OCTG1 2021 UP2: Oil country tubular goods
Notice of normal value review

Ottawa, December 17, 2021

Following its Amended Scope Ruling made on November 26, 2021, the Canada Border Services Agency (CBSA) has today initiated a normal value review to update normal values, export prices and amounts of subsidy of certain oil country tubular goods (OCTG) specific to insulated tubing (IT) and vacuum insulated tubing (VIT) exported from China to Canada by China Petroleum Technology And Development Corporation.

The normal value review is part of the CBSA’s enforcement of the Canadian International Trade Tribunal’s (CITT) finding, respecting the dumping and subsidizing of certain OCTG from China, in accordance with the Special Import Measures Act (SIMA).

The product definition, the applicable tariff classification numbers of the goods subject to the CITT’s finding and additional product information respecting IT/VIT are contained in Appendix 1.

Should the exporter decide to participate in the review, it is required to provide complete and accurate responses to the CBSA’s Dumping and Subsidy Requests for Information (RFIs) by January 24, 2022. The exporter will be considered cooperative if the requested information is complete, submitted on time and the exporter permits verification of the data. If the exporter does not provide complete responses to the RFIs by the deadline date, normal values will be determined by advancing the export price of the goods by 166.9% and countervailing duty will be assessed at 4,070 Chinese Renminbi per metric tonne, pursuant to a ministerial specification.

The CBSA will close the record for the review at any time during the proceeding, without advance notice, once it has been determined that sufficient information has been received to make a decision. Therefore, interested parties are encouraged to provide any and all information that they feel is relevant to the review to the CBSA as early as possible. The CBSA will update the normal value review schedule to announce that the record has been closed. Interested parties will have seven days from the close of the record to file case arguments concerning the review and 14 days from the close of the record to file reply submissions in respect of the case arguments.

Normal values, export prices and amounts of subsidy established during the review will apply to IT/VIT imported into Canada during the period from September 6, 2019 to November 30, 2021. Further, the normal values, export prices and amounts of subsidy established during the review will also apply to subject goods released from the CBSA on or after the date of the conclusion of the review. The normal values, export prices and amounts of subsidy determined as a result of the 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 the review, regardless of the date that the requests were received.

Exporters 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, or amounts of subsidy received. The concerned parties are responsible for informing the CBSA of such changes in writing and in a timely manner. If the concerned parties do not or did not properly notify the CBSA of substantial changes, or if they do not provide the information required to make any necessary adjustments to values, retroactive assessments of anti-dumping and/or countervailing duty may be warranted. Please refer to the CBSA’s re-investigation and normal value review policy (Memorandum D14-1-8) for details.

Any questions concerning the above should be directed to:

• Telephone:
• Jason Huang: 343-553-1891
• Aaron Maidment: 343-553-1633

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

Appendix 1—Product definition

For the purpose of the review, the subject goods are defined as:

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

1. 7304.29.00.31
2. 7304.29.00.39
3. 7304.29.00.41
4. 7304.29.00.49
5. 7304.29.00.51
6. 7304.29.00.59
7. 7304.29.00.61
8. 7304.29.00.69
9. 7304.29.00.71
10. 7304.29.00.79
11. 7304.39.00.60
12. 7304.59.00.50
13. 7306.29.00.11
14. 7306.29.00.19
15. 7306.29.00.21
16. 7306.29.00.29
17. 7306.29.00.31
18. 7306.29.00.39
19. 7306.29.00.61
20. 7306.29.00.69

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

Additional product information

Insulated tubing (IT) and vacuum insulated tubing (VIT) are known as insulated steam injected tubing and oil production tubing products, including double-walled tubing, with or without insulation, which are used for thermal-enhanced oil recovery of extremely viscous crude oils. IT/VIT are used in steam injection wells in Steam Assisted Gravity Drainage (SAGD) operations in the Oil Sands and also in Cyclic Steam Stimulation (CSS) in heavy oil fields.

SAGD operations have a well pair consisting of steam injection and production wells. IT/VIT can be used in both the steam injection and production wells in place of American Petroleum Institute (API) 5CT casing and tubing. In CSS operations, IT/VIT can be used both for steam injection and oil production in place of API 5CT casing and tubing. The use of IT/VIT can result in a significant reduction of water volume requirements when used in a steam injection applications.

IT/VIT can also be used in conventional deep oil producing wells in place of API 5CT casing and tubing. The product assists the oil in maintaining temperatures above 80 degrees Fahrenheit to avoid paraffin and wax deposition which causes the production well to plug.