US embassy cable - 03OTTAWA1629

UNCLAS OTTAWA 001629 
 
SIPDIS 
 
DEPT FOR EB/TPP/BTA/EWH MKEHOE 
DEPT PASS USTR FOR SCHANDLER AND ASTEPHENS 
USDOC FOR 4320/ITA/MAC/JBENDER 
 
E.O. 12958: N/A 
TAGS: ETRD, CA 
SUBJECT: CANADA CUSTOMS' DUMPING INVESTIGATION COULD IMPACT 
U.S. STEEL EXPORTERS, BUT NOT MANUFACTURERS 
 
 
1. Canada Customs and Revenue Agency (CCRA) has initiated an 
investigation into the alleged injurious dumping of steel 
structural tubing, known as hollow structural sections, 
originating in, or exported from Korea, South Africa and 
Turkey.  The investigation covers hollow structural sections 
made of carbon and alloy steel, welded, in sizes up to and 
including 16 inches in outside diameter for round products 
and up to and including 48 inches in periphery for 
rectangular and square products.  Although the investigation 
does not include U.S. manufacturers, CCRA has informed post 
that some of the goods subject to the investigation have been 
sold to importers in Canada by exporters located in the U.S. 
A complete list of the U.S. exporters is provided in 
paragraph four. 
 
2. Three Canadian Manufacturers filed a complaint alleging 
that the dumping of steel structural tubing has caused or is 
threatening to cause injury to the companies' production of 
hollow structural section in Canada.  According to figures 
contained in the complaint, imports from Korea, South Africa 
and Turkey rose from approximately 8,800 tonnes in 2001 to 
approximately 32,000 tonnes in 2002.  CCRA will conduct an 
investigation to determine whether the subject goods imported 
into Canada during the period of April 1, 2002, to March 31, 
2003, have been dumped.  The Canadian International Trade 
Tribunal (CITT) will conduct a preliminary inquiry to 
determine if there is evidence that discloses a reasonable 
indication that the dumping has caused or is threatening to 
cause injury to the Canadian industry.  Details on the 
investigation can be found at by clicking on "Statements of 
Reasons" at www.ccra-adrc.gc.ca/sima. 
 
3. From customs import documentation, the CCRA has identified 
24 exporters of the subject goods, ten of which are based in 
the U.S.  As a part of the investigation, CCRA has requested 
information from exporters to determine the normal value and 
the export price of the goods shipped to Canada.  Exporters 
have until June 29, 2002 to respond to CCRA's request for 
information.  CCRA's manager for the Industrial Products 
Division Jim Gove told econoff that a failure to respond to 
CCRA's request for information will lead to a likely less 
favorable Anti-dumping determination than companies which 
provide detailed information.  According to Gove, U.S. 
exporters are not the major exporters of hollow structural 
sections to Canada.  Sales figures from U.S. companies 
indicate exports to Canada are sideline operations of 
businesses that are primarily focused on the U.S. market. 
Because of this, Gove did not expect many of the U.S. 
exporters to provide the requested information. 
 
4. U.S. Exporters of structural tubing from the U.S. to 
Canada include: 
 
- American Steel Inc., 19022 - 80th Avenue South, Kent, 
Washington, 98032 
- Atlas Tube Inc. (USA), 13101 Eckles Road, Plymouth, 
Michigan, 48170 
- Castle Metals, 3400 North Worlf Rd., Franklin Park, 
Illinois, 60131 
- Industrial Export Co., 3340 NW St. Helens Road, Portland, 
Oregon, 97201 
- North Pacific Group Inc., P.O. Box 3983, Portland, Oregon, 
97208 
- Pusan Pipe America, Inc., 9615 S. Norwalk Blvd, Ste. B, 
Santa Fe Springs, CA, 90670 
- Seaport Steel Co., 3660 E. Marginal Way S, Seattle, 
Washington, 98124 
- Stemcor USA Inc., #7815 Empire State Building, 350 Fifth 
Ave, New York, NY, 10118 
- Tubular Steel, Inc., 13322 142nd Ave. E, Orting, 
Washington, 98360 
- Vass Pipe & Steel Company, Inc., 158 Third Stree, Mineola, 
New York, 11501 
KELLY