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Final Determination - Cold-rolled Steel Sheet

OTTAWA, July 28, 1999

4258-105
AD/1198

STATEMENT OF REASONS

Concerning the making of a final determination of dumping with respect to

CERTAIN COLD-ROLLED STEEL SHEET, ORIGINATING IN OR EXPORTED FROM ARGENTINA, BELGIUM, NEW ZEALAND, THE RUSSIAN FEDERATION, THE SLOVAK REPUBLIC, SPAIN AND TURKEY

DECISION

Pursuant to paragraph 41(1)(a) of the Special Import Measures Act, the Deputy Minister of National Revenue has, on this date, made a final determination of dumping respecting certain cold-rolled steel sheet, originating in or exported from Argentina, Belgium, New Zealand, the Russian Federation, the Slovak Republic, Spain and Turkey.

This Statement of Reasons is also available in French.
Cet énoncé des motifs est également disponible en français.

STATEMENT OF REASONS

SUMMARY

On January 29, 1999, the Deputy Minister of National Revenue initiated an investigation respecting the alleged injurious dumping into Canada of certain cold-rolled steel sheet originating in or exported from Argentina, Belgium, New Zealand, the Russian Federation (Russia), the Slovak Republic (Slovakia), Spain, and Turkey.

The investigation was initiated in response to a complaint filed by Dofasco Inc. of Hamilton, Ontario, Ispat Sidbec Inc. of Contrecoeur, Quebec, and Stelco Inc.of Hamilton, Ontario.

On April 29, 1999, the Deputy Minister made a preliminary determination of dumping with respect to the subject goods from the seven countries and that there is evidence that discloses a reasonable indication that the dumping has caused injury.

The investigation continued after the preliminary determination and the Deputy Minister is now satisfied that the subject goods have been dumped, that the margins of dumping are not insignificant, and that the actual volumes of dumped goods are not negligible. Accordingly, the Deputy Minister has made a final determination of dumping in accordance with paragraph 41(1)(a) of the Special Import Measures Act (SIMA).

INTERESTED PARTIES

Complainants

The complainants are Dofasco Inc. of Hamilton, Ontario, Ispat Sidbec Inc. of Contrecoeur, Quebec, and Stelco Inc. of Hamilton, Ontario.

Exporters

The Department has identified nine exporters of subject goods. The names and addresses of these exporters are listed in Appendix 1. The names and addresses of other parties (vendors/agents) to the transactions are also listed in Appendix 1.

Importers

The Department has identified 13 importers of subject goods. The names and addresses of these importers are listed in Appendix 2.

BACKGROUND

On December 10, 1998, Dofasco, Ispat Sidbec, and Stelco filed a complaint concerning the alleged injurious dumping of certain cold-rolled steel sheet originating in or exported from Argentina, Belgium, New Zealand, the Russian Federation, the Slovak Republic, Spain and Turkey. The only other Canadian producer, Algoma Steel, filed a letter with the Department supporting the industry complaint.

The Department informed the complainants on December 31, 1998, that the complaint was properly documented and also notified the governments of the subject countries that a complaint had been filed.

PRODUCT INFORMATION

Definition

For the purpose of this investigation, subject goods are:

cold-reduced flat-rolled sheet products of carbon steel (including high-strength low-alloy steel), in coils or cut lengths (not painted, clad, plated or coated), in widths up to and including 80 inches (2,032 mm) and in thicknesses from 0.014 inches to 0.142 inches

(0.35 mm to 3.61 mm) inclusive, originating in or exported from Argentina, Belgium, New Zealand, the Russian Federation, the Slovak Republic, Spain and Turkey.

Product

For purposes of clarity, cold-rolled steel products considered subject to this investigation include products in coil form and products cut from a coil, including cut-lengths from slit coils, having a square or rectangular shape, regardless of whether the product is referred to as a blank.

Cold-rolled steel strip made to ASTM A109/A109M, A682/A682M and A684/A684M specifications is excluded from the product definition. These specifications cover cold-rolled carbon strip in cut lengths or coils finished to closer tolerances than cold-rolled carbon steel sheets and which have specific temper, edge and finish, a maximum thickness of 0.2499 inches (6 mm) and in widths from ½ inch (12.5 mm) to 23 15/16 inches (600 mm).

The subject goods are normally produced to a specification of the ASTM standard, some other international standard, or to a proprietary specification.

Appendix 3 contains additional product information.

CLASSIFICATION OF IMPORTS

The subject cold-rolled carbon steel sheet may be classified under the Harmonized System tariff headings listed in Appendix 4.

THE CANADIAN INDUSTRY

The complainants, Stelco, Dofasco, and Ispat Sidbec, have the support of the only other Canadian producer of like goods, Algoma Steel Inc. of Sault Ste. Marie, Ontario.

There have been no significant changes in the structure of the Canadian industry since the Department initiated its investigation.

