The Canada Border Services Agency (CBSA) has today concluded a re-investigation to update the normal values and export prices of certain corrosion-resistant steel sheet (COR) originating in or exported from China, the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (Chinese Taipei), India and South Korea, in accordance with the Special Import Measures Act (SIMA).
The re-investigation was initiated on October 31, 2022, as part of the CBSA’s ongoing enforcement of the Canadian International Trade Tribunal’s (CITT) finding issued on February 21, 2019 in inquiry NQ-2018-004.
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 July 1, 2021 to August 31, 2022.
Re-investigation process
At the initiation of the re-investigation, the CBSA sent a request for information (RFI) to importers, exporters, producers and vendors 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. On-site verifications were conducted at the premises of two exporters located in South Korea. Desk audits were conducted for the remaining responding exporters.
As part of the re-investigation, case briefs and reply submissions were provided by counsel representing the Canadian producers and responding exporters. Details of the representations are provided in Appendix 1. Details pertaining to the information submitted by the exporters in response to the RFI and supplemental RFI (SRFI) as well as the results of the CBSA’s re-investigation are provided below.
Specific normal values and export prices for future shipments of COR have been determined for exporters that submitted a complete response to the RFI, SRFIs, deficiency letters and for whom the verification was considered reliable.
Normal values and export prices
Normal values
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 (full costs and profit), 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 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 ministerial specification in accordance with subsection 29(1) of SIMA.
China
As noted in the Notice of initiation of this re-investigation, on October 31, 2022, the CBSA reaffirmed its opinion that the conditions of section 20 of SIMA exist in China with respect to the COR sector. For a prescribed country under section 20 of SIMA, the section is applicable where, in the opinion of the CBSA, domestic prices are substantially determined by the government and there is sufficient reason to believe that they are not substantially the same as they would be if they were determined in a competitive market.
At the initiation of the re-investigation, interested parties were invited to provide comments and representations to the CBSA regarding the application of section 20 of SIMA. However, no submissions were received. As a result, the CBSA maintains its position that the conditions of section 20 of SIMA continue to exist in China with respect to the COR sector for purposes of this this re-investigation.
Where the conditions of section 20 of SIMA exist, the CBSA normally determines normal values using the selling prices, or the full costs and profit, of like goods of producers in a surrogate country pursuant to paragraph 20(1)(c) of SIMA, or paragraph 20(1)(d) of SIMA on a deductive basis starting with an examination of the prices of imported goods sold in Canada, from a surrogate country.
Where, in the opinion of the CBSA, sufficient information was not furnished or was not available to determine normal values under paragraph 20(1)(c) of SIMA as described above, normal values were determined pursuant to ministerial specification in accordance with subsection 29(1) of SIMA, using the domestic selling prices of the closest matching products, based on the consideration of the relevant characteristics, in the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (Chinese Taipei).
The CBSA determined specific normal values for future shipments of subject goods for the following exporters, effective on or after April 26, 2023.
Beijing Shougang Cold Rolling Co., Ltd. (Shougang CR) / Shougang Holding Trade (Hong Kong) Limited (Shougang HK)
Shougang CR is a producer of COR located in China. Shougang International Trade & Engineering Corporation (Shougang International) is a related company located in China who acted as an export agent for sales made from Shougang CR to Shougang HK. Shougang HK is a related company located in Hong Kong who is the vendor on all export sales to Canada produced by Shougang CR. Due to the relationship between Shougang CR and Shougang HK and their roles and responsibilities during the export sales process, the companies have collectively been determined to be the exporter for SIMA purposes. During the POI, the subject goods were shipped directly from China to Canada.
Shougang CR, Shougang International, and Shougang HK provided responses to the CBSA’s RFI and deficiency notice, as well as additional clarifying information. As there was insufficient information on the record in order to determine normal values pursuant to paragraph 20(1)(c) of SIMA, normal values for Shougang CR/Shougang HK were determined pursuant to subsection 29(1) of SIMA, using the domestic selling prices of the closest matching products, based on the consideration of the relevant characteristics, in the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (Chinese Taipei) during the PAP.
For the subject goods exported to Canada by Shougang CR/Shougang HK during the POI, the export prices were 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 the goods.
