Notice of conclusion of a re-investigation: Carbon Steel Fasteners (FAS 2023 RI)

Period of investigation

The period of investigation (POI) and the profitability analysis period (PAP) for the re-investigation were from October 1, 2022 to September 30, 2023.

Re-investigation process

At the initiation of the re-investigation, the CBSA sent a request for information (RFI) to all known importers, exporters, producers, vendors and the Government of China to solicit information on the costs and selling prices of subject goods and like goods and subsidy programs. The information was requested for purposes of updating the normal values, export prices and amounts of subsidy for subject goods imported into Canada. On-site verifications were conducted at the premises of ten exporters/producers located in Chinese Taipei. Desk verifications were conducted for the other remaining responding exporters and producers.

As part of the re-investigation, case briefs and reply submissions were provided by counsel representing the complainant as well as responding exporters and importers. Details of the representations are provided in Appendix 1. Details pertaining to the information submitted by the exporters in response to the RFIs as well as the results of the CBSA’s re-investigation are provided below.

Specific normal values, export prices and amounts of subsidy for future shipments of fasteners have been determined for exporters that submitted a complete response to the dumping RFI, subsidy RFI, supplemental RFIs (SRFIs), deficiency letters and for whom the verification was considered reliable.

Normal values and export prices

Normal value

Normal values are generally determined based on the domestic selling prices of like goods in the country of export, in accordance with section 15 of SIMA, or on the aggregate of the cost of production of the goods, a reasonable amount for administrative, selling and all other costs, plus a reasonable amount for profits, in accordance with paragraph 19(b) of SIMA.

Where, in the opinion of the CBSA, sufficient information has not been furnished or is not available, normal values are determined pursuant to a Ministerial specification in accordance with subsection 29(1) of SIMA.

Export prices

The export price of goods sold to importers in Canada is generally determined in accordance with section 24 of SIMA, based on the lesser of the adjusted exporter’s sale price for the goods or the adjusted importer’s purchase price. These prices are adjusted where necessary by deducting the costs, charges, expenses, duties and taxes resulting from the exportation of the goods as provided for in subparagraphs 24(a)(i) to 24(a)(iii) of SIMA.

Where, in the opinion of the CBSA, sufficient information has not been furnished or is not available, export prices are determined pursuant to a Ministerial specification under subsection 29(1) of SIMA.

Where there are sales between associated persons or a compensatory arrangement exists, the export price may be determined based on the importer’s resale price of the imported goods in Canada to non associated purchasers, less deductions for all costs incurred in preparing, shipping and exporting the goods to Canada that are additional to those incurred on the sales of like goods for use in the country of export, all costs that are incurred in reselling the goods (including duties and taxes) or associated with the assembly of the goods in Canada and an amount representative of the average industry profit in Canada, pursuant to paragraphs 25(1)(c) and 25(1)(d) of SIMA. In any cases not provided for under paragraphs 25(1)(c) and 25(1)(d) of SIMA, the export price is determined in such a manner as the Minister specifies, pursuant to paragraph 25(1)(e).

China

Haiyan Tianqi Standard Parts Co., Ltd. (Tianqi)

Tianqi is a manufacturer and exporter of subject goods located in Jiaxing, China. Tianqi exported subject goods to Canada during the POI.

Tianqi provided substantially complete responses to the CBSA’s dumping RFI as well as four SRFIs. A desk verification of Tianqi was conducted in March 2024.

Tianqi had domestic sales of like goods during the POI/PAP and as such, normal values were determined in accordance with paragraph 15 of SIMA where possible, based on the weighted average domestic selling prices of fasteners in China.

Where there were insufficient domestic sales of like goods that met the requirements of sections 15 and 16 of SIMA, normal values were determined pursuant to paragraph 19(b) of SIMA, based on the aggregate of the cost of production of the goods, a reasonable amount for administrative, selling and all other costs, and a reasonable amount for profits. The amount for profits was determined pursuant to subparagraph 11(1)(b)(ii) of the Special Import Measures Regulations (SIMR).

For the subject goods exported to Canada by Tianqi during the POI, export prices were determined pursuant to section 24 of SIMA based on the exporter’s selling price less all costs, charges and expenses resulting from the exportation of the goods.

Hisener Industrial Co., Ltd. (Hisener Industrial)

Hisener Industrial is an exporter of subject goods, produced by an associated manufacturer, located in Haiyan City, China. Hisener Industrial did not export subject goods to Canada during the POI.

Hisener Industrial provided substantially complete responses to the CBSA’s dumping RFI as well as one SRFI. A desk verification of Hisener Industrial was conducted.

As Hisener Industrial did not have any domestic sales of like goods during the POI/PAP, normal values could not be determined pursuant to section 15 of SIMA.

Hisener Industrial provided sufficient cost of production and administrative, selling and all other costs to determine normal values pursuant to paragraph 19(b) of SIMA. However, the CBSA was unable to determine an amount for profits pursuant to paragraph 11(1)(b) of the SIMR. As such, normal values were determined pursuant to section 29 of SIMA using a method similar to that of paragraph 19(b) of SIMA, based on the aggregate of cost of production of the goods, a reasonable amount for administrative, selling and all other costs plus a reasonable amount for profits determined by ministerial specification.

Ningbo Jinding Fastening Piece Co., Ltd. (Ningbo Jinding)

Ningbo Jinding is a manufacturer and exporter of subject goods located in Ningbo, China. Ningbo Jinding exported subject goods to Canada during the POI.

Ningbo Jinding provided substantially complete responses to the CBSA’s dumping RFI as well as two SRFIs. A desk verification of Ningbo Jinding was conducted in March 2024.

As Ningbo Jinding did not have any domestic sales of like goods during the POI/PAP, normal values could not be determined pursuant to section 15 of SIMA.

Ningbo Jinding provided sufficient cost of production and administrative, selling and all other costs to determine normal values pursuant to paragraph 19(b) of SIMA. However, the CBSA was unable to determine an amount for profits under paragraph 11(1)(b) of the SIMR. As such, normal values were determined pursuant to section 29 of SIMA using a method similar to that of paragraph 19(b) of SIMA, based on the aggregate of cost of production of the goods, a reasonable amount for administrative, selling and all other costs plus a reasonable amount for profits determined by ministerial specification.

For the subject goods exported to Canada by Ningbo Jinding during the POI, export prices were determined pursuant to section 24 of SIMA based on the exporter’s selling price less all costs, charges and expenses resulting from the exportation of the goods.

Pinghu Gete Auto Fastener Co. Ltd. (Pinghu Gete)

Pinghu Gete is a manufacturer and exporter of subject goods located in Pinghu, China. Pinghu Gete did not export subject goods to Canada during the POI.

Pinghu Gete provided substantially complete responses to the CBSA’s dumping RFI as well as one SRFI. A desk verification of Pinghu Gete was conducted in March 2024.

As Pinghu Gete had domestic sales of like goods during the POI/PAP, normal values were determined pursuant to section 15 of SIMA where possible, based on the weighted average domestic selling prices of fasteners in China.

Where there were insufficient domestic sales of like goods that met the requirements of sections 15 and 16 of SIMA, normal values were determined pursuant to paragraph 19(b) of SIMA, based on the aggregate of the cost of production of the goods, a reasonable amount for administrative, selling and all other costs, and a reasonable amount for profits. The amount for profits was determined pursuant to subparagraph 11(1)(b)(ii) of the SIMR.

Robertson Inc. (Jiaxing) (Robertson Jiaxing)

Robertson Jiaxing is a manufacturer and exporter of subject goods located in Jiashan, China. Robertson Jiaxing exported subject goods to Canada during the POI.

Robertson Jiaxing provided substantially complete responses to the CBSA’s dumping RFI as well as two SRFIs. A desk verification of Robertson Jiaxing was conducted in March 2024.

As Robertson Jiaxing did not have any domestic sales of like goods during the POI/PAP, normal values could not be determined pursuant to section 15 of SIMA.

