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Request to Update Normal Values: Oil Country Tubular Goods and Seamless Casing

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On March 27, 2024, the Canada Border Services Agency ("CBSA") received a representation from Tenaris Canada ("Tenaris"), requesting a reinvestigation of normal values and subsidy amounts for oil country tubular goods ("OCTG1") and seamless casing ("SC") exported from China. Under the CBSA’s policy, other interested persons have the opportunity to respond to this representation by submitting comments to the CBSA.

Background

For goods subject to anti-dumping and/or countervailing measures pursuant to the Special Import Measures Act ("SIMA"), the CBSA may conduct reinvestigations or reviews to keep normal values up to date. This is important as it ensures effective SIMA enforcement to protect Canadian domestic industries from unfairly trade imports. 

OCTG1 and SC goods are currently subject to both anti-dumping and countervailing measures.

OCTG1 goods are defined to include:

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 the People’s Republic of China.

SC products are defined as:

Seamless carbon or alloy steel oil and gas well casing, whether plain end, beveled, threaded or threaded and coupled, heat-treated or non-heat-treated, meeting American Petroleum Institute (API) specification 5CT, with an outside diameter not exceeding 11.75 inches (298.5 mm), in all grades, including proprietary grades, originating in or exported from the People’s Republic of China.

Tenaris' Representation

Tenaris alleged that the current normal values (which were set using US data from August 2022 as a “surrogate market” for China) are insufficient to eliminate dumping given current market conditions.

Tenaris submitted that historically Chinese exporters aggressively exploit dumping opportunities when normal values are convenient for them. According to Tenaris' calculations, the Canadian domestic industry could lose about 160,000 metric tons of potential sale to Chinese exporters until new normal values can be announced.

CBSA Next Steps

The CBSA will take into consideration of the representation along with any comments submitted by interested persons in deciding whether to initiate normal value reviews. If reviews are initiated, the CBSA will send out a notice of normal value review, including a review schedule, to interested parties. Typical, a normal value review takes about 180 days to complete.

How Do I Get Involved

Interested persons wishing to submit comments to Tenaris' representation should send their submissions to the CBSA by April 9, 2024. If the comments contain information that is designated as confidential, they must be accompanied by a non-confidential version in order for the CBSA to take them into consideration.

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