RB1&2 2017 RI
Certain Concrete Reinforcing Bar
Notice of Conclusion of Re-investigation

Ottawa, May 4, 2018

The Canada Border Services Agency (CBSA) has today concluded a re investigation to update the normal values and export prices respecting certain concrete reinforcing bar (rebar) originating in or exported from the People’s Republic of China (China), the Republic of Korea and the Republic of Turkey (Rebar 1), and originating in or exported from the Republic of Belarus (Belarus), Chinese Taipei, the Hong Kong Special Administrative Region of the People’s Republic of China, Japan, the Portuguese Republic and the Kingdom of Spain (Rebar 2), and the amounts of subsidy of certain rebar originating in or exported from China, in accordance with the Special Import Measures Act (SIMA).

The re investigation was initiated on December 4, 2017, as part of the ongoing enforcement of the Canadian International Trade Tribunal’s (CITT) finding of a threat of injury issued on January 9, 2015 (Rebar 1) and the CITT’s finding of injury issued on May 3, 2017 (Rebar 2).

The product definitions as well as additional product information and the applicable tariff classification numbers of the goods subject to the CITT’s findings are contained in Appendix 1 (subject goods).

At the initiation of the re-investigation, the CBSA sent Requests for Information (RFI) to all known and potential importers, exporters, vendors, and the Government of China (GOC) to solicit information on the costs and selling prices of like and subject goods as well as any subsidy programs that may be applicable to subject goods. The information was requested for purposes of updating the normal values, export prices and amounts of subsidy (China) for subject goods imported into Canada.

Information available to the CBSA at the start of the re-investigation indicated that there was reason to believe that conditions pertaining to section 20 of SIMA exist in the long products steel industry sector in China and in the rebar sector in Belarus. Section 20 of SIMA may be applied to determine the normal value of goods subject to a dumping re-investigation where certain conditions prevail in the domestic market of the exporting country. The CBSA applies it for a prescribed country where, in the opinion of the CBSA, domestic prices are substantially determined by the government and there is sufficient reason to believe that they are not substantially the same as they would be if they were determined in a competitive market, or for any other country where, in the opinion of the CBSA, the government of the country has a monopoly or substantial monopoly of its export trade, and it substantially determines domestic prices and there is sufficient reason to believe that the domestic prices are not substantially the same as they would be if they were determined in a competitive market.

Accordingly, section 20 inquiries were initiated and the CBSA sent a Section 20 RFI to the GOC, to the Government of Belarus (GOB) and to all known and potential exporters in China and Belarus to examine this matter. With the initiation of the section 20 inquiries, the CBSA continued to research and review publicly available information concerning the status of these sectors in China and Belarus.

Neither the GOC nor the exporters in China provided a response to the Section 20 RFI. Responses to the Section 20 RFI were provided by the GOB and by the exporter, OJSC Byelorussian Steel Works, in Belarus.

At the conclusion of the section 20 inquiries, information on the administrative record revealed that the conditions of section 20 of SIMA continue to exist in the long products steel industry sector in China and in the rebar sector in Belarus. As a result, on May 4, 2018, the CBSA formed the opinion that the conditions of section 20 apply to the sectors under investigation in China and in Belarus.

Normal Values for Future Shipments - Rebar 1

Specific normal values for future shipments of certain rebar have been determined for all exporters that submitted a complete response to the Dumping RFI, to the Supplemental RFIs and for whom the desk and/or on-site verification was considered reliable.

Exporters (Rebar 1) that have received specific normal values effective May 4, 2018.

For all other exporters of subject goods originating in or exported from China, the Republic of Korea and the Republic of Turkey (Rebar 1), 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 41%, pursuant to section 29 of SIMA.

In the case of China, given that neither the GOC, nor any exporters/manufacturers in China provided a response to the Subsidy RFI, an amount of subsidy for all exporters of goods originating in or exported from China will be determined by ministerial specification, pursuant to subsection 30.4(2) of SIMA and is equal to 469 Chinese Renminbi per metric tonne.

Normal Values for Future Shipments - Rebar 2

Specific normal values for future shipments of certain rebar have been determined for all exporters that submitted a complete response to the Dumping RFI, to the Supplemental RFIs and for whom the desk and/or on-site verification was considered reliable.

