Notice of conclusion of normal value review: Carbon and Alloy Steel Line Pipe 2 (LP2 2023 UP2)

Period of investigation

The period of investigation (POI) and the profitability analysis period (PAP) for the normal value review were from July 1, 2022 to June 30, 2023.

Normal value review process

At the initiation of the normal value review, the CBSA sent Requests for Information (RFIs) to the exporter Dong Yang Steel and to the importer to solicit information on the costs and selling prices of subject and like goods. The information was requested for purposes of determining normal values and export prices for subject goods imported into Canada.

The exporter submitted a response to the CBSA’s dumping RFI as well as all supplemental requests for information (SRFIs). An onsite verification took place at the premises of the exporter in November 2023.

The importer also submitted a response to the CBSA’s RFI and SRFI.

As part of the normal value review, case briefs and reply submissions were submitted on behalf of the Canadian producers and the responding exporter.

Representations

During the course of the normal value review, counsel for the Canadian producers discussed various concerns pertaining to the responses to the RFIs and SRFIs provided by the exporter and importer. Issues raised included: cost of production reporting methodologies, input purchases, pricing and other various alleged inconsistencies and deficiencies within the responses.

Certain details provided in the representations were designated as confidential information by the submitting counsel. This has restricted the ability of the CBSA to discuss all issues raised in these submissions.

Due consideration has been given to submissions on the topics raised in case representations. The CBSA has reviewed and verified the information submitted by the exporter and importer in their RFI and SRFI responses and considers the responses to be substantially true, accurate and complete for purposes of this normal value review. Where appropriate, the CBSA has applied adjustments in accordance with SIMA and SIMR. Additional information on the calculation of normal values and export prices is provided to the exporter in the confidential exporter conclusion letter.

Normal values

Specific normal values for future shipments of subject goods have been determined for the participating exporter. These normal values are effective today, March 27, 2024.

Dong Yang Steel’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.

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 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

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 adjust export prices accordingly, retroactive assessments of anti-dumping duties may be warranted.

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. As noted in paragraph 12 of Memorandum D14-1-8 Re-investigation and Normal Value Review Policy – Special Import Measures Act (SIMA), these changes may be taken into account when determining whether to initiate a re-investigation or normal value review, as appropriate.

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 SIMA 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 (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.