The Canada Border Services Agency (CBSA) has today initiated a re-investigation to update the normal values and export prices, in accordance with the Special Import Measures Act (SIMA), respecting certain corrosion-resistant steel sheet (COR) from China, the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (Chinese Taipei), India and South Korea.
The re-investigation is part of the CBSA’s enforcement of the Canadian International Trade Tribunal’s (CITT) threat of injury finding issued on February 21, 2019.
The product definition and the applicable tariff classification numbers of the goods subject to the CITT’s finding can be found on the CBSA’s Measures in Force.
Since 2007, the CBSA has conducted two investigations and two re-investigations (i.e. COR1, Cold-Rolled Steel, Hot-rolled Steel Sheet and Steel Plate 3) involving section 20 inquiries on the flat-rolled steel industry sector in China, which includes COR. In all instances, information available to the CBSA indicated that the domestic prices are substantially determined by the Government of China (GOC) 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, the CBSA was and remains of the opinion that the conditions of section 20 are present in the flat-rolled steel industry sector in China, which includes COR.
Based on the results of those past inquiries, which include the CBSA’s recent opinion on January 22, 2019 reaffirming that the conditions of section 20 of SIMA exist in China with respect to the COR sector, the CBSA has decided not to conduct an inquiry pursuant to section 20 of SIMA in this re-investigation. Consequently, the CBSA will conduct this re-investigation on the basis that section 20 conditions continue to persist in the flat-rolled steel industry sector in China, which includes COR, and will not be directly requesting information regarding the application of section 20 from GOC or other parties. However, interested parties are invited to provide comments and representations to the CBSA regarding the application of section 20 of SIMA. Any relevant information regarding the application of section 20 of SIMA provided will be considered by the CBSA as part of this re-investigation.
Normal values established during this re-investigation will be effective for the subject goods released from the CBSA on or after the date of the conclusion of the re-investigation. Normal values currently in place will expire on that date. Normal values 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.
Exporters that wish to participate in this re-investigation are required to provide a complete and accurate response to the CBSA’s request for information (RFI) by December 7, 2022. An exporter will be considered co-operative if the requested information is submitted on time and the exporter permits verification of the data. A complete listing of dates of interest is available on the re-investigation schedule.
Where an exporter of subject goods which has been asked to respond to a RFI does not provide sufficient information to determine specific normal values or does not permit verification of information submitted, anti-dumping duties, in accordance with a ministerial specification pursuant to section 29 of SIMA, will be assed at the following rates, expressed as a percentage of the export price of the subject goods imported into Canada:
- China: 53.3%
- Chinese Taipei: 33.2%
- India: 40.0%
- South Korea: 40.0%
Exporters that are not the manufacturer of the subject goods (e.g. trading companies, vendors, etc.) will receive their own normal values only to the extent that their suppliers/manufacturers provide sufficient information to permit the determination of normal values and export prices.
Please note, that for the current re-investigation, the CBSA is contacting all known and potential exporters. Any importers or exporters who wish to provide a response to the RFI are advised to contact one of the officers identified below to obtain a copy of the RFI. It is suggested that importers contact their exporter(s) to determine if the exporter(s) intend to co-operate with the CBSA in this re-investigation.
Where applicable, the normal values and export prices determined as a result of this re-investigation may be applied retroactively. Exporters with normal values are required to promptly inform the CBSA in writing of changes to domestic prices, costs, market conditions or terms of sale associated with the production and sales of the goods. All parties are cautioned that where there are increases in domestic prices, and/or costs as noted above, the export price for sales to Canada should be increased accordingly to ensure that any sale made to Canada is not only above the normal value but at or above selling prices and full costs and profit of the goods in the exporter’s domestic market. If exporters did not properly notify the CBSA of any such changes, did not adjust export prices accordingly, or did not provide the information required to make any necessary adjustments to normal values and export prices, retroactive assessments of anti-dumping duty may be warranted. Please refer to the CBSA’s re-investigation and normal value review policy (Memorandum D14-1-8) for details.
- Manshun Tong: 343-553-1727
- Jinhyuck Lee: 343-553-1728
- Date modified: