ARCHIVED - Notice of Conclusion of Reinvestigation

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Certain Aluminum Extrusions

Dumping file #: 4214-22
Dumping case #: AD/1379

Subsidy Case #: CV/124
Subsidy file #: 4218-26

Ottawa, February 20, 2012

This notice advises that, on February 20, 2012, the Canada Border Services Agency (CBSA) concluded its re-investigation of the normal values, export prices and amounts of subsidy of certain aluminum extrusions 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 September 19, 2011 as part of the CBSA's enforcement of the Canadian International Trade Tribunal's (Tribunal) finding of material injury issued on March 17, 2009, in Inquiry No. NQ-2008-003.

The complete product definition of the goods subject to Tribunal's order is provided in Appendix 1.

At the initiation of the re-investigation, the CBSA sent Section 20 Requests for Information (RFIs), Dumping RFIs and Subsidy RFIs to exporters to obtain information for the determination of normal values, export prices and amounts of subsidy. At the same time, a Section 20 RFI and a Subsidy RFI were also sent to the Government of China (GOC), to request facts and relevant information. Information was also requested from importers of subject goods.

Responses to the various questionnaires were received from 38 importers and 18 exporters and producers of subject goods. The CBSA performed on site verification at the premises of eight exporters/producers and verified the other responses by desk audits. One of the exporter responses was received so late in the process that it was not considered for purposes of the reinvestigation. The GOC also provided responses to the Government Section 20 RFI and to the Government Subsidy RFI, which were found to be deficient. The GOC also submitted Case Arguments. The CBSA considered the information and arguments provided by the GOC for its section 20 analysis as well as in the analysis of the amounts of subsidy for the exporters that provided complete and reliable information. However, the incomplete status of the GOC subsidy submission, such as the lack of information with respect to benefits provided under the numerous subsidy programs under investigation, significantly impeded the CBSA's ability to determine amounts of subsidy in the prescribed manner.

Normal Values:

Information available to the CBSA at the start of the re-investigation indicated that there was reason to believe that section 20 conditions still existed in the aluminum extrusion sector in China. In the case of a prescribed country, 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 aluminum and aluminum extrusion industries.

The review has resulted in the opinion that the domestic prices of aluminum extrusions in China are still being substantially determined by the GOC and the aluminum extrusions sector in China is still operating under conditions where the prices are not substantially the same as they would be if they were determined in a competitive market. When Section 20 conditions are found to exist, the CBSA normally determines normal values using the selling price, or the total cost and profit, of like goods sold by producers in a surrogate country designated by the President pursuant to paragraph 20(1)(c) of SIMA. Alternately, normal values may be determined under paragraph 20(1)(d) of SIMA, on a deductive basis starting with an examination of the prices of imported goods sold in Canada, from a surrogate country designated by the President. During the investigation, none of the producers from any of the surrogate countries provided information. Furthermore, suitable information on imported goods sold in Canada from a surrogate country was not provided in the importers' responses to the questionnaires. Therefore, sufficient information is not available to the CBSA in order to determine normal values using either of these two methods. As a result, for this re-investigation, the normal values for the exporters that provided a complete and reliable response to the questionnaires have been determined using an alternate methodology under a Ministerial Specification, pursuant to section 29 of SIMA. The Statement of Reasons that was issued at the time of the final determination provides details with respect to the methodology used.

Exporters who are not the manufacturer of the subject goods received normal values only to the extent that their suppliers/manufacturers provided sufficient information to permit the determination of normal values and export prices. If the exporter or its suppliers/manufacturers provided insufficient information, normal values for that exporter will be determined by advancing the export price of the goods by 101 %, pursuant to a ministerial specification.

With respect to the subsidy portion of the reinvestigation, while unable to determine the specific amounts of subsidy in the prescribed manner due to deficient information by the GOC, the CBSA considered the information provided by the GOC and by the exporters/producers that provided complete and reliable information in order to determine specific amounts of subsidy for these exporters, pursuant to a ministerial specification. For all other exporters, including those that provided deficient information, the amount of subsidy will be equal to 15.84 Chinese Renminbi per kilogram, pursuant to a ministerial specification.

Specific normal values and amounts of subsidy for future shipments have been determined for the exporters listed below:

• China Square Industrial Ltd
• CSI Solar Power China Inc. / Canadian Solar Manufacturing (Changshu) Inc.
• Guangdong Jianmei Aluminium Profile Factory Co., Ltd
• PanAsia Aluminum (China) Limited

Importers are cautioned that unless the exporter from whom they intend to import subject goods is listed above, normal values will be determined by advancing the export price of the subject goods by 101%, and the amount of subsidy applicable will be 15.84 Chinese Renminbi per kilogram, in accordance with a ministerial specification.

The normal values and amounts of subsidy established will be effective for subject goods released from the CBSA on or after February 20, 2012. In addition, the normal values determined on the basis of this re-investigation will be applied to any customs entries of subject goods under appeal that have yet to be re-determined at the time of the conclusion of this reinvestigation.

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 so that normal values can be reviewed, and updated if required, to reflect current market conditions. Similarly, the amount of export charges to be deducted from the export price may also need revision to reflect current conditions, as would the amounts of subsidy. 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 and/or countervailing duties.

