of the average industry profit in Canada, pursuant to paragraphs 25(1)(c) and 25(1)(d) of SIMA

In any cases not provided for under paragraphs 25(1)(c) and 25(1)(d) of SIMA, the export price is determined in such a manner as the Minister specifies, pursuant to paragraph 25(1)(e).

OCTG II

The following table lists all exporters/producers who provided substantially complete responses to the CBSA’s dumping RFI and supplementary RFIs (SRFI). Specific normal values for future shipments of subject goods, effective on or after January 31, 2025, have been issued to these exporters/producers:

Country Exporter/producer
Chinese Taipei Chung Hung Steel Corporation
Shin Yang Steel Co., Ltd.
Tension Steel Industries Co., Ltd.
India Maharashtra Seamless Limited & GVN Fuels Limited
Jindal Saw Limited
South Korea Iljin Steel Corporation
Nexteel Co., Ltd.
Thailand Boly Pipe Co., Ltd.
Thai Oil Pipe Co. Ltd.

All other exporters

For all other exporters of subject goods, normal values for future shipments will be determined by a ministerial specification. The normal values for future shipments determined by the ministerial specification are calculated by advancing the export price of the goods by 37.4%, pursuant to section 29 of SIMA.

Normal values previously in place expire on January 31, 2025.

Chinese Taipei

Chung Hung Steel Corporation (CHS)

CHS is a manufacturer of OCTG, located in Chinese Taipei. CHS provided substantially complete responses to the RFI and to three SRFIs. Responses to the RFI and SRFIs were also provided by two associated parties that produced or supplied material input used by CHS in the production of the goods; China Steel Corporation and Dragon Steel Corporation.

As CHS did not have any domestic sales of like goods during the POI/PAP, normal values could not be determined pursuant to section 15 of SIMA. Additionally, the CBSA could not determine normal values pursuant to paragraph 19(b) of SIMA because a reasonable amount for profits could not be determined in accordance with paragraph 11(1)(b) of the Special Import Measures Regulations (SIMR).

As a result, normal values were determined pursuant to section 29 of SIMA using a paragraph 19(b) methodology, 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 inputs used in the production of the goods were acquired by CHS from an associated supplier, the cost of the significant inputs in the production of the goods was substituted pursuant to the provisions of subsection 11.2(1) of the SIMR where appropriate. The amount for profits was determined based on the weighted average profit made on domestic sales of OCTG by other exporters from other countries who provided a complete response in this re-investigation, pursuant to ministerial specification.

Shin Yang Steel Co., Ltd. (Shin Yang)

Shin Yang is a manufacturer and exporter of subject goods, located in Chinese Taipei. Shin Yang provided substantially complete responses to the RFI and to three SRFIs.

As Shin Yang did not have any domestic sales of like goods during the POI/PAP, normal values could not be determined pursuant to section 15 of SIMA. Additionally, the CBSA could not determine normal values pursuant to paragraph 19(b) of SIMA because a reasonable amount for profits could not be determined in accordance with paragraph 11(1)(b) of the SIMR.

As a result, normal values were determined pursuant to section 29 of SIMA using a paragraph 19(b) methodology, 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. The amount for profits was determined based on the weighted average profit made on domestic sales of OCTG by other exporters from other countries who provided a complete response in this re-investigation, pursuant to ministerial specification.

Tension Steel Industries Co., Ltd. (Tension Steel)

Tension Steel is a manufacturer and exporter of subject goods, located in Chinese Taipei. Tension Steel provided substantially complete responses to the RFI and to four SRFIs.

As Tension Steel did not have any domestic sales of like goods during the POI/PAP, normal values could not be determined pursuant to section 15 of SIMA. Additionally, the CBSA could not determine normal values pursuant to paragraph 19(b) of SIMA because a reasonable amount for profits could not be determined in accordance with paragraph 11(1)(b) of the SIMR.

As a result, normal values were determined pursuant to section 29 of SIMA using a paragraph 19(b) methodology, 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. The amount for profits was determined based on the weighted average profit made on domestic sales of OCTG by other exporters from other countries who provided a complete response in this re-investigation, pursuant to ministerial specification.

For subject goods exported to Canada, export prices were determined pursuant to section 24 of SIMA, based on the lesser of the exporter’s selling price and the importer’s purchase price, adjusted by deducting the costs, charges and expenses incurred in preparing the goods for shipment to Canada and resulting from the exportation and shipment of the goods.