THE CANADIAN MARKET

The Department’s estimate of the Canadian market for cold-rolled steel sheet for the period 1993 to October 1998 is shown in Appendix 5. The estimate was derived from confidential information provided by the complainants and the other domestic producer, from Statistics Canada import data, data obtained from the Department’s internal information system, Facility for Information Retrieval Management (FIRM), actual entry documentation and information obtained from importers and exporters.

The figures reported in Appendix 5 reflect imports for the period 1993 to October 1998 of all cold-rolled steel sheet tariff items and, as such, include imports which are not like goods to those under investigation. For example, the import data includes imports of certain strip products that are excluded from the product definition of goods under investigation. This information has been presented in this manner for comparison purposes over the six-year period (1993 to 1998), as the historic data is not available to identify and remove the goods which are not like goods to those goods under investigation for the period 1993 to 1997.

At the preliminary determination, the Department reported that it had conducted a more in-depth analysis of imports for the period of investigation of November 1, 1997 to October 31, 1998, with the view of removing non-subject cold-rolled steel sheet and strip from the import figures. In addition, the Department reported that it had included in the import statistics a large portion of cold-rolled sheet imports from the United States which were imported for processing and re-exported.

Given the significance of the overall cold-rolled steel sheet import levels in this case, particularly in terms of accurately assessing the issue of negligibility, the analysis of imports during the period of investigation continued during this phase of the investigation. As a result of this further analysis, the other countries import tonnage figure, reported in Appendix 7, has been adjusted downward from the tonnage reported at the preliminary determination. The decrease in reported tonnage reflects the Department’s estimate of products not subject to this investigation such as non-subject strip and sheet products in dimensions not covered by the product definition.

RESULTS OF THE INVESTIGATION

In conducting its investigation, the Department requested identified exporters and importers to provide sales and cost information necessary to determine the normal values and export prices of the subject goods. The dumping investigation covered all subject goods released into Canada during the period of investigation of November 1, 1997 to October 31, 1998.

Four exporters located in four countries, namely Slovakia, Spain, Turkey and Belgium, fully co-operated in this investigation.

Normal value and export price calculations for the exporters are discussed below. Where export price is less than the normal value, the difference is the margin of dumping. In this section, the margins of dumping are expressed as a percentage of normal value.

Borçelik çelik Sanayii ve Ticaret A.S. (Turkey)

Borçelik çelik Sanayii ve Ticaret A.S. (Borçelik) provided the Department with a complete submission. Verification meetings were conducted at the company's premises in Istanbul, Turkey, prior to the preliminary determination of dumping. All products exported to Canada were produced at Borçelik's plant in Gemlik, Turkey. A portion of the goods shipped to Canada were sold to an associated importer in Canada.

Subsequent to the preliminary determination, Borçelik made representations on issues pertaining to the establishment of normal value.

(a) Normal Value

As Borçelik had sufficient profitable domestic sales of like goods to unassociated customers, normal values were determined on the basis of the weighted average selling prices of these sales pursuant to section 15 of SIMA. Adjustments to domestic selling prices were made for qualitative differences pursuant to paragraph 5(a) of the Special Import Measures Regulations (SIMR) and for delivery costs as required pursuant to section 7 of the SIMR. Borçelik provided additional information with respect to differences in payment terms between the importers and the domestic customers, which resulted in changes in the adjustment made in this respect pursuant to paragraph 5(d) of the SIMR.

Information with respect to domestic sales functions and related expenses was provided after the preliminary determination which resulted in an adjustment for differences in trade level being allowed for the final determination pursuant to section 9 of the SIMR.

(b) Export Price

The subject goods exported to Canada by Borçelik were sold to both an associated and an arm’s length importer. For the preliminary determination, the export prices were estimated pursuant to section 24 of SIMA for the goods shipped to the two importers on the basis of the exporter's selling price less all costs, charges and expenses incurred in preparing the goods for shipment to Canada and resulting from the exportation and shipment of the goods.

For the final determination, the Department tested the reliability of the export prices between the exporter and the associated importer and found them to be unreliable for SIMA purposes. Therefore, the export prices for the associated importer were determined according to paragraph 25(1)(c) of SIMA based on its resale prices of the goods to unassociated customers

in Canada less all costs incurred in importing and selling the goods and an amount for profit. The amount for profit used was based on the profit made on sales by other vendors at the same trade level in the Canadian market, pursuant to paragraph 22(c) of the SIMR.

(c) Margin of Dumping

All the goods exported to Canada by Borcelik and imported during the period of investigation were reviewed and, for the final determination, 99% were found to have been dumped. The weighted average margin of dumping was 10% when expressed as a percentage of the normal value. The margins ranged from 1% to 19%.

Sollac, Aciers d’Usinor S.A. (Spain)

Sollac, Aciers d’Usinor S.A. (Sollac) provided the Department with a complete submission. Verification meetings were conducted at the company’s premises in Paris and

Fos-sur-Mer, France prior to the preliminary determination. All products were exported

to Canada by Sollac from a facility located in Sagunto, Spain, where subject goods were produced for Sollac by Siderurgica del Mediterràneo, S.A. (Sidmed). All goods were sold to an associated importer in Canada.

(a) Normal Value

(a) No changes to the normal values estimated for the preliminary determination were made for the final determination.

Where Sollac had sufficient profitable domestic sales of like goods to unassociated customers, normal values were determined on the basis of the weighted average selling prices of these sales pursuant to section 15 of SIMA. SIMR adjustments to domestic selling prices were made for qualitative differences pursuant to paragraph 5(a), for differences in payment terms pursuant to paragraph 5(d), for delivery costs pursuant to section 7, and for differences in trade level pursuant to section 9.

Where there were an insufficient number of acceptable sales of like goods in the domestic market, normal values were determined pursuant to paragraph 19(b) of SIMA, on the basis of the cost of production of the goods, selling, administrative and all other expenses, and an amount for profit. SIMR adjustments were made for differences in payment terms pursuant to paragraph 5(d) and for differences in trade level pursuant to section 9.

(b) Export Price

For the preliminary determination, export prices were estimated pursuant to section 24 of SIMA on the basis of the exporter's selling price less all costs, charges and expenses incurred in preparing the goods for shipment to Canada and resulting from the exportation and shipment of the goods.

Given the association between exporter and importer, the Department tested the reliability of the export prices and found them to be unreliable. For the final determination, export prices were determined according to paragraph 25(1)(c) of SIMA based on the associated importer’s resale prices of the goods to unassociated customers in Canada less all costs incurred in importing and selling the goods and an amount for profit. The amount for profit used was based on the profit made on sales by other vendors at the same trade level in the Canadian market, pursuant to paragraph 22(c) of the SIMR.

(c) Margin of Dumping

Of the goods exported to Canada by Sollac during the period of investigation, 93% were found to have been dumped. The weighted average margin of dumping was 13% when expressed as a percentage of normal value. The margins of dumping ranged from 1% to 27%.

VSZ Holding a.s. (Slovakia)

VSZ Holding a.s. (VSZ) provided the Department with a complete submission. Verification meetings were conducted at the company’s premises in Kosice, Slovakia, prior to the preliminary determination. All products exported to Canada were produced at VSZ’s mill in Kosice, Slovakia. All goods were sold to an unrelated Canadian importer.

(a) Normal Value

As VSZ had sufficient profitable domestic sales of like goods to unassociated customers, normal values were estimated on the basis of the weighted average selling prices of these sales for purposes of the preliminary determination pursuant to section 15 of SIMA with no adjustments.

For purposes of the final phase of the investigation, the exporter was requested to provide additional information so that an adjustment to the normal values could be made to account for more favourable payment terms accorded to the importer pursuant to paragraph 5(d) of the SIMR. Such information was provided by the exporter as requested.

(b) Export Price

Where possible, export prices were determined under section 24 of SIMA. In certain instances, however, the exporter’s selling price could not be determined because settlement between an intermediary party and the exporter had not been made. In these circumstances, the export price was determined pursuant to subsection 29(1) of SIMA on the basis of the normal value less a deduction equivalent to the margin of dumping found on other sales by VSZ for which export prices could be determined under section 24 of SIMA.

(c) Margin of Dumping

Of the goods exported to Canada by VSZ during the period of investigation, 100% were found to have been dumped. The weighted average margin of dumping was 24% when expressed as a percentage of normal value. The margins ranged from 16% to 29%.

Sidmar N.V. (Belgium)

Sidmar N.V. (Sidmar) provided the Department with a complete submission. Verification meetings were conducted at the company’s premises in Gent, Belgium, during the final phase of the investigation. All products exported to Canada were produced at Sidmar’s mill in Gent. All goods were sold to an associated importer in Canada.

(a) Normal Value

As Sidmar had sufficient profitable domestic sales of like goods to unassociated customers, normal values were determined on the basis of the weighted average selling prices of these sales pursuant to section 15 of SIMA. SIMR adjustments to domestic selling prices were made for qualitative differences pursuant to paragraph 5(a), for differences in payment terms pursuant to paragraph 5(d), for domestic discounts and rebates pursuant to section 6, for delivery costs pursuant to section 7, and for differences in trade level pursuant to section 9.

(b) Export Price

Given the association between exporter and importer, the Department tested the reliability of the export prices and found them to be reliable. Export prices were, therefore, determined pursuant to section 24 of SIMA on the basis of the exporter's selling price less all costs, charges and expenses incurred in preparing the goods for shipment to Canada and resulting from the exportation and shipment of the goods.

(c) Margin of Dumping

Of the goods exported to Canada by Sidmar during the period of investigation, 67% were found to have been dumped. The weighted average margin of dumping was 7% when expressed as a percentage of normal value. The margins of dumping ranged from 0.1% to 18%.

The Russian Federation (Russia)

The Department has traditionally viewed the economy of Russia as state-controlled and, therefore, it has never accepted domestic market selling prices in Russia as a reliable basis for determining normal values. For countries with state-controlled economies, section 20 of SIMA requires that normal values be established on a surrogate country basis.

