Conclusion of normal value review: Upholstered Domestic Seating (UDS 2024 UP3)

Ottawa, September 24, 2024

The Canada Border Services Agency (CBSA) has today concluded a normal value review (review) to establish the normal values, export prices and amounts of subsidy applicable to upholstered domestic seating (UDS) originating in or exported from Vietnam by Duc Thanh Co., Ltd (Duc Thanh).

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) finding issued on September 2, 2021 in Inquiry No. NQ-2021-002, respecting the dumping and subsidizing of UDS originating in or exported from China 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

For this review, the period of investigation (POI) and the profitability analysis period (PAP) were from September 1, 2021 to February 29, 2024.

Normal value review process

At the initiation of this review, on April 2, 2024, the CBSA sent requests for information (RFIs) to Duc Thanh, the Government of Vietnam (GOV) and the 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 amounts of subsidy applicable to subject goods exported to Canada.

On May 27, 2024, Duc Thanh provided responses to the dumping and subsidy RFIs^{Footnote 1}, which were considered incomplete and deficient. Due to disclosure-related deficiencies, the responses were put on the record on June 14, 2024. The CBSA sent a deficiency letter and supplemental request for information (SRFI) to the exporter on June 18, 2024. Duc Thanh provided a response^{Footnote 2} on July 8, 2024. Due to disclosure-related deficiencies, the response was put on the record on July 29, 2024. The CBSA sent a second deficiency letter and SRFI on July 29, 2024. The CBSA provided a due date of submission of August 6, 2024. However, no responses were received by the requested due date. As no requests for extensions were submitted by Duc Thanh, the CBSA proceeded to close the record on August 20, 2024. As such, the responses of Duc Thanh were deemed deficient.

Responses to the CBSA’s importer RFI^{Footnote 3} and SRFI^{Footnote 4} were received from the importer.

Responses to the CBSA’s government subsidy RFI^{Footnote 5}, deficiency letter and SRFI^{Footnote 6} were received from the GOV.

Representations

Counsel on behalf of Duc Thanh argued that they provided complete and accurate information that should be relied on in the calculation of normal values, export prices and amounts of subsidy. Furthermore, Duc Thanh stated that it was planning to submit a response to the second SRFI after the close of the record and that this information should be taken under consideration by the CBSA.

The CBSA did not receive any reply submissions from interested parties with respect to this review.

CBSA response

Due consideration has been given to the issues raised in the representations filed by counsel on behalf of Duc Thanh. The CBSA has reviewed and considered all the information on the record and considers the responses to be incomplete and deficient for purposes of this review. Information submitted after the close of the record is not considered for purposes of the review. As such, normal values and amounts of subsidy will be determined in accordance with the ministerial specification.

Normal values and amount of subsidy for future shipments

Based on the information contained in the administrative record of this review, the CBSA determined that the information provided during the review was insufficient or incomplete for the purposes of determining normal values and amounts of subsidy. As such, normal values will be determined in accordance with the ministerial specification based on the export price of the goods advanced by 179.5%. The amount of subsidy will be equal to 1,914,726.79 VND per piece, in accordance with the ministerial specification. For additional information concerning the ministerial specification please see the CBSA’s Measures in Force.

Importer responsibility

Importers are reminded that it is their responsibility to calculate and declare their anti-dumping duty 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, please 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 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.