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Conclusion of normal value review: Carbon steel welded pipe 3 (CSWP3 2022 UP1)


The Canada Border Services Agency (CBSA) has today concluded a normal value review (review) to update normal values and export prices of certain carbon steel welded pipe (CSWP) exported to Canada from Turkey by Borusan Mannesmann Boru Sanayi ve Ticaret A.S. (Borusan).

The review is part of the CBSA’s enforcement of the Canadian International Trade Tribunal’s (CITT) injury finding issued on , respecting the dumping of CSWP from Pakistan, the Philippines, Turkey and Vietnam, in accordance with the Special Import Measures Act (SIMA).

The product definition and the applicable tariff classification numbers of the goods subject to the CITT’s order are contained in Appendix 1 (subject goods).

Period of investigation

For this review, the period of investigation (POI) and the profitability analysis period (PAP) was from to .

Normal value review process

At the initiation of this review, on , the CBSA sent requests for information (RFIs) to Borusan and to other parties in order to solicit information for purposes of determining normal values and export prices applicable to subject goods exported to Canada.

The responses to the CBSA’s RFIs and supplemental RFIs (SRFIs) were received accordingly from Borusan and an importer.

As part of the review, counsel on behalf of Canadian producer Nova Steel Inc. and Nova Tube Inc. (collectively referred to as “Nova”), submitted comments relating to this review prior to the close of the record as well as a case brief and reply submission.Footnote 1 Counsel on behalf of Borusan also provided a case brief and reply submission.Footnote 2 Details of these submissions are provided in Appendix 2. The representations submitted by all parties were given due consideration by the CBSA prior to the conclusion of this normal value review.

Normal values for future shipments

Specific normal values for future shipments of carbon steel welded pipe have been determined for the participating exporter, Borusan. These normal values are effective today, .

Borusan’s response included a database of domestic sales of CSWP. However, there were insufficient domestic sales of like goods that met the requirements of sections 15 and 16 of SIMA, and as a result it was not possible to estimate normal values based on the methodology of section 15 of SIMA using domestic sales of like goods. As such, 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 in accordance with subparagraph 11(1)(b)(ii) of the Special Import Measures Regulations (SIMR) by using Borusan’s profitable domestic sales of goods that were of the same general category as the subject goods shipped to Canada during the POI.

The normal values determined as a result of this review may be applied to any requests for re-determination of importations of subject goods that have not been processed prior to the conclusion of this normal value review, regardless of the date that the requests were received. The normal values determined as a result of this review may be applied retroactively where the conditions described below are met.

Exporter responsibility

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. If there are changes to the exporter’s domestic prices, costs, market conditions or terms of sale associated with the production and sales of the goods, and 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 will be applied where such action is warranted.

Importer responsibility

Importers are reminded that it is their responsibility to calculate and declare their anti-dumping 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. To determine their anti-dumping liability, importers should contact the exporter(s) to obtain the applicable normal values. 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 (Act) applies, with any modifications that the circumstances require, with respect to the accounting and payment of anti-dumping 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.

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Appendix 1: Product definitions

Carbon steel welded pipe, commonly identified as standard pipe, in the nominal size range from ½ inch up to and including 6 inches (12.7 mm to 168.3 mm in outside diameter) inclusive, in various forms and finishes, usually supplied to meet ASTM A53, ASTM A135, ASTM A252, ASTM A589, ASTM A795, ASTM F1083 or Commercial Quality, or AWWA C200-97 or equivalent specifications, including water well casing, piling pipe, sprinkler pipe and fencing pipe, but excluding oil and gas line pipe made to API specifications exclusively, originating in or exported from the Islamic Republic of Pakistan, the Republic of the Philippines, the Republic of Turkey and the Socialist Republic of Vietnam.

