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Final Determination - Cold-rolled Steel Sheet Products

OTTAWA, September 10, 2001

4258-115
AD/1265

STATEMENT OF REASONS

Concerning the making of a final determination with respect to

CERTAIN COLD-ROLLED STEEL SHEET PRODUCTS, ORIGINATING IN OR EXPORTED FROM BRAZIL, CHINESE TAIPEI, THE FORMER YUGOSLAV REPUBLIC OF MACEDONIA, ITALY, LUXEMBOURG, MALAYSIA, THE PEOPLE’S REPUBLIC OF CHINA, THE REPUBLIC OF KOREA AND SOUTH AFRICA

DECISION

Pursuant to paragraph 41(1)(a) of the Special Import Measures Act, the Commissioner of Customs and Revenue has on this date, made a final determination concerning the dumping of certain cold-rolled steel sheet products, originating in or exported from Brazil, Chinese Taipei, the Former Yugoslav Republic of Macedonia, Italy, Luxembourg, Malaysia, the People’s Republic of China, the Republic of Korea and South Africa.

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

Summary

On March 12, 2001, the Commissioner of Customs and Revenue (Commissioner) initiated an investigation respecting the alleged injurious dumping into Canada of certain cold-rolled steel sheet products, originating in or exported from Brazil, Chinese Taipei, the Former Yugoslav Republic of Macedonia (Macedonia), Italy, Luxembourg, Malaysia, the People’s Republic of China (China), the Republic of Korea (Korea) and South Africa. The investigation was initiated in response to a complaint filed by Dofasco Inc. of Hamilton, Ontario.

On May 11, 2001, the Canadian International Trade Tribunal (Tribunal) made a preliminary determination that the evidence disclosed a reasonable indication that the alleged dumping of the subject goods has caused injury to the domestic industry. The Canada Customs and Revenue Agency (CCRA) subsequently made a preliminary determination of dumping on June 11, 2001.

Based on the results of the CCRA’s investigation, the Commissioner is satisfied that the subject goods have been dumped and that the margins of dumping are not insignificant. Accordingly, on September 10, 2001, the Commissioner has made a final determination of dumping in accordance with paragraph 41(1)(a) of the Special Import Measures Act (SIMA).

The Tribunal’s inquiry concerning the question of injury to the Canadian industry is continuing. Provisional duties will continue to be assessed on importations of the subject goods originating in or exported from the named countries, until the Tribunal issues its finding.

Interested Parties

Complainant

The complainant, Dofasco Inc. (Dofasco) of Hamilton, Ontario, is one of four producers of cold-rolled steel sheet products in Canada. The other producers are Algoma Steel Inc. (Algoma) of Sault Ste. Marie, Ontario, Ispat Sidbec Inc. (Sidbec) of Montreal, Quebec, and Stelco Inc. (Stelco) of Hamilton, Ontario. All have expressed support for the complaint in letters to the CCRA.

Exporters

The CCRA has identified 57 exporters of the subject goods during the period of investigation (January 1 to December 31, 2000).

Importers

The CCRA has identified 48 importers of the subject goods during the period of investigation (January 1 to December 31, 2000).

Background

The CCRA is currently enforcing a 1999 injury finding of the Tribunal concerning dumped cold-rolled steel sheet products, originating in or exported from Belgium, the Russian Federation, the Slovak Republic and Turkey.

In the current investigation, Dofasco filed the complaint on February 19, 2001, following discussions and meetings with the CCRA. Letters of support for the complaint were received from the three other Canadian producers. On February 26, 2001, the CCRA informed Dofasco that its complaint was properly documented and notified the governments of the named countries that a properly documented complaint had been filed.

On March 12, 2001, the Commissioner initiated the investigation into the alleged dumping of the subject goods from the named countries. On March 13, 2001, the Tribunal initiated a preliminary injury inquiry into whether the evidence disclosed a reasonable indication of injury, retardation or threat of injury caused by the dumping of the goods. On May 11, 2001, the Tribunal concluded that the evidence disclosed a reasonable indication that the alleged dumping has caused injury to the domestic industry.

On June 11, 2001, the Commissioner made a preliminary determination of dumping with respect to the subject goods and provisional duties have been in place since that date.

PRODUCT INFORMATION

Product 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 thicknesses from 0.014 inches to 0.142 inches (0.35 mm to 3.61 mm) inclusive, originating in or exported from Brazil, Chinese Taipei, the Former Yugoslav Republic of Macedonia, Italy, Luxembourg, Malaysia, the People’s Republic of China, the Republic of Korea and South Africa, excluding the following:

• Cold-rolled steel sheet product for use in the manufacture of passenger automobiles, buses, trucks, ambulances or hearses or chassis therefor, or parts thereof, accessories or parts therof;
• Full hard (i.e., not annealed or tempered) cold-rolled steel sheet product of carbon steel (including high-strength low-alloy steel) for use in the production in Canada of corrosion-resistant steel sheet; and
• Cold-rolled steel sheet product of carbon steel (including high strength low-alloy steel) for use in the production in Canada of tin plate or pre-painted steel.