Robertson Jiaxing provided sufficient cost of production and administrative, selling and all other costs to determine normal values pursuant to paragraph 19(b) of SIMA. However, the CBSA was unable to determine an amount for profits pursuant to paragraph 11(1)(b) of the SIMR. As such, normal values were determined pursuant to section 29 of SIMA using a method similar to that of paragraph 19(b) of SIMA, based on the aggregate of cost of production of the goods, a reasonable amount for administrative, selling and all other costs plus a reasonable amount for profits determined by ministerial specification.

During the POI, subject goods exported by Robertson Jiaxing were sold to Robertson Inc, a related importer. Due to the relationship between the parties, a reliability test was performed to determine whether the section 24 export prices were reliable as envisaged by SIMA. This test was conducted by comparing the section 24 export prices with the section 25 export prices. The test revealed that the export prices pursuant to section 24 of SIMA were reliable and, therefore, export prices were determined pursuant to section 24 of SIMA, based on the exporter’s selling price less all costs, charges and expenses resulting from the exportation of the goods.

Suzhou Hongly Hardware Co., Ltd. (Hongly) / Suzhou Litto Fastener Co., Ltd. (Litto)

Hongly, an exporter of the subject goods, and Litto, a manufacturer of the subject goods, are associated companies located in Suzhou, China. The subject goods exported to Canada by Hongly were produced by Litto, which functions as a manufacturing department of Hongly. Due to the relationship between Hongly and Litto and their roles and responsibilities during the export sales process, the companies have collectively been determined to be the exporter for SIMA purposes for the purposes of this re-investigation.

Hongly and Litto provided substantially complete responses to the CBSA’s dumping RFI as well as two SRFIs. A desk verification of Hongly and Litto was conducted in March 2024.

As Hongly and Litto did not have any domestic sales of like goods during the POI/PAP, normal values could not be determined pursuant to section 15 of SIMA.

Hongly and Litto provided sufficient costs of production and administrative, selling and all other costs to determine normal values pursuant to paragraph 19(b) of SIMA. However, the CBSA was unable to determine an amount for profits pursuant to paragraph 11(1)(b) of the SIMR. As such, normal values were determined pursuant to section 29 of SIMA using a method similar to that of paragraph 19(b) of SIMA, based on the aggregate of cost of production of the goods, a reasonable amount for administrative, selling and all other costs plus a reasonable amount for profits determined by ministerial specification.

For the subject goods exported to Canada by Hongly and Lito during the POI, export prices were determined pursuant to section 24 of SIMA based on the exporter’s selling price less all costs, charges and expenses resulting from the exportation of the goods.

Zhejiang Yichen Hardware Corp. (Yichen Hardware)

Yichen Hardware is a manufacturer and exporter of subject goods located in Jiaxing, China. Yichen Hardware exported subject goods to Canada during the POI.

Yichen Hardware provided substantially complete responses to the CBSA’s dumping RFI as well as four SRFIs. A desk verification of Yichen Hardware was conducted in March 2024.

As Yichen Hardware did not have any domestic sales of like goods during the POI/PAP, normal values could not be determined pursuant to section 15 of SIMA.

Yichen Hardware provided sufficient cost of production and administrative, selling and all other costs to determine normal values pursuant to paragraph 19(b) of SIMA. However, the CBSA was unable to determine an amount for profits pursuant to paragraph 11(1)(b) of the SIMR. As such, normal values were determined pursuant to section 29 of SIMA using a method similar to that of paragraph 19(b) of SIMA, based on the aggregate of cost of production of the goods, a reasonable amount for administrative, selling and all other costs plus a reasonable amount for profits determined by ministerial specification.

For the subject goods exported to Canada by Yichen Hardware during the POI, export prices were determined pursuant to section 24 of SIMA based on the exporter’s selling price less all costs, charges and expenses resulting from the exportation of the goods.

All other exporters in China

For all other exporters of subject goods originating in or exported from China, normal values will be determined by ministerial specification. The normal values for future shipments determined by ministerial specification are calculated by advancing the export price of the goods by 170%, pursuant to subsection 29(1) of SIMA.

Normal values previously in place expire on May 30, 2024.

Chinese Taipei

Chaen Wei Corporation (Chaen Wei)

Chaen Wei is a manufacturer and exporter of subject goods located in Taipei and Kaohsiung City, Chinese Taipei. Chaen Wei exported subject goods to Canada during the POI.

Chaen Wei provided substantially complete responses to the CBSA’s dumping RFI as well as three SRFIs. An on-site verification of Chaen Wei was conducted in March 2024.

As Chaen Wei did not have any domestic sales of like goods during the POI/PAP, normal values could not be determined pursuant to section 15 of SIMA.

Chaen Wei provided sufficient cost of production and administrative, selling and all other costs to determine normal values pursuant to paragraph 19(b) of SIMA. However, the CBSA was unable to determine an amount for profits pursuant to paragraph 11(1)(b) of the SIMR. As such, normal values were determined pursuant to section 29 of SIMA using a method similar to that of paragraph 19(b) of SIMA, based on the aggregate of cost of production of the goods, a reasonable amount for administrative, selling and all other costs plus a reasonable amount for profits determined by ministerial specification.

For the subject goods exported to Canada by Chaen Wei during the POI, export prices were determined pursuant to section 24 of SIMA based on the exporter’s selling price less all costs, charges and expenses resulting from the exportation of the goods.

CPC Fasteners International Co., Ltd. (CPC)

CPC is a manufacturer and exporter of subject goods located in Kaohsiung City, Chinese Taipei. CPC exported subject goods to Canada during the POI.

CPC provided substantially complete responses to the CBSA’s dumping RFI as well as one SRFI. An on-site verification of CPC was conducted in March 2024.

As CPC did not have any domestic sales of like goods during the POI/PAP, normal values could not be determined pursuant to section 15 of SIMA.

CPC provided sufficient cost of production and administrative, selling and all other costs to determine normal values pursuant to paragraph 19(b) of SIMA. However, the CBSA was unable to determine an amount for profits pursuant to paragraph 11(1)(b) of the SIMR. As such, normal values were determined pursuant to section 29 of SIMA using a method similar to that of paragraph 19(b) of SIMA, based on the aggregate of cost of production of the goods, a reasonable amount for administrative, selling and all other costs plus a reasonable amount for profits determined by ministerial specification.

For the subject goods exported to Canada by CPC during the POI, export prices were determined pursuant to section 24 of SIMA based on the exporter’s selling price less all costs, charges and expenses resulting from the exportation of the goods.

Honor Best Inc., Ltd. (Honor Best)

Honor Best is a manufacturer and exporter of subject goods located in Taipei and Kaohsiung City, Chinese Taipei. Honor Best exported subject goods to Canada during the POI.

Honor Best provided substantially complete responses to the CBSA’s dumping RFI as well as three SRFIs. An on-site verification of Honor Best was conducted in March 2024.

As Honor Best did not have any domestic sales of like goods during the POI/PAP, normal values could not be determined pursuant to section 15 of SIMA.

Honor Best provided sufficient cost of production and administrative, selling and all other costs to determine normal values pursuant to paragraph 19(b) of SIMA. However, the CBSA was unable to determine an amount for profits pursuant to paragraph 11(1)(b) of the SIMR. As such, normal values were determined pursuant to section 29 of SIMA using a method similar to that of paragraph 19(b) of SIMA, based on the aggregate of cost of production of the goods, a reasonable amount for administrative, selling and all other costs plus a reasonable amount for profits determined by ministerial specification.

For the subject goods exported to Canada by Honor Best during the POI, export prices were determined pursuant to section 24 of SIMA based on the exporter’s selling price less all costs, charges and expenses resulting from the exportation of the goods.

Jau Yeou Industry Co., Ltd. (Jau Yeou)

Jau Yeou is a manufacturer and exporter of subject goods located in Kaohsiung City, Chinese Taipei. Jau Yeou exported subject goods to Canada during the POI.

Jau Yeou provided substantially complete responses to the CBSA’s dumping RFI as well as three SRFIs. A desk verification of Jau Yeou was conducted in March 2024.

Jau Yeou’s RFI response included a domestic sales database of like goods, however, there were insufficient domestic sales of goods that met the requirements of sections 15 and 16 of SIMA and, as a result, it was not possible to determine normal values pursuant to section 15 of SIMA using domestic sales of like goods.

