TR 2017 RI
Certain Liquid Dielectric Transformers
Notice of Conclusion of Re-investigation
Ottawa, July 5, 2017
The Canada Border Services Agency (CBSA) has today concluded a re-investigation of the normal values and export prices of certain liquid dielectric transformers originating in or exported from the Republic of Korea, in accordance with the Special Import Measures Act (SIMA).
The re-investigation was initiated on February 15, 2017, as part of the CBSA’s ongoing enforcement of the finding made by the Canadian International Trade Tribunal on November 20, 2012. The finding was subsequently reviewed and continued on May 31, 2016.
The subject goods are described in Appendix 1 and are normally classified under the listed ten digit Harmonized System classification numbers contained in Appendix 1. Additional product information explaining which products are subject to duties is also provided in the appendix.
At the initiation of the re-investigation, the CBSA sent a Request for Information (RFI) to importers, exporters, consignees, Canadian producers and vendors in Canada, to solicit information on the costs and selling prices of subject and like goods. The information was requested for purposes of updating the normal values and export prices for subject goods imported into Canada.
Effective July 5, 2017, specific normal values for future shipments of subject transformers to Canada will be determined based on updated information for all exporters that provided a complete submission. These exporters are:
- Hyosung Corporation
- Hyundai Electric and Energy Systems Co., Ltd.
(A new entity spun off from Hyundai Heavy Industries Co., Ltd. on April 1, 2017)
Where sufficient information is not available to determine a specific normal value, normal values for future shipments will be determined by ministerial specification, which is calculated by advancing the export price of the goods by 101%. For all exporters of subject goods not listed above, normal values will be determined by this ministerial specification.
Normal values previously in place are now expired. In addition, the normal values determined on the basis of the re-investigation will be applied to any entries of subject goods under appeal that have yet to be re-determined at the time of the conclusion of this re-investigation.
Case arguments and reply submissions were submitted on behalf of ABB Canada Inc., Hyundai Electric and Energy Systems Co., Ltd., Hyundai Corporation, Hyundai Canada Inc., Hyundai Corporation USA and Remington Sales. The main focus of these representations involved who is the importer/exporter, date of sales, domestic customer selection, industry profit and export price adjustment. The information submitted in these case arguments and reply submissions were given due consideration by the CBSA.
Where a producer or exporter becomes aware that there have been substantial changes to domestic prices, market conditions or costs associated with production and sales of subject goods, the CBSA should be advised in order that normal values can be reviewed and updated if required, to reflect current conditions. Similarly, the amount of export charges to be deducted from the export price may also need revision to reflect current conditions. Where changes have occurred and the CBSA has not been advised in a timely manner, the extent of these changes could warrant retroactive assessments of anti-dumping duties.
Importers are reminded that it is their responsibility to calculate and declare their anti-dumping duty liability. If importers are using the services of a customs broker to clear importations, the brokerage firm should be advised that the goods are subject to anti-dumping measures and be provided with sufficient information necessary to clear the shipments. To determine their liability for anti-dumping duty, importers should contact the exporters to obtain the applicable normal values. For further information on this matter, refer to Memorandum D14-1-2, Disclosure of Normal Values, Export Prices, and Amounts of Subsidy Established under the Special Import Measures Act, on the CBSA’s website at: www.cbsa-asfc.gc.ca/publications/dm-md/d14-eng.html.
The Customs Act applies, with any modifications that the circumstances require, with respect to the accounting and payment of anti-dumping duties. As such, failure to pay the duties within the prescribed time will result in the application of the interest provisions of the Act.
Should the importer disagree with the determination made on any importation of goods, a request for re-determination may be filed with the Director General, Trade and Anti-dumping Programs Directorate, 11th Floor, 100 Metcalfe St., Ottawa, Ontario, K1A 0L8. Such a request must be received within 90 days from the making of the determination in the form and manner outlined in Memorandum D14 1 3, Re-determinations and Appeals Under the Special Import Measures Act, on the CBSA’s website at: www.cbsa-asfc.gc.ca/publications/dm-md/d14-eng.html.
Any questions concerning the above should be directed to:
SIMA Registry and Disclosure Unit
Trade and Anti-dumping Programs Directorate
Canada Border Services Agency
100 Metcalfe Street, 11th floor
Ottawa, ON K1A 0L8
- Laura Fast: 613-954-1641
- Laurie Trempe Kermoud: 613-954-7337
For the purpose of this re-investigation, the subject goods are defined as:
Liquid dielectric transformers having a top power handling capacity equal to or exceeding 60,000 kilovolt amperes (60 megavolt amperes), whether assembled or unassembled, complete or incomplete, originating in or exported from the Republic of Korea.
Liquid dielectric transformers having a top power handling capacity equal to or exceeding 60,000 kilovolt amperes (KVA) (60 megavolt amperes (MVA)), whether assembled or unassembled, complete or incomplete, will hereafter be referred to as Power Transformers.
Additional Product Information:
Power Transformers are used to increase, maintain or decrease electric voltage in high voltage transmission and distribution systems. Incomplete Power Transformers are subassemblies consisting of the active part and any other parts attached to, imported with or invoiced with the active part of the Power Transformer. The active part of the Power Transformer consists of one or more of the following when attached to or otherwise assembled with one another: the steel core or shell, the windings, electrical insulation between the windings and/or the mechanical frame for a Power Transformer.
The product definition encompasses all Power Transformers regardless of name designation, including but not limited to: step-up transformers, step-down transformers, auto-transformers, interconnection transformers, voltage regulator transformers, high voltage direct current transformers and rectifier transformers.
Classification of Imports:
Imports of the subject goods are usually classified in Section XV of the Customs Tariff under the following Harmonized System (HS) classification numbers:
- 8504.23.00.00 - Liquid dielectric transformers, having a power handling capacity exceeding 10,000 kVA
Unassembled or incomplete subject goods may also be imported under the following HS codes:
- 8504.90.90.10 – Parts - Printed circuit assemblies, of electric transformers and other inductors, other, of electric transformers
- 8504.90.90.82 – Parts - Having a power handling capacity of 500 kVA or more
- 8504.90.90.90 – Parts - Other
The listing of HS codes is for convenience of reference only. The HS codes listed may include non-subject goods. Also, subject goods may fall under HS codes that are not listed. Refer to the product definition for authoritative details regarding the subject goods.
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