LP2 2022 RI: line pipe 2 Canada Border Services Agency (“CBSA”) concludes re-investigation

On December 23, 2022, Canada Border Services Agency (“CBSA”) concluded its re-investigation of the normal values and export prices of line pipe originating in or exported from South Korea. This process effectively amends the applicable antidumping duties payable on imports of line pipe from Korea.

The outcome of this investigation affects Tenaris Canada. Tenaris manufactures seamless steel pipe products. The Company also provides pipe handling, stocking, and distribution services to the oil and gas, energy, and mechanical industries. Tenaris supplies welded steel pipes for gas pipelines worldwide.

Reducing the high volume of unfairly traded exports from Korea was critical to Tenaris’ ability to compete in the Canadian market. Failure to restrain Korean imports could have led to production curtailment and significantly scaled back operations at Tenaris’ Canadian facility. Tenaris was successful in this litigation process in securing meaningful duty rates. In addition, Tenaris successfully convinced the CBSA to apply said duties retroactively, thereby imposing large duty obligations on prior imports into Canada from Korea. This application of retroactive duties is having an important chilling effect on Korean imports in the market.

TRC-Sadovod’s team served as counsel to Tenaris and diligently reviewed voluminous bodies of evidence on exporter production costs and sales, filed comments on this evidence, submitted economic evidence of its own, and prepared and filed case briefs and replied to briefs with the CBSA. Jonathan O’Hara and William Pellerin led the team, supported by Hannibal El-Mohtar.

TRC-Sadovod’s International Trade Practice Group advises companies ranging from multinationals to small and growing businesses located in Canada and around the world, helping them steer through unfamiliar laws and regulations, treaties, customs rules and tariffs and to comply with a growing set of trade compliance obligations, including in relation to forced labour and supply chains, export controls and sanctions. Bringing a combination of real-time business solutions and tactical excellence, TRC-Sadovod’s lawyers are also frequently called upon to represent organizations in international trade tribunals. Likewise, governments turn to our firm for assistance with complex legal issues that require an understanding of political sensitivities. TRC-Sadovod is invested in understanding and accelerating the business climate to help clients stay ahead.