LP2 2018 UP1
Carbon and Alloy Steel Line Pipe
Notice of Conclusion of Normal Value Review
Ottawa, September 10, 2019
The Canada Border Services Agency (CBSA) has today concluded a normal value and export price review of certain carbon and alloy steel line pipe (line pipe) exported from South Korea to Canada by Husteel Co., Ltd. (Husteel).
The normal value and export price review is part of the CBSA’s enforcement of the Canadian International Trade Tribunal’s (CITT) finding of injury issued on January 4, 2018, respecting the dumping of line pipe from South Korea, 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 finding are contained in Appendix 1 (subject goods). Additional product information explaining which products are subject to duties is also provided in the appendix.
Normal Values for Future Shipments
Based on the information on the administrative record for this normal value and export price review, the CBSA has determined that the information provided by Husteel was not sufficiently accurate or reliable to be used for the purposes of determining normal values.
The normal value for goods subject to this review, and released by the CBSA on or after September 10, 2019, will be determined in accordance with a ministerial specification based on the export price of the goods advanced by 88.1%. Normal values previously issued to Husteel are no longer effective.
During the course of this review, case arguments and reply submissions were submitted on behalf of Husteel, EVRAZ Inc. NA Canada, and Tenaris Canada. The main focus of these representations involved the quality of the information provided by Husteel and the comparability of Husteel’s domestic sales. The information submitted in these case arguments and reply submissions were given due consideration by the CBSA.
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.
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 exporters 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, on the CBSA’s website at: www.cbsa-asfc.gc.ca/publications/dm-md/d14-eng.html.
The Customs 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 with the Director General, Trade and Anti-dumping Programs Directorate, 11th 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, on the CBSA’s website at: www.cbsa-asfc.gc.ca/publications/dm-md/d14-eng.html.
Any questions concerning the above should be directed to:
- Shawn Ryan: 902-943-1849
E-mail:
Appendix 1 - Product Definitions
Subject goods are defined as:
Carbon and alloy steel line pipe originating in or exported from the Republic of Korea, welded or seamless, having a nominal outside diameter from 2.375 inches (60.3 mm) up to and including 24 inches (610 mm) (with all dimensions being plus or minus allowable tolerances contained in the applicable standards), including line pipe meeting or supplied to meet any one or several of API 5L, CSA Z245.1, ISO 3183, ASTM A333, ASTM A106, ASTM A53-B or their equivalents, in all grades, whether or not meeting specifications for other end uses (e.g. single-, dual-, or multiple certified, for use in oil and gas or other applications), and regardless of end finish (plain ends, beveled ends, threaded ends, or threaded and coupled ends), surface finish (coated or uncoated), wall thickness, or length, excluding galvanized line pipe and excluding stainless steel line pipe (containing 10.5 percent or more by weight of chromium), and excluding goods covered by the Canadian International Trade Tribunal’s Finding in Inquiry No. NQ 2012 003.
For greater certainty, the product definition includes:
- unfinished line pipe (including pipe that may or may not already be tested, inspected, and/or certified to line pipe specifications) originating in the Republic of Korea and imported for use in the production or finishing of line pipe meeting final specifications, including outside diameter, grade, wall thickness, length, end finish, or surface finish; and
- non-prime and secondary pipes (“limited service products”).
Tariff Classification Numbers
The subject goods described above are normally, but not exclusively, classified under the following tariff classification numbers:
- 7304.19.00.10
- 7304.19.00.20
- 7305.11.00.10
- 7305.11.00.20
- 7305.12.00.10
- 7305.12.00.30
- 7305.19.00.10
- 7305.19.00.20
- 7306.19.00.10
- 7306.19.00.90
This listing of tariff classification numbers is for convenience of reference only. Refer to the product definition for authoritative details regarding the subject goods.
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