Anti-dumping and Countervailing Program

4243-38
4218-17
AD/1308
CVD/103

Letter to Fastener Importers

July 7, 2005

Dear Sir/Madam:

On this date, the Canada Border Services Agency (CBSA) has concluded its review, pursuant to section 55 of the Special Import Measures Act (SIMA), of the normal values and export prices of certain fasteners originating in or exported from the People’s Republic of China and Chinese Taipei that were released by Customs during the provisional period of September 10, 2004 to January 7, 2005. The review was part of the CBSA’s enforcement of the Canadian International Trade Tribunal’s (Tribunal) findings of January 7, 2005 respecting the dumping of certain fasteners originating in or exported from the People's Republic of China and Chinese Taipei and the subsidizing of such products originating in or exported from the People's Republic of China. For a complete definition of the subject goods, please refer to Appendix 1 attached to this letter.

On the date of the final determination the CBSA classified Hex Head Cap Screws as bolts and as such has refunded all duties paid on those goods during the provisional period. Upon further review, the CBSA has determined that Hex Head Cap Screws are in fact screws and shall be considered subject goods. This determination was made in accordance with the Industrial Fasteners Institute (IFI) “Inch Fastener Standards, 7^th Edition, pages N-50 and N-51”. The IFI clearly outlines the decision criteria for assigning the nomenclature of screw or bolt and have identified the above product as a screw. The applicable duty rates will be applied to all importations of these goods released from Customs on or after November 1, 2005.

The CBSA has finalized the amounts of anti-dumping and countervailing duties payable on subject goods released from Custom’s possession during the provisional period. Any provisional duty paid in excess of that finally determined has been refunded by the CBSA.

If your company does not agree with the CBSA's determinations, requests for re-determinations may be filed with the Director General, Anti-dumping and Countervailing Directorate, 100 Metcalfe Street, 11^th Floor, Ottawa, Ontario, K1A 0L8. These requests must be filed in the form and manner outlined in Customs Memorandum D14-1-3, Procedure for filing an appeal or to make a request for re-determination of goods under the Special Import Measures Act, and must be received within 90 days from the date of the determination.

All imports of subject goods released from Customs on or after January 8, 2005 have been subject to applicable duty rates dictated by the exporter and country of origin. For a complete revised listing of all duty rates effective July 8, 2005 refer to Appendix 2.

For CBSA monitoring and enforcement purposes, if you ship subject goods to Canada in the future, please ensure that the entry documentation submitted for Customs purposes by the exporter, your broker or your company contains the information outlined in Appendix 3. Please note that failure to provide this information may result in an incorrect assessment of anti-dumping and countervailing duty and may result in the application of penalties to the importer pursuant to the Administrative Monetary Penalty System (AMPS).

Please note that as an importer of goods subject to the SIMA, you are responsible for ensuring that these importations are properly coded. The codes are used in field 32 of the form B3 and field 26 of the form B2. The proper codes and their interpretations are provided in Appendix 4. For further information on completing these forms, please refer to Customs Memorandum D17-1-10, Coding of Customs Accounting Documents, and D17-2-1, Coding of Adjustment Request Forms.

Please note that the Special Import Measures Act also contains provisions to deal with those situations where:

i) the importer in Canada is reimbursed in any manner for the payment of anti-dumping or countervailing duty by the manufacturer, the producer, vendor or exporter of the goods; or

ii) there is an agreement ("compensatory arrangement") between two or more of any of the following, namely the manufacturer, producer, vendor, exporter, the importer in Canada, subsequent purchaser and any other person, that directly or indirectly affects or relates to the price of the imported goods, the sale of those goods, the net return to the manufacturer, producer, vendor or exporter, or the net cost to the importer of the goods.

Should a future audit indicate that such arrangements exist, the CBSA will adjust the export price of the goods to the extent necessary to eliminate the amount of the reimbursement or the effect of the compensatory arrangement. This adjustment may result in the demand for the payment of additional duty. This process ensures that the importer properly assumes the duty payable and that such duty will be reflected in the subsequent selling price of the goods in Canada.

