ARCHIVED - SIMA - Notice of Conclusion of Re-investigation of certain stainless steel sinks from the People's Republic of China

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This notice advises that, on April 1, 2014, the Canada Border Services Agency (CBSA) concluded a re-investigation of the normal values, export prices and the amounts of subsidy of certain stainless steel sinks originating in or exported from the People’s Republic of China.  Normal values, export prices and the amounts of subsidy of subject goods are determined pursuant to the Special Import Measures Act (SIMA).  The re-investigation was initiated on December 2, 2013, as part of the CBSA’s enforcement of the finding made by the Canadian International Trade Tribunal on May 24, 2012.

The subject goods are described in Appendix 1 and are normally classified under the listed ten-digit Harmonized System classification numbers contained in Appendix 1.  Additional product information explaining which products are subject to duties and which products are not subject to duties is also provided in the appendix.

At the initiation of the re-investigation, the CBSA sent dumping and subsidy Requests for Information to exporters and manufacturers to obtain information on the costs and selling prices of subject goods and like goods.  Specific normal values and amounts of subsidy for future shipments have been determined for all exporters where sufficient information was provided to the CBSA.

Exporters that received normal values and amounts of subsidy at the conclusion of the re-investigation:

Guangdong Dongyuan Kitchenware Industrial Co., Ltd.
Guangdong Yingao Kitchen Utensils Co., Ltd.
Jiangmen New Star Hi-Tech Enterprise Ltd.

Specific amounts of subsidy for future shipments of subject goods into Canada have been determined for the exporters below:

No submissions were received from any other exporter.  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 103.1%.  Amounts of subsidy for all other exporters will be determined in accordance with a ministerial specification at a rate of
264.94 Chinese Renminbi per unit.

Normal values and amounts of subsidy will be effective for the subject goods released from the CBSA on or after April 1, 2014.  All normal values and amounts of subsidy previously in place expire on this date.  In addition, the normal values and amounts of subsidy determined on the basis of the re-investigation will be applied to any entries of subject goods under appeal that have yet to be re-determined at the time of the conclusion of this re-investigation.

A case argument and reply submissions were received from counsel representing the Canadian producer and the cooperative exporters.  The main focus of these submissions involved the cost allocation and duty assessment of stainless steel sinks.  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 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 anti-dumping and countervailing measures and be provided with sufficient information necessary to clear the shipments.  To determine their liability for anti-dumping and countervailing duty, importers should contact the exporters to obtain the applicable normal values and amounts of subsidy.  For further information on this matter, 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, on the CBSA’s Web site at:  www.cbsa-asfc.gc.ca/publications/dm-md/d14-eng.html.

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 the 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, 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 or an Appeal of Goods Under the Special Import Measures Act, on the CBSA’s Web site at:  www.cbsa-asfc.gc.ca/publications/dm-md/d14-eng.html.

Any questions concerning the above should be directed to:

APPENDIX 1

PRODUCT DEFINITION

Subject goods are:

Stainless steel sinks with a single drawn bowl having a volume between 1,600 and 5,000 cubic inches (26,219.30 and 81,935.32 cubic centimetres) or with multiple drawn bowls having a combined volume between 2,200 and 6,800 cubic inches (36,051.54 and 111,432.04 cubic centimetres), excluding sinks fabricated by hand, originating in or exported from the People's Republic of China (hereafter referred to as certain stainless steel sinks).

Additional Product Information

For purposes of the definition of the subject goods, volume is calculated as the product of the length, width and depth of the bowl, regardless of the taper and radius of the bowl, where length and width are measured from front to back and left to right of the bowl rim and where depth is measured from the bowl rim to the bottom of the sink at the point closest to the drain.

For purposes of the definition of the subject goods, “sinks fabricated by hand” refers to the process by which sinkware is formed by hand.  The sink stock is notched and folded, and sides are then welded and hand-polished to form a box-like shape.  Hand-fabricated sinks may also be referred to as handcrafted or handmade sinks.

The subject goods may be supplied with seals, strainer or strainer sets, mounting clips, fasteners, sound-deadening pads, cut-out templates, and additional accessories such as rinsing baskets and bottom grids.

Stainless steel sinks are commonly used in residential and non-residential installations including in kitchens, bathrooms, utility and laundry rooms.  Stainless steel sinks sold in Canada are required to be manufactured in accordance with ASME A112.l9.3-2008/CSA B45.4.08.  Stainless steel sinks are available in a variety of shapes and configurations.  They may have single or multiple bowls, and may be undermount, top mount, or designed as work tops.

Stainless steel sinks are generally made from grades 301, 304 and 316 cold-rolled stainless steel sheet that is 16, 18 or 20 gauge.  The subject goods may be made of additional stainless steel grades and thinner or thicker gauges.  Gauge refers to the nominal thickness of steel.  Typically, the lower the number, the thicker the material (e.g. 16 gauge = 0.060 inches, 18 gauge = 0.046 inches, 20 gauge = 0.035 inches).  Grade identifiers such as T301, T304 and T316 are American Iron and Steel Institute designations for the chemical composition of stainless steel.

Each designation has a specific chemical makeup that provides the steel with its unique properties (e.g. mechanical properties, weldability and corrosion resistance).  Terms such as 18-8 and 18-10 are commonly used to describe the chemical composition of the stainless steel.  The first number defines the nominal percentage of chromium in the steel and the second number defines the nominal percentage of nickel in the steel.

Additional Product Information

The subject goods are usually classified under Harmonized System (HS) classification code:

• 7324.10.00.11

The subject goods may also be classified under the following HS classification codes:

• 7324.10.00.19
• 7324.10.00.21
• 7324.10.00.29

The listing of HS codes is for convenience of reference only. The HS codes listed may include non-subject goods. Also, subject goods may fall under HS codes that are not listed. Refer to the product definition for authoritative details regarding the subject goods.