Are you aware that your landed cost could severely be affected by the application of dumping or countervailing duties?

Dumping and subsidizing of imported goods by foreign countries can cause serious harm to the Canadian industry. One of Canada Border Services Agency’s role is to protect Canadian producers against unfair trade from the foreign competition within the Canadian market. This is why the Special Import Measures Act (SIMA) is in place. The Canada Border Services Agency (CBSA) and the Canadian International Trade Tribunal (CITT) are jointly responsible for administering SIMA.

What is the difference between dumping and subsidizing?

Dumping occurs when goods are sold to importers in Canada at prices that are lower than the selling price of comparable goods in the country of export or when goods are sold to Canada at unprofitable prices. The amount of dumping on imported goods may be offset by the application of “anti-dumping” duty. Subsidizing occurs when goods imported into Canada benefit from foreign government financial assistance. The amount of subsidizing on imported goods may be offset by the application of “countervailing” duty.

The CITT is responsible for establishing if the dumping or subsidizing of imported goods is causing injury to Canadian industry. A positive injury decision by the CITT provides the authority for the CBSA to impose anti-dumping or countervailing duty on dumped or subsidized imports.

You can consult this  link to see how the process works from the moment a complaint is lodged by a Canadian producer to the final determination of the dumping / subsidy and the application / collection of dumping and countervailing duties:

Are your goods subject to anti-dumping or countervailing duties in Canada?

Many importers of finished or unfinished goods were unpleasantly surprised during recent customs audits to hear that the goods that they had imported a few years back were subject to additional dumping and countervailing duties. These additional duties are usually very high in percentage in order to discourage importers from buying these dumped or subsidized goods. Imagine getting hit with an additional duty bill of 286% of the value of goods three years after importing and selling these goods? Some companies had to close their doors when they found out. Make sure that you are not one of these companies by regularly consulting this link relating to the measures in force before placing your orders:

At Mantoria, we are a customs broker and our mission is to ensure that our clients are fully compliant at all times. If you would like us to help you in determining if your goods are subject to dumping or countervailing duties, or have any questions regarding how your imports are currently handled, please contact our team of customs professionals to find out how Mantoria can help you.