Product Information

For purposes of clarity, cold-rolled steel sheet 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.

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

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

• commercial steel (ASTM A366/A366M),
• 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 620/A620M),
• sheet for porcelain enamelling (ASTM A424/A424A, Type 1),
• structural (physical) steel (ASTM A611/A611M),
• 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,
• motor lamination qualities – cold-rolled carbon grades used to produce stamped parts for magnetic applications such as motors, transformers and ballasts.

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 strip in cut lengths or coils finished to closer tolerances than cold-rolled steel sheets and which have a specific temper, edge and finish, a maximum thickness of 0.2499 inches (6 mm) and in widths from 0.5 inch (12.5 mm) to 23 15/16 inches (600 mm).

Production Process

Cold-rolled steel sheet 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 steel that 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 per cent and 80 per cent. 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 per cent 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 that 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,
• drums and pails,
• tubing, and
• office furniture.

Classification of Imports

The following are the Harmonized System classification numbers, under which the subject cold-rolled steel sheet products, as defined, may be classified:

7209.15.00.10
7209.17.10.20
7209.18.91.30
7209.28.00.10
7209.15.00.20
7209.17.10.30
7209.18.99.10
7209.28.00.20
7209.15.00.30
7209.17.91.10
7209.18.99.20
7209.28.00.30
7209.16.10.10
7209.17.91.20
7209.18.99.30
7209.90.00.90
7209.16.10.20
7209.17.91.30
7209.25.00.10
7211.23.10.00
7209.16.10.30
7209.17.99.10
7209.25.00.20
7211.23.90.00
7209.16.91.10
7209.17.99.20
7209.25.00.30
7211.29.10.00
7209.16.91.20
7209.17.99.30
7209.26.00.10
7211.29.90.00
7209.16.91.30
7209.18.10.10
7209.26.00.20
7211.90.10.00
7209.16.99.10
7209.18.10.20
7209.26.00.30
7211.90.90.90
7209.16.99.20
7209.18.10.30
7209.27.00.10
9959.00.00
7209.16.99.30
7209.18.91.10
7209.27.00.20
7209.17.10.10
7209.18.91.20
7209.27.00.30

Canadian Industry

As noted earlier, there are four Canadian producers of the subject goods, Algoma, Dofasco, Sidbec and Stelco. There have been no significant changes in the structure of the Canadian industry since the CCRA initiated this investigation.

Canadian Market

The apparent domestic market for cold-rolled steel sheet products is comprised of three distinct sales sectors; the automotive end-user sector, the non-automotive end-user sector and the service centre sector. The complaint relates to the latter two market sectors. The volumes of the apparent Canadian market for the subject goods during the period of investigation from January 1, 2000 to December 31, 2000, are contained in Appendix 1.

At the time of initiation of the investigation, the apparent Canadian market for the subject goods was determined by the complainant using Statistics Canada information and domestic producers’ data. Based on other information available to the CCRA, the complainant's estimates were found to be reasonable.

As a result of further analysis of Customs import data and information obtained from the exporters and importers during the investigation, the apparent Canadian market was adjusted to reflect the actual volumes of subject goods that entered Canada during the period of investigation, from Brazil, Luxembourg, Korea and South Africa and for like goods from the United States of America (United States).

Subject Countries

In the case of subject goods from Brazil, the investigation revealed that a quantity of subject goods was misclassified on import documentation as hot-rolled coils, and was, therefore, added to the exports of subject goods from Brazil for the preliminary determination of dumping. The volume of subject goods was also increased to reflect the actual tonnage shipped by the three cooperating Brazilian exporters, which entered Canada during the period of investigation.

The volume of subject goods exported from Brazil during the period of investigation was reported to be 97,327 net tons in the Statement of Reasons issued for the preliminary determination. This volume was significantly higher than the 59,271 net tons estimated at the time of the initiation of the investigation. As a result of further investigation and analysis of information, it was determined, that of the volume reported at the preliminary determination, 22,617 net tons were imported for use in producing automotive parts and are, therefore, not subject goods. The volume of subject goods from Brazil, which entered Canada during the period of investigation, was reduced, accordingly, to 74,710 net tons.

The volume of subject goods from Luxembourg increased as a result of the investigation from the estimate of 3,577 net tons at the initiation of the investigation. The Statement of Reasons for the preliminary determination reflected the actual tonnage of 4,082 net tons of subject goods imported from that country during the period of investigation.

The volume of subject goods from Korea decreased as a result of the investigation. The CCRA investigated claims that certain cold-rolled steel sheet products from Korea, produced by POSCO, were imported solely for use in producing automotive parts. The investigation confirmed that the imports in question were used to produce automotive parts. Therefore, the import volume of subject goods from Korea decreased from that estimated at the initiation. The tonnage of subject goods imported from that country during the period of investigation was 61,505 net tons.

