The Canada Border Services Agency has initiated a re investigation to update the normal values, export prices and amounts of subsidy, pursuant to the Special Import Measures Act, in respect of certain flat hot rolled carbon and alloy steel sheet and strip originating in or exported from Brazil, China, Chinese Taipei, Ukraine, South Africa and India (dumping), and certain flat hot rolled carbon and alloy steel sheet and strip originating in or exported from India (subsidizing).

The re investigation is part of the ongoing enforcement of the Canadian International Trade Tribunal's finding of material injury made by the Tribunal on August 17th 2001, in Inquiry No NQ-2001-001 and continued on August 16th 2006, in expiry review No RR-2005-002.

It is anticipated that this re investigation will be concluded on or before November 30th 2010.

Under SIMA, China is defined as a prescribed country and normal values may be determined under section 20 of SIMA, in situations where in the opinion of the President of the CBSA domestic prices are substantially determined by the government of that country 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.

Since June 2005, the CBSA has conducted four dumping re investigations involving section 20 inquiries on steel products within the flat rolled steel industry sector in China. These 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). In all instances, information available to the CBSA indicated that the domestic prices were substantially determined by the Government of China.

Accordingly, for purposes of each of these re investigations, the CBSA conducted an inquiry, pursuant to section 20 of the SIMA and, on the basis of the information available, CBSA rendered the opinion that the conditions of section 20 with respect to price control were present in the respective steel industry sector in China.

It is important to note that both hot rolled steel plate and hot rolled steel sheet are products that form part of the flat rolled steel industry sector as these products are manufactured by using the same inputs and production processes; with the exception that steel sheet is a thinner product which is rolled further than steel plate. The two products are also manufactured by a significant number of same producers in China. Since a section 20 inquiry regarding the flat rolled steel industry sector has recently been concluded, on July 16th 2010, whereby the CBSA is of the opinion that the conditions of section 20 exist in the flat rolled steel industry sector in China, an inquiry pursuant to section 20 of SIMA will not be conducted for the purposes of this hot-rolled steel sheet re investigation. However, if the GOC and exporters from China have reason to believe that the conditions of section 20 do not exist in the flat rolled steel industry sector and the prices in China are substantially the same as they would be if they were determined in a competitive market, the GOC and exporters in China are invited to submit such information to the CBSA. In the absence of such information, normal values for the cooperative Chinese exporters will be determined on the basis of domestic selling prices and costs reflecting like goods in a surrogate country, pursuant to paragraph 20(1)(c) 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 November 30th 2010, 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 77% and, in the case of imports from India, countervailing duties of 3,150 rupees per metric tonne will be applied pursuant to a ministerial specification under section 29 of 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 77 % and, in the case of imports from India, the countervailing duties will be equal to 3,150 rupees 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, 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 August 30th 2010. Responses to the Importer Request for Information are due by August 12th 2010.

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

7208.25.10.10
7208.25.10.20
7208.25.10.30
7208.25.10.40
7208.25.90.10
7208.25.90.20
7208.25.90.30
7208.25.90.40
7208.26.10.10
7208.26.10.20
7208.26.10.30
7208.26.10.40
7208.26.90.10
7208.26.90.20
7208.26.90.30
7208.26.90.40
7208.27.10.10
7208.27.10.20
7208.27.10.30
7208.27.10.40
7208.27.90.10
7208.27.90.20
7208.27.90.30
7208.27.90.40
7208.36.00.10
7208.36.00.20
7208.36.00.30
7208.36.00.40
7208.37.10.10
7208.37.10.20
7208.37.10.30

7208.37.10.40
7208.37.90.10
7208.37.90.20
7208.37.90.30
7208.37.90.40
7208.38.10.10
7208.38.10.20
7208.38.10.30
7208.38.10.40
7208.38.90.10
7208.38.90.20
7208.38.90.30
7208.38.90.40
7208.39.00.10
7208.39.00.20
7208.39.00.30
7208.39.00.40
7208.53.00.10
7208.53.00.20
7208.53.00.30
7208.53.00.40
7208.54.00.10
7208.54.00.20
7208.54.00.30
7208.54.00.40
7208.90.00.00
7211.13.00.00
7211.14.00.90
7211.19.10.00
7211.19.90.10
7211.19.90.90

7211.90.10.00
7211.90.90.90
7225.30.20.00
7225.30.91.00
7225.30.99.00
7225.40.30.00
7225.40.91.10
7225.40.91.20
7225.40.91.30
7225.40.91.40
7225.40.99.11
7225.40.99.19
7225.40.99.21
7225.40.99.91
7225.40.99.92
7225.40.99.93
7225.40.99.94
7225.99.00.90
7226.20.00.91
7226.20.00.92
7226.91.10.00
7226.91.90.20
7226.91.90.30
7226.91.90.40
7226.91.90.90
7226.99.90.00
7226.99.99.00