The Canada Border Services Agency (CBSA) has today concluded a normal value review (review) to determine normal values and export prices of certain carbon steel fasteners (fasteners) exported to Canada from the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (Chinese Taipei) by Jwu Sheng Enterprise Co. Ltd. (Jwu Sheng).
The review follows requests 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 September 2, 2020 in Expiry Review No. RR-2019-002, respecting the dumping of fasteners originating in or exported from People’s Republic of China (China) and Chinese Taipei, and the subsidizing of such goods, originating in or exported from China, excluding fasteners specifically designed for application in the automotive or aerospace industry, 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 are contained in Appendix 1 (subject goods).
Period of investigation
For this review, the period of investigation (POI) was from October 1, 2020 to March 31, 2021 and the profitability analysis period (PAP) was from October 1, 2020 to March 31, 2021.
Normal value review process
At the initiation of this review, on October 13, 2021, the CBSA sent requests for information (RFIs) to the exporter and importer in order to solicit information on the costs and selling prices of subject goods and like goods. The information was requested for purposes of determining normal values and export prices applicable to subject goods exported to Canada.
Jwu Sheng submitted responses to the exporter RFI and two subsequent supplemental RFIs. The CBSA issued three supplemental RFIs to verify the costing information provided. Jwu Sheng provided no response to the third SRFI, which was due on October 31, 2022. The administrative record was closed on November 9, 2022, and on December 2, 2022, the CBSA determined that the information on the record was insufficient for purposes of determining normal values and export prices.
As part of the review, counsel on behalf of Leland Industries Inc. (Leland), a Canadian producer, submitted comments relating to this review prior to the close of the record as well as a case brief.
The issues raised in the comments and case brief submitted on behalf of Leland concerned the deficiencies and completeness of Jwu Sheng’s responses. Other representations made by Leland included: the lack of response to SRFI#3, incomplete costs of production, and incomplete related party information.
The representations submitted by all parties were given due consideration by the CBSA prior to the conclusion of this review.
Normal values
Further to this review, the information to determine the normal value for any of the goods under review was not provided or is insufficient. As a result, the normal values for Jwu Sheng will be determined pursuant to a ministerial specification under section 29 of SIMA by advancing the export price of the goods by 170 percent.
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 exporter(s) 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.
The Customs Act (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.
Contact us
- Telephone: Hifza Saleem: 343-574-2090
- Email: [email protected]
https://www.cbsa-asfc.gc.ca/sima-lmsi/up/fas2021/fas202109-nc-eng.html