Cole Blog

Changes to Canada’s trade remedy system

Written by CDN Customs Consulting Dept. - Cole International | Jun 8, 2018 3:00:00 PM
Canada’s trade remedy system provides a legal way to prevent unfair competition from foreign producers. Recent changes to this system affect regulations under both SIMA (the Special Import Measures Act) and CITT (the Canadian International Trade Tribunal Act) and have implications for Canadian importers and exporters.

The purpose of Canada's trade remedy system

SIMA allows Canada to impose anti-dumping and countervailing duties on goods brought into the country at artificially low prices. It is jointly administered by the CBSA (Canada Border Services Agency) and the CITT. Visit the CBSA's website for an overview of Canada’s anti-dumping and countervailing duties.
 

CBSA rulings on duties

In Canada’s Budget 2017, the federal government committed to modernizing and increasing the effectiveness of Canada’s trade remedy system.
 
Under this system, interested parties – such as importers, exporters and domestic producers – can request a ruling from the CBSA on whether a product would be subject to anti-dumping and countervailing duties. Before the recent changes, CBSA would only provide informal advice that was non-binding and interested parties could not provide input into the process.
 
Now, other interested parties can provide input into these proceedings, and the CBSA rulings that come out of the process are made public and are binding – meaning the same ruling will hold true for future importations of the same goods. In addition, interested parties have the right to appeal re-determinations – made at the second level of review by the CBSA – on whether a previously-imported product may be subject to duties.

What it means

As a consequence of the amendments to the SIMA Regulations, certain amendments are also being made to the CITT Regulations. In particular, the CITT will hear appeals of scope rulings made by the CBSA. CITT has also been provided with flexibility for managing its caseload, with the intended outcome of a more expedient resolution of cases.
 
Canadian importers are advised that, as a result of these new measures, Advance Rulings and Appeals can now be filed under SIMA – allowing for greater expediency and transparency for everyone involved.
 
 
 
Information provided by: Canadian Customs Consulting Dept. - Cole International
 
Read the full extent of the SIMA and CITT amendments here.