The Canada Border Services Agency (CBSA) has today concluded a re-investigation of the normal values and export prices of certain carbon steel fasteners (fasteners) originating in or exported from the People’s Republic of China (China) and the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (Chinese Taipei), and the amounts of subsidy of fasteners originating in or exported from China (subject goods), in accordance with the Special Import Measures Act (SIMA).
The re-investigation was initiated on November 30, 2023, as part of the CBSA’s ongoing enforcement of the Canadian International Trade Tribunal’s (CITT) injury finding issued on January 7, 2005. The finding was subsequently reviewed and continued, with amendments, by order dated on September 2, 2020.
The product definition and the applicable tariff classification numbers of the goods subject to the CITT’s finding 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 re-investigation were from October 1, 2022 to September 30, 2023.
Re-investigation process
At the initiation of the re-investigation, the CBSA sent a request for information (RFI) to all known importers, exporters, producers, vendors and the Government of China to solicit information on the costs and selling prices of subject goods and like goods and subsidy programs. The information was requested for purposes of updating the normal values, export prices and amounts of subsidy for subject goods imported into Canada. On-site verifications were conducted at the premises of ten exporters/producers located in Chinese Taipei. Desk verifications were conducted for the other remaining responding exporters and producers.
As part of the re-investigation, case briefs and reply submissions were provided by counsel representing the complainant as well as responding exporters and importers. Details of the representations are provided in Appendix 1. Details pertaining to the information submitted by the exporters in response to the RFIs as well as the results of the CBSA’s re-investigation are provided below.
Specific normal values, export prices and amounts of subsidy for future shipments of fasteners have been determined for exporters that submitted a complete response to the dumping RFI, subsidy RFI, supplemental RFIs (SRFIs), deficiency letters and for whom the verification was considered reliable.
Normal values and export prices
Normal value
Normal values are generally determined based on the domestic selling prices of like goods in the country of export, in accordance with section 15 of SIMA, or on the aggregate of the cost of production of the goods, a reasonable amount for administrative, selling and all other costs, plus a reasonable amount for profits, in accordance with paragraph 19(b) of SIMA.
Where, in the opinion of the CBSA, sufficient information has not been furnished or is not available, normal values are determined pursuant to a Ministerial specification in accordance with subsection 29(1) of SIMA.
Export prices
The export price of goods sold to importers in Canada is generally determined in accordance with section 24 of SIMA, based on the lesser of the adjusted exporter’s sale price for the goods or the adjusted importer’s purchase price. These prices are adjusted where necessary by deducting the costs, charges, expenses, duties and taxes resulting from the exportation of the goods as provided for in subparagraphs 24(a)(i) to 24(a)(iii) of SIMA.
Where, in the opinion of the CBSA, sufficient information has not been furnished or is not available, export prices are determined pursuant to a Ministerial specification under subsection 29(1) of SIMA.
Where there are sales between associated persons or a compensatory arrangement exists, the export price may be determined based on the importer’s resale price of the imported goods in Canada to non associated purchasers, less deductions for all costs incurred in preparing, shipping and exporting the goods to Canada that are additional to those incurred on the sales of like goods for use in the country of export, all costs that are incurred in reselling the goods (including duties and taxes) or associated with the assembly of the goods in Canada and an amount representative of the average industry profit in Canada, pursuant to paragraphs 25(1)(c) and 25(1)(d) of SIMA. In any cases not provided for under paragraphs 25(1)(c) and 25(1)(d) of SIMA, the export price is determined in such a manner as the Minister specifies, pursuant to paragraph 25(1)(e).
For a full list of export prices, see: https://www.cbsa-asfc.gc.ca/sima-lmsi/ri-re/fas2023/fas2023-nc-eng.html
Exporter responsibility
All parties are cautioned that where there are increases in domestic prices and/or costs as noted above, the export price for sales to Canada 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 did not properly notify the CBSA of any such changes, did not adjust export prices accordingly, or did not provide the information required to make any necessary adjustments to normal values and export prices, 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 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 anti-dumping and countervailing 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 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:
- Jin Hyuck Lee: 343-553-1728
- Jake Foster: 343-541-9820
- Email: [email protected]
https://www.cbsa-asfc.gc.ca/sima-lmsi/ri-re/fas2023/fas2023-nc-eng.html