The volume of subject goods from South Africa increased marginally as a result of the investigation. The volume of imports from that country decreased from the estimate at the initiation. For the preliminary determination, the volume reported in the Statement of Reasons was based on the exporter’s submission. Upon verification, this volume has marginally increased as a result of additional information provided by the exporter concerning its exports to Canada.

Non-Subject Countries

Although like goods from unnamed countries are not subject to this investigation, it is necessary to determine the import volumes of certain cold-rolled steel sheet products from these countries in order to determine the apparent Canadian market for the goods and to determine whether the volume of dumped imports from any named country is negligible. Prior to making a preliminary determination, the Commissioner must be satisfied that the actual and potential volume of dumped goods is not negligible.

After the preliminary determination of dumping, the Tribunal assumes this responsibility. In accordance with subsection 42(4.1) of SIMA, if the Tribunal determines that the volume of dumped goods from a country is negligible, the Tribunal shall terminate its inquiry in respect of those goods.

• United States of America

In determining the imports of like goods from the United States, imports of full hard cold-rolled steel for galvanizing were excluded from the import database. Questionnaires were sent to 71 importers whose imports accounted for 93 per cent of the like goods that were imported from the United States during the period of investigation. These importers were asked to provide import volumes of both like goods and goods that were excluded by definition.

Responses were received from 26 companies. Based on these responses, percentages of like goods and excluded goods were determined. These percentages were then applied to the total imports of like goods remaining after the excluded goods (i.e. cold-rolled steel sheet for galvanizing), were removed from the database in order to arrive at the estimated imports of like goods from the United States.

For the purposes of the preliminary determination, certain imports were excluded because they did not compete in the same market as the subject goods due to their high cost. However, upon further consideration it was determined that these products did fall within the definition of subject goods and therefore, have been included in determining the apparent Canadian market for the subject goods.

• Other Countries

The estimated volume of like goods from other countries remains unchanged as a result of the investigation. The estimated imports from other countries at initiation of this investigation were based on Exhibit 5 of the complaint. In estimating the imports from other countries, the complainant used Statistics Canada data and information on import permits maintained by the Department of Foreign Affairs and International Trade.

As stated in Exhibit 5 of the complaint, the import volume was reduced by imports of full hard cold-rolled steel sheet products from France, which were being imported into Canada for use in the manufacture of corrosion resistant steel sheet. Based on its knowledge of the Canadian market for cold-rolled steel sheet products, a review and analysis of its internal import database, a sampling of Customs documentation and import permit information, the CCRA found that the cold-rolled steel sheet products that entered Canada from France during the period of investigation were non-subject goods and the complainant’s estimate for the volume of subject goods imported from other countries to be reasonable.

THE INVESTIGATION

In conducting its investigation, the CCRA 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 January 1 to December 31, 2000.

The governments of China and Macedonia were also asked to provide information to determine whether their steel sectors could be considered to be operating under market economy conditions or whether the conditions of section 20 of SIMA are applicable. Section 20 is used for the determination of normal values when the government of the country of export has a monopoly of its export trade and substantially determines domestic prices in respect of the goods under investigation. When section 20 is applicable, normal values are generally determined on the basis of overall profitable domestic sales or the full cost of the goods plus an amount for profit in a surrogate country.

Responses were received from both governments. The results of the investigation with respect to these two countries are contained in the sections dealing specifically with each country.

Three exporters located in Brazil and one exporter located in each of the countries of China, Luxembourg, Malaysia, Korea and South Africa provided timely submissions. After the date of the preliminary determination, one company in Chinese Taipei provided a complete response to the CCRA’s request for information. For this investigation, on-site verification visits were conducted in Brazil, Luxembourg and South Africa.

Normal values are generally based on the domestic selling prices of the goods in the country of export or on the full cost of producing and selling the goods plus an amount for profit. In the absence of such data, the Minister of National Revenue must specify the manner for the determination of the normal values.

The export price of goods shipped to Canada is the lesser of the exporter’s selling price or the importer’s purchase price, less all costs, charges and expenses resulting from the exportation of the goods. When the export price is less than the normal value, the difference is the margin of dumping. In this section, margins of dumping are expressed as a percentage of export price.

The determination of normal values, export prices and margins of dumping are discussed below. For exporters that did not cooperate or did not provide a complete response to the request for information, the normal values of the goods were determined by ministerial specification under section 29 of SIMA and are based on the export price of the goods advanced by 69.14 per cent. This advance represents the highest margin of dumping, excluding anomalies, found in this investigation for a cooperative exporter, expressed as a percentage of the export price.

Brazil

Submissions were received from three exporters located in Brazil – Companhia Siderurgica Nacional (CSN), Cia Siderurgica Paulista Cosipa (Cosipa) and Usiminas Siderurgicas de Minas Gerais S.A. (Usiminas). Verification visits were conducted at the premises of the three Brazilian exporters during the preliminary determination phase of the investigation.