Should your firm import the subject goods and not describe the goods as required in Appendix 3 or not complete the SIMA code indicated in Appendix 4, your firm will be issued an administrative Monetary Penalty (AMP). For further information on AMPS, please consult the CBSA Web site at: www.cbsa-asfc.gc.ca/sima-lmsi/amps-rsap/menu-eng.html.

Should you have any questions regarding this matter, please do not hesitate to contact me by telephone at (613) 954-7410, by fax at (613) 954-3750 or by email at Alexander.Lawton@cbsa-asfc.gc.ca. Alternatively, you may contact Iqbal Motani by telephone at (613) 952-7547, by fax at (613) 954-3750 or by email at

Iqbal.Motani@cbsa-asfc.gc.ca

Yours truly,
Alex Lawton
Senior Program Officer
Anti-dumping and Countervailing Directorate

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Appendix 1

SUBJECT

Certain Carbon Steel Screws originating in or exported from the People’s Republic of China and Chinese Taipei, and certain stainless steel screws originating in or exported from Chinese Taipei, excluding those specifically designed for application in the automotive or aerospace industry.

This memorandum refers to the application of anti-dumping duty pursuant to section 3 of the Special Import Measures Act (SIMA) to importations of certain carbon steel screws originating in or exported from the People’s Republic of China and Chinese Taipei, and certain stainless steel screws originating in or exported from Chinese Taipei, excluding those specifically designed for application in the automotive or aerospace industry and to the application of countervailing duties pursuant to the same section of SIMA to importations of certain carbon steel screws originating in or exported from the People’s Republic of China. These duties are applied as a result of the findings of injury by the Canadian International Trade Tribunal (Tribunal).

GUIDELINES AND GENERAL INFORMATION

1. The subject goods are defined as:

Certain Carbon Steel Screws originating in or exported from the People’s Republic of China and Chinese Taipei, and certain stainless steel screws originating in or exported from Chinese Taipei, excluding those specifically designed for application in the automotive or aerospace industry.

FOLLOWING IS A LIST OF SUBJECT PRODUCTS INCLUDED IN THE TRIBUNAL’S FINDING FOR BOTH CARBON STEEL & STAINLESS STEEL SCREWS

	Imperial		Metric
	Diameter	Length	Diameter	Length
Wood Screws	#4 to #24 (0.112" to 0.386")	3/8 to 8 in.	M3 to M10	10 mm to 200 mm
Square and Hex Lag Screws	#14 to #24 (1/4" to 0.386")	3/4 to 4 in.	M6 to M10	20 mm to 100 mm
Sheet Metal/Tapping Screws	#4 to #24 (0.112" to 0.386")	3/8 to 8 in.	M3 to M10	10 mm to 200 mm
Thread Forming Screws	#4 to #24 (0.112" to 0.386")	3/8 to 3 in.	M3 to M10	10 mm to 75 mm
Thread Cutting Screws	#4 to #24 (0.112" to 0.386")	3/8 to 3 in.	M3 to M10	10 mm to 75 mm
Thread Rolling Screws	#4 to #24 (0.112" to 0.386")	3/8 to 3 in.	M3 to M10	10 mm to 75 mm
Self-drilling Tapping Screws	#4 to #24 (0.112" to 0.386")	3/8 to 3 in.	M3 to M10	10 mm to 75 mm
Machine Screws	#4 to 3/8 in (0.112" to 3/8”)	3/8 to 8 in.	M3 to M10	10 mm to 200 mm
Flange Screws	1/4 to 5/8 in	3/8 to 4 in.	M6 to M16	10 mm to 100 mm

Additional Information:

- Hex socket cap screws and socket cap screws are specifically excluded but other cap screws (keeping in mind the instructions with respect to the hex head cap screws specified on page 1 of this letter) are considered subject goods

- “Lag bolts” are in actuality considered to be subject lag screws

- There is a difference between wing screws and screws with wings, the former are excluded while the latter are, with the exception of machine screws with wings, included

- Some fasteners designated as "bolts" are in reality subject screws, namely: flange bolts, bin bolts, grain bin bolts, square and hex lag bolts, and stove bolts

Appendix 1 (Cont’d)

The following products were excluded by the Tribunal in its findings of January 7, 2005, and, therefore, are not subject goods:

