ARCHIVED - Notice of Conclusion of Re-investigation

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Certain Carbon Steel Welded Pipe - 2010

Dumping file #: 4214-16
Dumping case #: AD/1373

Subsidy file #: 4218-24
Subsidy case #: cv/123

Ottawa, February 14, 2011

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

The re-investigation was initiated on October 8, 2010, as part of the ongoing enforcement of the Canadian International Trade Tribunal's (Tribunal) finding of material injury issued on August 20, 2008, in Inquiry No. NQ-2008-001.

The goods subject to the Tribunal's finding are defined in Appendix 1 and are normally classified under the listed ten-digit Harmonized System classification numbers.

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. Similarly, the CBSA sent RFIs to the Government of China (GOC) and to producers/exporters in China regarding subsidy programs.

The information was requested for purposes of updating the normal values, export prices and subsidy amounts for subject goods imported into Canada.

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 welded pipe sector in China. Section 20 of SIMA is applicable where, in the opinion of the President of the CBSA, 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 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. A submission supporting the application of section 20 was filed by counsel on behalf of Nova Tube Inc.

At the conclusion of the section 20 inquiry, information on the administrative record revealed that section 20 conditions continue to exist in the Chinese welded pipe sector. As a result, on February 14, 2011, the President of the CBSA formed the opinion that the conditions of section 20 apply to the industry sector under investigation in China.

Given that no submissions to the CBSA's RFIs were received from any of the exporters, all exporters were deemed to be non-cooperative in the re-investigation.¹ Accordingly, the normal values and amounts of subsidy for all exporters will be determined in accordance with a ministerial specification under SIMA based on the export price of the goods advanced by 179 % and countervailing duties will be assessed at a rate of 5,280 Renminbi per metric tonne. These normal values and amounts of subsidy will be effective for the subject goods released from the CBSA on or after February 14, 2011.

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 duty.

Importers are reminded that it is their responsibility to calculate and declare their anti-dumping and countervailing duties 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 countervailing 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.

Furthermore, importers must properly describe the imported goods for Customs and SIMA purposes, as outlined in Appendix 2, regardless of whether the documentation is provided as paper or electronically (e.g. through the use of ACROSS). Failure to provide this information may result in an incorrect assessment of anti-dumping and countervailing duties and the application of penalties pursuant to the Administrative Monetary Penalty System (AMPS).

The Customs Act (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, 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 or an Appeal of Goods Under the Special Import Measures Act.

Any questions concerning the above should be directed to:

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APPENDIX 1

Product Definition

Subject goods are:

Carbon steel welded pipe, commonly identified as standard pipe, in the nominal size range of ½ inch up to and including 6 inches (12.7 mm to 168.3 mm in outside diameter) inclusive, in various forms and finishes, usually supplied to meet ASTM A53, ASTM A135, ASTM A252, ASTM A589, ASTM A795, ASTM F1083 or Commercial Quality, or AWWA C200-97 or equivalent specifications, including water well casing, piling pipe, sprinkler pipe and fencing pipe, but excluding oil and gas line pipe made to API specifications exclusively, originating in or exported from the People's Republic of China.

The following goods were excluded by the Canadian International Trade Tribunal's material injury finding of August 20, 2008, and therefore, are not subject goods:

• carbon steel welded pipe in the nominal pipe size of 1 inch, meeting the requirements of specification ASTM A53, Grade B, Schedule 10, with a black or galvanized finish, and with plain ends, for use in fire protection applications;

• carbon steel welded pipe in nominal pipe sizes of 1/2 inch to 2 inches inclusive, produced using the electric resistance welding process and meeting the requirements of specification ASTM A53, Grade A, for use in the production of carbon steel pipe nipples; and

• carbon steel welded pipe in nominal pipe sizes of 1/2 inch to 6 inches inclusive, dual-stencilled to meet the requirements of both specification ASTM A252, Grades 1 to 3, and specification API 5L, with bevelled ends and in random lengths, for use as foundation piles.

The subject goods are normally imported into Canada under the following Harmonized System classification numbers:

• 7306.30.10.14
• 7306.30.10.24
• 7306.30.10.34

• 7306.30.90.14
• 7306.30.90.19
• 7306.30.90.24

• 7306.30.90.29
• 7306.30.90.34
• 7306.30.90.39

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APPENDIX 2

INFORMATION REQUIRED ON CUSTOMS DOCUMENTS

Listed below is the information that must be provided to the CBSA regardless of whether the documentation is provided as paper or electronically (e.g. through the use of ACROSS). Please note that if the following information is not provided, the application of penalties, pursuant to the Administrative Monetary Penalty System (AMPS), may result.

The import documentation should clearly indicate the following:

• Confirmation whether the product is subject to anti-dumping and countervailing duties
• Name and address of producer/manufacturer
• Location of plant/mill of production
• Place from which direct shipment to Canada began
• Name and address of vendor (if different from the producer)
• Country of origin
• Country of export
• Canadian customer's name and address
• Canadian importer's name and address (if different from the customer)
• Full product description
  • - product name and/or number
  • - product grade and specification
  • - dimension (nominal size) and wall thickness
  • - pipe finish
  • - end finish
• Date of sale, date of shipment
• Quantity (state unit of measure – e.g. kg, metric tonne)
• Unit selling price and total selling price to importer in Canada
• Currency of settlement used (e.g. US$, CDN$, etc.)
• Terms and conditions of sale (e.g. FOB, CIF, etc.) and,
• All costs, expenses, and charges incurred by the exporter and vendor in the shipment of the subject goods to Canada (includes inland and ocean freight, insurance, duties, port and handling charges, etc).

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1. An exporter is considered cooperative if a complete response to the RFI was submitted on time and the exporter permitted verification of this data.