• CSN

Normal Value - CSN had acceptable sales of like goods in its domestic market. Normal values were based on the weighted average selling price of domestic sales of like goods to unrelated customers, pursuant to section 15 of SIMA. Special Import Measures Regulations (SIMR) adjustments to domestic selling prices were made to account for qualitative differences pursuant to section 5, for delivery costs pursuant to section 7 and for taxes and duties pursuant to section 10.

Where there were insufficient acceptable sales of like goods in the domestic market to form a proper comparison with the exported goods as the sales did not meet the profitability requirements of SIMA, 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 costs, and a reasonable amount for profit under subparagraph 11(1)(b)(i) of SIMR, using the weighted average profit made on domestic sales of like goods.

Export Price - As the goods were sold to unrelated importers in Canada, export prices were determined pursuant to section 24 of SIMA on the basis of the exporter's ex-factory selling price.

Margin of Dumping - For the goods exported by CSN, which entered Canada during the period of investigation, 77.04 per cent were found to have been dumped. The margins of dumping of the dumped goods as a percentage of export price ranged from 0.15 per cent to 47.68 per cent. The overall weighted average margin of dumping for all goods is 9.73 per cent.

• Cosipa

Normal Value - Cosipa had acceptable sales of like goods in its domestic market. Normal values were determined on the basis of the weighted average selling price of domestic sales of like goods to unrelated customers, pursuant to section 15 of SIMA. SIMR adjustments to domestic selling prices were made to account for qualitative differences pursuant to section 5, for delivery costs pursuant to section 7 and for taxes and duties pursuant to section 10.

Where a certain product was only sold to a single customer and consequently, there were insufficient acceptable sales of like goods in the domestic market to form a proper comparison with the exported goods, 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 costs, and a reasonable amount for profit under subparagraph 11(1)(b)(ii) of SIMR, using the weighted average profit made on domestic sales of goods of the same general category as the goods sold to the importer in Canada.

Export Price - As the goods were sold to unrelated importers in Canada, export prices were determined pursuant to section 24 of SIMA on the basis of the exporter's ex-factory selling price.

Margin of Dumping - For the goods exported by Cosipa, which entered Canada during the period of investigation, 86.79 per cent were found to have been dumped. The margins of dumping of the dumped goods as a percentage of the export price ranged from 0.25 per cent to 28.06 per cent. The overall weighted average margin of dumping for all goods is 11.53 per cent.

• Usiminas

Normal Value - Usiminas had acceptable sales of like goods in its domestic market. Normal values were determined on the basis of the weighted average selling price of domestic sales of like goods to unrelated customers, pursuant to section 15 of SIMA. SIMR adjustments to domestic selling prices were made to account for differences in quality and credit terms pursuant to section 5, for delivery costs pursuant to section 7 and for taxes and duties pursuant to section 10.

Where a certain product was only sold to a single customer and consequently, there were insufficient acceptable sales of like goods in the domestic market to form a proper comparison with the exported goods, 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 costs, and a reasonable amount for profit under subparagraph 11(1)(b)(i) of SIMR, using the weighted average profit made on domestic sales of goods of the same general category as the goods sold to the importer in Canada.

Export Price - As the goods were sold to unrelated importers in Canada, export prices were determined pursuant to section 24 of SIMA on the basis of the exporter's ex-factory selling price.

Margin of Dumping - For the goods exported by Usiminas, which entered Canada during the period of investigation, 84.09 per cent were found to have been dumped. The margins of dumping of the dumped goods as a percentage of export price ranged from 0.47 per cent to 48.70 per cent. The overall weighted average margin of dumping for all goods is 10.43 per cent.

• Other Exporters

For imports of subject goods from other exporters located in Brazil who did not respond to the CCRA’s request for information, normal values were determined by a ministerial specification under section 29 of SIMA and are based on the export price advanced by 69.14 per cent. This advance is based on the highest margin of dumping, excluding anomalies, found in this investigation for a cooperative exporter.

During the period of investigation, 100 per cent of the subject goods sold or imported into Canada from such exporters were found to be dumped. The weighted average margin of dumping as a percentage of export price was 69.14 per cent.

• Country Summary

In summary, 82.56 per cent of the goods imported from Brazil during the period of investigation were found to have been dumped. The margins of dumping of the dumped goods as a percentage of export price ranged from 0.15 per cent to 69.14 per cent. The overall weighted average margin of dumping for all goods is 10.71 per cent.

China

Based on the responses provided by the Chinese government and one cooperating exporter as well as publicly available information, the Commissioner is of the opinion that the steel sector in China is operating as a non-market economy. As such, normal values are generally determined on the basis of overall profitable domestic sales or the full cost of producing and selling the goods plus an amount for profit in a surrogate country. In this investigation, Brazil was selected as the surrogate country.

• Shanghai Boasteel Group Corporation

Shanghai Boasteel Group Corporation was the only exporter in China who provided a timely response to CCRA’s questionnaire. The results of the investigation for this company are based on the company’s information as well as data supplied by exporters in the selected surrogate country, Brazil.

Normal Value – The normal values for the Shanghai Boasteel Group Corporation are based on the domestic sales of like goods in Brazil pursuant to section 20 of SIMA.

Export Price - As the goods were sold to unrelated importers in Canada, export prices were determined pursuant to section 24 of SIMA on the basis of the exporter's ex-factory selling price.

Margin of Dumping - For the goods exported by Shanghai Boasteel Group Corporation, which entered Canada during the period of investigation, 92.33 per cent were found to have been dumped. The margins of dumping of the dumped goods as a percentage of export price ranged from 0.13 per cent to 12.87 per cent. The overall weighted average margin of dumping for all goods is 2.44 per cent.

• Other Exporters

For imports of subject goods from other exporters located in China who did not respond to the CCRA’s request for information, normal values were determined by a ministerial specification under section 29 of SIMA and are based on the export price advanced by 69.14 per cent. This advance is based on the highest margin of dumping, excluding anomalies, found in this investigation for a cooperative exporter.

During the period of investigation, 100 per cent of the subject goods sold or imported into Canada from such exporters were found to have been dumped. The weighted average margin of dumping was 69.14 per cent expressed as a percentage of export price.

• Country Summary

In summary, 94.12 per cent of the goods imported from China during the period of investigation were found to have been dumped. The margins of dumping of the dumped goods as a percentage of export price ranged from 0.13 per cent to 69.14 per cent. The overall weighted average margin of dumping for all goods is 17.99 per cent.

Chinese Taipei

Yieh Loong Enterprise Co., Ltd. (Yieh Loong) was the only exporter in Chinese Taipei who responded to the CCRA’s questionnaire. The results of the investigation for this company are based on the information provided by the exporter.

• Yieh Loong Enterprise Co., Ltd.

Normal Value - Yieh Loong had acceptable sales of like goods in its domestic market. Normal values were therefore determined on the basis of the weighted average selling price of domestic sales of like goods pursuant to section 15 of SIMA. SIMR adjustments to domestic selling prices were made to account for quantity discounts pursuant to section 3, qualitative difference pursuant to section 5, cash discounts and rebates pursuant to section 6, and delivery costs pursuant to section 7.

Where there were no sales of like goods in the domestic market during the period of investigation, or domestic sales information was not available to determine normal values for sales made to Canada before the period of investigation, which entered Canada during the period of investigation, normal values were established pursuant to paragraph 19(b) of SIMA, on the basis of the full cost of producing the goods, selling, administrative and all other costs, and a reasonable amount for profit. The profit amount was determined pursuant to subparagraph 11(1)(b)(ii) of SIMR, using the overall profit from domestic sales of goods of the same general category as the goods sold to the importer in Canada.

Export Price – Export prices were determined pursuant to section 24 of SIMA on the basis of the exporter’s ex-factory selling price to its unrelated customer in Canada.

Margin of Dumping - During the period of investigation, 95.10 per cent of the subject goods that were imported into Canada from Yieh Loong were found to have been dumped. The margins of dumping of the dumped goods as a percentage of export price ranged from 0.36 per cent to 21.34 per cent. The weighted average margin of dumping for all goods was 7.68 per cent expressed as a percentage of export price.

• Other Exporters

For imports of subject goods from other exporters located in Chinese Taipei who did not respond to the CCRA’s request for information, normal values were determined by a ministerial specification under section 29 of SIMA and are based on the export price advanced by 69.14 per cent. This advance is based on the highest margin of dumping, excluding anomalies, found in this investigation for a cooperative exporter.

During the period of investigation, 100 per cent of the subject goods sold or imported into Canada from such exporters were found to have been dumped. The weighted average margin of dumping was 69.14 per cent expressed as a percentage of export price.

• Country Summary

In summary, 96.77 per cent of the goods imported from Chinese Taipei during the period of investigation were found to have been dumped. The margins of dumping of the dumped goods as a percentage of export price ranged from 0.36 per cent to 69.14 per cent. The overall weighted average margin of dumping for all goods is 28.71 per cent expressed as a percentage of export price.

Italy

No submissions were received from any of the exporters located in Italy. As such, the normal values of subject goods imported from these exporters during the period of investigation were determined by a ministerial specification under section 29 of SIMA and are based on the export price advanced by 69.14 per cent. This advance is based on the highest margin of dumping, excluding anomalies, found in this investigation for a cooperative exporter.

During the period of investigation, 100 per cent of the subject goods sold or imported into Canada from such exporters were found to have been dumped. The weighted average margin of dumping was 69.14 per cent expressed as a percentage of export price.

Korea

• Union Manufacturing Co., Ltd.

Union Manufacturing Co., Ltd. was the only company in Korea who provided a timely response to the CCRA’s questionnaire. The results of the investigation for this company are based on the information provided by the exporter.

Normal Value – Union Manufacturing Co., Ltd. did not have any acceptable domestic sales on which to determine normal values in view of the fact that all of its domestic sales were made at a loss. As such, normal values were determined pursuant to paragraph 19(b) of SIMA, on the basis of the full cost of production of the goods, selling, administrative and all other costs, and a reasonable amount for profit. The profit amount was determined pursuant to subparagraph 11(1)(b)(ii) of SIMR, using the weighted average profit made on domestic sales of goods of the same general category as the goods sold to the importer in Canada.