Jau Yeou provided sufficient cost of production and administrative, selling and all other costs to determine normal values pursuant to paragraph 19(b) of SIMA. However, the CBSA was unable to determine an amount for profits pursuant to paragraph 11(1)(b) of the SIMR. As such, normal values were determined pursuant to section 29 of SIMA using a method similar to that of paragraph 19(b) of SIMA, based on the aggregate of cost of production of the goods, a reasonable amount for administrative, selling and all other costs plus a reasonable amount for profits determined by ministerial specification.

For the subject goods exported to Canada by Jau Yeou during the POI, export prices were determined pursuant to section 24 of SIMA based on the exporter’s selling price less all costs, charges and expenses resulting from the exportation of the goods.

Katsuhana Fasteners Corporation (Katsuhana)

Katsuhana is a manufacturer and exporter of subject goods located in Kaohsiung City, Chinese Taipei. Katsuhana exported subject goods to Canada during the POI.

Katsuhana provided substantially complete responses to the CBSA’s dumping RFI as well as one SRFI. A desk verification of Katsuhana was conducted in March 2024.

As Katsuhana did not have any domestic sales of like goods during the POI/PAP, normal values could not be determined pursuant to section 15 of SIMA.

Katsuhana provided sufficient cost of production and administrative, selling and all other costs to determine normal values pursuant to paragraph 19(b) of SIMA. However, the CBSA was unable to determine an amount for profits pursuant to paragraph 11(1)(b) of the SIMR. As such, normal values were determined pursuant to section 29 of SIMA using a method similar to that of paragraph 19(b) of SIMA, based on the aggregate of cost of production of the goods, a reasonable amount for administrative, selling and all other costs plus a reasonable amount for profits determined by ministerial specification.

For the subject goods exported to Canada by Katsuhana during the POI, export prices were determined pursuant to section 24 of SIMA based on the exporter’s selling price less all costs, charges and expenses resulting from the exportation of the goods.

Kind Auspice Industrial Co., Ltd. (Kind Auspice)

Kind Auspice is a manufacturer and exporter of subject goods located in Kaohsiung City, Chinese Taipei. Kind Auspice exported subject goods to Canada during the POI.

Kind Auspice provided substantially complete responses to the CBSA’s dumping RFI as well as two SRFIs. An on-site verification of Kind Auspice was conducted in March 2024.

As Kind Auspice did not have any domestic sales of like goods during the POI/PAP, normal values could not be determined pursuant to section 15 of SIMA.

Kind Auspice provided sufficient cost of production and administrative, selling and all other costs to determine normal values pursuant to paragraph 19(b) of SIMA. However, the CBSA was unable to determine an amount for profits pursuant to paragraph 11(1)(b) of the SIMR. As such, normal values were determined pursuant to section 29 of SIMA using a method similar to that of paragraph 19(b) of SIMA, based on the aggregate of cost of production of the goods, a reasonable amount for administrative, selling and all other costs plus a reasonable amount for profits determined by ministerial specification.

For the subject goods exported to Canada by Kind Auspice during the POI, export prices were determined pursuant to section 24 of SIMA based on the exporter’s selling price less all costs, charges and expenses resulting from the exportation of the goods.

Kwantex Research Inc. (Kwantex)

Kwantex is a manufacturer and exporter of subject goods located in Tainan City, Chinese Taipei. Kwantex exported subject goods to Canada during the POI.

Kwantex provided substantially complete responses to the CBSA’s dumping RFI as well as one SRFI. A desk verification of Kwantex was conducted in March 2024.

As Kwantex did not have any domestic sales of like goods during the POI/PAP, normal values could not be determined pursuant to section 15 of SIMA.

Kwantex provided sufficient cost of production and administrative, selling and all other costs to determine normal values pursuant to paragraph 19(b) of SIMA. However, the CBSA was unable to determine an amount for profits pursuant to paragraph 11(1)(b) of the SIMR. As such, normal values were determined pursuant to section 29 of SIMA using a method similar to that of paragraph 19(b) of SIMA, based on the aggregate of cost of production of the goods, a reasonable amount for administrative, selling and all other costs plus a reasonable amount for profits determined by ministerial specification.

For the subject goods exported to Canada by Kwantex during the POI, export prices were determined pursuant to section 24 of SIMA based on the exporter’s selling price less all costs, charges and expenses resulting from the exportation of the goods.

Masterpiece Hardware Industrial Co., Ltd. (Masterpiece)

Masterpiece, is a manufacturer and exporter of subject goods located in Changhua County, Chinese Taipei. Masterpiece exported subject goods to Canada during the POI.

Masterpiece provided substantially complete responses to the CBSA’s dumping RFI as well as two SRFIs. A desk verification of Masterpiece was conducted in March 2024.

As Masterpiece did not have any domestic sales of like goods during the POI/PAP, normal values could not be determined pursuant to section 15 of SIMA.

Masterpiece provided sufficient cost of production and administrative, selling and all other costs to determine normal values pursuant to paragraph 19(b) of SIMA. However, the CBSA was unable to determine an amount for profits pursuant to paragraph 11(1)(b) of the SIMR. As such, normal values were determined pursuant to section 29 of SIMA using a method similar to that of paragraph 19(b) of SIMA, based on the aggregate of cost of production of the goods, a reasonable amount for administrative, selling and all other costs plus a reasonable amount for profits determined by ministerial specification.

For the subject goods exported to Canada by Masterpiece during the POI, export prices were determined pursuant to section 24 of SIMA based on the exporter’s selling price less all costs, charges and expenses resulting from the exportation of the goods.

Newfast Co., Ltd. (Newfast)

Newfast is an exporter of subject goods located in Kaohsiung City, Chinese Taipei. Newfast exported subject goods to Canada during the POI.

Newfast provided substantially complete responses to the CBSA’s dumping RFI as well as three SRFIs. An on-site verification of Newfast was conducted in March 2024.

As Newfast did not have any domestic sales of like goods during the POI/PAP, normal values could not be determined pursuant to section 15 of SIMA.

As the CBSA was unable to determine an amount for profits pursuant to paragraph 11(1)(b) of the SIMR, where sufficient cost of production and administrative, selling and all other costs were provided, the normal values were determined pursuant to section 29 of SIMA, using a method similar to that of paragraph 19(b) of SIMA. This methodology is based on the aggregate of cost of production of the goods, a reasonable amount for administrative, selling and all other costs plus a reasonable amount for profits determined by ministerial specification.

For all other subject goods exported by Newfast, where the CBSA has not been provided sufficient cost of production and administrative, selling and all other costs, the normal values were determined pursuant to a ministerial specification under section 29 of SIMA by advancing the export price by 170%.

For the subject goods exported to Canada by Newfast during the POI, export prices were determined pursuant to section 24 of SIMA based on the exporter’s selling price less all costs, charges and expenses resulting from the exportation of the goods.

Sheh Fung Co., Ltd. (Sheh Fung)

Sheh Fung is a manufacturer and exporter of subject goods located in Kaohsiung City, Chinese Taipei. Sheh Fung exported subject goods to Canada during the POI.

Sheh Fung provided substantially complete responses to the CBSA’s dumping RFI as well as two SRFIs. An on-site verification of Sheh Fung was conducted in March 2024.

As Sheh Fung did not have any domestic sales of like goods during the POI/PAP, normal values could not be determined pursuant to section 15 of SIMA.

Sheh Fung provided sufficient cost of production and administrative, selling and all other costs to determine normal values pursuant to paragraph 19(b) of SIMA. However, the CBSA was unable to determine an amount for profits pursuant to paragraph 11(1)(b) of the SIMR. As such, normal values were determined pursuant to section 29 of SIMA using a method similar to that of paragraph 19(b) of SIMA, based on the aggregate of cost of production of the goods, a reasonable amount for administrative, selling and all other costs plus a reasonable amount for profits determined by ministerial specification.

For the subject goods exported to Canada by Sheh Fung during the POI, export prices were determined pursuant to section 24 of SIMA based on the exporter’s selling price less all costs, charges and expenses resulting from the exportation of the goods.

