Conclusion of normal value review: Steel Piling Pipe (PP 2024 UP1)
Ottawa,
The Canada Border Services Agency (CBSA) has today concluded a normal value review (review) to determine normal values, export prices and an amount of subsidy applicable to steel piling pipe (piling pipe) originating in or exported from China by Qingdao Geo Solar Co., Ltd (GEO).
The review follows a request for re-determination filed by an importer and is part of the CBSA’s enforcement of the Canadian International Trade Tribunal’s (CITT) order issued on January 17, 2024, in Expiry Review No. RR-2022-005, respecting the dumping and subsidizing of piling pipe originating in or exported from China, in accordance with the Special Import Measures Act (SIMA).
The product definition and the applicable tariff classification numbers of the goods subject to the CITT’s order (subject goods) can be found on the CBSA's Measures in force.
Background
At the final determination of the original investigationFootnote 1, the CBSA was of the opinion that the domestic prices of piling pipe in China were being substantially determined by the Government of China (GOC) and the steel pipe sector in China, which includes steel piling pipe, was operating under conditions where the prices were not substantially the same as they would be if they were determined in a competitive market. The conditions of section 20 of SIMA were found to exist, but sufficient information had not been furnished or was not available to determine normal values as provided for in section 20 of SIMA. Therefore, the normal values for the exporters that provided a complete and reliable submission were determined using an alternate methodology under a ministerial specification, pursuant to subsection 29(1) of SIMA.
The normal values determined were based on the average price of hot-rolled steel for all regions, excluding China, for the 60-day period immediately preceding the date of sale to Canada as reported on SteelBenchmarker, plus added to these hot-rolled steel prices were amounts for the i) conversion costs of the hot-rolled steel into a finished piling pipe product and ii) profit (the SteelBenchmarker methodology).
Period of investigation
For this review, the period of investigation (POI) and the profitability analysis period (PAP) were from October 1, 2022 to September 30, 2023.
Normal value review process
At the initiation of this review, on June 6, 2024, the CBSA sent requests for information (RFIs) to GEO, the Government of China (GOC) and an importer in order to solicit information on the costs, selling prices of subject goods and like goods, and subsidy programs. The information was requested for purposes of determining normal values, export prices and an amount of subsidy applicable to subject goods exported to Canada.
On July 14, 2024, GEO and its related producer of the subject goods, Qingdao Baoqiang Solar Tech Co., Ltd. (BQ Solar), provided responses to the dumping RFIFootnote 2 and subsidy RFIFootnote 3. The CBSA sent supplemental requests for information (SRFIs) to GEO and BQ Solar to gather additional information and seek clarificationFootnote 4. The responses to the dumping and subsidy RFIs as well as SRFIs were considered substantially complete for purposes of this review. On September 12, 2024, the record for this review was closed.
The GOC did not provide a response to the government subsidy RFI.
The CBSA did not receive any case briefs or reply submissions from interested parties with respect to this review.
Normal values, export prices and amounts of subsidy
Specific normal values and an amount of subsidy for future shipments of subject goods have been determined for GEO. These normal values and amount of subsidy are effective today, October 28, 2024.
As noted above, where section 20 conditions exist, but sufficient information has not been furnished or is not available to determine normal values as provided for in section 20 of SIMA, the normal values for the exporters that provided a complete and reliable submission are determined using an alternate methodology under a ministerial specification, pursuant to subsection 29(1) of SIMA.
As such, pursuant to the dumping ministerial specification, the normal values determined were based on the SteelBenchmarker methodology.
As the GOC did not respond to the CBSA’s government subsidy RFI, it limited the CBSA’s ability to determine the amount of subsidy in the prescribed manner as the required information relating to financial contribution, benefit and specificity was not provided. Therefore, subsidy amounts for the exporter were determined pursuant to subsection 30.4(2) of SIMA, based on a ministerial specification.
In consideration of the fact that the exporter provided sufficient information in response to their subsidy RFI, an amount of subsidy was determined based on the information provided in response to the subsidy RFI and additional information obtained through an SRFI. The amount of subsidy determined for GEO for future shipments is 31.64 RMB per metric tonne. The CBSA has concluded that a subsidy pass-through test is not required given the relation between the exporter and the related producer. Consequently, any actionable subsidies received by the related producer which are attributable to the subject goods, was aggregated with those directly received by the exporter.
The export price of subject goods sold to Canada during the POI was determined pursuant to section 24 of SIMA, based on the exporter’s selling price less all costs, charges, and expenses resulting from the exportation of a good.
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 this normal value 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.
Exporter responsibility
All parties are cautioned that, where there are increases in domestic prices and/or costs, 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 refer to the CBSA’s Memorandum D14-1-8: Re-investigation and Normal Value Review Policy – Special Import Measures Act for details.
Importer responsibility
Importers are reminded that it is their responsibility to calculate and declare their anti-dumping and countervailing duty liabilities. 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 and countervailing liabilities, importers should contact the exporter(s) to obtain the applicable normal values and amount 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.
Contact us
- Telephone:
- Manshun Tong: 343-553-1727
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