Notice of conclusion of Re-investigation

Archived - Flat Hot-rolled Carbon and Alloy Steel Sheet and Strip

Ottawa, October 28, 2015

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The Canada Border Services Agency (CBSA) has today concluded a re-investigation of the normal values and export prices respecting certain flat hot-rolled carbon and alloy steel sheet and strip originating in or exported from the Federative Republic of Brazil (Brazil), the People's Republic of China (China), Chinese Taipei, the Republic of India (India), and Ukraine and the amount of subsidy respecting certain flat hot-rolled carbon and alloy steel sheet and strip originating in or exported from India, in accordance with the Special Import Measures Act (SIMA).

The re-investigation was initiated on July 13, 2015, as part of the ongoing enforcement of the Canadian International Trade Tribunal's finding of material injury issued on August 17, 2001, and continued on August 16, 2006 and August 15, 2011.

The subject goods are described as flat hot-rolled carbon and alloy steel sheet and strip, including secondary or "non-prime" material, originating in or exported from Brazil, the People's Republic of China, Chinese Taipei, India and Ukraine, in various widths from 3/4" (19 mm) and wider, and

  • for products in coil form, in a thickness of 0.054" to 0.625" (1.37 mm to 15.875 mm) inclusive;
  • for products that are cut-to-length, in a thickness of 0.054" up to but not including 0.187" (1.37 mm up to but not including 4.75 mm).

Excluding flat-rolled stainless steel sheet and strip and flat hot-rolled, cut-to-length alloy steel products containing no less than 11.5% manganese, in thickness from 3 mm to 4.75 mm.

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

  • 7208.25.00.10
  • 7208.25.00.20
  • 7208.25.00.30
  • 7208.25.00.40
  • 7208.26.00.10
  • 7208.26.00.20
  • 7208.26.00.30
  • 7208.26.00.40
  • 7208.27.00.10
  • 7208.27.00.20
  • 7208.27.00.30
  • 7208.27.00.40
  • 7208.36.00.10
  • 7208.36.00.20
  • 7208.36.00.30
  • 7208.36.00.40
  • 7208.37.00.10
  • 7208.37.00.20
  • 7208.37.00.30
  • 7208.37.00.40
  • 7208.38.00.10
  • 7208.38.00.20
  • 7208.38.00.30
  • 7208.38.00.40
  • 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
  • 7211.19.00.10
  • 7211.19.00.90
  • 7211.90.00.90
  • 7225.30.00.00
  • 7225.40.00.11
  • 7225.40.00.19
  • 7225.40.00.21
  • 7225.40.00.91
  • 7225.40.00.92
  • 7225.40.00.93
  • 7225.40.00.94
  • 7225.99.00.00
  • 7226.20.00.00
  • 7226.91.00.10
  • 7226.91.00.90
  • 7226.99.00.90

At the initiation of the re-investigation, the CBSA sent a dumping Request for Information (RFI) to each known potential importer and exporter of subject goods 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. A subsidy RFI was also sent to all exporters in India and to the Government of India. The information was requested for purposes of updating the amount of subsidy for subject goods from India.

With respect to China, information available to the CBSA at the start of the re-investigation indicated that there was reason to believe that section 20 conditions exist in the flat-rolled steel industry sector in China. Section 20 of SIMA is applicable where, in the opinion of the President of the Canada Border Services Agency (President), domestic prices are substantially determined by the government and there is sufficient reason to believe that they are not substantially the same as they would be if they were determined in a competitive market.

Accordingly, a section 20 inquiry was initiated and the CBSA sent a section 20 RFI to the Government of China (GOC) and to all known Chinese producers/exporters to examine this matter. During this same period, the CBSA continued to research and review publicly available information concerning the status of the Chinese steel industry.

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

At the conclusion of the section 20 inquiry, information on the administrative record revealed that section 20 conditions continue to exist in the Chinese flat-rolled steel industry sector. As a result, on October 28, 2015, the President formed the opinion that the conditions of section 20 apply to the industry sector under investigation in China.

In the course of the re-investigation, two importers provided a response to the Importer RFI; CCL Networks (Communications Cold Lakes Inc.) and Massiv Die-Form. Responses to the Exporters Dumping RFI and to the Exporter Subsidy RFI were submitted by Steel Authority of India Limited (SAIL). Both responses were considered to be incomplete. The CBSA sent supplemental RFIs to the exporter where some of the main deficiencies in both RFIs were noted. The exporter did not address those deficiencies. A response to the Government Subsidy RFI was received from the Government of India, which was also considered to be incomplete. Further, Case Briefs were submitted on behalf of two Canadian producers, Arcelor Mittal Dofasco Inc., and Essar Steel Algoma Inc.

Given that no exporters or producers provided a complete response to the CBSA's dumping RFI, normal values for all exporters will be determined by a ministerial specification under SIMA. Accordingly, the normal values for all exporters will be based on the export price of the goods advanced by 77% pursuant to section 29 of SIMA. Anti-dumping duties will thus be assessed at the rate of 77% of the export price of the subject goods imported into Canada.

Given that no exporters or producers in India provided a complete response to the CBSA's subsidy RFI, amounts of subsidy for all exporters from India will be determined in accordance with a ministerial specification pursuant to subsection 30.4(2) of SIMA and is equal to 3,150 Indian Rupees per metric tonne.

The normal values and amounts of subsidy will be effective for the subject goods released from the CBSA on or after October 28, 2015.

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 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 or countervailing duties.

Importers are reminded that it is their responsibility to calculate and declare their anti-dumping and countervailing duty liability. If importers are using the services of a customs broker to clear importations, the brokerage firm should be advised that the goods are subject to SIMA measures and be provided with sufficient information necessary to clear the shipments. In order to determine their anti-dumping and countervailing duty liability, importers should contact their suppliers who can provide information on normal values and amounts of subsidy. 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 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, Trade and Anti-dumping Programs Directorate, 11th Floor, 100 Metcalfe St., Ottawa, Ontario, 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:

  • Mail:

    • SIMA Registry and Disclosure Unit
      Trade and Anti-dumping Programs Directorate
      Canada Border Services Agency
      100 Metcalfe Street, 11th Floor
      Ottawa, Ontario K1A 0L8
      CANADA

  • Officers' names and contact information:

  • Fax:

    • 613-948-4844

  • E-mail:

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