Conclusion of normal value review: Concrete Reinforcing Bar 3 (RB3 2023 UP1)
Ottawa,
The Canada Border Services Agency (CBSA) has today concluded a normal value review (review) to update the normal values and export prices applicable to certain concrete reinforcing bar (rebar) exported to Canada from Algeria by Spa Tosyali Iron Steel Industry Algerie (Tosyali).
The review is part of the CBSA’s enforcement of the Canadian International Trade Tribunal’s (CITT) order issued on June 4, 2021, respecting the dumping of rebar originating in or exported from Algeria, Egypt, Indonesia, Italy, Malaysia, Singapore and Vietnam, 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 finding (subject goods) can be found on the CBSA’s Measures in force.
Period of investigation
The period of investigation (POI) and the profitability analysis period (PAP) for the normal value review were from October 1, 2022 to September 30, 2023.
Normal value review process
At the initiation of the review, the CBSA sent a request for information (RFI) to the exporter, Tosyali, to solicit information on the costs and selling prices of subject and like goods. The information was requested for the purposes of determining normal values and export prices for subject goods imported into Canada. During the review, three supplemental request for information (SRFI)Footnote 1 were sent to Tosyali to gather additional information and seek clarification.
The responses to the CBSA’s RFI and SRFIsFootnote 2 were received accordingly from Tosyali. An on-site verification was conducted at the premises of Tosyali in February 2024.Footnote 3
Representations
During the course of the review, counsel for ArcelorMittal Long Products Canada, G.P. and AltaSteel Inc. (“Canadian producers”) submitted commentsFootnote 4 discussing various concerns pertaining to the responses to the RFI, SRFIs, and Verification Questionnaire provided by the exporter. The issues raised included the identification of the exporter for SIMA purposes, cost of production reporting methodologies, pricing, and other various alleged inconsistencies and deficiencies within the responses.
There were a number of exporter-specific issues that were raised by counsel for Canadian producers as well. In order to respect the confidentiality designations made by interested parties, the CBSA is limited in the information that can be divulged in response to arguments made concerning certain topics.
As part of the review, case briefs and reply submissions were submitted on behalf of Canadian producersFootnote 5 and the exporter, TosyaliFootnote 6. In their representations, counsel for Canadian producers and counsel for the exporter made competing arguments pertaining to the various alleged inconsistencies and deficiencies noted above and the retroactive assessments of duties.
CBSA response
Due consideration has been given to the topics raised in the submissions, on a case-by-case basis, and appropriate adjustments were made, as applicable, in accordance with SIMA and the Special Import Measures Regulations (SIMR). Additional information on the calculation of normal values is provided to the exporter in the confidential exporter conclusion letter.
Upon completion of the review, the CBSA will be conducting an analysis of subject imports from the exporter during the POI, to determine whether retroactive assessments are warranted. The analysis will rely on information provided in the RFI and SRFI responses received and during the on-site verification, representations submitted by interested parties, and any other available relevant information.
Normal values and export prices
Specific normal values and export prices for future shipments of subject goods have been determined for the participating exporter. These normal values are effective today, July 10, 2024.
During the POI, Tosyali sold subject goods to Canada through an unrelated trading company located in Türkiye. After reviewing and analyzing the information submitted on the record, the CBSA determined that Tosyali is the true principal in the export sales to Canada and therefore, the exporter for SIMA purposes. Normal values for all subject goods sold to Canada were determined in accordance with section 15 of SIMA, based on sufficient profitable sales of similar goods.
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, costs, market conditions or terms of sale associated with the production and/or sales of the goods, 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 appropriately, 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. 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 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 liability for anti-dumping and countervailing duty, importers should contact the exporters to obtain the applicable normal values and amounts 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.
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:
- Stephen Chung: 416-200-9640
- Date modified: