Notice of initiation of re-investigation, Oil country tubular goods

The following is provided by the Canada Border Services Agency (CBSA).

The Canada Border Services Agency (CBSA) has initiated a re investigation to update the normal values and export prices, in accordance with the Special Import Measures Act (SIMA), respecting certain oil country tubular goods originating in or exported from the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (Chinese Taipei), India, Indonesia, South Korea, Thailand, Turkey and Vietnam.

In addition, the result of the re‑investigation will also serve to update the surrogate normal values of certain seamless carbon or alloy steel oil and gas well casing and certain oil country tubular goods originating in or exported from China. Both of these cases have normal values determined under section 20 of SIMA, using costing and sales data from surrogate countries.

The re‑investigation is part of the CBSA’s enforcement of the following Canadian International Trade Tribunal (CITT) orders issued on:

  • November 28, 2018, in Expiry Review No. RR‑2017‑006 (SC)
  • December 10, 2020, in Expiry Review No. RR‑2019‑005 (OCTG I) and
  • December 30, 2020, in Expiry Review No. RR‑2019‑006 (OCTG II)

The product definition and the applicable tariff classification numbers of the goods subject to the CITT’s orders can be found on the CBSA’s Measures in Force.

Normal values established during this re‑investigation will be effective for the subject goods released from the CBSA on or after the date of the conclusion of the re‑investigation. Normal values currently in place will expire on that date. Normal values determined on the basis of the re‑investigation will be applied to any entries of subject goods under appeal that have yet to be re‑determined at the time of the conclusion of this re‑investigation.

Exporters that wish to participate in this re‑investigation are required to provide a complete and accurate response to the CBSA’s Request for Information (RFI) by April 14, 2022. An exporter will be considered co‑operative if the requested information is submitted on time and the exporter permits verification of the data. A complete listing of dates of interest is available on the re‑investigation schedule.

The re‑investigation will also allow the CBSA to update normal values for certain seamless carbon or alloy steel oil and gas well casing and certain oil country tubular goods originating in or exported from China (SC and OCTG I). On May 25, 2020, the CBSA reaffirmed its opinion that the conditions of section 20 of SIMA exist in China with respect to the oil country tubular goods industry sector. Section 20 of SIMA 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.

As a result, normal values for Chinese exporters are determined using pricing and costing data from producers in a number of surrogate countries, pursuant to a ministerial specification. Consequently, in this re‑investigation Chinese exporters are not requested to respond to the CBSA’s dumping RFI. However, as interested parties to the re‑investigation, Chinese exporters are invited to provide comments and representations to the CBSA. Any relevant information provided will be considered by the CBSA for the purpose of determining normal values.

Where an exporter of subject goods which has been asked to respond to an RFI does not provide sufficient information to determine specific normal values or does not permit verification of information submitted, anti‑dumping duties will be assessed at a rate of 37.4%, in accordance with a ministerial specification pursuant to section 29 of SIMA, expressed as a percentage of the export price of the subject goods imported into Canada.

Exporters that are not the manufacturer of the subject goods (e.g. trading companies, vendors, etc.) will receive their own normal values only to the extent that their suppliers/manufacturers provide sufficient information to permit the determination of normal values and export prices.

Please note, that for the current re‑investigation, the CBSA is contacting all known and potential exporters. Any importers or exporters who wish to provide a response to the RFI are advised to contact one of the officers identified below to obtain a copy of the RFI. It is suggested that importers contact their exporter(s) to determine if the exporter(s) intend to co‑operate with the CBSA in this re‑investigation.

Where applicable, the normal values and export prices determined as a result of this re‑investigation may be applied retroactively. 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. 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 duty may be warranted. Please refer to the CBSA’s re‑investigation and normal value review policy (Memorandum D14‑1‑8) for details.

Any questions concerning the above should be directed to:
Telephone:
Andrew Manera: 343‑553‑1868
Jonathan Thiffault: 343‑553‑1639
Email: simaregistry-depotlmsi@cbsa-asfc.gc.ca