OCTG1 SC 2019 UP 01
Oil Country Tubular Goods and Seamless Casing
Notice of Conclusion of Normal Value and Export Price Review

Ottawa, March 20, 2019

The Canada Border Services Agency (CBSA) has today concluded a normal value and export price review to update the normal values and export prices applicable to certain oil country tubular goods (OCTG) and certain seamless casing exported to Canada from China by exporter HG Tubulars Ltd. (HG Tubulars).

The normal value and export price review is part of the CBSA’s enforcement of the Canadian International Trade Tribunal’s (CITT) orders of material injury respecting:

  1. Certain oil country tubular goods originating in or exported from China issued on March 2, 2015, in Expiry Review No. RR-2014-003; and
  2. Certain seamless carbon or alloy steel oil and gas well casing originating in or exported from China issued on November 28, 2018, in Expiry Review No. RR-2017-006.

The goods subject to the CITT’s orders and their tariff classification numbers are contained in Appendix 1 of this letter.

As HG Tubulars did not provide a response to the CBSA’s Request for Information, any previous normal values issued to the exporter are revoked. Normal values for all future shipments of subject goods will be determined by advancing the export price of the goods by 166.9% (OCTG) and 91.0% (seamless casing), pursuant to ministerial specifications. In addition, these normal values will be applied to any importations of subject goods under appeal that have yet to be re-determined at the time of the conclusion of this normal value and export price review. The normal values and export prices determined as a result of this review may be applied retroactively where the conditions described below are met.

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.

During the course of the normal value and export price review, case arguments were received from counsel on behalf of Evraz Inc. NA Canada (Canadian producer). The information submitted in the case arguments was given due consideration by the CBSA prior to the conclusion of this normal value and export price review. One reply submission was received from counsel on behalf of 2045662 Alberta Inc. (importer) on March 11, 2019, five days after the deadline for reply submissions. As a result, the information provided in the reply submission was not considered by the CBSA for purposes of this normal value and export price review.

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. In order to determine their anti-dumping and countervailing duty liability, importers should contact their suppliers who can provide information on normal values and amounts of subsidy. Under limited circumstances, the CBSA may make this information available to importers. Please refer to Memorandum D14-1-2, Disclosure of Normal Values Export Prices, and Amounts of Subsidy established under the Special Import Measures Act, for more information.

The Customs 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 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.

Officers' name and contact information:

  • Jason Huang: 613-954-7388

E-mail:

Appendix 1 - Product Definition

Oil Country Tubular Goods 1

Subject goods are defined as:

“oil country tubular goods made of carbon or alloy steel, welded or seamless, heat-treated or not heat-treated, regardless of end finish, having an outside diameter from 2 ⅜ inches to 13 ⅜ inches (60.3 mm to 339.7 mm), meeting or supplied to meet American Petroleum Institute (API) specification 5CT or equivalent standard, in all grades, excluding drill pipe and excluding seamless casing up to 11 ¾ inches (298.5 mm) in outside diameter, originating in or exported from the People’s Republic of China.”

Tariff Classification Numbers

The subject goods are usually classified under the following 10-digit 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

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

Seamless Casing

Subject goods are defined as:

“seamless carbon or alloy steel oil and gas well casing, whether plain end, bevelled, threaded or threaded and coupled, heat-treated or non-heat-treated, meeting American Petroleum Institute (API) specification 5CT, with an outside diameter not exceeding 11.75 inches (298.5 mm), in all grades, including proprietary grades, originating in or exported from the People’s Republic of China.”

Tariff Classification Numbers

The subject goods are usually classified under the following 10-digit tariff classification numbers:

  1. 7304.29.00.11
  2. 7304.29.00.19
  3. 7304.29.00.21
  4. 7304.29.00.29

The 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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