Taiwan CMC Co., Ltd (Taiwan CMC)

Taiwan CMC is an exporter of subject goods located in Taipei, Chinese Taipei. Taiwan CMC exported subject goods to Canada during the POI. The subject goods were produced by four manufacturers in Chinese Taipei.

Taiwan CMC provided substantially complete responses to the CBSA’s dumping RFI as well as two SRFIs. Additionally, one of Taiwan CMC’s manufacturers provided a substantially complete response. An on-site verification of Taiwan CMC was conducted in March 2024.

Taiwan CMC did not have any domestic sales of like goods during the POI/PAP to determine normal values in accordance with section 15 of SIMA.

As the CBSA was unable to determine an amount for profits pursuant to paragraph 11(1)(b) of the SIMR, where sufficient cost of production and administrative, selling and all other costs were provided, the normal values were determined pursuant to section 29 of SIMA, using a method similar to that of paragraph 19(b) of SIMA. This methodology is based on the aggregate of cost of production of the goods, a reasonable amount for administrative, selling and all other costs plus a reasonable amount for profits determined by ministerial specification.

For all other subject goods exported by Taiwan CMC, where the CBSA has not been provided sufficient cost of production and administrative, selling and all other costs, the normal values were determined pursuant to a ministerial specification under section 29 of SIMA by advancing the export price by 170%.

During the POI, subject goods exported by Taiwan CMC were sold to a related importer. Due to the relationship between the parties, a reliability test was performed to determine whether the section 24 export prices were reliable as envisaged by SIMA. This test was conducted by comparing the section 24 export prices with the section 25 export prices. The test revealed that the export prices pursuant to section 24 of SIMA were reliable and, therefore, export prices were determined pursuant to section 24 of SIMA, based on the exporter’s selling price less all costs, charges and expenses resulting from the exportation of the goods.

Taiwan Shan Yin International Co., Ltd. (Taiwan Shan Yin)

Taiwan Shan Yin is a manufacturer and exporter of subject goods located in Kaohsiung City, Chinese Taipei. Taiwan Shan Yin exported subject goods to Canada during the POI.

Taiwan Shan Yin provided substantially complete responses to the CBSA’s dumping RFI as well as three SRFIs. A desk verification of Taiwan Shan Yin was conducted in March 2024.

As Taiwan Shan Yin did not have any domestic sales of like goods during the POI/PAP, normal values could not be determined pursuant to section 15 of SIMA.

Taiwan Shan Yin provided sufficient cost of production and administrative, selling and all other costs to determine normal values pursuant to paragraph 19(b) of SIMA. However, the CBSA was unable to determine an amount for profits pursuant to paragraph 11(1)(b) of the SIMR. As such, normal values were determined pursuant to section 29 of SIMA using a method similar to that of paragraph 19(b) of SIMA, based on the aggregate of cost of production of the goods, a reasonable amount for administrative, selling and all other costs plus a reasonable amount for profits determined by ministerial specification.

For the subject goods exported to Canada by Taiwan Shan Yin during the POI, export prices were determined pursuant to section 24 of SIMA based on the exporter’s selling price less all costs, charges and expenses resulting from the exportation of the goods.

Your Choice Fasteners & Tools Co., Ltd. (Your Choice)

Your Choice is a manufacturer and exporter of subject goods located in Chang Hua County, Chinese Taipei. Your Choice did not export subject goods to Canada during the POI.

Your Choice provided substantially complete responses to the CBSA’s dumping RFI as well as two SRFIs. A desk verification of Your Choice was conducted in March 2024.

As Your Choice did not have any domestic sales of like goods during the POI/PAP, normal values could not be determined pursuant to section 15 of SIMA.

Your Choice provided sufficient cost of production and administrative, selling and all other costs to determine normal values pursuant to paragraph 19(b) of SIMA. However, the CBSA was unable to determine an amount for profits pursuant to paragraph 11(1)(b) of the SIMR. As such, normal values were determined pursuant to section 29 of SIMA using a method similar to that of paragraph 19(b) of SIMA, based on the aggregate of cost of production of the goods, a reasonable amount for administrative, selling and all other costs plus a reasonable amount for profits determined by ministerial specification.

Zyh Yin Enterprises Co., Ltd. (Zyh Yin)

Zyh Yin is a manufacturer and exporter of subject goods located in Kaohsiung City, Chinese Taipei. Zyh Yin exported subject goods to Canada during the POI.

Zyh Yin provided substantially complete responses to the CBSA’s dumping RFI as well as two SRFIs. An on-site verification of Zyh Yin was conducted in March 2024.

As Zyh Yin did not have any domestic sales of like goods during the POI/PAP, normal values could not be determined pursuant to section 15 of SIMA.

Zyh Yin provided sufficient cost of production and administrative, selling and all other costs to determine normal values pursuant to paragraph 19(b) of SIMA. However, the CBSA was unable to determine an amount for profits pursuant to paragraph 11(1)(b) of the SIMR. As such, normal values were determined pursuant to section 29 of SIMA using a method similar to that of paragraph 19(b) of SIMA, based on the aggregate of cost of production of the goods, a reasonable amount for administrative, selling and all other costs plus a reasonable amount for profits determined by ministerial specification.

For the subject goods exported to Canada by Zyh Yin during the POI, export prices were determined pursuant to section 24 of SIMA based on the exporter’s selling price less all costs, charges and expenses resulting from the exportation of the goods.

All other exporters in Chinese Taipei

For all other exporters of subject goods originating in or exported from Chinese Taipei, normal values will be determined by ministerial specification. The normal values for future shipments determined by ministerial specification are calculated by advancing the export price of the goods by 170%, pursuant to subsection 29(1) of SIMA.

Normal values previously in place expire on May 30, 2024.

Non-named countries

Hilti Inc.

Hilti Inc. is an exporter of the subject goods, located in the United States. Hilti Inc. exported subject goods to Canada to a related importer, Hilti (Canada) Corporation (HCDN), during the POI. A related intermediary vendor, Hilti Corporation (HAG) is also involved in the sale of subject goods which are produced by multiple vendors.

Hilti Inc. provided responses to the CBSA's dumping RFI as well as three SRFIs. An on-site verification was conducted in March 2024.

The CBSA’s review of Hilti Inc.’s submissions and information from the verification uncovered insufficiencies and inconsistencies in the information provided for the cost of production. As such, the normal values for Hilti Inc. were determined pursuant to a ministerial specification under section 29 of SIMA by advancing the export price by 170%.

Starborn Industries Incorporated (Starborn)

Starborn is an exporter of subject goods located in the United States. Starborn exported subject goods to Canada during the POI. The subject goods were produced by two unrelated manufacturers in Chinese Taipei.

Starborn provided substantially complete responses to the CBSA's dumping RFI as well as two SRFIs. Additionally, one of Starborn’s manufacturers provided a substantially complete response. An on-site verification of Starborn was conducted in March 2024.

Starborn had domestic sales of like goods during the POI/PAP in the United States and as such, normal values were determined in accordance with paragraph 15 of SIMA where possible, based on the weighted average domestic selling prices of fasteners in the United States.

Where there were insufficient domestic sales of like goods that met the requirements of sections 15 and 16 of SIMA, normal values were determined pursuant to paragraph 19(b) of SIMA, based on the aggregate of the cost of production of the goods, a reasonable amount for administrative, selling and all other costs, and a reasonable amount for profits.

The CBSA was able to determine the cost of production of the goods in accordance with paragraph 11(1)(a) of the SIMR, based on the cooperative manufacturer's cost data associated with the subject goods shipped to Canada. The amount for administrative, selling and all other costs was determined for the cooperative manufacturer, as well as Starborn in accordance with subparagraph 11(1)(c)(ii) and subsection 11(3) of the SIMR, based on selling and administrative expenses incurred by the cooperative manufacturer and Starborn. The amount for profits was determined pursuant to subparagraph 11(1)(b)(i) and subsection 11(2) of SIMR, based on the cumulative profit made by Starborn on its sales of like goods in the United States, and the profit made by the cooperative producer in respect of sales of those goods to the exporter.

