ARCHIVED - Notice of Conclusion of Re-Investigation

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Certain Flat Hot-Rolled Carbon and Alloy Steel Sheet and Strip - 2010

Dumping File #: 4214-8
Dumping Case #: AD/1262

Subsidy File #: 4218-12
Subsidy Case #: CV/94

Ottawa, November 16, 2010

The Canada Border Services Agency (CBSA) has today concluded a re-investigation to update the normal values, export prices and amounts of subsidy, pursuant to the Special Import Measures Act (SIMA), in respect of certain flat hot-rolled carbon and alloy steel sheet and strip originating in or exported from Brazil, the People's Republic of China (China), Chinese Taipei, Ukraine, South Africa and India (dumping), and certain flat hot-rolled carbon and alloy steel sheet and strip originating in or exported from India (subsidizing).

The re-investigation was initiated on July 22, 2010, as part of the ongoing enforcement of the Canadian International Trade Tribunal's finding of material injury made on August 17, 2001, in Inquiry No. NQ-2001-001 and continued on August 16, 2006, in expiry review No. RR-2005-002.

The goods subject to the Tribunal's finding and applicable ten-digit Harmonized System classification numbers are described in Appendix 1.

At the initiation of the re-investigation, the CBSA sent Requests for Information (RFI) to importers, exporters and vendors, to solicit information on the costs and selling prices of subject and like goods. The information was requested for purposes of updating the normal values and export prices for subject goods imported into Canada.

Under SIMA, China is defined as a “prescribed” country and normal values may be determined under section 20 of SIMA, in situations where in the opinion of the President of the CBSA domestic prices are substantially determined by the government of that country and there is sufficient reason to believe that they are not substantially the same as they would be if they were determined in a competitive market.

Since June 2005, the CBSA has conducted four dumping re-investigations involving section 20 inquiries on steel products within the flat-rolled steel industry sector in China. These re-investigations involved certain flat hot-rolled carbon and alloy steel sheet and strip (two re-investigations) and certain hot-rolled carbon and high-strength low alloy steel plate (two re-investigations). In all instances, information available to the CBSA indicated that the domestic prices were substantially determined by the Government of China (GOC). Accordingly, for purposes of each of these re-investigations, the CBSA conducted an inquiry, pursuant to section 20 of the SIMA and, on the basis of the information available the CBSA rendered the opinion that the conditions of section 20 with respect to price control were present in the respective steel industry sector in China.

It is important to note that both hot-rolled steel plate and hot-rolled steel sheet are products that form part of the flat-rolled steel industry sector as these products are manufactured by using the same inputs and production processes; with the exception that steel sheet is a thinner product which is rolled further than steel plate. The two products are also manufactured by a significant number of same producers in China. Since a section 20 inquiry regarding the flat-rolled steel industry sector was concluded, on July 16, 2010, whereby the CBSA is of the opinion that the conditions of section 20 exist in the flat-rolled steel industry sector in China, an inquiry pursuant to section 20 of SIMA was not conducted for the purposes of this hot-rolled steel sheet re-investigation.

While the GOC and exporters from China were welcome to submit information in respect of the Chinese steel industry, neither the GOC nor the exporters from China co-operated in this re-investigation.

Given that no complete submissions to the CBSA's RFI were received from exporters, the normal values and amounts of subsidy (where applicable) for all the exporters will be determined in accordance with a ministerial specification based on the export price of the goods advanced by:

1. 77% for subject goods originating in or exported from Brazil, China, Chinese Taipei, South Africa and Ukraine;

2. 77% for dumping and 3,150 rupees per metric tonne for subsidy for subject goods originating in or exported from India.

All normal values and amounts of subsidy (where applicable) previously in place will expire on November 16, 2010.

No case arguments or reply submissions were received from counsel representing both exporters and Canadian producers.

Where a producer or exporter becomes aware that there have been substantial changes to domestic prices, market conditions or costs associated with production and sales of subject goods, the CBSA should be advised in order that normal values and/or amounts of subsidy can be reviewed, and updated if required, to reflect current conditions. Similarly, the amount of export charges to be deducted from the export price may also need revision to reflect current conditions. Where changes have occurred and the CBSA has not been advised in a timely manner, the extent of these changes could warrant retroactive assessments of anti-dumping duty.

Importers are reminded that it is their responsibility to calculate and declare their anti-dumping and/or countervailing duty liability. If importers are using the services of a customs broker to clear importations, the brokerage firm should be advised that the goods are subject to anti-dumping and/or countervailing duty measures and be provided with sufficient information necessary to clear the shipments. In order to determine their anti-dumping and/or countervailing duty liability, importers should contact their suppliers who can provide information on normal values and/or amounts of subsidy (where applicable). Under limited circumstances, the CBSA may make this information available to importers. Please refer to Memorandum D14-1-2, Disclosure of Normal Values, Export Prices, and Amounts of Subsidy established under the Special Import Measures Act to Importers, for more information. The Customs Act applies, with any modifications that the circumstances require, with respect to the accounting and payment of anti-dumping and/or countervailing duties. As such, failure to pay duties within the prescribed time will result in the application of the interest provisions of the Act.

Should the importer disagree with the determination made on any importation of goods, a request for re-determination may be filed with the Director General, Anti-dumping and Countervailing Directorate, Ottawa, ON, K1A 0L8. Such a request must be received within 90 days from the making of the determination, in the form and manner outlined in Memorandum D14-1-3, Procedures for Making a Request for a Re-determination (an Appeal) of Goods Under the Special Import Measures Act.

Any questions concerning the above should be directed to:

APPENDIX 1

Product Definition

Flat hot-rolled carbon and alloy steel sheet and strip, including secondary or non-prime material in various widths from ¾ in. (19 mm) and wider, and

1. (a) for product in coil form, in thicknesses from 0.054 in. to 0.625 in. (1.37 mm to 15.875 mm) inclusive,
2. (b) for product that is cut to length, in thicknesses from 0.054 in. up to but not including 0.187 in. (1.37 mm up to but not including 4.75 mm),

excluding stainless steel sheet and strip and flat hot-rolled, cut-to-length alloy steel products containing no less than 11.5 percent manganese, in thicknesses from 3 mm to 4.75 mm originating in or exported from Brazil, the People's Republic of China, Chinese Taipei, India, South Africa and Ukraine.

The goods subject to this product definition are normally imported into Canada under the following harmonized system classification numbers:

• 7208.25.10.10
• 7208.25.10.20
• 7208.25.10.30
• 7208.25.10.40
• 7208.25.90.10
• 7208.25.90.20
• 7208.25.90.30
• 7208.25.90.40
• 7208.26.10.10
• 7208.26.10.20
• 7208.26.10.30
• 7208.26.10.40
• 7208.26.90.10
• 7208.26.90.20
• 7208.26.90.30
• 7208.26.90.40
• 7208.27.10.10
• 7208.27.10.20
• 7208.27.10.30
• 7208.27.10.40
• 7208.27.90.10
• 7208.27.90.20
• 7208.27.90.30
• 7208.27.90.40
• 7208.36.00.10
• 7208.36.00.20
• 7208.36.00.30
• 7208.36.00.40
• 7208.37.10.10
• 7208.37.10.20
• 7208.37.10.30

• 7208.37.10.40
• 7208.37.90.10
• 7208.37.90.20
• 7208.37.90.30
• 7208.37.90.40
• 7208.38.10.10
• 7208.38.10.20
• 7208.38.10.30
• 7208.38.10.40
• 7208.38.90.10
• 7208.38.90.20
• 7208.38.90.30
• 7208.38.90.40
• 7208.39.00.10
• 7208.39.00.20
• 7208.39.00.30
• 7208.39.00.40
• 7208.53.00.10
• 7208.53.00.20
• 7208.53.00.30
• 7208.53.00.40
• 7208.54.00.10
• 7208.54.00.20
• 7208.54.00.30
• 7208.54.00.40
• 7208.90.00.00
• 7211.13.00.00
• 7211.14.00.90
• 7211.19.10.00
• 7211.19.90.10
• 7211.19.90.90

• 7211.90.10.00
• 7211.90.90.90
• 7225.30.20.00
• 7225.30.91.00
• 7225.30.99.00
• 7225.40.30.00
• 7225.40.91.10
• 7225.40.91.20
• 7225.40.91.30
• 7225.40.91.40
• 7225.40.99.11
• 7225.40.99.19
• 7225.40.99.21
• 7225.40.99.91
• 7225.40.99.92
• 7225.40.99.93
• 7225.40.99.94
• 7225.99.00.90
• 7226.20.00.91
• 7226.20.00.92
• 7226.91.10.00
• 7226.91.90.20
• 7226.91.90.30
• 7226.91.90.40
• 7226.91.90.90
• 7226.99.99.00