Notice of normal value review: Hot-rolled carbon steel plate 7 (PLA7 2023 UP1)

Period of investigation

For this review, the period of investigation (POI) and the profitability analysis period (PAP) was from May 1, 2022 to April 30, 2023.

Normal value review process

At the initiation of this review, on May 31, 2023, the CBSA sent requests for information (RFIs) to Dongkuk and to other parties in order to solicit information for purposes of determining normal values and export prices applicable to subject goods exported to Canada.

The responses to the CBSA’s RFIs and supplemental RFIs (SRFIs) were received accordingly from Dongkuk and associated companies as well as an importer. On-site verifications were conducted at the premises of Dongkuk in South Korea in September 2023.

During the course of the review, counsel on behalf of the Canadian producer Algoma Steel Inc. (Algoma) submitted comments^{Footnote 1}, a case brief and a reply submission.^{Footnote 2} Counsel on behalf of Dongkuk also provided a case brief and a reply submission.^{Footnote 3}

Representations

Counsel on behalf of Algoma argued that Dongkuk’s information was insufficient and incomplete. Counsel specifically contended that information relating to heat treatment and other product specifications may not be sufficient to allow the CBSA to have an “understanding of the price and cost consequences associated with certain product variations”^{Footnote 4}, and that the ministerial specification should be applied to any such products.

Counsel for the Canadian producer argued that Dongkuk has potentially failed to notify the CBSA of changes in market circumstances, including rising selling prices for like goods and costs of production. Counsel argued that, given these circumstances, the CBSA should consider issuing retroactive anti‑dumping duty assessments.

Counsel on behalf of Dongkuk argued that Dongkuk provided complete and accurate data that was verified and should be relied on in the calculation of normal values for future shipments of subject goods to Canada.

Counsel argued that Dongkuk’s exports to Canada should not have retroactive duties applied to them as they were priced appropriately given the market conditions.

CBSA response

Respecting the completeness and sufficiency of the information provided by Dongkuk, during the review, Dongkuk provided a substantially complete response to the RFI and subsequent SRFI. Further, the accuracy and veracity of the information was verified during the on-site verification process. The CBSA determined that Dongkuk’s information can be relied upon for the purposes of calculating normal values for subject goods to Canada.

Respecting retroactive anti-dumping duty assessments, upon completion of this normal value review, the CBSA will be conducting an analysis of subject imports of steel plate during the POI to determine whether retroactive assessments are warranted.

Normal values

Specific normal values for future shipments of steel plate have been determined for the participating exporter, Dongkuk. These normal values are effective today, December 12, 2023.

Dongkuk’s RFI response included a domestic sales database of like goods, as such, normal values were determined in accordance with paragraph 15 of SIMA where possible.

Where there were insufficient domestic sales of like goods that met the requirements of sections 15 and 16 of SIMA, 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.

As Dongkuk acquired inputs from an associated supplier, the costs of the significant inputs were determined pursuant to paragraph 11.2(1)(a) of the Special Import Measures Regulations (SIMR). The amount for profits was determined in accordance with subparagraph 11(1)(b)(ii) of the SIMR, by using Dongkuk’s profitable domestic sales of goods that were of the same general category as the subject goods shipped to Canada during the POI.

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

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 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.

Importer responsibility

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 exporter(s) 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.

The Customs Act (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. For more information on how to file a request for re-determination, please refer to the Guide for appealing a duty assessment.

Contact us

• Telephone:
• Heath McKenzie: 343-574-9246
• Gabriella Mondor: 343-597-2795

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