Shougang Jingtang United Iron & Steel Co., Ltd. (Shougang JIS) / Shougang Holding Trade (Hong Kong) Limited (Shougang HK)
Shougang JIS is a producer of COR located in China. Shougang International Trade & Engineering Corporation (Shougang International) is a related company located in China who acted as an export agent for sales made from Shougang JIS to Shougang HK. Shougang HK is a related company located in Hong Kong who is the vendor on all export sales to Canada produced by Shougang JIS. Due to the relationship between Shougang JIS and Shougang HK and their roles and responsibilities during the export sales process, the companies have collectively been determined to be the exporter for SIMA purposes. During the POI, the subject goods were shipped directly from China to Canada.
Shougang JIS, Shougang International, and Shougang HK provided responses to the CBSA’s RFI and deficiency notice, as well as additional clarifying information. As there was insufficient information on the record in order to determine normal values pursuant to paragraph 20(1)(c) of SIMA, normal values for Shougang JIS/Shougang HK were determined pursuant to subsection 29(1) of SIMA, using the domestic selling prices of the closest matching products, based on the consideration of the relevant characteristics, in the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (Chinese Taipei) during the PAP.
For the subject goods exported to Canada by Shougang JIS/Shougang HK during the POI, the export prices were 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 the goods.
Yieh Phui (China) Technomaterial Co., Ltd. (YPC)
YPC is a producer and exporter of COR located in China. YPC sold the subject goods to Canada through an unrelated trading company located in a third country. During the POI, the subject goods were shipped directly from China to Canada.
YPC provided responses to the CBSA’s RFI and two SRFIs. As there was insufficient information on the record in order to determine normal values pursuant to paragraph 20(1)(c) of SIMA, normal values for YPC were determined pursuant to subsection 29(1) of SIMA, using the domestic selling prices of the closest matching products, based on the consideration of the relevant characteristics, in the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (Chinese Taipei) during the PAP.
For the subject goods exported to Canada by YPC during the POI, the export prices were 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 the goods.
All other exporters in China
For all other exporters of subject goods from China, normal values for future shipments, are determined at the rate 53.3%, expressed as a percentage of the export price, in accordance with the ministerial specification pursuant to subsection 29(1) of SIMA.
Normal values previously in place expire on April 26, 2023.
Chinese Taipei
The CBSA determined specific normal values for future shipments of subject goods for the following exporters, effective on or after April 26, 2023.
Prosperity Tieh Enterprise Co., Ltd. (PT)
PT is a producer and exporter of COR located in Chinese Taipei. During the POI, the subject goods were shipped directly from Chinese Taipei to Canada.
PT provided responses to the CBSA’s RFI and three SRFIs. PT did not have domestic sales that met the conditions of sections 15 and 16 of SIMA during the PAP. As such, normal values were determined in accordance with paragraph 19(b) of SIMA, based on the aggregate of the cost of production of the goods, a reasonable amount for administrative, selling and all other costs and a reasonable amount for profits. The amount for profits was determined in accordance with subparagraph 11(1)(b)(ii) of the Special Import Measures Regulations (SIMR) by using PT’s profitable domestic sales of goods that were of the same general category as the subject goods shipped to Canada during the POI.
For the subject goods exported to Canada by PT, the export prices were 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 the goods.
Sheng Yu Steel Co., Ltd. (SYSCO)
SYSCO is a producer and exporter of COR located in Chinese Taipei. During the POI, the subject goods were shipped directly from Chinese Taipei to Canada.
SYSCO provided responses to the CBSA’s RFI and one SRFI. SYSCO had domestic sales of like goods during the PAP and as a result normal values were determined in accordance with section 15 of SIMA, where possible, based on domestic selling prices of like goods. Where sufficient domestic sales of like goods did not meet the conditions of section 15 and 16 of SIMA, normal values where determined 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. The amount for profits was determined in accordance with subparagraph 11(1)(b)(ii) of SIMR by using SYSCO’s profitable domestic sales of goods that were of the same general category as the subject goods shipped to Canada during the POI.
For the subject goods exported to Canada by SYSCO, the export prices were 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 the goods.
