Conclusion of normal value review: Carbon steel welded pipe 3 (CSWP3 2022 UP3)

Period of investigation

For this review, the period of investigation (POI) and the profitability analysis period (PAP) was from January 1, 2021 to December 31, 2021.

Normal value review process

At the initiation of this review, on February 15, 2022, the CBSA sent requests for information (RFIs) to IIL and to other parties involved in the transactions in order to solicit information on the costs and selling prices of subject goods and like goods. The information was requested for purposes of determining normal values and export prices applicable to subject goods exported to Canada.

The responses to the CBSA’s RFIs,^{Footnote 1} deficiency letter^{Footnote 2} and supplemental RFIs^{Footnote 3} were received accordingly from IIL and IIL Americas Inc. (IIL Americas).

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 4} Counsel on behalf of IIL and IIL Americas also provided a case brief and reply submission.^{Footnote 5}

Representations and case briefs

The issues raised in the comments, case briefs and reply submissions, submitted by counsel for Nova, mainly concerned deficiencies, completeness and inconsistencies in IIL’s and IIL America’s responses, the requirement to perform a reliability test, as well as adjustments under paragraph 9(a) of the Special Import Measures Regulations (SIMR).

Counsel for IIL and IIL Americas submitted in their case brief and reply submission that information provided by the companies was complete, accurate and verified through SRFIs and should be used to determine all normal values and export prices. Additionally, counsel stated that the CBSA must accept information that is verifiable, usable and timely and that there is no basis to determine normal values by way of ministerial specification. Further, counsel argued that to provide a fair comparison between subject goods exported to Canada and like goods sold in Pakistan, the CBSA should apply a trade level adjustment.

The representations submitted by all parties were given due consideration by the CBSA prior to the conclusion of this review.

Normal values for future shipments

Specific normal values for future shipments of carbon steel welded pipe have been determined for the participating exporter, IIL. These normal values are effective today, May 10, 2023.

IIL’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 in accordance with paragraph 19(b) of SIMA, based on the aggregate of cost of production, a reasonable amount for administrative, selling and all other costs, and a reasonable amount for profits.

In this regard, the amount for profits was determined in accordance with subparagraph 11(1)(b)(i) of the SIMR, based IIL’s profitable sales of like goods in Pakistan, during the PAP.

During the POI, all of the COR exported by IIL were sold to IIL Americas, 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 reliability test revealed that the export prices in accordance with section 24 of SIMA were unreliable and, therefore, export prices were determined in accordance with section 25 of SIMA.

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.

Contact us

• Telephone:
• Paul Pomnikow: 343-553-1640

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

Appendix 1: Product definitions

Tariff classification numbers

Prior to January 1, 2022, 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 January 1, 2022, 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.