FOR BOTH CARBON STEEL & STAINLESS STEEL SCREWS

• Acoustic lag screws

• Aster screws

• Chicago screws

• Collated screws

• Connector screws (kd)

• Decor screws

• Drawer handle screws

• Drive spikes RR

• Euro screws

• Hex socket cap screws

• Instrument screws

• Knurled head screws

• Machine screws with wings

• Optical screws

• Screw spikes RR

• Security screws

• Self-clinching studs

• Socket cap screws

• Socket set screws

• Square-head set screws

• Thumb screws

• U-drive screws

• Wing screws

• Screws specifically designed for application in the automotive and/or aerospace industries

• Screws imported under tariff item Nos. 9952.00.00, 9964.00.00, 9969.00.00 and 9972.00.00 for use in the manufacture of snowmobiles, all-terrain vehicles and personal watercraft.

FOR STAINLESS STEEL SCREWS ONLY

• Socket set shoulder screws

• T-U screws

2. The dates of the proceedings and findings in this matter are:

Initiation of Investigation April 28, 2004

Preliminary Determination September 10, 2004

Final Determination December 9, 2004

Tribunal Injury Findings January 7, 2005

Conclusion of the Section 55 Determination July 7, 2005

3. The subject goods are properly classified under the following Harmonized System classification numbers:

7318.11.00.00 7318.15.90.29

7318.12.00.00 7318.15.90.31

7318.14.00.00 7318.15.90.32

7318.15.90.11 7318.15.90.39

7318.15.90.12 7318.15.90.44

7318.15.90.21

4. The liability for anti-dumping and countervailing duties results from the proceedings conducted under SIMA and from the findings of the Tribunal.

5. For information concerning in any interest owing or refunded on duty levied under SIMA, please refer to Customs Notice CN-450 (Legislative Changes With Respect to Interest on Anti-Dumping, Countervailing, or Provisional Duties Levied Under SIMA and Resulting Proposed Regulatory Changes in Support of Those Legislative Changes).

6. In addition, information may be made available to importers on a need-to-know basis in accordance with the provisions of Memorandum D14-1-2, Disclosure of Normal Values and Export Price Established Under the Special Import Measures Act to Importers.

7. Amounts of subsidy and countervailing duties have been determined for the subject goods originating in or exported from the People’s Republic of China to be equal to 1.25 Renminbi per kilogram.

ISSUING OFFICE-

Anti-dumping & Countervailing Directorate, Admissibility Branch

LEGISLATIVE REFERENCES-

Special Import Measures Act, section 3

HEADQUARTERS FILE-

4243-38, 4218-17

OTHER REFERENCES-

D14-1-2, CN- 450

Appendix 2

ANTI-DUMPING DUTY RATES BY COUNTRY/EXPORTER

EFFECTIVE JULY 8, 2005

CERTAIN CARBON STEEL AND STAINLESS STEEL SCREWS

Country of Origin/Exporter	Rate 1
Chinese Taipei
Chan Liang Enterprise Co., Ltd.	12.15%
CPC Fasteners Industrial Co., Ltd.	28.40%
Dragon Iron Factory	15.78%
Easylink Industrial Co. Ltd.	11.38%
Homn Reen Co., Ltd.	21.70%
Honor Best Co. Ltd.	9.60%
Jau Yeou Industry Co., Ltd.	10.71%
Kind Auspice Industrial Co., Ltd.	14.80%
Knight Kingdom Co., Ltd.	31.12%
Loyal International Co., Ltd.	10.88%
Midas Trading Union	9.89%
Min Hwei Enterprise Co., Ltd.	24.99%
Newfast Co. Ltd.	10.90%
OTTS International Co., Ltd.	17.70%
QST International Corp.	21.89%
Ray Fu Enterprises Co. Ltd.	10.63%
Shih Hsang Ywa Industrial Co.	15.78%
Shin Jaan Works Co., Ltd.	17.64%
Sumeeko Industries	0.47%
Super Cheng Industrial Co., Ltd.	15.78%
Taiwan Shan Yin International Co., Ltd.	3.30%
Tong Hwei Enterprise Co.	2.61%
Zyh Yin Enterprise Co., Ltd.	9.90%
American Bolt and Screw (U.S.A.)	17.24%
Crown Bolt, Inc. (U.S.A.)	23.63%
Hilti Inc. (U.S.A.)	114.15%
Senco Products Inc. (U.S.A.)	2.60%
Star Stainless Screw Co. (U.S.A.)	29.70%
Companies Not Sampled2	15.78%
Non-Cooperative Companies3	170%