Yieh Phui Enterprise Co., Ltd. (YPE)
YPE is a producer and exporter of COR located in Chinese Taipei. YPE has a production facility in Kaohsiung and in Ping Tung City, Chinese Taipei. During the POI, the subject goods were produced in these two production facilities and were shipped directly from Chinese Taipei to Canada.
YPE provided responses to the CBSA’s RFI, one deficiency letter and three SRFIs. YPE had domestic sales of like goods during the PAP and as a result normal values were determined in accordance with section 15 of SIMA, where possible, based on domestic selling prices of like goods. Where sufficient domestic sales of like goods did not meet the conditions of section 15 and 16 of SIMA, normal values where determined 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. The amount for profits was determined in accordance with subparagraph 11(1)(b)(ii) of SIMR by using YPE’s profitable domestic sales of goods that were of the same general category as the subject goods shipped to Canada during the POI.
For the subject goods exported to Canada by YPE, the export prices were 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 the goods.
All other exporters in Chinese Taipei
For all other exporters of subject goods from Chinese Taipei, normal values for future shipments, are determined at the rate 33.2%, expressed as a percentage of the export price, in accordance with the ministerial specification pursuant to subsection 29(1) of SIMA.
Normal values previously in place expire on April 26, 2023.
India
As no exporters from India participated in this re-investigation, the CBSA did not determine specific normal values for future shipments of subject goods.
For all exporters of subject goods from India, normal values for future shipments, are determined at the rate 40.0%, expressed as a percentage of the export price, in accordance with the ministerial specification pursuant to subsection 29(1) of SIMA.
Normal values previously in place expire on April 26, 2023.
South Korea
The CBSA determined specific normal values for future shipments of subject goods for the following exporters, effective on or after April 26, 2023.
Dongkuk Steel Mill Co., Ltd. (Dongkuk)
Dongkuk is a producer and exporter of COR located in South Korea. During the POI, Dongkuk did not ship the subject goods to Canada.
Dongkuk provided responses to the CBSA’s RFI and two SRFIs. Dongkuk had domestic sales of like goods during the PAP and as a result normal values were determined in accordance with section 15 of SIMA, where possible, based on domestic selling prices of like goods. Where sufficient domestic sales of like goods did not meet the requirements of section 15 and 16 of SIMA, normal values where determined 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. As inputs significant in the production of the goods were acquired from an associated supplier, the cost of the inputs was determined pursuant to subparagraph 11.2(1)(c)(ii) of SIMR. The amount for profits was determined in accordance with subparagraph 11(1)(b)(ii) of SIMR by using Dongkuk’s profitable domestic sales of goods that were of the same general category as the subject goods shipped to Canada during the POI.
KG Dongbu Steel Co., Ltd. (KG Dongbu)
KG Dongbu is a producer and exporter of COR located in South Korea. KG Dongbu has a production facility in Dangjin and in Incheon, South Korea. During the POI, the subject goods were produced in these two production facilities and were shipped directly from South Korea to Canada.
KG Dongbu provided responses to the CBSA’s RFI and two SRFIs. KG Dongbu had domestic sales of like goods during the PAP and as a result normal values were determined in accordance with section 15 of SIMA where possible, based on domestic selling prices of like goods. Where sufficient domestic sales of like goods did not meet the requirements of section 15 and 16 of SIMA, normal values where determined 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. The amount for profits was determined in accordance with subparagraph 11(1)(b)(ii) of SIMR by using KG Dongbu’s profitable domestic sales of goods that were of the same general category as the subject goods shipped to Canada during the POI.
For the subject goods exported to Canada, the export prices were 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 the goods.
All other exporters in South Korea
For all other exporters of subject goods from South Korea, normal values for future shipments, are determined at the rate 40.0%, expressed as a percentage of the export price, in accordance with the ministerial specification pursuant to subsection 29(1) of SIMA.
Normal values previously in place expire on April 26, 2023.
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. 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. Where 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 of anti-dumping duty may be warranted.
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:
- Wu Ping Wei: 343-553-1642
- Jin Hyuck Lee: 343-553-1728
- Email: [email protected]
https://www.cbsa-asfc.gc.ca/sima-lmsi/ri-re/cor12022/cor12022-nc-eng.html