It must be noted that two specific conditions must be met before the state-controlled economy provisions of the law become applicable. Firstly, the government of the country must have a monopoly or substantial monopoly of its export trade and, secondly, domestic prices must be substantially determined by the government of that country.

Since 1991, Russia has taken a number of measures to reform its economic structure, seeking to move from a state-controlled economy to a market economy. Accordingly, in recent investigations involving steel from Russia, the Department has requested information from the Russian government and exporters to determine whether sufficient progress had been made in economic reforms such that the steel sector should no longer be considered state-controlled.

In the current case, information was requested from the Russian government and exporters at the initiation of the investigation. The Department received full cooperation from the government. As well, the exporters provided complete responses to the section of the Request for Information dealing with the prevailing economic conditions in Russia. A complete analysis of the information provided was conducted before the final stage of the investigation. Information obtained by the Department from other sources was also reviewed.

The analysis revealed that the application of the state-controlled economy provisions of our legislation no longer applies, as the government of Russia does not have a monopoly or a substantial monopoly of its export trade in the steel sector. As such, normal values for Russian subject goods would be based on selling prices and costs in the Russian domestic market provided sufficient information was provided.

For this investigation, one of the Russian exporters, JSC Severstal, provided an extensive reply to the Department’s Request for Information and to a request for additional information. The company’s submission, however, was still considered incomplete. The other Russian exporter did not provide a response to the Request for Information.

(b) Normal Value

Sufficient information was not provided by the Russian exporters to permit the determination of normal value pursuant to section 15 or 19 of SIMA. Accordingly, normal values of Russian cold-rolled steel sheet were determined by the application of a 40% advance to the export price on the basis of a ministerial specification, pursuant to subsection 29(1) of SIMA. This advance was based on the highest margin of dumping found among all cooperating exporters to the investigation.

(c) Export Price

Export prices were determined pursuant to section 24 of SIMA on the basis of the importers’ purchase prices for the goods less costs, charges and expenses resulting from the shipment of the goods.

(d) Margin of Dumping

All of the goods exported to Canada by Russian exporters during the period of investigation were found to have been dumped. The weighted average margin of dumping was 29% when expressed as a percentage of normal value and represents the highest margin of dumping found among all cooperating exporters to the investigation.

All Other Exporters

All other exporters of subject goods to Canada either did not provide a response to the Department’s Request for Information or their submissions were incomplete. In such cases, normal value was determined by the application of a 40% advance to the export price on the basis of a ministerial specification, pursuant to subsection 29(1) of SIMA. This advance was based on the highest margin of dumping found among all cooperating exporters to the investigation.

A summary of the margins of dumping for the exporters in the named countries is contained in Appendix 6.

VOLUME OF DUMPED IMPORTS

Before making a final determination of dumping, the Deputy Minister must be satisfied that the actual or potential volumes of the dumped goods are not negligible. If the volume of dumped goods of a country is less than 3% of the total volume of the goods of the same description that are imported into Canada from all countries, the volume is considered to be negligible. However, if there are three or more countries, each of whose dumped goods represent less than 3% of total imports, but which collectively represent more than 7% of the total imports into Canada, the imports of these countries are not considered to be negligible.

Appendix 7 summarizes the volume of dumped imports of subject goods during the period November 1, 1997 to October 31, 1998.

Imports of dumped goods from Belgium, Russia and Slovakia, exceed the 3% per cent negligibility threshold. Dumped goods, however, from the remaining four countries, Argentina, New Zealand, Spain and Turkey, are respectively below the 3% threshold but collectively account for 8.28% of imports. Accordingly, none of the dumped imports from the named countries are considered to have been made in negligible quantities.

DECISION

The investigation revealed that the margins of dumping on the subject goods are not insignificant and that the actual volume of dumped goods is not negligible. Accordingly, on this date, pursuant to paragraph 41(1)(a) of SIMA, a final determination of dumping has been made with respect to certain cold-rolled steel sheet, originating in or exported from Argentina, Belgium, New Zealand, the Russian Federation, the Slovak Republic, Spain and Turkey.

FUTURE ACTION

The Canadian International Trade Tribunal's inquiry concerning the question of injury to the Canadian industry is continuing and the Tribunal will issue its finding by August 27, 1999.

Subject goods imported during the provisional period will continue to be assessed provisional duty as determined at the time of the preliminary determination. This provisional period began on the date of the preliminary determination, April 29, 1999, and will end on the date the Tribunal issues its finding.

If the Tribunal finds that the dumped goods have not caused injury and do not threaten to cause injury, all proceedings relating to this investigation will be terminated. In such a case, all provisional duty paid or security posted by importers will be returned and future importations will not be subject to anti-dumping duty.

If the Tribunal finds that the dumped goods have caused injury, the Department will determine the exact amount of anti-dumping duty owing on subject goods released from Customs' possession during the provisional period pursuant to section 55 of SIMA. If the provisional duty paid is in excess of the final amount of anti-dumping duty payable, the excess duty paid will be refunded. Importations released from Customs' possession after the date of the Tribunal's finding will be subject to anti-dumping duty equal to the margin of dumping, which is the amount by which the normal value exceeds the export price. If anti-dumping duty is payable, such duty is hereby demanded pursuant to section 11 of SIMA.

If the Tribunal finds that the dumped goods threaten to cause injury, all provisional duty paid or security posted by importers will be returned. However, importations released from Customs' possession after the date of the Tribunal's finding will be subject to anti-dumping duty equal to the margin of dumping. If anti-dumping duty is payable, such duty is hereby demanded pursuant to section 11 of SIMA.

Normal values for the subject goods have been provided to the cooperating exporters for the final determination. If there is a finding of injury, these values will come into effect the day after the Tribunal’s injury finding. Where normal values have not been issued, anti-dumping duty at a rate of 40% of the export price will be payable on importations of the subject goods. To avoid the application of an advance on export prices on their future shipments of subject goods, exporters can submit to the Department information required to permit the establishment of specific normal values for these products.

PUBLICATION

Notice of this final determination is being published in the Canada Gazette pursuant to paragraph 41(3)(a) of SIMA.

INFORMATION

This Statement of Reasons has been provided to persons directly interested in these proceedings. A free copy may be obtained upon request or on Internet at the address indicated below. For further information, please contact the following Revenue Canada officers by fax at

(613) 954-2612, or by telephone at:

Louis Nadon (613) 954-7381
John Rose (613) 954-7407

E-Mail Addresses:

Louis.Nadon@ms.rc.gc.ca
John.Rose@ms.rc.gc.ca

or at the following address:

Department of National Revenue
Anti-dumping and Countervailing Directorate
191 Laurier Avenue West
Ottawa, ON
K1A 0L5

Internet Address: http://www.rc.gc.ca/sima-lmsi/

R. Tait
Director General
Anti-dumping and Countervailing Directorate

APPENDIX 1 - EXPORTERS (PRODUCERS)

Siderar SAIC
Avenida Leandro N. Alem 1067 (1001)
Buenos Aires
Argentina

Sidmar N.V.
John Kennedylaan 51
B - 9042 Gent
Belgium

BHP New Zealand Steel Ltd.
Mission Bush Road, Glenbrook
South Auckland
New Zealand

JSC Severstal
30 Mira Street
Cherepovets, Vologoda Region
162600
Russia

Novo Lipetsk Met Kombinat
(Lipetsk Iron & Steel Works)
2 Metallurgi Square
398040 Lipetsk 5
Russia

VSZ Holding a.s.
044 54 Kosice
Slovak Republic (Slovensko)

Sollac, Aciers d’Usinor S.A.
Immeuble “La Pacific”
La Défense 7, 11 - 13 Cours Valmy
92800 Puteaux, Paris
France

Borçelik çelik Sanayii ve Ticaret A.S.
Meclisi Mebusan Cad. 103
Salipazari 80040, Istanbul
Turkey

Eregli Demir ve Celik Fabrikalari
67330 K.D.Z. / Eregli
Turkey

APPENDIX 1 - OTHER PARTIES (VENDORS/AGENTS) TO THE TRANSACTIONS

Marubeni America Corporation
450 Lexington Avenue, 35th Floor
New York, NY 10017
U.S.A.

Saltzgitter Handel GmbH
Hans-Hermann Söhler
Schwannstr. 12
40476 Düsseldorf
Germany

Klöckner Steel Trade GmbH Stahl
Neudorfer StraBe 3-5
D-47057 Duisburg
Germany

Trans-World Steel Ltd.
Trans-World House
100 City Road
London EC1Y 2BJ
England

Trans Commodities AG
Gewerstrasse 11
6330 Cham
Switzerland

TradeArbed Inc.
825 Third Avenue
New York, NY 10022
U.S.A.

Lee Steel Corp.
6400 Varney St.
Detroit, Michigan 48211
U.S.A.

Pollan Trade Inc.
26 Broadway, Suite 1375
New York, NY 10004
U.S.A.

Ekinciler Dis Ticaret A.S.
Don Buyukdere Cad. 197
80/94 Levent, Istanbul
Turkey

APPENDIX 2 - IMPORTERS

Aciers Francosteel Canada Inc.
5890 Monkland Ave., Suite 300
Montréal, Quebec
H4A 1G2

BHP Steel Canada Inc.
740 Nicola Street
Vancouver, British Columbia
V6G 2C2

Canadian Klockner, A Div.
of Klockner Namasco Corp.
l0 Milner Business Crt.
Suite 512
Scarborough, Ontario
M1B 3C6

Imco International Inc.
25 Main Street W.
Suite 725
Hamilton, Ontario
L8P 1H1

J.B. Multinational Trade Inc.
4783 Sherbrooke St. W.
Suite 1
Westmount, Quebec
H3Z 1G5

Nova Steel Ltd.
2175 Hymus Blvd.
Dorval, Quebec
H9P 1J8

Russel Metals Inc.
3101 Hawthorne Rd.
Ottawa, Ontario
K1G 3V8

Saltzgitter Trade Inc.
1333 W. Broadway
Suite 1444
Vancouver, British Columbia
V6H 4C1

