OS 2019 RI
Certain Oil Country Tubular Goods (OCTG I & II) and Certain Seamless Casing
Notice of Re-investigations

Ottawa, September 27, 2019

The Canada Border Services Agency (CBSA) has today initiated re-investigations to update the normal values and export prices, in accordance with the Special Import Measures Act (SIMA), respecting certain oil country tubular goods (OCTG) and certain seamless casing originating in or exported from China.

The CBSA also initiated a re-investigation to update the normal values and export prices of certain OCTG originating in or exported from the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (Chinese Taipei), India, Indonesia, the Philippines, the Republic of Korea, Thailand, Turkey, Ukraine and Vietnam.

The re-investigations are part of the enforcement of the Canadian International Trade Tribunal’s (CITT) finding/orders of material injury respecting:

1. certain oil country tubular goods originating in or exported from China issued on March 2, 2015, in Expiry Review No. RR-2014-003 (OCTG I);
2. certain oil country tubular goods originating in or exported from the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (Chinese Taipei), India, Indonesia, the Philippines, the Republic of Korea, Thailand, Turkey, Ukraine and Vietnam issued on April 2, 2015, in Inquiry No. NQ-2014 002 (OCTG II); and
3. certain seamless carbon or alloy steel oil and gas well casing originating in or exported from China issued on November 28, 2018, in Expiry Review No. RR-2017-006 (Seamless Casing).

The product definition and the applicable tariff classification number of the goods subject to the CITT’s finding/orders are contained in Appendix 1.

It is anticipated that the re-investigations will be concluded by March 26, 2020. A re-investigation schedule is available at: www.cbsa-asfc.gc.ca/sima-lmsi/ri-re/menu-eng.html.

As part of these re-investigations, the CBSA will be conducting an inquiry pursuant to section 20 of SIMA. Since 2007, the CBSA has conducted four section 20 inquiries on the Chinese steel industry including the OCTG sector, and information available to the CBSA indicated that the domestic prices are substantially determined by the government of China 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. During the re-investigations, the CBSA will once again examine the OCTG sector in China as, based on currently available information, there is continued reason to believe that the conditions of section 20 remain.

All interested parties are welcome to provide facts and supporting information to the CBSA if they wish to comment on the application of section 20 of SIMA.

Normal values established during the re-investigations will be effective for the subject goods released from the CBSA on or after March 26, 2020, or the date of the ruling letter to the exporter, whichever occurs first. Normal values currently in place will expire on that date.

In addition, the normal values determined on the basis of the re-investigations will be applied to any entries of subject goods under appeal that have yet to be re-determined at the time of the conclusion of these re-investigations.

Exporters that wish to participate in the re-investigations are required to provide a complete and accurate response to the CBSA’s Request for Information (RFI) by November 4, 2019. An exporter will be considered cooperative if the requested information is submitted on time and the exporter permits verification of the data.

Where an exporter of subject goods does not provide sufficient information to determine specific normal values or does not permit verification of information submitted, anti-dumping duties, in accordance with ministerial specifications pursuant to section 29 of SIMA, will be assessed at the following rates, expressed as a percentage of the export price of the subject goods imported into Canada:

1. OCTG I: 166.9%
2. OCTG II: 37.4%
3. Seamless Casing: 91%

Exporters that are not the manufacturer of the subject goods (e.g. trading companies, vendors, etc.) will receive normal values only to the extent that their suppliers/manufacturers provide sufficient information to the CBSA to permit the determination of normal values and export prices.

Please note that, for the re-investigations, the CBSA is contacting all known and potential importers and exporters. Any importers or exporters who wish to provide a response to the RFI are advised to contact one of the officers identified below to obtain a copy of the RFI. It is suggested that importers contact their exporter(s) to determine if the exporter(s) intend to cooperate with the CBSA in the re-investigations.

Responses to the Importer RFI are due by October 18, 2019. Importers are cautioned that new normal values, when issued, may be higher than those currently in effect and that this could result in additional assessments of anti-dumping duties. Importers are also cautioned that unless an exporter cooperates in these re-investigations and receives specific normal values at its conclusion, subsequent imports of subject goods from that exporter will be assessed anti-dumping based on the ministerial specifications indicated above.

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 and channel 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. If exporters did not properly notify the CBSA of any such changes, did not adjust export prices accordingly, or did not provide the information required to make any necessary adjustments to normal values and export prices, retroactive assessments of anti-dumping duties may be warranted.

The closing of the record for parties will be at noon on February 10, 2020. Case arguments and reply submissions from parties shall be filed by noon, on February 17, 2020, and February 24, 2020, respectively.

Appendix 1

Product Definition

OCTG I

Exclusions

• Pup-joints, welded or seamless, heat-treated or not heat-treated, in lengths of up to 3.66m (12 feet);
• Coupling stock.

The subject goods are normally classified under the following tariff classification numbers:

1. 7304.29.00.31
2. 7304.29.00.39
3. 7304.29.00.41
4. 7304.29.00.49
5. 7304.29.00.51
6. 7304.29.00.59
7. 7304.29.00.61
8. 7304.29.00.69
9. 7304.29.00.71
10. 7304.29.00.79
11. 7304.39.00.60
12. 7304.59.00.50
13. 7306.29.00.11
14. 7306.29.00.19
15. 7306.29.00.21
16. 7306.29.00.29
17. 7306.29.00.31
18. 7306.29.00.39
19. 7306.29.00.61
20. 7306.29.00.69

OCTG II

The subject goods are normally classified under the following tariff classification numbers:

1. 7304.29.00.11
2. 7304.29.00.19
3. 7304.29.00.21
4. 7304.29.00.29
5. 7304.29.00.31
6. 7304.29.00.39
7. 7304.29.00.41
8. 7304.29.00.49
9. 7304.29.00.51
10. 7304.29.00.59
11. 7304.29.00.61
12. 7304.29.00.69
13. 7304.29.00.71
14. 7304.29.00.79
15. 7304.39.00.60
16. 7304.59.00.50
17. 7306.29.00.11
18. 7306.29.00.19
19. 7306.29.00.21
20. 7306.29.00.31
21. 7306.29.00.29
22. 7306.29.00.39
23. 7306.29.00.61
24. 7306.29.00.69
25. 7306.30.00.20
26. 7306.30.00.30
27. 7306.50.00.00
28. 7306.90.00.10
29. 7306.90.00.20

Seamless Casing

The subject goods are normally classified under the following tariff classification numbers:

1. 7304.29.00.11
2. 7304.29.00.19
3. 7304.29.00.21
4. 7304.29.00.29

Date modified:

2019-10-01