OCTG1 SC 2019 UP 02
Oil Country Tubular Goods and Seamless Casing
Notice of Initiation of Normal Value and Export Price Review

Ottawa, January 9, 2019

The Canada Border Services Agency (CBSA) has today initiated 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 Shandong Molong Petroleum Machinery Co., Ltd. (Shandong Molong).

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.

Should the exporter decide to participate in this normal value and export price review, it is required to provide a complete and accurate response to the CBSA’s Request for Information (RFI) by February 15, 2019. The exporter will be considered co-operative if the requested information is complete, submitted on time and the exporter permits verification of the data.

If the exporter does not provide a complete response to the RFI by the deadline date, any previous normal values issued to the exporter will be immediately revoked and normal values applicable to subject goods exported by Shandong Molong will be determined by advancing the export price of the goods by 166.9% (OCTG) and 91% (seamless casing), pursuant to ministerial specifications.

The schedule for this normal value and export price review is available at: www.cbsa-asfc.gc.ca/sima-lmsi/up/menu-eng.html. The CBSA will close the record for this normal value and export price review once it has been determined that sufficient information has been received to make a decision. The CBSA will update the website 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 normal value and export price review. Reply submissions are due from all parties in respect of the case arguments fourteen days from the close of the record.

Normal values established during this review will be effective for the subject goods released from the CBSA on or after the date of the conclusion of the normal value and export price review. Normal values currently in place for the named exporter will expire on that date. The normal values and export prices 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 normal value and export price review, regardless of the date that the requests were received. The normal values and export prices determined as a result of this review may be applied retroactively where the conditions described below are met.

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. All parties are cautioned that where there are increases in domestic prices, and/or costs as noted above, the export price for sales to Canada 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 did not properly notify the CBSA of any such changes, did not adjust export prices accordingly, or did not provide the information required to make any necessary adjustments to normal values and export prices, retroactive assessments of anti-dumping or countervailing duties may be warranted.

Any questions concerning the above should be directed to:

  • Jason Huang: 613-954-7388
  • Aaron Maidment: 613-948-4415

E-mail:

Appendix 1 - Product Definition

Oil Country Tubular Goods (OCTG 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 ⅜inches (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 described above are normally, but not exclusively, classified under the following tariff classification numbers:

  1. 7304.29.00.31
  2. 7304.29.00.39
  3. 7304.29.00.81
  4. 7304.29.00.89
  5. 7304.39.00.60
  6. 7304.59.00.50
  7. 7306.29.00.11
  8. 7306.29.00.19
  9. 7306.29.00.51
  10. 7306.29.00.59
  11. 7306.29.00.61
  12. 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.

Seamless Casing

Subject goods are defined as:

“certain 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 described above are normally, but not exclusively, classified under the following tariff classification numbers:

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

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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