Concrete reinforcing bar 2 - RB2 2020 UP1
Conclusion of normal value review

Ottawa, September 1, 2020

The Canada Border Services Agency (CBSA) has today concluded a normal value review to update the normal values and export prices applicable to certain concrete reinforcing bar (rebar) exported to Canada from Spain by Nervacero, S.A. (Nervacero).

The normal value review is part of the CBSA’s enforcement of the Canadian International Trade Tribunal’s (CITT) finding of injury issued on May 3, 2017, respecting the dumping of certain concrete reinforcing bar from Belarus, the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (Chinese Taipei), the Hong Kong Special Administrative Region of the People’s Republic of China, Japan, Portugal, and Spain, 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 finding are contained in Appendix 1 (subject goods).

Period of investigation

The Period of Investigation (POI) and the Profitability Analysis Period (PAP) for the normal value review were from January 1, 2019 to December 31, 2019.

Normal value review process

At the initiation of the normal value review, the CBSA sent a request for information (RFI) to Nervacero to solicit information on the costs and selling prices of subject goods and like goods. The information was requested for purposes of updating the normal values and export prices for subject goods imported into Canada.

Nervacero requested a 60-day extension to the initial RFI deadline due to difficulties in preparing their response while the country of Spain was under national lockdown during the COVID-19 pandemic. The CBSA allowed the requested extension, and Nervacero submitted a response within the new time frame that was substantially complete. The company fully responded to all supplemental requests for information (SFRIs).

As part of the normal value review, case arguments and reply submissions were submitted on behalf of counsel for the Canadian producers and Nervacero. Issues raised in these submissions concerned the deficiencies and completeness of exporter’s response. The information submitted was given due consideration by the CBSA prior to the conclusion of this normal value review. The CBSA determined that the information provided by Nervacero in its RFI and SFRI responses is sufficient to determine normal values and export prices.

Determination of normal values and export prices

Nervacero had a sufficient number of domestic sales of like goods during the PAP. Consequently, normal values were determined in accordance with section 15 of SIMA based on domestic selling prices of like goods.

For the subject goods exported by Nervacero to Canada during the POI, export prices were determined in accordance with section 24 of SIMA, based on the exporter’s selling price less all costs, charges and expenses resulting from the exportation of the goods.

Normal values for future shipments

Specific normal values for future shipments of certain rebar have been determined for the participating exporter, Nervacero. These normal values are effective today, September 1, 2020. Where applicable, normal values were either determined in accordance with section 15 of SIMA, based on domestic selling prices of like goods or in accordance with paragraph 19(b) of SIMA, based on the aggregate of cost of production, a reasonable amount for administrative, selling and all other costs, and a reasonable amount for profits.

In this regard, the amount for profits was determined in accordance with subparagraph 11(1)(b)(ii) of the Special Import Measures Regulations (SIMR) by using Nervacero’s profitable domestic sales of goods that were of the same general category as the subject goods exported to Canada during the POI.

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

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. 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.

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 exporters 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, on the CBSA’s website at: www.cbsa-asfc.gc.ca/publications/dm-md/d14-eng.html.

The Customs 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, on the CBSA’s website at: www.cbsa-asfc.gc.ca/sima-lmsi/rrd-drr-eng.html.

Information

Any questions concerning the above should be directed to:

SIMA Registry and Disclosure Unit
Trade and Anti-dumping Programs Directorate
Canada Border Services Agency
11-100 Metcalfe St
Ottawa ON  K1A 0L8

• Telephone:
• Rob Wright: 613-954-1643

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

Appendix 1

Product definition

Subject goods are:

Exclusion:

“The Canadian International Trade Tribunal (CITT) excludes, from its finding, goods exported by Feng Hsin Steel Co., Ltd.”

Classification of imports

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

• 7213.10.00.00
• 7214.20.00.00
• 7215.90.00.90
• 7227.90.00.90

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