Export Price – Export prices were determined pursuant to section 24 of SIMA on the basis of the of the exporter’s ex-factory selling price to its unrelated importer in Canada.

Margin of Dumping – For the goods exported by Union Manufacturing Co., Ltd. that entered Canada during the period of investigation, 100 per cent were found to have been dumped. The margins of dumping as a percentage of export price ranged from 0.22 per cent to 8.23 per cent with a weighted average margin of dumping of 5.30 per cent.

• Other Exporters

For imports of subject goods from other exporters located in Korea who did not respond to the CCRA’s request for information, normal values were determined by a ministerial specification under section 29 of SIMA and are based on the export price advanced by 69.14 per cent. This advance is based on the highest margin of dumping, excluding anomalies, found in this investigation for a cooperative exporter.

During the period of investigation, 100 per cent of the subject goods sold or imported into Canada from such exporters were found to have been dumped. The weighted average margin of dumping was 69.14 per cent expressed as a percentage of export price.

• Country Summary

In summary, 100 per cent of the goods imported into Canada from Korea during the period of investigation were determined to be dumped by a weighted average margin of dumping of 68.64 per cent expressed as a percentage of export price.

Luxembourg

• Laminoir De Dudelange S.A.

Laminoir De Dudelange S.A. is the only exporter in Luxembourg that exported goods to Canada during the period of investigation. The company provided a timely response to the CCRA’s request for information. Laminoir De Dudelange S.A. cooperated fully with the CCRA throughout the investigation and during the verification visit conducted at the company’s premises in Dudelange, subsequent to the preliminary determination.

Normal Value - Laminoir De Dudelange did not have sufficient acceptable domestic sales on which to determine normal values in view of the fact that it only had sales to one unrelated customer during the period of investigation. Further, in the absence of an acceptable profit amount, normal values could not be established on a full cost plus profit amount under paragraph 19(b) of SIMA. As such, normal values were determined pursuant to section 29 of SIMA, on the basis of the cost of production of the goods, selling, administrative and all other costs, and a reasonable amount for profit. Inasmuch as a reasonable amount for profit could not be determined in accordance with the provisions of paragraph 11(1)(b) of SIMR, the amount for profit used in the calculation of normal value was determined on the basis of a ministerial specification using the profit earned by another exporter of like goods located in another country.

Export Price – Since the exporter is related to the importer in Canada, reliability tests of the section 24 export prices were conducted using section 25 of SIMA. Export prices under this section were calculated on the basis of the importer’s resale prices in Canada less all costs, charges and expenses incurred by the exporter in preparing, shipping and exporting the goods, all general, selling and administrative costs incurred by the importer and an amount for profit.

These tests confirmed the reliability of the section 24 export prices. In this case, the export prices determined under section 24 of SIMA, were the same using the exporter’s selling prices or the importer’s purchase prices. Export prices were determined pursuant to section 24 of SIMA on the basis of the exporter’s ex-factory selling price to the importer in Canada.

Margin of Dumping - For the goods exported by Laminoir De Dudelange S.A., which entered Canada during the period of investigation, 51.18 per cent were found to have been dumped. The margins of dumping of the dumped goods as a percentage of export price ranged from 0.08 per cent to 17.63 per cent. The overall weighted average margin of dumping for all goods is 2.47 per cent.

Macedonia

At the time of initiation of the investigation, a Request for Information was sent to the government and the sole Macedonian exporter identified in order to obtain the information necessary to determine whether the conditions of section 20 of SIMA are applicable in respect of the steel sector. A timely response was received from the government of Macedonia. Based on the response and publicly available information, the Commissioner is of the opinion that the steel industry sector in Macedonia is operating as a market economy.

However, no submission was received from the identified Macedonian exporter. As such, the normal values of subject goods imported from this exporter during the period of investigation were determined by a ministerial specification under section 29 of SIMA and are based on the export price advanced by 69.14 per cent. This advance is based on the highest margin of dumping, excluding anomalies, found in this investigation for a cooperative exporter.

During the period of investigation, 100 per cent of the subject goods imported into Canada from Macedonian were found to have been dumped. The weighted average margin of dumping was 69.14 per cent expressed as a percentage of export price.

Malaysia

• Ornasteel Enterprise Corporation (M) SDN BHD

Ornasteel Enterprise Corporation was the company who exported subject goods to Canada from Malaysia during the period of investigation. The company provided a timely response to CCRA’s questionnaire. The results of the investigation are based on the information provided by the exporter.

Normal Value – Ornasteel Enterprise Corporation did not have sufficient acceptable domestic sales on which to determine normal values in view of the fact that most of its domestic sales were made at a loss. As such, normal values were determined pursuant to paragraph 19(b) of SIMA, on the basis of the full cost of production of the goods, selling, administrative and all other costs, and a reasonable amount for profit. The profit amount was determined pursuant to subparagraph 11(1)(b)(ii) of SIMR, using the weighted average profit from domestic sales of goods of the same general category as the goods sold to the importer in Canada.