Exporters (Rebar 2) that have received specific normal values effective May 4, 2018.

1 A joint response was received from BMZ and Bel Kap Steel LLC.

For all other exporters of subject goods originating in or exported from Belarus, Chinese Taipei, the Hong Kong Special Administrative Region of the People’s Republic of China, Japan, the Portuguese Republic and the Kingdom of Spain (Rebar 2), 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 108.5%, pursuant to section 29 of SIMA.

During the course of the re-investigation, representations, case arguments and reply submissions were received on behalf of counsel for the Canadian producers, exporters, foreign manufacturers and the GOB. Issues raised in these filings include: deficiencies and completeness of exporter’s submissions, application of section 20 of SIMA, retroactive duties and adjustments to normal values due to scrap and rebar price fluctuations. The information submitted in these documents were given due consideration by the CBSA prior to the conclusion of the re investigation.

The normal values and amounts of subsidy (China) will be effective for subject goods released from the CBSA on or after May 4, 2018, and will remain effective until such a date that the CBSA updates the normal values and amounts of subsidy or the CITT rescinds a finding. 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 current 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.

Please note that 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. Where the CBSA considers such changes to be significant, the normal values and export prices will be updated to reflect current conditions. All parties are cautioned that where there are increases in domestic prices, and/or costs as noted above, the export price 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 do not properly notify the CBSA of any such changes, do not adjust export prices accordingly, or do not provide the information required to make any necessary adjustments to normal values and export prices, retroactive assessments of anti-dumping or countervailing duties may be warranted.

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 SIMA measures and be provided with sufficient information necessary to clear the shipments. In order to determine their anti dumping and countervailing duty liability, importers should contact their suppliers who can provide information on normal values and amounts of subsidy. Under limited circumstances, the CBSA may make this information available to importers. Please refer to Memorandum D14-1-2, Disclosure of Normal Values Export Prices, and Amounts of Subsidy established under the Special Import Measures Act, for more information.

The Customs Act applies, with any modifications that the circumstances require, with respect to the accounting and payment of anti dumping and countervailing duties. As such, failure to pay duties within the prescribed time will result in the application of the interest provisions of the Act.

Should the importer disagree with the determination made on any importation of goods, a request for re determination may be filed with the Director General, Trade and Anti dumping Programs Directorate, 11^th Floor, 100 Metcalfe St., 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, Re-determinations and Appeals under the Special Import Measures Act.

Appendix 1 - Product Definitions

Rebar 1

Subject goods are defined as:

Rebar 2

Subject goods are defined as:

Additional Product Information – Rebar 1 and Rebar 2

For further clarity, the subject goods include all hot rolled deformed bar, rolled from billet steel, rail steel, axle steel, low alloy steel and other alloy steel that does not comply with the definition of stainless steel.

Uncoated rebar, sometimes referred to as black rebar, is generally used for projects in non corrosive environments where anti corrosion coatings are not required. On the other hand, anti corrosion coated rebar is used in concrete projects that are subjected to corrosive environments, such as road salt. Examples of anti corrosion coated rebar are epoxy or hot dip galvanized rebar. The subject goods include uncoated rebar and rebar that has a coating or finish applied.

Fabricated rebar products are generally engineered using computer automated design programs, and are made to the customer’s unique project requirements. The fabricated rebar products are normally finished with either a protective or corrosion resistant coating. Fabricated rebar is not included in the product definition of subject goods. Rebar that is simply cut to length is not considered to be a fabricated rebar and it is included in the definition of subject goods.

Rebar is produced in Canada in accordance with the National Standard of Canada CAN/CSA G30.18-M92 for Billet Steel Bar for Concrete Reinforcement (National Standard) prepared by the Standards Association and approved by the Standards Council of Canada.

The standard lengths for rebar are 6 metres (20 feet), 12 metres (40 feet) and 18 metres (60 feet), although rebar can be cut and sold in other lengths as specified by customers, or sold in coils

Tariff Classification Numbers

The subject goods are normally classified under the following tariff classification numbers:

• 7213.10.00.00
• 7214.20.00.00
• 7215.90.00.90
• 7227.90.00.90

Note that the tariff classification numbers are for convenience of reference only. Refer to the product definitions above for authoritative details regarding the subject goods.

Date modified:

2018-05-07