How does the SIMA expedited expiry review process work?

In some scenarios, the Canada Border Services Agency (CBSA) and Canada International Trade Tribunal (CITT) can decide to compress the typical schedule for expiry reviews. Flooding domestic markets with cheap imports can negatively impact Canadian companies and industries. When required, the CBSA and CITT can expedite their review to respond quicker to concerns that threaten a fair, competitive landscape for Canada’s businesses. 

SIMA and expiry reviews

SIMA is a set of rules that aim to protect Canadian industries and companies against imported goods that are dumped on the market or subsidized by foreign governments. Under SIMA, the CBSA and CITT collaborate to levy duties on categories of goods arriving from specific countries. A SIMA expiry review examines whether the duties will continue or not.

An expiry review begins before anti-dumping or countervailing duties are set to expire, typically after five years. The CITT examines if stopping the duties would lead to recurred dumping or subsidizing that damages Canadian industries. If the CITT determines that the risk of dumping and subsidizing persists, the measures can be extended for another period, usually up to five years.

Expiry reviews can extend beyond several months, which can lead to delays in protecting Canadian businesses or removing SIMA duties on imported products. A shorter, quicker review process can reduce the time that Canadian producers and traders wait to get a clear ruling on tariffs.

Common scenarios for expedited expiry reviews

An expedited expiry review can be requested for scenarios that require a quick resolution. They’re also considered when the fundamental reasons behind SIMA duties change. Expedited reviews typically take place when:

• Initial conditions that triggered SIMA anti-dumping and countervailing duties have changed
• Clear indications show that the removal of duties will not cause dumping or subsidizing to resume
• Significant evidence shows that maintaining duties on the imported goods isn’t in the public interest
• An expedited review would be faster, require fewer resources, and benefit businesses that seek a timely decision that would help adapt their strategy.

How to request an expedited expiry review

Goods covered by a CITT order, an amended order, or a finding of injury may qualify for an expedited review. Requests must be submitted in writing and contain the following set of information:

• Confirmation that the goods were sold or consigned to a Canadian importer
• Name and address of the importer,
• Detailed description of the goods,
• Date of sale or consignment for the goods,
• Order number and shipment date of the imported goods
• Contract details for sale, purchase order, or consignment
• Name and address of the producer or manufacturer of the goods
• Description of the exporting company, including association persons in the country of export

When all the above details are provided for the expedited review request, the CBSA can begin the review process.

How does the expedited expiry review process work?

An expedited review uses a process similar to the way a regular expiry review works. The main difference between the expedited expiry review and a regular one is a shortened schedule for the former. Typically, the process will include:

1. Filing a request with the CITT

Producers, importers, and foreign exporters begin the process by requesting an expedited review from the CITT. The request must provide all required details along with substantial evidence that proves the need for an expedited process.

2. Initial assessment by the CBSA

After the request is filed, the CBSA performs an initial assessment to see if the expedited request will proceed.

3. Investigation of the expiry review

If the CBSA decides to go ahead with an expedited review, the CBSA and the CITT will collaborate to determine the outcome. The role of the CITT focuses on the potential damages to domestic companies and industries, while the CBSA focuses on evidence of dumping or subsidizing goods. During the investigation phase, all involved parties can submit information to support their claims.

5. Preliminary findings

After their investigation, the CBSA makes a preliminary determination about how likely that dumping or subsidizing will resume if the duties expire. These findings are shared with the CITT.

6. Tribunal and final determination

The CITT arranges a hearing where all involved parties can present their case for stopping or continuing SIMA duties. After considering the cases of every party, and the conclusions drawn by the CBSA, the CITT will either terminate the duties or decide to continue them.  

Enable agile business and trade processes 

Expedited expiry reviews allow for quicker decision-making on SIMA anti-dumping and countervailing duties. Understanding how to navigate this process allows Canadian importers and producers to leverage legislation that benefits their interests.

Staying informed on the latest regulations can help you take advantage of trade opportunities in Canada’s dynamic business landscape. Cole International has more than a half-century of experience as customs professionals with deep insight into Canadian import markets.

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