In situations where a good is shipped indirectly to Canada through a third country, the CBSA is required to determine the normal value of the good in both the country of origin and in the country of export in accordance with subsection 30(2) of SIMA. Where the normal value determined in the country of origin is higher than the normal value determined in the country of export, then both the normal value and export price are to be determined as if the goods were shipped directly from the country of origin.

In the case of the subject goods Starborn exported to Canada, two sets of normal values were determined for the goods, one based on the country of export, the United States, and one based on the country of origin, Chinese Taipei. The CBSA made a comparison and determined the normal values based on the higher of the two.

For the portion of subject goods exported by Starborn for which the unrelated manufacturer of the goods did not provide a substantially complete response, normal values were determined pursuant to a ministerial specification in accordance with subsection 29(1) of SIMA.

For the subject goods exported to Canada by Starborn during the POI, export prices were determined pursuant to section 24 of SIMA based on the exporter’s selling price less all costs, charges and expenses resulting from the exportation of the goods.

Amounts of subsidy

In accordance with section 2 of SIMA, a subsidy exists if there is a financial contribution by a government of a country other than Canada that confers a benefit on persons engaged in the production, manufacture, growth, processing, purchase, distribution, transportation, sale, export or import of goods. A subsidy also exists in respect of any form of income or price support, within the meaning of Article XVI of the General Agreement on Tariffs and Trade, 1994, being part of Annex 1A to the World Trade Organization (WTO) Agreement, that confers a benefit.

Pursuant to subsection 2(1.6) of SIMA, there is a financial contribution by a government of a country other than Canada where:

1. practices of the government involve the direct transfer of funds or liabilities or the contingent transfer of funds or liabilities
2. amounts that would otherwise be owing and due to the government are exempted or deducted or amounts that are owing and due to the government are forgiven or not collected
3. the government provides goods or services, other than general governmental infrastructure, or purchases goods or
4. the government permits or directs a non governmental body to do anything referred to in any of paragraphs (a) to (c) where the right or obligation to do the thing is normally vested in the government and the manner in which the non governmental body does the thing does not differ in a meaningful way from the manner in which the government would do it

Where subsidies exist, they may be subject to countervailing measures if they are specific in nature. According to subsection 2(7.2) of SIMA, a subsidy is considered to be specific when it is limited, in a legislative, regulatory or administrative instrument, or other public document, to a particular enterprise within the jurisdiction of the authority that is granting the subsidy; or is a prohibited subsidy.

A “prohibited subsidy” is either an export subsidy or a subsidy or portion of a subsidy that is contingent, in whole or in part, on the use of goods that are produced or that originate in the country of export. An export subsidy is a subsidy or portion of a subsidy contingent, in whole or in part, on export performance. An “enterprise” is defined as including a group of enterprises, an industry and a group of industries. These terms are all defined in section 2 of SIMA.

Notwithstanding that a subsidy is not specific in law, under subsection 2(7.3) of SIMA a subsidy may also be considered specific having regard as to whether:

1. there is exclusive use of the subsidy by a limited number of enterprises
2. there is predominant use of the subsidy by a particular enterprise
3. disproportionately large amounts of the subsidy are granted to a limited number of enterprises and
4. the manner in which discretion is exercised by the granting authority indicates that the subsidy is not generally available

For purposes of a subsidy re-investigation, the CBSA refers to a subsidy that has been found to be specific as an “actionable subsidy,” meaning that it is subject to countervailing measures if the persons engaged in the production, manufacture, growth, processing, purchase, distribution, transportation, sale, export or import of goods under investigation have benefited from the subsidy.

Financial contributions provided by state owned enterprises (SOEs) may also be considered to be provided by the government for purposes of this re-investigation. A SOE may be considered to constitute “government” for the purposes of subsection 2(1.6) of SIMA if it possesses, exercises, or is vested with governmental authority. Without limiting the generality of the foregoing, the CBSA may consider the following factors as indicative of whether the SOE meets this standard: 1) the SOE is granted or vested with authority by statute; 2) the SOE is performing a government function; 3) the SOE is meaningfully controlled by the government; or some combination thereof.

China

The Government of China (GOC) did not respond to the CBSA’s government subsidy RFI. The lack of response from the GOC limited the CBSA’s ability to determine the amount of subsidy in the prescribed manner as the required information relating to financial contribution, benefit and specificity was not provided. It also limited the CBSA’s ability to determine whether producers, or other suppliers of goods and services, are public bodies.

Due to a lack of government response, subsidy amounts for all exporters were determined pursuant to subsection 30.4(2) of SIMA, based on a ministerial specification. However, in consideration of the fact that cooperative producers/exporters provided sufficient information in response to the subsidy RFI, for each of these exporters, an individual amount of subsidy was determined based on the information provided in response to the subsidy RFI, subsequent SRFIs and verification RFIs.

The available information indicates that these programs do not appear to be generally available to all enterprises in China. As well, due to the lack of a response by the GOC, there is not sufficient information on the administrative record to determine that the subsidy is not specific pursuant to the criteria set out in subsection 2(7.1) of SIMA. Therefore, guided by the principles of subsection 2(7.2) or subsection 2(7.3) of SIMA and basing its opinion on the best information available, the CBSA has taken the position that the subsidy derived from these programs is likely to be specific.

Haiyan Tianqi Standard Parts Co., Ltd. (Tianqi)

Tianqi provided substantially complete responses to the CBSA’s subsidy RFI as well as two SRFIs. A desk verification of Tianqi was conducted in March 2024.

For purposes of this re-investigation, the CBSA determined that Tianqi benefited from the following subsidy programs during the POI:

1. Loans from State-Owned Banks at Preferential Rates
2. Design, Research and Development Grants
3. Export Development and Performance Grants
4. Performance Award Grants
5. Subsidies Related to Company/Enterprise Development and Innovation
6. Subsidies Related to Employment, Training and Recruitment
7. Subsidies to Provide Business Support

Descriptions of the programs used by the responding exporter are listed in Appendix 2.

The amount of subsidy determined for future shipments of subject goods for Tianqi is equal to 0.04 CNY/kg, effective on May 30, 2024.

Hisener Industrial Co., Ltd. (Hisener Industrial)

Hisener Industrial provided substantially complete responses to the CBSA’s subsidy RFI as well as one SRFI. A desk verification of Hisener was conducted.

Three subsidy programs were found to have conferred benefits to the exporter, Hisener Industrial directly or by being passed-through its related producer, Haixun Precision. The CBSA attributed the subsidy received by Haixun Precision to the subject goods because of the relationship between the parties. The CBSA has concluded that a subsidy pass-through test is not required given the relation between the exporter and the related producer. Consequently, any actionable subsidies received by the related producer which are attributable to the goods under investigation, was aggregated with those directly received by the exporter.

For purposes of this re-investigation, the CBSA determined that Hisener Industrial benefited from the following subsidy programs during the POI:

1. Loans from State-Owned Banks at Preferential Rates
2. Subsidies Related to Employment, Training and Recruitment
3. Accelerated Depreciation on Fixed Assets

Descriptions of the programs used by the responding exporter are listed in Appendix 2.

The amount of subsidy determined for future shipments of subject goods for Hisener Industrial is equal to 0.03 CNY/kg, effective on May 30, 2024.

Ningbo Jinding Fastening Piece Co., Ltd. (Ningbo Jinding)

Ningbo Jinding provided substantially complete responses to the CBSA’s subsidy RFI as well as one SRFI. A desk verification of Ningbo Jinding was conducted in March 2024.

For purposes of this re-investigation, the CBSA determined that Ningbo Jinding benefited from the following subsidy programs during the POI:

1. Loans from State-Owned Banks at Preferential Rates
2. Insurance Grants
3. Design, Research and Development Grants
4. Export Development and Performance Grants
5. Grant - Patent Assistance/Award
6. Environment Protection Grant
7. Subsidies Related to Company/Enterprise Development and Innovation
8. Subsidies Related to Quality and Improvement
9. Subsidies for the Establishment of Non-Manufacturing Facilities
10. Corporate Income Tax Reduction for New High Tech Enterprises (“NHTE”)
11. Preferential Tax Policies related to Research and Investment
12. Exemption or Refund of Tariff and Import Value-Added Tax (VAT) for Imported Technologies and Equipment
13. Acquisition of Government Inputs/Utilities at Less than Fair Market Value

Descriptions of the programs used by the responding exporter are listed in Appendix 2.

