ARCHIVED - Notice of Conclusion of Re-investigation

This page has been archived.

Certain Thermoelectric Containers

Ottawa, July 30, 2014

The Canada Border Services Agency (CBSA) has today concluded a re-investigation of the normal values, export prices and amounts of subsidy of certain thermoelectric containers originating in or exported from the People’s Republic of China, pursuant to the Special Import Measures Act (SIMA).

The re-investigation was initiated on April 1, 2014, as part of the ongoing enforcement of the Canadian International Trade Tribunal’s (Tribunal) finding of material injury of December 11, 2008.  The finding was subsequently reviewed and continued by the Tribunal on December 9, 2013.

The subject goods are described as certain thermoelectric containers that provide cooling and/or warming with the use of a passive heat sink and a thermoelectric module, excluding liquid dispensers, originating in or exported from the People’s Republic of China.

The subject goods are generally classified under the following 10-digit Harmonized System classification number:

8418.61.00.00

The following 10-digit Harmonized System classification numbers are also used:

8418.50.10.00
8418.50.29.00
8418.69.90.90
8418.99.90.90

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 as well as any subsidy programs that may be applicable to subject goods.  The information was requested for purposes of updating the normal values, export prices and amounts of subsidy for subject goods imported into Canada.

A complete response to the CBSA’s dumping and subsidy exporter RFIs was submitted by Mobicool International, Ltd./Mobicool Electronic (Shenzhen) Co., Ltd. (Mobicool).  As a result, Mobicool has been provided with updated normal values and amounts of subsidy applicable to subject goods released from the CBSA on or after July 30, 2014 and to entries of subject goods under appeal that have yet to be re-determined at the time of the conclusion of this re-investigation.

The specific amount of subsidy for Mobicool’s future shipments of subject goods into Canada is below:

SUBJECT GOODS ORIGINATING IN OR EXPORTED FROM THE PEOPLE'S REPUBLIC OF CHINA	Amounts of Subsidy (Chinese Renminbi per unit)
Mobicool International Ltd./Mobicool (Shenzhen) Co., Ltd.	3.18

A list of subsidy programs used by the responding exporter can be found in Appendix 1.

All normal values and amounts of subsidy previously in place for Mobicool expire on July 30, 2014.

Other exporters either did not provide a response to the CBSA’s RFI or provided an incomplete response.  Accordingly, normal values for all other exporters will be determined in accordance with a ministerial specification based on the export price of the goods advanced by 37%.  Amounts of subsidy for all other exporters will be determined in accordance with a ministerial specification and be will be 53.27 Chinese Renminbi per unit.  In addition, the information gathered during the re-investigation will be used to determine normal values of any entries of subject goods under appeal that have yet to be re-determined at the time of the conclusion of this re-investigation.

Case arguments and reply submissions were received from counsel representing the Canadian producer and the cooperative exporter.  The main focus of these submissions involved like goods in the Chinese domestic market, normal value methodology, trade levels and volume of sales in the Chinese domestic market and pass-through subsidies.  The information submitted in these case arguments and reply submissions were given due consideration by the CBSA.

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:

Wayne Tian:           613-946-2574   

---

APPENDIX 1 - SUBSIDY PROGRAMS USED BY RESPONDING EXPORTER

On the basis of verified information provided by Mobicool International Ltd./Mobicool (Shenzhen) Co., Ltd., it was determined that the exporter received benefits with respect to eight subsidy programs from the Government of China as listed below:

• Program 167: Development Assistance for High and New Technology Enterprises Registered within Futian District of Shenzhen (Futian S&T Fund)
• Program 168: Encourage Measures of the Hi-tech Products Export
• Program 169: Staff Training Grants - Government of Shenzhen
• Program 171: Shenzhen Pengcheng Waste Reduction Initiative
• Program 176: Preferential Tax Policies for the Research and Development of FIEs
• Program 181: Corporate Income Tax Reduction for New High-Technology Enterprises
• Refund of Individual Income Tax Handling Fee
• Reward of China Communist Party Members Contribution in Enterprise