Export Price - Export prices were determined pursuant to section 24 of SIMA on the basis of the of the exporter’s ex-factory selling price to its unrelated importer in Canada.

Margin of Dumping – For the goods exported by Ornasteel Enterprise Corporation that entered Canada during the period of investigation, 100 per cent were found to have been dumped. The margins of dumping as a percentage of export price ranged from 10.22 per cent to 24.64 per cent. The weighted average margin of dumping was 14.67 per cent.

South Africa

• Iscor Limited

Submissions were received from the only exporter located in South Africa,

Iscor Limited (Iscor). Verification meetings were conducted in South Africa at Iscor’s premises in Vanderbjlpark subsequent to the preliminary determination.

Normal Value – Where there were sufficient acceptable domestic sales of like goods, normal values were determined on the basis of the weighted average selling price of domestic sales of like goods pursuant to section 15 of SIMA. SIMR adjustments to domestic selling prices were made to account for qualitative differences pursuant to paragraph 5(a) and cash discounts pursuant to section 6.

Export Price – Since the exporter is related to the importer in Canada, reliability tests of the section 24 export prices were conducted using section 25 of SIMA. Export prices under this section were calculated on the basis of the importer’s resale prices in Canada less all costs, charges and expenses incurred by the exporter in preparing, shipping and exporting the goods, all general, selling and administrative costs incurred by the importer and an amount for profit.

These tests confirmed the reliability of the section 24 export prices. Export prices were therefore, determined pursuant to section 24 of SIMA on the basis of the lesser of the exporter’s selling price and the importer’s purchase price. In all cases, the exporter’s selling prices were the lower of the two prices.

Margin of Dumping - For the goods exported by Iscor, which entered Canada during the period of investigation, 98.57 per cent were found to have been dumped. The margins of dumping of the dumped goods as a percentage of export price ranged from 10.39 per cent to 77.89 per cent. The overall weighted average margin of dumping for all goods is 33.97 per cent.

SUMMARY RESULTS OF THE INVESTIGATION

During the period of investigation, 92.29 per cent of the subject goods imported into Canada were found to have been dumped. The margins of dumping of the dumped goods as a percentage of export price ranged from 0.08 per cent to 77.89 per cent. The overall weighted average margin of dumping for all goods is 32.14 per cent.

DECISION

Based on the results of the investigation, the Commissioner is satisfied that the subject goods from Brazil, Chinese Taipei, the Former Yugoslav Republic of Macedonia, Italy, Luxembourg, Malaysia, the People’s Republic of China, the Republic of Korea and South Africa have been dumped and that the margins of dumping are not insignificant.

Accordingly, on September 10, 2001, the Commissioner has made a final determination of dumping pursuant to paragraph 41(1)(a) of SIMA.

FUTURE ACTION

The Canadian International Trade Tribunal’s inquiry concerning the question of injury to production in Canada is continuing. The Tribunal will issue its finding by October 9, 2001.

Subject goods imported during the provisional period will continue to be assessed provisional duty as determined at the time of the preliminary determination. The provisional period began on June 11, 2001, the date of the preliminary determination of dumping and will end on the date the Tribunal issues its finding. For further details on the application of provisional duties, refer to the Statement of Reasons issued at the time of the preliminary determination, which is available on the CCRA internet Web site at: www.cbsa-asfc.gc.ca/sima.

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 circumstances, all provisional duty paid or security posted by importers will be returned and future imports will not be subject to anti-dumping duties.

If the Tribunal finds that the dumped goods have caused injury, the CCRA will finalize the anti-dumping duties payable on subject goods released from customs’ possession during the provisional period pursuant to section 55 of SIMA. If the provisional duty was in excess of the final amount of anti-dumping duties payable, the excess duty paid will be refunded. Imports 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 duties are payable, such duties are hereby demanded pursuant to section 11 of SIMA.

Specific normal values have been provided to the co-operating exporters for the final determination. Should the Tribunal make an injury finding, these normal values will come into effect the day after the date of the injury finding. Where specific normal values have not been issued, anti-dumping duty at a rate of 69.14 per cent of the export price will be payable on imports of the subject goods.