The amount of subsidy determined for future shipments of subject goods for Ningbo Jinding is equal to 0.29 CNY/kg, effective on May 30, 2024.

Pinghu Gete Auto Fastener Co. Ltd. (Pinghu Gete)

Pinghu Gete provided substantially complete responses to the CBSA’s subsidy RFI as well as one SRFI. A desk verification of Pinghu Gete was conducted in March 2024.

For purposes of this re-investigation, the CBSA determined that Pinghu Gete benefited from the following subsidy program during the POI:

1. Tax Exemption and Reduction for Small and Micro Enterprises

The description of the program used by the responding exporter is listed in Appendix 2.

The amount of subsidy determined for future shipments of subject goods for Pinghu Gete is equal to 0.02 CNY/kg, effective on May 30, 2024.

Suzhou Hongly Hardware Co., Ltd. (Hongly) / Suzhou Litto Fastener Co., Ltd. (Litto)

Hongly and Litto provided substantially complete responses to the CBSA’s subsidy RFI as well as one SRFI. A desk verification of Hongly and Litto was conducted in March 2024.

For purposes of this re-investigation, the CBSA determined that Hongly and Litto benefitted from the following subsidy programs during the POI:

1. Loans from State-Owned Banks at Preferential Rates
2. Municipal/Local Income or Property Tax Reductions
3. Offsets to Taxable Income Related to Purchases of Domestic Machinery

Descriptions of the programs used by the responding exporter and manufacturer are listed in Appendix 2.

The amount of subsidy determined for future shipments of subject goods for Hongly and Litto is equal to 1.00 CNY/kg, effective on May 30, 2024.

Zhejiang Yichen Hardware Corp. (Yichen Hardware)

Yichen Hardware provided substantially complete responses to the CBSA’s subsidy RFI as well as one SRFI. A desk verification of Yichen Hardware was conducted in March 2024.

For purposes of this re-investigation, the CBSA determined that Yichen Hardware benefited from the following subsidy programs during the POI:

1. Loans from State-Owned Banks at Preferential Rates
2. Preferential Export Financing and Export Credit Guarantee/Insurance
3. Export Development and Performance Grants
4. Performance Award Grants
5. Subsidies Related to Company/Enterprise Development and Innovation
6. Subsidies Related to Employment, Training and Recruitment
7. Subsidies to Provide Business Support
8. Corporate Income Tax Reduction for New High Tech Enterprises (“NHTE”)
9. Preferential Tax Policies related to Research and Investment

Descriptions of the programs used by the responding exporter are listed in Appendix 2.

The amount of subsidy determined for future shipments of subject goods for Yichen Hardware is equal to 0.10 CNY/kg, effective on May 30, 2024.

All other exporters in China

For all other exporters of subject goods from China, the amount of subsidy will be determined in accordance with a ministerial specification, and is equal to 1.25 CNY/kg.

Exporter responsibility

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 duties may be warranted. Please refer to the CBSA’s Memorandum D14-1-8: Re-investigation and normal value review policy for details.

Importer responsibility

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.

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. For more information on how to file a request for re-determination, please refer to the Guide for appealing a duty assessment.

Contact us

• Telephone:
• Jin Hyuck Lee: 343-553-1728
• Jake Foster: 343-541-9820

Email: simaregistry-depotlmsi@cbsa-asfc.gc.ca

Appendix 1: Representations

During the re-investigation, submissions containing representations were received on behalf of the complainant, Leland Industries Ltd. (Leland).^{Footnote 1}

Following the closing of the record on April 15, 2024, case arguments were received on behalf of Leland;^{Footnote 2} U2 Fasteners;^{Footnote 3} Essence Method Refine Co., Ltd. (EMR);^{Footnote 4} Trpien Technologies Co. Ltd. (Trpien);^{Footnote 5} King Spin Screws Co., Ltd. (KSS);^{Footnote 6} Loyal Int'l Co., Ltd. and Taiwan CMC Co., Ltd. (Loyal-CMC);^{Footnote 7} Hilti, Inc., Hilti (Canada) Corporation and Hilti Aktiengesellschaft (collectively, “Hilti Companies”);^{Footnote 8} and Shuenn Chang Fa Co Ltd.^{Footnote 9}

The CBSA received reply submissions on behalf of Leland,^{Footnote 10} EMR,^{Footnote 11} Trpien,^{Footnote 12} KSS,^{Footnote 13} SCF,^{Footnote 14} Loyal-CMC,^{Footnote 15} and the Hilti Companies.^{Footnote 16}

Certain details provided in case briefs and reply submissions were designated as confidential information by the counsel. This has restricted the ability of the CBSA to discuss all issues raised in these submissions. The material issues raised by the parties through case briefs and reply submissions are summarized as follows:

Dumping representations

Retroactive duty assessments

Case briefs

Counsel for the complainant stated that in order to ensure that normal values accurately reflect changing market conditions, exporters with normal values are required to inform the CBSA of changes to domestic prices, costs, market conditions or terms of sale associated with the production and sale of fasteners. Where an exporter fails to properly notify the CBSA of such changes, fails to properly adjust their export prices, or fails to provide the CBSA with the information needed to make the relevant adjustments to normal values, the CBSA is authorized to impose retroactive anti-dumping duties on the subject goods.^{Footnote 17}

Counsel further stated that there were significant increases in prices of wire rod, the main inputs in fasteners, in Southeast Asia since the POI of the last re-investigation. Counsel alleged that a number of exporters did not report these changes in price, and did not sufficiently increase their export prices to account for changes in market conditions, therefore, the CBSA should assess retroactive duties for imports of subject goods from those exporters.^{Footnote 18}

Reply submissions

Counsel for the Hilti Companies submitted that the CBSA should not issue a retroactive duty assessment for Hilti Canada as no such re-assessment is warranted based on information on the record regarding wire rod import prices in Southeast Asia over the course of the POI.^{Footnote 19}

CBSA response

Upon completion of the re-investigation, the CBSA will be conducting an analysis of subject imports from exporters of fasteners during the POI to determine whether retroactive assessments are warranted. The analysis will rely on information provided via RFI and supplemental RFI responses received, representations submitted by parties, verifications and any other available relevant information.

Completeness of information provided and the calculation of normal values and export prices

Representations made during the re-investigation

During the re-investigation, counsel for the complainant discussed various concerns pertaining to the responses to the RFIs and supplemental RFIs provided by exporters, related parties and importers. Issues raised included: cost of production reporting methodologies and allocations; subcontracting fees; reliability of section 24 export prices; and other various alleged discrepancies, inconsistencies and deficiencies within the responses.

There were a number of exporter specific issues that were raised by counsel for the complainant as well. In order to respect the confidentiality designations made by interested parties, the CBSA is limited in the information that can be divulged in response to arguments made concerning certain topics.

Case briefs

Counsel for the complainant reiterated many of their concerns with the responses provided by exporters, related parties and importers, maintaining their position that the responses contain deficiencies and inconsistencies. Counsel raised additional concerns with respect to the grouping of certain product characteristics for issuing normal values. Further, the counsel also discussed how the CBSA should issue future normal values and provided information for purposes of establishing an amount for profit pursuant to paragraph 11(1)(b) of SIMR, as well as the application of profit under section 25(1)(c)(ii) of SIMA. Counsel submitted that, as a result of issues raised, the CBSA should determine normal values pursuant to section 29 of SIMA where appropriate to do so.

