Tax & Trade Blog
CBSA Concludes OCTG Re-Investigation
As we discussed in our prior blog, the Canada Border Services Agency (“CBSA”) has been conducting a re-investigation in respect of oil country tubular goods (“OCTG”) and certain seamless casing originating in or exported from China.
On March 17, 2023, CBSA released a notice confirming that the re-investigation concluded, updating normal values and export prices. That means normal values previously in place expired on March 17!
Seventeen (17) producers/exporters were assigned normal values as part of the re-investigation. All other exporters of subject goods from China will be subject to 166.9% anti-dumping duties (“ADD”) for OCTG, and 91.0% ADDs for seamless casing (i.e., there has been no change in the general ADD rate).
Subject Goods are defined as follows:
“Oil country tubular goods including, in particular, casing and tubing, made of carbon or alloy steel, welded or seamless, heat-treated or not heat-treated, regardless of end finish, having an outside diameter from 2 3/8 inches to 13 3/8 inches (60.3 mm to 339.7 mm), meeting or supplied to meet API specification 5CT or equivalent standard, in all grades, excluding drill pipe, seamless casing up to 11 3/4 inches (298.5 mm) in outside diameter, pup joints, welded or seamless, heat-treated or not heat-treated, in lengths of up to 3.66 m (12 feet), and coupling stock originating in or exported from China.”
CBSA originally initiated an investigation in respect of the Subject Goods on August 24, 2009 in response to a complaint from Canadian producers: Tenaris Canada Inc., Evraz Inc. NA Canada, and Lakeside Steel Corporation, about imports from China. On March 9, 2010 the CBSA made a final determination that Subject Goods were being dumped and subsidized.
On March 23, 2010, the Canadian International Trade Tribunal (“CITT”) issued a finding that the dumping and subsidizing of the Subject Goods (as defined in the finding) from China had caused injury to the Canadian domestic industry.
As a result of this finding, the ADDs and countervailing duties (“CVDs”) determined by the CBSA came into effect (replacing earlier provisional duties) in respect of Subject Goods from China.
The CITT conducted an expiry review after 5 years, as required by section 76.03 of the Special Import Measures Act (“SIMA”), and on March 2, 2015, continued its finding (and the ADDs) in respect of Subject Goods from China. A subsequent expiry review concluded on July 17, 2020 further continued the original CITT finding.
Importers are responsible for calculating and declaring any anti-dumping duties or countervailing duties. This means checking with suppliers to find out normal values (and subsidy rates, where applicable), if the subject goods are exported/produced by one of the listed companies. These amounts can be confirmed with CBSA.
While the re-investigation may be over, exporters who have normal values should remember their ongoing obligation to inform CBSA in writing of any relevant changes (for example, domestic prices, costs, market conditions, etc.).
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