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/or countervailing measures and be provided with sufficient information necessary to clear the shipments. In order to determine their anti-dumping and countervailing duties liability, importers should contact their suppliers who can provide information on normal values and the 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, Anti-dumping and Countervailing Directorate, 100 Metcalfe Street, 11th Floor, 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:

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APPENDIX 1

Product Definition

Subject goods are defined as “Aluminum extrusions produced via an extrusion process, of alloys having metallic elements falling within the alloy designations published by The Aluminum Association commencing with 1, 2, 3, 5, 6 or 7 (or proprietary or other certifying body equivalents), with the finish being as extruded (mill), mechanical, anodized or painted or otherwise coated, whether or not worked, having a wall thickness greater than 0.5 mm., with a maximum weight per meter of 22 kilograms and a profile or cross-section which fits within a circle having a diameter of 254 mm, originating in or exported from the People's Republic of China.”

Products Excluded From The Findings

• Aluminum extrusions produced from either a 6063 or a 6005 alloy type with a T6 temper designation, in various lengths, with a powder coat finish on both the interior and the exterior surfaces of the extrusion, which finish is certified to meet the American Architectural Manufacturers Association AAMA 2603 standard, “Voluntary Specification, Performance Requirements and Test Procedures for Pigmented Organic Coatings on Aluminum Extrusions and Panels”, for use in exterior railing systems.

• Aluminum extrusions produced from a 6063 alloy type with a T5 temper designation, having a length of 3.66 m, with a powder coat finish, which finish is certified to meet the American Architectural Manufacturers Association AAMA 2603 standard, “Voluntary Specification, Performance Requirements and Test Procedures for Pigmented Organic Coatings on Aluminum Extrusions and Panels”, for use as head rails and bottom rails in fabric window shades and blinds where the fabric has a cross-sectional honeycomb or “cellular” construction.

• Aluminum extrusions produced from a 6063 alloy type with a T5 temper designation and forming part of the Vario System™ 20, 30, 40, 45 and 60 series line of profiles, or equivalent, having a length of either 4.5 or 5.8 m and a straightness tolerance of +/- 1.5 mm or less per 6.0 m of length, for use in those parts of mechanical systems and automated machinery, such as gantry systems and conveyors, where precise linear movement is required.

• Aluminum extrusions produced from either a 6063 or a 6463 alloy type, having a length of 3 m, with a hand-applied gold and silver leaf finish, for use as picture frame mouldings.

• Aluminum extrusions produced from a 6063 alloy type with either a T5 or a T6 temper designation, having a length of between 20 and 33 ft. (between 6.10 and 10.06 m), with a powder coat finish, which finish is certified to meet the American Architectural Manufacturers Association AAMA 2603 standard (“Voluntary Specification, Performance Requirements and Test Procedures for Pigmented Organic Coatings on Aluminum Extrusions and Panels”), for use in window frames.

• Heat sinks imported under tariff item No. 8473.30.90 and weighing 700 g or less.

• Aluminum extrusions produced by China Square Industrial Ltd. from either a 6063 or a 6463 alloy type with a T5 temper designation, with a profile or cross-section which fits within a circle having a diameter of 100 mm, for use by MAAX Bath Inc. in the assembly of its shower enclosures, specifically identified in the Appendix of the Determination and reasons issued by the Canadian International Trade Tribunal on February 10, 2011, in Inquiry No. NQ-2008-003R. The list of these excluded products can be found at the following link: http://www.citt.gc.ca/dumping/inquirie/findings/nq2i003r_e.asp.

Harmonized System classification numbers

Prior to changes in 2012 to the Harmonized System classification numbers, the subject goods were usually classified under the following Harmonized System classification numbers:

• 7604.10.11.10
• 7604.10.11.90
• 7604.10.12.11
• 7604.10.12.19
• 7604.10.12.21
• 7604.10.12.22
• 7604.10.12.23
• 7604.10.12.24
• 7604.10.12.29
• 7604.10.20.11
• 7604.10.20.19
• 7604.10.20.21
• 7604.10.20.29
• 7604.10.20.30

• 7604.21.00.10
• 7604.21.00.20
• 7604.29.11.10
• 7604.29.11.90
• 7604.29.12.11
• 7604.29.12.19
• 7604.29.12.21
• 7604.29.12.22
• 7604.29.12.23
• 7604.29.12.24
• 7604.29.12.29
• 7604.29.20.11
• 7604.29.20.19
• 7604.29.20.21

• 7604.29.20.29
• 7604.29.20.30
• 7608.10.00.10
• 7608.10.00.90
• 7608.20.00.10
• 7608.20.00.90
• 7610.10.00.10
• 7610.10.00.20
• 7610.10.00.30
• 7610.90.00.10
• 7610.90.00.20
• 7610.90.00.30
• 7610.90.00.40
• 7610.90.00.90

As of January 1, 2012, further to changes to the Harmonized System classification numbers, the subject goods are usually classified in the Harmonized System under the following ten digit classification numbers:

• 7604.10.00.10
• 7604.10.00.20
• 7604.10.00.30
• 7604.21.00.10
• 7604.21.00.90
• 7604.29.00.11
• 7604.29.00.19
• 7604.29.00.21

• 7604.29.00.29
• 7604.29.00.30
• 7608.10.00.10
• 7608.10.00.90
• 7608.20.00.00
• 7610.10.00.10
• 7610.10.00.20
• 7610.10.00.30

• 7610.90.10.10
• 7610.90.10.20
• 7610.90.10.30
• 7610.90.10.90
• 7610.90.90.10
• 7610.90.90.20
• 7610.90.90.30
• 7610.90.90.90

This listing of HS codes is for convenience of reference only. Refer to the product definition for authoritative details regarding the subject goods.