¹ As a percentage of export price

APPENDIX 2 (CONT’D)

ANTI-DUMPING DUTY RATES BY COUNTRY/EXPORTER

EFFECTIVE JULY 8, 2005

CERTAIN CARBON STEEL AND STAINLESS STEEL SCREWS

Country of Origin/Exporter	Rate 1
People’s Republic of China
Gem-Year Industrial Co., Ltd.	7.22%
Midas Union Trading Co., Ltd.	23.78%
Robertson Jiaxing Inc.	17.30%
Shandong Welltrade Knitwears & Home Textiles Imp. & Exp. Co. Ltd.	20.48%
Shanghai Ben Yuan Metal Products	3.29%
Tapoo Metal Products (Shanghai)	13.75%
Tong Ming Enterprise Co.	23.78%
Hilti Inc. (U.S.A.)	117.61%
Companies Not Sampled2	23.78%
Non-Cooperative Companies3	170%

¹ As a percentage of export price

AMOUNT OF SUBSIDY – EFFECTIVE JULY 8, 2005

CERTAIN CARBON STEEL SCREWS

Exporter	Country of Origin/Export	Amount of Subsidy in Chinese Renminbi per kilogram
All Exporters	People’s Republic of China	1.25

Appendix 3

INFORMATION REQUIRED ON CUSTOMS DOCUMENTS

Listed below is the information that must be provided to the CBSA regardless of whether the documentation is provided as paper or electronically (e.g. through the use of ACROSS). Please note that if the following information is not provided, then the normal value will be determined based on the export price advanced by 170% and the amount of subsidy for goods originating in or exported from the People’s Republic of China will be equal to 1.25 Chinese Renminbi per kilogram. This may result in the application of penalties pursuant to the Administrative Monetary Penalty System (AMPS). The Customs Act applies, with any modifications that the circumstances require, with respect to the accounting and payment of anti-dumping or countervailing duties.

The import documentation should clearly indicate the following:

· country of origin

· name and address of producer/manufacturer, if known (mandatory where the vendor is not considered the exporter for SIMA purposes)

· location of plant/mill of production, if known

· place from which direct shipment to Canada began

· name and address of vendor (if different from producer)

· customer's name and address

· Canadian importer's name and address (if different from the customer)

· full product description including:

- Type of Fastener (wood screw, machine screw, sheet metal screw, etc.)

- Material (carbon or stainless)

- Diameter

- Length

- Weight in kilograms

· date of sale, date of shipment

· quantity in units

· unit selling price, total selling price

· currency of settlement used (e.g., US$, CDN$, etc.)

· terms and conditions of sale (e.g., FOB, CIF, etc.)

· all costs, expenses, and charges incurred by the exporter and vendor in the shipment of the subject goods to Canada from the point of direct shipment (includes inland and ocean freight, insurance, etc.).

Appendix 4

INTERPRETATION OF THE SIMA CODES

Field No. 32 – SIMA Code

Complete on all types of Form B3 if the goods are subject to an action under the Special Import Measures Act (SIMA). Identify the type of SIMA assessment applicable to the goods being imported as well the mode of payment in the following manner:

The first digit will be the SIMA assessment type:

01. Goods are not subject to an assessment of anti-dumping duty, countervailing duty, or provisional duty under SIMA, or a Surtax Order or a Surcharge Order under the Customs Tariff;

02. Goods are covered by an undertaking under SIMA;

03. Goods are subject to an assessment of provisional duties under SIMA;

04. Goods are subject to a Canadian International Trade Tribunal finding: the assessment results in no amount of anti-dumping duty or countervailing duty being payable

05. Goods are subject to a Canadian International Trade Tribunal finding and/or a Surtax Order, and/or a Surcharge Order: anti-dumping duty and/or countervailing duty, and/or a surtax, and/or a surcharge is payable.

The second digit indicates a nil assessment or the payment mode:

0. Nil payment;

1. Cash;

2. Bond.