Slovcan Steel Limited
1200 Sheppard Ave. East
Suite 1102,
Toronto, Ontario
M2K 2S5

Stelco Inc.
Stelco Tower
P.O. 2030
Hamilton, Ontario
L8N 3T1

Thyssen Canada Limited
2560 Matheson Blvd.
Suite 425
Mississauga, Ontario
L4W 4Y9

TradeArbed Canada Inc.
390 Brant Street
Suite 300
Burlington, Ontario
L7R 4J4

Venture Steel Inc.
60 Disco Rd.
Etobicoke, Ontario
M9W 1L8

APPENDIX 3

ADDITIONAL PRODUCT INFORMATION

The products referred to below are illustrative of the types of cold-rolled steel sheet products falling within the above-noted definition:

• commercial steel (ASTM A366/A366M)
• sheet for porcelain enameling (ASTM A424/A424A, Type 1)
• structural (physical) steel (ASTM A611/A611M)
• drawing quality steel (ASTM A620/620M formerly ASTM A619/A619M and A620/A620M)
• deep drawing steel - special killed (ASTM A963/A963M, formerly A620/A620M)
• extra deep drawing quality sheet/interstitial free (ASTM A969/A969M formerly A620/A620M)
• intermediate temper
• full hard temper
• high-strength low-alloy including;
• - ASTM A606
• - ASTM A607/A607M, Class 1, Type 1 or equivalent
• - ASTM A607/A607M, Class 2, Type 1 or equivalent
• - ASTM A715

Production Process

Cold-rolled sheet steel products begin as hot-rolled pickled and oiled coils. The hot-rolled product is produced by rolling an incoming hot slab 100 mm to 225 mm thick on a continuous strip mill. This slab is progressively rolled to a coil of the required sheet thickness. These coils are then "cold-reduced" by subjecting them to a cold reduction process on a continuous or reversing mill under tension and pressure. This process produces a steel which is in a highly strained condition with very little ductility and is said to be "full hard". The amount of cold reduction varies between 40% and 80%. Usually, the steel is annealed at temperatures above 650·C (1200·F) to re-crystallize the highly stressed grains in the steel. It is then classified as being in a "dead soft" condition.

Temper rolling normally follows annealing and extends the strip by about 1% in length. This results in improved sheet shape, proper surface finish, and a reduction in the tendency to flute and/or stretcher strain during fabrication.

Standard cold-rolled finishes are matte, tubular bright, and commercial bright. The most common is matte, which is produced by temper rolling with rolls which have been roughened by mechanical or chemical means to various degrees of surface texture.

Tubular bright is a moderately bright finish produced on ground rolls. It is primarily intended to be used in the manufacture of tubing, but is not suitable for plating. The commercial bright finish is attained by temper rolling on smooth ground rolls. With additional surface preparation, commercial bright finish can be used for plating.

Product Applications

Some of the more common applications for cold-rolled steel sheet include:

• household appliances,
• automotive and truck parts,
• drums and pails,
• tubing,
• strapping,
• office furniture,
• coil coating and
• re-rolling for further manufacture.

APPENDIX 4

LIST OF HARMONIZED SYSTEM TARIFF AND CLASSIFICATION NUMBERS

Imports of subject goods fall under tariff headings:

• 7209 - flat-rolled products of iron or non-alloy steel, of a width of 600 mm (23.62”) or more, cold-rolled, not clad, plated or coated.
• 7211 - flat-rolled products of iron or non-alloy steel, of a width of less than 600 mm (23.62”), not clad, plated or coated

Subject goods may include all products falling under the 7209 tariff heading with the exception of sheets or coils wider than 2,032 mm (greater than 80”) or product which has been perforated under classification number 7209.90.00.10.

For tariff heading 7211 products, coverage is limited to cold-rolled products less than 600 mm wide falling under tariff subheadings 7211.23, 7211.29 and 7211.90 with the exception of perforated product under classification number 7211.90.90.10. It is noted that the excluded cold-rolled strip made to ASTM A109/A109M, A682/A682M and A684/A684M specifications could appear in the 7211 tariff heading.

RELEVANT SECTIONS OF THE 1998 CUSTOMS TARIFF

FOR THE COLD-ROLLED STEEL SHEET INVESTIGATION

Tariff # Description

7209 Flat-rolled products of iron or non-alloy steel, of a width of 600 mm or more, cold rolled (cold-reduced) not clad, plated or coated.