Counsel for U2, Loyal-CMC, SCF, KSS, EMR and Trpien submitted that they have fully cooperated during the re-investigation, and have provided complete responses which have been verified during on-site verifications. Counsel further submitted that sufficient verified information has been provided to determine normal values.^{Footnote 20}

Counsel for the Hilti Companies submitted that they have fully cooperated during the re-investigation, and have provided complete responses which have been verified during on-site verifications. Counsel also submitted that the manufacturers have provided complete responses and that there are no outstanding allegation from domestic producers. Counsel further submitted that sufficient verified information has been provided to determine normal values.^{Footnote 21}

Reply submissions

Counsel for the complainant responded to some of the arguments raised by Loyal-CMC, SCF, KSS, EMR, Trpien, U2, Hilti US and Hilti Canada in their case briefs. Their arguments were with respect to the identity of exporter of subject goods and issuance of normal values.^{Footnote 22}

Counsel for Loyal-CMC reiterated their arguments concerning the normal value calculation, submitting that the normal values should be determined based on their information provided in their responses to the RFI and SRFIs. Furthermore, the counsel submitted that the methodology proposed by the complainant for determining a reasonable amount for profit is not adequate. Additionally, counsel maintained their position that the information provided is complete, accurate, and has been verified.^{Footnote 23}

Counsel for the Hilti Companies submitted that the CBSA should not adopt the complainant’s proposed amount for profit for purposes of calculating export prices under section 25(1)(c)(ii). Furthermore, counsel submitted that the CBSA should calculate normal values for certain subject goods which have been identified for particular manufacturers, in accordance with sections 15 to 23 of the SIMA and its related regulations.^{Footnote 24}

CBSA response

The CBSA determined that the information provided by the cooperative exporters, in their RFI, SFRI and verification responses sufficient for purposes of determining normal values and export prices in this re-investigation. Further, normal values and export prices calculated by the CBSA in this re-investigation were determined in accordance with both SIMA and the SIMR.

The CBSA determined that the information provided in response to the RFI, SRFIs and on-site verification by Hilti Inc. was incomplete and unreliable for purposes of determining normal values and export prices in this re-investigation. Normal values and export prices for Hilti Inc. were determined pursuant to a ministerial specification in accordance with subsection 29(1) of SIMA.

Due consideration has been given to submissions on the topics raised in case briefs on a case-by-case basis and appropriate adjustments were made, as applicable, in accordance with SIMA and SIMR. Additional information on the calculation of normal values and export prices is provided to exporters in the confidential exporter conclusion notices.

Procedural issues

On May 1, 2024, counsel for Loyal-CMC, SCF, KSS, EMR and Trpien submitted a request to the CBSA to strike the reply submission, submitted by the complainant, from the record.

CBSA response

As the counsel’s request was submitted after the scheduled deadline for reply submissions, the CBSA did not accept the submission^{Footnote 25} as doing so would provide an additional opportunity for the counsel to submit reply submissions in response to a reply submission.

The CBSA has considered all information on the record as well as the topics raised in case briefs and reply submissions in the determination of normal values, export prices and amounts of subsidy.

Subsidy Representations

Completeness of information provided and the calculation of amount of subsidy

Case briefs

Counsel for the complainant submitted that Robertson Jiaxing’s subsidy amounts must be calculated pursuant to a ministerial specification in accordance with subsection 29(1) of SIMA.^{Footnote 26}

CBSA response

Due to a lack of response to subsidy RFI from Robertson Jiaxing, the amount of subsidy for Robertson Jiaxing will be determined in accordance with a ministerial specification.

Appendix 2: Subsidy programs used by responding exporters

This appendix consists of descriptions of the subsidy programs that the responding exporters benefited from during the POI.

Due to the fact that there is a limited number of participating exporters in relation to the subsidy re-investigation, the CBSA is limited in some regards in terms of the level of detail that can be shared since some information was designated as confidential by the exporters.

Preferential loans and loan guarantees

Loans from state-owned banks at preferential rates

This program relates to government loans at a preferential rate of interest. The benefit provided in this case is a lower rate of interest than would otherwise be available if the enterprises had to obtain a non-guaranteed commercial loan (i.e. the benchmark non-guaranteed commercial loan).

For the purposes of the re-investigation, this program may be considered a financial contribution pursuant to paragraph 2(1.6)(b) of SIMA, in that amounts that would otherwise be owing and due to the government are reduced and/or exempted, and confers a benefit to the recipient equal to the amount of the reduction/exemption.

For the purposes of the re-investigation, the program may be considered specific pursuant to paragraph 2(7.3) of SIMA in that the manner in which discretion is exercised by the granting authority indicates that the subsidy may not be generally available.

Preferential export financing and export credit guarantee/insurance

The China Export & Credit Insurance Corporation (Sinosure) is a state-funded policy-oriented insurance company that was established to promote China’s foreign trade and economic cooperation. The China Exim Bank and Sinosure each provide export credit guarantees which, according to information from the Bank, have “played a key role in supporting Chinese companies to go global” and promoted “the export of new and high tech products”.

For the purposes of the re-investigation, this program may be considered a financial contribution pursuant to paragraph 2(1.6)(b) of SIMA, in that amounts that would otherwise be owing and due to the government are reduced and/or exempted, and confers a benefit to the recipient equal to the amount of the reduction/exemption.

For the purposes of the re-investigation, the program may be considered specific pursuant to subsection 2(7.3) of SIMA in that the manner in which discretion is exercised by the granting authority indicates that the subsidy may not be generally available.

Grants and grant equivalents

Design, research and development grants

This program provides a grant for enterprises determined to have undertaken expenses in design or research and development.

For the purposes of the re-investigation, this program may be considered a financial contribution pursuant to paragraph 2(1.6)(a) of SIMA as a direct transfer of funds from the government, and it confers a direct benefit to the recipient equal to the amount of the grant.

For the purposes of the re-investigation, the program may be considered specific pursuant to paragraph 2(7.3) of SIMA in that the manner in which discretion is exercised by the granting authority indicates that the subsidy may not be generally available.

Export development and performance grants

This grant is provided to assist in the development of export markets or to recognize export performance.

For the purposes of the re-investigation, this program may be considered a financial contribution pursuant to paragraph 2(1.6)(a) of SIMA as a direct transfer of funds from the government, and it confers a direct benefit to the recipient equal to the amount of the grant.

For the purposes of the re-investigation, the program may be considered specific pursuant to paragraph 2(7.3) of SIMA in that the manner in which discretion is exercised by the granting authority indicates that the subsidy may not be generally available.

Performance award grants

This grant is provided to recognize enterprises with excellent performances or contributions to the local economy.

For the purposes of the re-investigation, this program may be considered a financial contribution pursuant to paragraph 2(1.6)(a) of SIMA as a direct transfer of funds from the government, and confers a benefit to the recipient equal to the amount of the grant.

For the purposes of the re-investigation, the program may be considered specific pursuant to subsection 2(7.3) of SIMA in that the manner in which discretion is exercised by the granting authority indicates that the subsidy may not be generally available.

Environment protection grant

This grant provides subsidies related to environmental protection, including the generation of photovoltaic power.

For the purposes of the re-investigation, this program may be considered a financial contribution pursuant to paragraph 2(1.6)(a) of SIMA as a direct transfer of funds from the government, and it confers a direct benefit to the recipient equal to the amount of the grant.

For the purposes of the re-investigation, the program may be considered specific pursuant to paragraph 2(7.3) of SIMA in that the manner in which discretion is exercised by the granting authority indicates that the subsidy may not be generally available.

Insurance grants

This grant provides reimbursement from local and provincial government on credit insurance fees.

For the purposes of the re-investigation, this program may be considered a financial contribution pursuant to paragraph 2(1.6)(a) of SIMA as a direct transfer of funds from the government, and it confers a direct benefit to the recipient equal to the amount of the grant.

For the purposes of the re-investigation, the program may be considered specific pursuant to paragraph 2(7.3) of SIMA in that the manner in which discretion is exercised by the granting authority indicates that the subsidy may not be generally available.

Grant: Patent assistance/award

This grant is provided to support improvement in technology innovation and to promote intellectual property.

For the purposes of the re-investigation, this program may be considered a financial contribution pursuant to paragraph 2(1.6)(a) of SIMA as a direct transfer of funds from the government, and it confers a direct benefit to the recipient equal to the amount of the grant.

For the purposes of the re-investigation, the program may be considered specific pursuant to paragraph 2(7.3) of SIMA in that the manner in which discretion is exercised by the granting authority indicates that the subsidy may not be generally available.

