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CBSA Concludes OCTG Re-Investigation
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On June 27, 2024, the Canada Border Services Agency (the “CBSA”) announced that it has initiated a re-investigation in respect of oil country tubular goods originating in or exported from Chinese Taipei, India, Indonesia, South Korea, Thailand, Türkiye and Vietnam (the "Subject Goods”). This re-investigation falls under measure in force code OCTG2.
Additionally, the CBSA announced it will also update the surrogate normal values for certain seamless carbon and oil country tubular goods originating in or exported from China, under measure in force codes SC and OCTG1 respectively! The product definitions of the Subject Goods can be found here: OCTG 2, SC, and OCTG 1.
On January 31, 2025, the CBSA released a notice concluding the re-investigation with updated normal values and export prices.
Background Information – OCTG2
On July 21, 2014, the CBSA originally initiated an investigation in respect of the Subject Goods in response to a complaint from Canadian producers Tenaris Canada and Evraz Inc. NA Canada. On March 3, 2015, the CBSA made a final determination that Subject Goods were being dumped.
On April 2, 2015, the Canadian International Trade Tribunal (“CITT”) issued a finding that the dumping of the Subject Goods threatened to cause injury to the Canadian domestic industry. As a result of this finding, the anti-dumping duties (“ADDs”) determined by the CBSA came into effect, replacing earlier provisional duties for the Subject Goods from the listed countries.
Frequent Re-Investigations
This is the sixth CBSA re-investigation since 2011 and the fourth since 2020 for OCTGs and SC, with the most recent re-investigation having concluded less than two years ago (March 17, 2023 for SC and OCTG1 and September 6, 2022 for OCTG2)! Previous re-investigations were also concluded in 2011, 2015, and 2020. These frequent investigations seem to indicate CBSA’s concerns regarding price volatility in the OCTG sector.
Updated Normal Values and Export Prices
As part of this 2024 re-investigation, several exporters/producers who provided complete responses to the CBSA’s Requests for Information were issued specific normal values. The normal values previously in place expired on January 31, 2025.
Somewhat surprisingly, there have been no changes to the general ADD rates. Imports from all other producers/exporters of the Subject Goods will remain subject to the general ADD rate of 37.4% for OCTG 2, 91% for SC, and 166.9% for OCTG 1.
What’s Next?
Importers are responsible for calculating and declaring any anti-dumping duties or countervailing duties. This means checking with suppliers to find out normal values if the Subject Goods are exported/produced by one of the listed companies. These amounts can be confirmed with the CBSA.
Exporters, including those with normal values, should ensure compliance with their ongoing obligations, including informing the CBSA of relevant changes, for example, increases in domestic prices, costs, and changes in market conditions.
Normal values previously in place expired on January 31, 2025. Importers will need to confirm new normal values with their suppliers!
For help with anti-dumping and countervailing measures, click here.