India

Maharashtra Seamless Limited (MSL) & GVN Fuels Limited (GVN)

GVN, MSL’s export trading arm, is an exporter of subject goods and MSL is a manufacturer of the subject goods exported by GVN during the POI. Due to the relationship between MSL and GVN, MSL/GVN have collectively been determined to be the exporter for SIMA purposes. MSL/GVN provided substantially complete responses to the RFI and SRFIs, and on-site verifications were conducted at the premises of MSL and GVN in India in November 2024.

MSL had qualified domestic sales of like goods during the PAP, and as a result, normal values for some models were determined pursuant to section 15 of SIMA. For the majority of models, however, 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 a result, normal values for most models 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. The amount for profits were determined in accordance with paragraph 11(1)(b) of the SIMR.

For subject goods exported to Canada, export prices were determined pursuant to section 24 of SIMA, based on the lesser of the exporter’s selling price and the importer’s purchase price, adjusted by deducting the costs, charges and expenses incurred in preparing the goods for shipment to Canada and resulting from the exportation and shipment of the goods.

Jindal Saw Limited (JSL)

JSL is a producer and exporter of the subject goods during the POI. It currently produces and exports subject goods from its Nashik seamless facility in Maharashtra, India.

JSL provided substantially complete responses to the RFI and two supplementary RFIs, and an on-site verification was conducted at the premises of JSL in India in November 2024.

As JSL had insufficient sales of like goods during the POI/PAP that met the conditions of section 15 of SIMA, the CBSA determined normal values in accordance with 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.

As inputs significant in the production of the goods were acquired from an associated supplier, the cost of the inputs was substituted pursuant to the provisions of subsection 11.2(1) of the SIMR where appropriate. The amount for profits was determined in accordance with paragraph 11(1)(b) of the SIMR.

For subject goods exported to Canada, export prices were determined pursuant to section 24 of SIMA, based on the lesser of the exporter’s selling price and the importer’s purchase price, adjusted by deducting the costs, charges and expenses incurred in preparing the goods for shipment to Canada and resulting from the exportation and shipment of the goods.

South Korea

Iljin Steel Corporation (Iljin)

Iljin is a manufacturer of OCTG, located in South Korea and did not export subject goods to Canada during the POI. Iljin provided substantially complete responses to the RFI and SRFIs.

Normal values could not be determined pursuant to section 15 of SIMA as Iljin did not have domestic sales of like goods during the PAP. 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 plus a reasonable amount for profits. The amount for profits were determined in accordance with paragraph 11(1)(b) of the SIMR.

Nexteel Co., Ltd. (Nexteel)

Nexteel is a producer and exporter of the subject goods during the POI. It currently operates three manufacturing plants in Pohang, South Korea.

Nexteel provided substantially complete responses to the CBSA’s RFI and four supplementary RFIs.

As Nexteel had insufficient sales of like goods during the POI/PAP that met the conditions of section 15 of SIMA, the CBSA determined normal values in accordance with 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. The amount for profits were determined in accordance with paragraph 11(1)(b) of the SIMR.

For subject goods exported to Canada, export prices were determined pursuant to section 24 of SIMA, based on the lesser of the exporter’s selling price and the importer’s purchase price, adjusted by deducting the costs, charges and expenses incurred in preparing the goods for shipment to Canada and resulting from the exportation and shipment of the goods.

Thailand

Boly Pipe Co., Ltd. (Boly)

Boly is a producer and exporter of the subject goods during the POI, located in Thailand. Boly provided a substantially complete response to CBSA’s RFI and subsequent supplemental RFIs. On-site verifications were conducted at Boly’s premises in Thailand in November 2024.

Normal values could not be determined pursuant to section 15 of SIMA as Boly did not have domestic sales of like goods during the POI/PAP. Additionally, the CBSA could not determine normal values pursuant to paragraph 19(b) of SIMA because a reasonable amount for profits could not be determined in accordance with paragraph 11(1)(b) of SIMR.

As a result, normal values were determined pursuant to section 29 of SIMA using a paragraph 19(b) methodology, 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. The amount for profits was determined based on the weighted average profit made on domestic sales of OCTG by other exporters from other countries who provided a complete response in this re-investigation, pursuant to ministerial specification.

For subject goods exported to Canada, export prices were determined pursuant to section 24 of SIMA, based on the lesser of the exporter’s selling price and the importer’s purchase price, adjusted by deducting the costs, charges and expenses incurred in preparing the goods for shipment to Canada and resulting from the exportation and shipment of the goods.

Thai Oil Pipe Co. Ltd. (TOP)

TOP is a producer and exporter of the subject goods during the POI, located in Thailand. TOP provided a substantially complete response to CBSA’s RFI and subsequent supplemental RFIs. On-site verifications were conducted at TOP’s premises in Thailand in November 2024.

Normal values could not be determined pursuant to section 15 of SIMA as TOP did not have sufficient domestic sales of like goods during the POI/PAP that met the conditions of section 15 of SIMA. Additionally, the CBSA could not determine normal values pursuant to paragraph 19(b) of SIMA because a reasonable amount for profits could not be determined in accordance with paragraph 11(1)(b) of SIMR.

As a result, normal values were determined pursuant to section 29 of SIMA using a paragraph 19(b) methodology, 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. The amount for profits was determined based on the weighted average profit made on domestic sales of OCTG by other exporters from other countries who provided a complete response in this re-investigation, pursuant to ministerial specification.

For subject goods exported to Canada, export prices were determined pursuant to section 24 of SIMA, based on the lesser of the exporter’s selling price and the importer’s purchase price, adjusted by deducting the costs, charges and expenses incurred in preparing the goods for shipment to Canada and resulting from the exportation and shipment of the goods.

Petroleum Equipment (Thailand) Co., Ltd. (PET)

PET is a manufacturer of OCTG located in Thailand. PET provided responses to the RFI and CBSA’s deficiency letters. However, PET failed to provide substantially complete responses. As such, normal values for future shipments of subject goods from PET will be determined under the ministerial specification.

SC and OCTG I

On May 25, 2020, the CBSA reaffirmed its opinion that the conditions of section 20 of SIMA exist in China with respect to the oil country tubular goods industry sector. Section 20 of SIMA is applicable where, in the opinion of the CBSA, domestic prices are substantially determined by the government and there is sufficient reason to believe that they are not substantially the same as they would be if they were determined in a competitive market.

Where the conditions of section 20 of SIMA 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.

As such, for purposes of this re-investigation, Chinese exporters were not requested to respond to the CBSA’s dumping RFI. Instead, at the initiation of the re-investigation, the CBSA sent a Surrogate Producer RFI to producers located in a number of surrogate countries including the U.S. Three surrogate producers located in the U.S provided substantially complete responses to the RFI and SRFIs. On-site verifications were conducted at the premises of the three surrogate producers in the U.S in November 2024.

Based on the information on the administrative record, the CBSA designated the U.S as a surrogate country when considering the similarities between the U.S and Chinese petroleum markets and industries. For purposes of this re-investigation, sufficient information was not furnished or was not available to determine surrogate normal values under section 20. As such, normal values were determined under a ministerial specification in accordance with section 29 of SIMA, based on a combination of the surrogate data provided by the U.S surrogate producers and pricing data available through the trade publication Argus Pipe Logix.

The CBSA determined normal values for future shipments of subject goods for the following 18 producers/exporters, effective on or after January 31, 2025, in accordance with the ministerial specification pursuant to section 29 of SIMA.

Exporters/producers that have been provided with specific normal values from China

  • Huludao City Steel Pipe Industrial Co. Ltd.
  • Jiangsu Changbao Group and its affiliates
  • Jiangsu Chengde Steel Tube Share Company
  • JingJiang Special Steel Co., Ltd.
  • Shandong Molong Petroleum Machinery Co., Ltd.
  • Shengli Oilfield Shengji Petroleum Equipment Co., Ltd.
  • Tianjin Pipe Corporation
  • Tianjin TianGang Special Petroleum Pipe Manufacture Co., Ltd.
  • Vallourec Tianda (Anhui) Co., Ltd.
  • Zibo Freet Thermal Tech Co., Ltd.
  • Golden Ring Industrial Limited-Liability Company Liaohe Oilfield Panjin
  • Shandong Continental Petroleum Equipment Co. Ltd.
  • Dalipal Pipe Company
  • Petrotex Oil & Gas Equipment Limited
  • Shandong Yonglijinggong Petroleum Equipment Co., Ltd.
  • Shandong Meshine Thermal Tech Co., Ltd.
  • Bohai Equipment Liaohe Thermal Recovery Machinery
  • Linzhou Fengbao Pipe Industry Co., Ltd.

For importations of subject goods originating in or exported from China for which the exporter has not been issued specific normal values, the normal values for future shipments determined by the ministerial specification are calculated by advancing the export price of the goods by 91% (SC) or 166.9% (OCTG I) of the export price, pursuant to section 29 of SIMA.

Exporter responsibility

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. If exporters did not adjust export prices accordingly, retroactive assessments of anti-dumping duties may be warranted. Please refer to the CBSA’s Memorandum D14-1-8: Administrative Review Policy for details.

Importer responsibility

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 anti-dumping and countervailing 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.

Source: CBSA

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