Subsidies related to quality and improvement

This program is provided to encourage enterprises to upgrade the equipment and increase the production capacity. This program was established to provide support to optimize production and sales process; interconnect production and management data for enterprises; and improve efficiency.

For the purposes of the re-investigation, this program may be considered a financial contribution pursuant to paragraph 2(1.6)(a) of SIMA as a direct transfer of funds from the government, and it confers a direct benefit to the recipient equal to the amount of the grant.

For the purposes of the re-investigation, the program may be considered specific pursuant to paragraph 2(7.3) of SIMA in that the manner in which discretion is exercised by the granting authority indicates that the subsidy may not be generally available.

Subsidies for the establishment of non-manufacturing facilities

Subsidies under this program are related to assistance in establishing non-manufacturing facilities.

For the purposes of the re-investigation, this program may be considered a financial contribution pursuant to paragraph 2(1.6)(a) of SIMA as a direct transfer of funds from the government, and it confers a direct benefit to the recipient equal to the amount of the grant.

For the purposes of the re-investigation, the program may be considered specific pursuant to paragraph 2(7.3) of SIMA in that the manner in which discretion is exercised by the granting authority indicates that the subsidy may not be generally available.

Subsidies related to company/enterprise development and innovation

Subsidies under this program are related to company and enterprise development and innovation grants and awards.

For the purposes of the re-investigation, this program may be considered a financial contribution pursuant to paragraph 2(1.6)(a) of SIMA as a direct transfer of funds from the government, and it confers a direct benefit to the recipient equal to the amount of the grant.

For the purposes of the re-investigation, the program may be considered specific pursuant to paragraph 2(7.3) of SIMA in that the manner in which discretion is exercised by the granting authority indicates that the subsidy may not be generally available.

Subsidies related to employment, training and recruitment

Subsidies under this program are related to employment, training and recruitment programs.

For the purposes of the re-investigation, this program may be considered a financial contribution pursuant to paragraph 2(1.6)(a) of SIMA as a direct transfer of funds from the government, and it confers a direct benefit to the recipient equal to the amount of the grant.

For the purposes of the re-investigation, the program may be considered specific pursuant to paragraph 2(7.3) of SIMA in that the manner in which discretion is exercised by the granting authority indicates that the subsidy may not be generally available.

Subsidies to provide business support

Subsidies provided under this program are related to programs providing business support.

For the purposes of the re-investigation, this program may be considered a financial contribution pursuant to paragraph 2(1.6)(a) of SIMA as a direct transfer of funds from the government, and it confers a direct benefit to the recipient equal to the amount of the grant.

For the purposes of the re-investigation, the program may be considered specific pursuant to paragraph 2(7.3) of SIMA in that the manner in which discretion is exercised by the granting authority indicates that the subsidy may not be generally available.

Preferential tax programs

Corporate income tax reduction for new high tech enterprises (“NHTE”)

Under Article 28.2 of the Enterprise Income Tax Law in China, companies designated as high or new technology enterprises (HNTEs) are entitled to a reduced income tax rate of 10 percent instead of the normal national corporate tax rate of 25 percent. The granting authority responsible for this program is alleged to be the State Administration of Taxation and the program is administered by local tax authorities. In its notification of subsidy programs to the WTO, the Government of China listed this program.

For the purposes of the re-investigation, this program may be considered a financial contribution pursuant to paragraph 2(1.6)(b) of SIMA, in that amounts that would otherwise be owing and due to the government are reduced and/or exempted, and confer a benefit to the recipient equal to the amount of the reduction/exemption.

For the purposes of the re-investigation, the program may be considered specific pursuant to subsection 2(7.2) of SIMA because it is limited to enterprises in certain industries.

Municipal/local income or property tax reductions

This program covers reductions and exemptions in tax provided from municipal/local income tax units.

For the purposes of the re-investigation, this program may be considered a financial contribution pursuant to paragraph 2(1.6)(b) of SIMA, in that amounts that would otherwise be owing and due to the government are reduced and/or exempted, and confer a benefit to the recipient equal to the amount of the reduction/exemption.

For the purposes of the re-investigation, the program may be considered specific pursuant to paragraph 2(7.3) of SIMA in that the manner in which discretion is exercised by the granting authority indicates that the subsidy may not be generally available.

Preferential tax policies related to research and investment

This program provides preferential tax policies related to research and development.

For the purposes of the re-investigation, this program may be considered a financial contribution pursuant to paragraph 2(1.6)(b) of SIMA, in that amounts that would otherwise be owing and due to the government are reduced and/or exempted, and confers a benefit to the recipient equal to the amount of the reduction/exemption.

For the purposes of the re-investigation, the program may be considered specific pursuant to paragraph 2(7.3) of SIMA in that the manner in which discretion is exercised by the granting authority indicates that the subsidy may not be generally available.

Tax exemption and reduction for small and micro enterprises

This program provides qualifying businesses that do not exceed the maximum taxable income, employee count and owned assets with a reduced tax rate of 2.5 percent instead of the normal national corporate tax rate of 25 percent.

For the purposes of the re-investigation, this program may be considered a financial contribution pursuant to paragraph 2(1.6)(b) of SIMA. That is, amounts that would otherwise be owing and due to the government are reduced and/or exempted, and confer a benefit to the recipient equal to the amount of the reduction/exemption.

For the purposes of the re-investigation, the program may be considered specific pursuant to paragraph 2(7.3) of SIMA in that the manner in which discretion is exercised by the granting authority indicates that the subsidy may not be generally available.

Accelerated depreciation on fixed assets

This program provides preferential tax treatment with an objective of speeding up industrial restructuring.

For the purposes of the re-investigation, this program may be considered a financial contribution pursuant to paragraph 2(1.6)(b) of SIMA. That is, amounts that would otherwise be owing and due to the government are reduced and/or exempted, and confer a benefit to the recipient equal to the amount of the reduction/exemption.

For the purposes of the re-investigation, the program may be considered specific pursuant to paragraph 2(7.3) of SIMA in that the manner in which discretion is exercised by the granting authority indicates that the subsidy may not be generally available.

Relief from duties and taxes

Offsets to taxable income related to purchases of domestic machinery

This program provides a corporate tax reduction, where exporters purchase domestic equipment.

For the purposes of the re-investigation, this program may be considered a financial contribution pursuant to paragraph 2(1.6)(b) of SIMA, in that amounts that would otherwise be owing and due to the government are reduced and/or exempted, and confers a benefit to the recipient equal to the amount of the reduction/exemption.

For the purposes of the re-investigation, the program may be considered specific pursuant to paragraph 2(7.3) of SIMA in that the manner in which discretion is exercised by the granting authority indicates that the subsidy may not be generally available.

Exemption or refund of tariff and import value-added tax (VAT) for imported technologies and equipment

This program was established to take in investment in Special Economic Zones (SEZs) and encourage districts to take the lead in development. Under this program, machinery and equipment; spare parts; raw and semi processed materials; means of transportation; and other capital goods necessary for production that are imported by enterprises in SEZs are exempted from import duties.

For the purposes of the re-investigation, this program may be considered a financial contribution pursuant to paragraph 2(1.6)(b) of SIMA. That is, amounts that would otherwise be owing and due to the government are reduced and/or exempted, and confer a benefit to the recipient equal to the amount of the reduction/exemption.

For the purposes of the re-investigation, the program may be considered specific pursuant to paragraph 2(7.3) of SIMA in that the manner in which discretion is exercised by the granting authority indicates that the subsidy may not be generally available.

Good / services provided by the government at less than fair market value

Acquisition of government inputs/utilities at less than fair market value

This program relates to the provision, by the government, of goods or services at prices lower than the fair market value of the goods or services in the territory of the government providing the subsidy. Specifically, steel wire rod as an input may be provided to fasteners producers at less than fair market value.

Pursuant to paragraph 2(1.6)(c) of, this program may be considered a financial contribution pursuant to paragraph 2(1.6)(c) of SIMA. That is, the government provides goods or services, other than general infrastructure, or purchases goods.

For the purposes of the re-investigation, the program may be considered specific pursuant to paragraph 2(7.3) of SIMA in that the manner in which discretion is exercised by the granting authority indicates that the subsidy may not be generally available.