Notice of Re-investigation

Certain carbon steel welded pipe - 2010

Dumping file #: 4214-16
Dumping case #: AD/1373

Subsidy file #: 4218-24
Subsidy case #: cv/123

Ottawa, October 8, 2010

The Canada Border Services Agency (CBSA) has today initiated a re-investigation to update the normal values, export prices and amounts of subsidy, pursuant to the Special Import Measures Act (SIMA), in respect of certain carbon steel welded pipe originating in or exported from the People's Republic of China (China).

The re-investigation is part of the ongoing enforcement of the Canadian International Trade Tribunal's (Tribunal) finding of material injury made on August 20, 2008, in Inquiry No. NQ-2008-001.

The goods subject to the Tribunal's finding are defined in Appendix 1 and are normally classified under the listed ten-digit Harmonized System classification numbers.

It is anticipated that this re-investigation will be concluded on or before March 7, 2011. A re-investigation schedule is available at: www.cbsa-asfc.gc.ca/sima-lmsi under the heading Certain Carbon Steel Welded Pipe.

As part of this re-investigation, the CBSA will also be conducting an inquiry pursuant to section 20 of SIMA. Since June 2005, the CBSA has conducted three investigations and four re investigations involving section 20 inquiries on steel products from China. The investigations covered certain seamless carbon or alloy steel oil and gas well casing, certain oil country tubular goods, and certain carbon steel welded pipe products, while the four re-investigations involved certain flat hot-rolled carbon and alloy steel sheet and strip (two re-investigations) and certain hot-rolled carbon and high-strength low alloy steel plate (two re-investigations). The most recent of these proceedings involving section 20 concluded on July 16, 2010. In all instances, information available to the CBSA indicated that the domestic prices were substantially determined by the Government of China and there was sufficient reason to believe that they were not substantially the same as they would be if they were determined in a competitive market. Accordingly, the President of the CBSA was of the opinion that the conditions of section 20 were present in these respective steel sectors in China.

During this re-investigation, the CBSA will once again examine the welded pipe sector in China as, based on currently available information, there is continued reason to believe that the conditions of section 20 remain. Therefore, in accordance with the CBSA policy on the application of section 20 of SIMA, a section 20 inquiry has been initiated. Consequently, interested parties are welcome to provide facts and supporting information to the CBSA by November 22, 2010, if they wish to comment on the application of section 20 of SIMA.

The new normal values and/or amounts of subsidy resulting from this re-investigation will be effective for the subject goods released from the CBSA on or after March 7, 2011, or the date of the ruling letter to the exporters, whichever occurs first. Also, at that time, the normal values and/or amounts of subsidy currently in place will expire. Importers are cautioned that new normal values and/or amounts of subsidy, when issued, may be higher than those currently in effect and that this could result in additional assessments of anti-dumping duty. In addition, the normal values determined on the basis of the re-investigation will be applied to any customs entries of subject goods under appeal that have yet to be re-determined at the time of the conclusion of this re-investigation.

Importers are also cautioned that where an exporter does not provide a complete submission by the deadline date and does not receive specific normal values at the conclusion of the re-investigation, or does not permit the verification of information submitted, normal values of subsequent imports of subject goods from that exporter will be determined by advancing the export price of the goods by 179 % and countervailing duties of 5,280 Renminbi per metric tonne will be applied pursuant to a ministerial specification under SIMA.

Exporters who are not the manufacturer of the subject goods will receive normal values and/or amounts of subsidy only to the extent that their suppliers/manufacturers provide sufficient information to permit the determination of normal values and export prices. If none of the exporter's suppliers/manufacturers provide sufficient information, normal values for that exporter will be determined by advancing the export price of the goods by 179 % and the countervailing duties will be equal to 5,280 Renminbi per metric tonne in accordance with a ministerial specification.

Any importers or exporters who have not received a letter from the CBSA with an accompanying Request for Information (RFI), and who wish to provide a response to the RFI are advised to contact one of the officers identified below. Similarly, it is recommended that importers contact their exporter(s) to determine if the exporter(s) have received the Exporter RFI and whether they intend to cooperate with the CBSA in this re-investigation.

Exporters that wish to participate are required to provide a complete and accurate submission by November 22, 2010.

Responses to the Importer RFI are due by October 29, 2010.

Any questions concerning the above should be directed to:

APPENDIX 1

Product Definition

Subject goods are:

Carbon steel welded pipe, commonly identified as standard pipe, in the nominal size range of ½ inch up to and including 6 inches (12.7 mm to 168.3 mm in outside diameter) inclusive, in various forms and finishes, usually supplied to meet ASTM A53, ASTM A135, ASTM A252, ASTM A589, ASTM A795, ASTM F1083 or Commercial Quality, or AWWA C200 97 or equivalent specifications, including water well casing, piling pipe, sprinkler pipe and fencing pipe, but excluding oil and gas line pipe made to API specifications exclusively, originating in or exported from the People's Republic of China.

The following goods were excluded by the Canadian International Trade Tribunal's material injury finding of August 20, 2008, and therefore, are not subject goods:

•   carbon steel welded pipe in the nominal pipe size of 1 inch, meeting the requirements of specification ASTM A53, Grade B, Schedule 10, with a black or galvanized finish, and with plain ends, for use in fire protection applications;

•   carbon steel welded pipe in nominal pipe sizes of 1/2 inch to 2 inches inclusive, produced using the electric resistance welding process and meeting the requirements of specification ASTM A53, Grade A, for use in the production of carbon steel pipe nipples; and

•   carbon steel welded pipe in nominal pipe sizes of 1/2 inch to 6 inches inclusive, dual-stencilled to meet the requirements of both specification ASTM A252, Grades 1 to 3, and specification API 5L, with bevelled ends and in random lengths, for use as foundation piles.

The subject goods are normally imported into Canada under the following Harmonized System classification numbers:

• 7306.30.10.14
• 7306.30.10.24
• 7306.30.10.34

• 7306.30.90.14
• 7306.30.90.19
• 7306.30.90.24

• 7306.30.90.29
• 7306.30.90.34
• 7306.30.90.39