------- In coils; not further worked than cold-rolled

7209.15.00 Of a thickness of 3 mm or more

• 10 Of a width of 600 mm but not exceeding 1,525 mm
• 20 Of a width exceeding 1,525 mm but not exceeding 2,030 mm
• 30 Of a width exceeding 2,030 mm

7209.16 Of a thickness exceeding 1 mm but less than 3 mm

7209.16.10 ----- Carbon steel sheet, to specification SAE J1392 980 XF, for use in the manufacture of automotive mechanical scissor jacks or handles thereof

• 10 Of a width of 600 mm but not exceeding 1,525 mm
• 20 Of a width exceeding 1,525 mm but not exceeding 2,030 mm
• 30 Of a width exceeding 2,030 mm

7209.16.91 ----- Having a minimum yield point of 275 MPa

• 10 Of a width of 600 mm but not exceeding 1,525 mm
• 20 Of a width exceeding 1,525 mm but not exceeding 2,030 mm
• 30 Of a width exceeding 2,030 mm

7209.16.99 ----- Other

• 10 Of a width of 600 mm but not exceeding 1,525 mm
• 20 Of a width exceeding 1,525 mm but not exceeding 2,030 mm
• 30 Of a width exceeding 2,030 mm

7209.17 Of a thickness of 0.5 mm or more but not exceeding 1 mm

7209.17.10 ----- Of motor lamination steel, having a maximum core loss of 9.54 W/kg/mm, measured at a frequency of 60 Hz and an induction of 1.5 T to specification ASTM A34 or A343, for use in the manufacture of magnetic core laminations

• 10 Of a width of 600 mm but not exceeding 1,525 mm
• 20 Of a width exceeding 1,525 mm but not exceeding 2,030 mm
• 30 Of a width exceeding 2,030 mm

7209.17.91 ----- Having a minimum yield point of 275 MPa

• 10 Of a width of 600 mm but not exceeding 1,525 mm
• 20 Of a width exceeding 1,525 mm but not exceeding 2,030 mm
• 30 Of a width exceeding 2,030 mm

7209.17.99 ----- Other

• 10 Of a width of 600 mm but not exceeding 1,525 mm
• 20 Of a width exceeding 1,525 mm but not exceeding 2,030 mm
• 30 Of a width exceeding 2,030 mm

7209.18 Of a thickness of less than 0.5 mm

7209.18.10 ----- Having a minimum yield point of 275 MPa, for use in the manufacture of thermionic, cold cathode or photo-cathode valves and tubes;

Of motor lamination steel, having a maximum core loss of 9.54 W/kg/mm, measured at a frequency of 60 Hz and an induction of 1.5 T to specification ASTM A34 or A343, for use in the manufacture of magnetic core laminations

• 10 Of a width of 600 mm but not exceeding 1,525 mm
• 20 Of a width exceeding 1,525 mm but not exceeding 2,030 mm
• 30 Of a width exceeding 2,030 mm

7209.18.91 ----- Other -- Having a minimum yield point of 275 MPa

• 10 Of a width of 600 mm but not exceeding 1,525 mm
• 20 Of a width exceeding 1,525 mm but not exceeding 2,030 mm
• 30 Of a width exceeding 2,030 mm

7209.18.99 ----- Other

• 10 Of a width of 600 mm but not exceeding 1,525 mm
• 20 Of a width exceeding 1,525 mm but not exceeding 2,030 mm
• 30 Of a width exceeding 2,030 mm

Not in coils, not further worked than cold-rolled (cold-reduced)

7209.25.00 Of a thickness of 3 mm or more

• 10 Of a width of 600 mm but not exceeding 1,525 mm
• 20 Of a width exceeding 1,525 mm but not exceeding 2,030 mm
• 30 Of a width exceeding 2,030 mm

7209.26.00 Of a thickness exceeding 1 mm but less than 3 mm

• 10 Of a width of 600 mm but not exceeding 1,525 mm
• 20 Of a width exceeding 1,525 mm but not exceeding 2,030 mm
• 30 Of a width exceeding 2,030 mm

7209.27.00 Of a thickness of 0.5 mm or more but not exceeding 1 mm

• 10 Of a width of 600 mm but not exceeding 1,525 mm
• 20 Of a width exceeding 1,525 mm but not exceeding 2,030 mm
• 30 Of a width exceeding 2,030 mm

7209.28.00 Of a thickness of less than 0.5 mm

• 10 Of a width of 600 mm but not exceeding 1,525 mm
• 20 Of a width exceeding 1,525 mm but not exceeding 2,030 mm
• 30 Of a width exceeding 2,030 mm

7209.90.00 Other

- 90 Other

7211 Flat-rolled products or iron or non-alloy steel, of a width of less than 600 mm not clad, plated or coated

----- Not further worked than cold-rolled (cold-reduced):

7211.23 ----- Containing by weight less than 0.25% of carbon

7211.23.10 - 00 ----- Hardened, tempered or ground, not further manufactured than cut to shape, without indented edges, for use in the manufacture of saws;

Of a thickness of less than 3 mm and having a minimum yield point of 275 MPa or a thickness of 3 mm or more and having a minimum yield point of 355 MPa, the foregoing for use in the manufacture of:

Knitting machine needles;

Thermionic, cold cathode or photo-cathode valves and tubes

7211.23.90 - 00 ----- Other

7211.29 ----- Other

7211.29.10 - 00 ----- Without indented edges, not hardened, tempered nor ground, for use in the manufacture of saws; Of a thickness of less than 3 mm and having a minimum yield point of 275 Mpa or a thickness of 3 mm or more and having a minimum yield point of 355 Mpa, the foregoing for use in the manufacture of:

Knitting machine needles;

Thermionic, cold cathode or photo-cathode valves and tubes

7211.29.20 - 00 ----- High carbon steel strip, to specification SAE 1080, hardened and tempered, polished, of a hardness of RC 45/47, with sheared edges, in coils of a weight not exceeding 1 tonne, for use in the manufacture of power trowel blades

[Effective from January 1, 1998 to December 31, 1998]

7211.29.90 - 00 ----- Other

7211.90 ----- Other

7211.90.10 - 00 ----- Of a thickness not exceeding 5 mm, with cutting edge on one or both sides, for use in the manufacture of cutting dies;

Without indented edges, not hardened, tempered nor ground, for use in the manufacture of saws

7211.90.90 - 90 ------ Other

APPENDIX 5

APPARENT CANADIAN MARKET

COLD-ROLLED STEEL SHEET

1993 TO OCTOBER 1998

(All Data in Net Tons)

	1993	1994	1995	1996	1997	10 Months 1998
Domestic Shipments	1,213,847	1,349,858	1,335,653	1,484,568	1,574,345	1,255,806
IMPORTS (*): Argentina Belgium New Zealand Russia Slovakia Spain Turkey All Named Imports Other Imports Total Imports	748 947 7,813 9,508 238,321 247,829	223 5,086 46,536 15,942 30,054 97,841 344,722 442,563	490 4,876 11,949 6,432 11,901 35,648 351,973 387,621	3,996 5,367 360 877 26,603 214 37,417 359,150 396,567	5,964 14,318 7,881 64,279 39,355 26,493 13,839 172,129 426,889 599,018	7,129 16,346 5,317 15,428 19,617 4,337 12,236 80,410 343,851 424,261
TOTAL MARKET	1,461,676	1,792,421	1,723,274	1,881,135	2,173,363	1,680,067
MARKET SHARES: Domestic Named Countries Other Imports Total Imports	83.0% 0.7% 16.3% 17.0%	75.3% 5.5% 19.2% 24.7%	77.5% 2.1% 20.4% 22.5%	78.9% 2.0% 19.1% 21.1%	72.4% 7.9% 19.7% 27.6%	74.7% 4.8% 20.5% 25.3%

NOTE - * - Reflects all tariff items pertaining to the subject cold-rolled steel sheet, and as such, includes imports which are not like goods to those under investigation.

SOURCES: - Domestic shipments and imports for 1993 through 1997 based on Statistics Canada data as reported by complainants.

• Domestic shipments for 1998 based on data from Canadian producers.
• Imports for 1998 based on the Department’s internal information systems.

APPENDIX 6

MARGINS OF DUMPING BY EXPORTER/COUNTRY

CERTAIN COLD-ROLLED STEEL SHEET

(November 1, 1997 to October 31, 1998)

Country/ Exporter	Quantity of Goods Dumped (%)	(1) Margin of Dumping Range	(2) Weighted Average Margin of Dumping
Argentina - All exporters Belgium - Sidmar New Zealand - All exporters Russia - All exporters Slovakia - VSZ Spain - Sollac Turkey - Borçelik Turkey - All other exporters All Other Exporters of Goods Originating in the Named Countries	100% 67% 100% 100% 100% 93% 99% 100% 100%	29% 0.1% to 18% 29% 29% 16% to 29% 1% to 27% 1% to 19% 29% 29%	29% 7% 29% 29% 24% 13% 10% 29% 29%

NOTES:(1) Expressed as a percentage of normal value for the dumped goods only.

(2) Expressed as a percentage of total normal value for all imported goods (dumped and non-dumped)

APPENDIX 7

IMPORT VOLUMES

CERTAIN COLD-ROLLED STEEL SHEET

(November 1, 1997 to October 31, 1998)

Country of Export	Total Volume Imported Net Tons	Per cent of Total Imports	Total Volume Dumped Net Tons	Dumped Imports as a Per Cent of Total Imports *
Argentina Belgium New Zealand Russia Slovakia Spain Turkey Total - Named Countries Total - Other Countries TOTAL IMPORTS	9,910 22,083 6,172 24,122 32,688 7,714 12,499 115,188 316,496 431,684	2.30 % 5.12 % 1.43 % 5.59 % 7.57 % 1.79 % 2.90 % 26.68 %	9,910 14,818 6,172 24,122 32,688 7,202 12,435 107,347	2.30 % 3.43 % 1.43 % 5.59 % 7.57 % 1.67 % 2.88 % 24.87 %

NOTE * - For the 12-month period of investigation (November 1, 1997 to October 31, 1998), the total volume of dumped imports from Argentina, New Zealand, Spain and Turkey was 8.27 % of total imports.

Sources for named countries: - Department’s internal information systems.

• Customs entries.
• importer and exporter submissions.

Source for other countries: - Department’s internal information systems and Customs entries, adjusted for imports which are not like goods to those under investigation.