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. It is also posted at the Directorate’s internet Web site at the address below. For further information, please contact Jody Grantham, Richard Chung or Robert Cousineau as follows:

Mail:
Canada Customs and Revenue Agency
Anti-dumping and Countervailing Directorate
191 Laurier Avenue West, 19th Floor
Ottawa, Ontario K1A 0L5
Canada

Telephone:
Jody Grantham: (613) 954-7405
Richard Chung: (613) 954-7253
Robert Cousineau: (613) 954-7243

Telefax:
(613) 954-2510

E-mail:
Jody.Grantham@ccra-adrc.gc.ca
Richard.Chung@ccra-adrc.gc.ca
Robert.Cousineau@ccra-adrc.gc.ca

Web site:
www.cbsa-asfc.gc.ca/sima

R.A. Séguin

A/Director General
Anti-dumping and Countervailing Directorate

Appendix 1

APPARENT CANADIAN MARKET

CERTAIN COLD-ROLLED STEEL SHEET

JANUARY 1 TO DECEMBER 31, 2000

(All Data in Net Tons)

Domestic Shipments	At Initiation 1,179,917	At Preliminary Determination 1,179,917	At Final Determination 1,179,917
IMPORTS: Brazil Chinese Taipei China Italy Korea Luxembourg Macedonia Malaysia South Africa All Named Imports United States Other Countries Total Other Imports Total Imports	59,271 41,640 46,117 6,031 75,508 3,577 2,153 2,902 10,211 247,410 38,289 59,827 98,116 345,526	97,327 41,640 46,117 6,031 61,506 4,082 2,153 2,902 9,555 271,313 16,643 59,827 76,470 347,783	74,710 41,640 46,117 6,031 61,505 4,082 2,153 2,902 10,302 249,442 23,629 59,827 83,456 332,898
TOTAL MARKET	1,525,443	1,527,700	1,512,815
MARKET SHARES: Domestic Named Countries Other Imports Total Imports	77% 16% 6% 23%	77% 18% 5% 23%	78% 16% 6% 22%

SOURCE: Based on Exhibit 5 of the complaint, adjusted to reflect actual tonnage imported from the named countries during the period of investigation and the results of a survey conducted by the CCRA with respect to imports of like goods from the United States.

APPENDIX 2

SUMMARY OF FINAL DETERMINATION

VOLUMES OF DUMPING BY COUNTRY

FOR CERTAIN COLD-ROLLED STEEL SHEET

(January 1 to December 31, 2000)

Country	Total Imports (NetTons)	% of Goods Dumped	Total Imports Dumped (Net Tons)	Dumped Imports as a Percent of Total Imports
Brazil	74,710	82.56%	61,678	18.53%
Chinese Taipei	41,640	96.77%	40,297	12.10%
China	46,117	94.12%.	43,405	13.04%
Italy	6,031	100%	6,031	1.81%
Korea	61,505	100%	61,505	18.48%
Luxembourg	4,082	51.18%	2,089	0.63%
Macedonia	2,153	100%	2,153	0.65%
Malaysia	2,902	100%	2,902	0.87%
South Africa	10,302	98.57%	10,155	3.05%
Total – Named Counties	249,442	92.30%	230,228	69.15%
Total Imports – All Countries	332,898

Import data is based on information provided by importers and exporters, Statistics Canada data, CCRA’s internal information system, and customs documentation.

APPENDIX 3

SUMMARY OF FINAL DETERMINATION

MARGINS OF DUMPING BY EXPORTER/COUNTRY

FOR CERTAIN COLD-ROLLED STEEL SHEET

(January 1 to December 31, 2000)

Country/ Exporter	% of Goods Dumped	Range of Margins of Dumping of Dumped Imports (% of Export Price)	Weighted Average Margin of Dumping (% of Export Price))
Brazil CSN Cosipa Usiminas All Other Exporters(1) Country Total/Average	77.04% 86.79% 84.09% 100% 82.56%	0.15% to 47.68% 0.25% to 28.06% 0.47% to 48.70% 69.14%	9.73% 11.53% 10.43% 69.14% 10.71%
Chinese Taipei Yieh Loong Enterprise Co., Ltd. All Other Exporters(1)	95.10% 100%	0.36% to 21.34% 69.14%	7.68% 69.14%
Country Total/Average	96.77%		28.71%
China Shanghai Boasteel Group Corporation	92.33%	0.13% to 12.87%	2.44%
All Other Exporters(1)	100%	69.14%	69.14%
Country Total/Average	94.12%		17.99%
Italy
All Exporters(1)	100%	69.14%	69.14%
Country Total/Average	100%		69.14%
Korea
Union Steel	100%	0.22% to 8.23%	5.30%
All Other Exporters(1)	100%	69.14%	69.14%
Country Total/Average	100%		68.64%
Luxembourg
Laminoir De Dudelange	51.18%	0.08% to 17.63%	2.47%
Country Total/Average	51.18%		2.47%
Malaysia Ornasteel	100%	10.22% to 24.64%	14.67%
Country Total/Average	100%		14.67%
Macedonia
All Exporters (1)	100%	69.14%	69.14%
Country Total/Average	100%		69.14%
South Africa Iscor Limited	98.57%	10.39% to 77.89%	33.97%
Country Total/Average	98.57%		33.97%
All Subject Countries	92.29%		32.14%

• Except where specific companies are named, the figures in the above table apply to all exporters from the named countries
• The Weighted Average Margin of Dumping is expressed as a percentage of the total export price of all goods reviewed (i.e. of both the dumped and undumped goods, with the export price of the undumped goods expressed as zero).

(1) Margin of dumping based on the highest margin of dumping excluding anomalies, determined during the investigation for a cooperative exporter.