Canada: Carbon Steel Welded Pipe Subject To CBSA Normal Value And Export Price Re-Investigation

On 4 May 2023, the Canada Border Services Agency ("CBSA") initiated a re-investigation (CSWP2 2023 RI) to update the normal values and export prices of certain carbon steel welded pipe ("subject goods") originating in or exported from Chinese Taipei, India, Oman, South Korea, Thailand, and the United Arab Emirates as well as the amounts of subsidy of certain carbon steel welded pipe originating in or exported from India. This re-investigation is being conducted pursuant to the Special Import Measures Act ("SIMA").

The CBSA's re-investigation is part of the ongoing enforcement of the Canadian International Trade Tribunal's ("CITT") finding of material injury issued on 11 December 2012, extended by order dated 15 October 2018.

As part of the same ongoing enforcement, the CBSA has also initiated an expedited review of the subject goods exported to Canada from the United Arab Emirates by KD Industries Inc. pursuant to subsection 13.2(3) of the SIMA.

An exporter to Canada or producer of any goods subject to a finding of injury may request that the President of the CBSA review on an expedited bases the normal value, export price, or amount of subsidy the exporter or producer is subject to if: (1) the exporter or producer is not associated with any exporter in the same country as the goods that are subject to the order or finding and was also not given notice during previous investigations and (2) the exporter or producer was not themselves given notice of any pending investigation or have been requested to provide information to the CBSA.

The subject goods are generally classified by the following tariff classifications numbers:

7306.30.00.42, 7306.30.00.43, 7306.30.00.44, 7306.30.00.45, 7306.30.00.46, 7306.30.00.47, 7306.30.00.49, 7306.30.00.52, 7306.30.00.53, 7306.30.00.54, 7306.30.00.55, 7306.30.00.56, 7306.30.00.57, 7306.30.00.59, 7306.30.00.62, 7306.30.00.63, 7306.30.00.64, 7306.30.00.65, 7306.30.00.66, 7306.30.00.67, 7306.30.00.69.

A full schedule of the re-investigation is available on the CBSA's website.

Exporters wishing to participate in this re-investigation are required to provide a complete and accurate response to the CBSA's Exporter Request for Information ("RFI") by 12 June 2023. Responses to the Importer RFI are due by 5 June 2023. Exporters who have not previously obtained normal values may also participate in the re-investigation and obtain normal values as a result.

Any importer or exporter of subject goods that did not receive a letter from the CBSA with the accompanying RFI who but wishes to provide a response may contact the CBSA to obtain a copy.

The CBSA cautions importers that new normal values and amounts of subsidy may be higher than those currently in effect and this could result in additional assessments of anti-dumping and countervailing duties. If an exporter does not co-operate in the re-investigation and receives specific normal values and amounts of subsidy at the conclusion of the re-investigation, then subsequent imports of subject goods from that exporter will be assessed anti-dumping and countervailing duties based on ministerial specifications.

Normal values and amounts of subsidy established during this re-investigation will be effective for subject goods released from the CBSA on or after the date of the conclusion of the re-investigation on 6 October 2023. Normal values and amounts of subsidy currently in place will expire on that date.

Exporters with company-specific normal values and amounts of subsidy are required to promptly inform the CBSA in writing of changes to domestic prices, costs, market conditions, terms of sale, or amounts of subsidy received that are associated with the production and sales of the goods. Failure to do so could result in the retroactive imposition of duties. On April 28, 2023, the CBSA announced the imposition of retroactive duties with respect to certain carbon and alloy steel line pipe originating in or exported from the Republic of Korea. The CBSA imposed retroactive duties after determining that certain exporters had not notified the CBSA in a timely manner of changes to certain economic conditions as required and failed to adjust their selling prices accordingly.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.