Tariff classification numbers

Prior to , the subject goods were usually classified under the following tariff classification numbers:

  1. 7306.30.00.10
  2. 7306.30.00.20
  3. 7306.30.00.30

Beginning , under the revised customs tariff schedule, subject goods are normally classified under the following tariff classification numbers:

  1. 7306.30.00.42
  2. 7306.30.00.43
  3. 7306.30.00.44
  4. 7306.30.00.45
  5. 7306.30.00.46
  6. 7306.30.00.47
  7. 7306.30.00.49
  8. 7306.30.00.52
  9. 7306.30.00.53
  10. 7306.30.00.54
  11. 7306.30.00.55
  12. 7306.30.00.56
  13. 7306.30.00.57
  14. 7306.30.00.59
  15. 7306.30.00.62
  16. 7306.30.00.63
  17. 7306.30.00.64
  18. 7306.30.00.65
  19. 7306.30.00.66
  20. 7306.30.00.67
  21. 7306.30.00.69

This listing of tariff classification numbers is for convenience of reference only. Refer to the product definition for authoritative details regarding the subject goods.

Appendix 2: Representations

The material issues raised by the parties are summarized as follows and, to the extent possible, the Canada Border Services Agency (CBSA) has provided responses to representations below.

Application of ministerial specification

Counsel for the Canadian producer argued that Borusan’s response to the request for information (RFI) was incomplete and/or unreliable. Counsel made specific representations regarding Borusan’s responses with regards to the accuracy, completeness and reliability of the data pertaining to the cost of production, domestic sales and export sales.

Counsel for Borusan responded to the Canadian producer’s arguments, stating that Borusan provided accurate and sufficient information to the CBSA in order to calculate normal values and export prices.

CBSA’s position

The CBSA considers the responses to be substantially complete for purposes of this review. The CBSA determined normal values in accordance with section 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, as Borusan did not have a sufficient number of domestic sales of like goods that met the conditions of sections 15 and 16 of SIMA.

Currency denomination of normal values

Counsel for the Canadian producer argued that the CBSA should issue future normal values to Borusan denominated in U.S. Dollars. Counsel noted that the Turkish Lira has exhibited large volatility since 2018, with significant depreciations continuing during the POI of this normal value review. Counsel therefore argued that issuing normal values in U.S. Dollars is warranted given the significant depreciations and volatile changes impacting the Turkish Lira. Counsel also noted that issuing normal values in U.S. dollars because of the volatility of the Turkish Lira would be consistent with previous normal value reviews for other Turkish producers of rebar.

CBSA’s position

The CBSA’s policy concerning the currency denomination for normal values is published in Memorandum D14-1-8, Re-investigation and normal value review policy—Special Import Measures Act (SIMA). This policy notes:

27. Normal values are usually stated in the domestic currency of the country of export or the country of origin. Where the exchange rate for the domestic currency is subject to frequent and volatile changes, and there is indication that normal values will need to be frequently updated if stated in the domestic currency as a result of this volatility, the normal values will be stated in Canadian dollars. For example, if the domestic currency of the country of export has depreciated considerably over the past two-year period and this volatility is expected to continue in the future, the CBSA would issue the normal values in Canadian dollars. However, if the majority of export transactions are carried out in another stable currency, for example in U.S. dollars, the normal values may be stated in that currency. Information on the applicable prevailing rate of exchange can be found in the Currency Exchange for Customs Valuation Regulations.

The information on the record for this normal value review demonstrates a volatile and depreciating exchange rate for the Turkish Lira. To address these factors the CBSA issued the normal values to Borusan in U.S. Dollars, as export transactions for subject goods sold to Canada are typically sold in U.S. Dollars in this industry.

Retroactive anti-dumping duty assessments

Counsel for the Canadian producer argued that Borusan has failed to notify the CBSA of changes in market circumstances, including rising selling prices for like goods and costs of production. Counsel argued that, given these circumstances, the CBSA should issue retroactive anti-dumping duty assessments.

CBSA’s position

Upon completion of this normal value review, the CBSA will be conducting an analysis of subject imports of CSWP during the POI to determine whether retroactive assessments are warranted.

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