SIMA Anti-Dumping And Countervailing Duties

The Special Import Measures Act (SIMA) sets out the rules and procedures for anti-dumping and countervailing duty actions under Canadian domestic law. The Act is designed to provide protection to Canadian producers who are being harmed or injured by the dumping or subsidizing of goods imported into Canada.

Anti-dumping and countervailing duties are a proactive action taken by the Canada Border Services Agency (CBSA), working with the International Trade Tribunal, after a complaint is filed and it is found that items are being sold into the Canadian market place at costs lower than current market values, causing injury to Canadian industry.

Both of these additional duties are only applied after an investigation is completed by the Canadian International Trade Tribunal and significant injury to Canadian Industry is found. A provisional duty may be applied following a preliminary decision by the Tribunal that injury by the dumping or subsidizing of imports has occurred. The decision to apply a provisional duty is normally made within three months of the start of the investigation. This temporary duty is intended to protect Canadian producers until the Tribunal makes its final injury decision.  

Once the tribunal confirms the injury, the CBSA can impose an anti-dumping or countervailing duty on the imports in question. These duties offset the price advantage caused by dumping or subsidizing, and gives Canadian industry an opportunity to compete fairly with the imported goods. Anti-dumping and countervailing duties are normally imposed for a period of at least five years, after which they are reassessed.

What Exactly Are Anti-Dumping And Countervailing Duties?

An anti-dumping duty is assessed when it is found that the product investigated is being sold to Canadian importers at prices that are lower than comparable products in the country of export, or when goods are sold into Canada at unprofitable prices. A countervailing duty is assessed when the exporter or producer is being financially subsidized by their government in order to sell their products as a cost that is lower than Canadian market values.

Who Can File A Complaint?

If you are a Canadian producer of identical or similar goods to the competing imports who suspects that goods are being dumped or subsidized, and causing injury to Canadian industry, you can file a written complaint with the Canada Border Services Agency (CBSA).

An association of producers may also file a complaint on behalf of its members.The complaint must include information on the Canadian produced goods, the competing imports, the domestic industry and conditions in the Canadian market. It must also provide evidence relating to the dumping or subsidizing of the imported goods and the resulting injury to Canadian industry. In other words, you must provide proof of your claim.

Anti-Dumping | What Is It And How Does It Affect Importers?
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About Author
Gloria Terhaar
CCS, CTCS, CBSA Professional Designate

Gloria Terhaar has over 17 years of Canadian customs brokerage experience. She currently works in our Canadian division as a Trade Compliance Supervisor and Regulatory Compliance Specialist. Gloria has extensive experience in all aspects of documentation and regulatory requirements as they relate to importing products into Canada. Gloria is often called upon to train industry with some recent talks for MNP, the Surrey Board of Trade, TFO Canada and the BC Produce Marketing Association. In 2018, Gloria also participated in the Canadian Produce Marketing Association and the Canadian Horticultural Council advocacy event "Fall Harvest" in Ottawa where she participated in advocacy efforts for the Canadain produce industry.

While we strive for accuracy in all our communications, as the Importer of Record it is incumbent upon your company to ensure that you are aware of the requirements under the new regulations so that you maintain compliance as always.