Provisional Duty Now Being Assessed on Certain Carbon and Alloy Steel Line Pipe from Korea

The Canada Border Services Agency (CBSA) has announced that Provisional Duties are now payable on certain carbon and alloy steel line pipe released from Customs on or after Sept. 6, 2017.

The subject goods are described as carbon and alloy steel line pipe originating in or exported from Korea, welded or seamless, having a nominal outside diameter from 2.375 inches (60.3 mm) up to and including 24 inches (610 mm) (with all dimensions being plus or minus allowable tolerances contained in the applicable standards), including line pipe meeting or supplied to meet any one or several of API 5L, CSA Z245.1, ISO 3183, ASTM A333, ASTM A106, ASTM A53-B or their equivalents, in all grades, whether or not meeting specifications for other end uses (e.g. single-, dual-, or multiple-certified, for use in oil and gas or other applications), and regardless of end finish (plain ends, beveled ends, threaded ends, or threaded and coupled ends), surface finish (coated or uncoated), wall thickness, or length, excluding galvanized line pipe and excluding stainless steel line pipe (containing 10.5 percent or more by weight of chromium), and excluding goods covered by the Canadian International Trade Tribunal (CITT) finding in Inquiry No. NQ 2012-003 (Carbon Steel Welded Pipe).

For greater certainty, the product definition includes unfinished line pipe (including pipe that may or may not already be tested, inspected, and/or certified to line pipe specifications) originating in Korea and imported for use in the production or finishing of line pipe meeting final specifications, including outside diameter, grade, wall-thickness, length, end finish, or surface finish; and non-prime and secondary pipes (“limited service products”).

Subsequently to CBSA determination, the CITT gave notice on September 7, 2017 that it had initiated an inquiry to determine whether the dumping and subsidizing of the above-mentioned goods have caused injury or retardation or are threatening to cause injury to domestic producers as determined under the Special Import Measures Act.

The line pipe in question is usually classified under HS numbers: 7304.19.00.10, 7304.19.00.20, 7305.11.00.10, 7305.11.00.20, 7305.12.00.10, 7305.12.00.30, 7305.19.00.10, 7305.19.00.20, 7306.19.00.10, 7306.19.00.90.

Please note that these HS classifications are provided for convenience of reference only. Refer to the product definition provided in the CITT Notice of Inquiry for authoritative details regarding the subject goods as well as exclusions.

The CBSA preliminary determination details including provisional duty rates, CBSA Officer names and contact information are found on the CBSA’s website.

Additional information about these investigations is contained in a Statement of Reasons, which will be available within 15 days on the CBSA’s website.