When sourcing new products, importers should be aware of whether or not the product is subject to anti-dumping actions under the Special Import Measures Act (SIMA), and if so, whether their vendors have been assessed normal values.
Dumping occurs when goods are sold to Canadian importers at prices that are lower than the selling prices of comparable goods in the country of export, or when goods are sold to Canada at unprofitable prices. Certain goods are often also subsidized by the government in the country of export. Both situations may result in anti-dumping or countervailing duty assessed on imports of these goods to Canada in order to protect the Canadian economy while an investigation is undertaken.
Once the Canada Border Services Agency (CBSA) has determined that goods are being dumped, provisional duties may apply pending the outcome of the investigation of injury conducted by the Canadian International Trade Tribunal (CITT).
If the CITT determines that dumping has resulted in injury or threatens to injure the domestic industry, the CBSA will establish its own values, called normal values, and anti-dumping or countervailing duties are applied. If severe market disruption occurs, a surtax may be applied.
When making a finding of injury or threat of injury, the CITT may exclude certain products.
Examples of goods subject to anti-dumping and/or countervailing duty include:
- Aluminum extrusions originating in China
- Bicycles originating in China and Taiwan
- Carbon and Alloy Steel Sheet originating in Brazil, Bulgaria, China, Macedonia, Serbia and Montenegro, South Africa, Taiwan, and Ukraine
- Carbon Steel Pipe Nipples, Couplings and Fittings originating in China
- Carbon Steel Screws originating in China and Taiwan
- Carbon Steel Welded Pipe originating in China
- Copper pipe fittings originating in China, Korea & the United States
- Greenhouse bell peppers originating in the Netherlands
- Hollow Structural Steel Tubing originating in Korea, South Africa and Turkey
- Mattress innerspring units originating in China
- Refined Sugar originating in the European Union and the United States
- Steel Plate originating in Bulgaria, China, Czech Republic and Romania
- Thermoelectric containers originating in China
- Whole potatoes originating in United States
The list of subject goods is updated on a monthly basis, and is available at:
http://www.cbsa-asfc.gc.ca/sima-lmsi/menu-eng.html
Additional information can be obtained from our technical consulting group.