Special Import Measures Act (SIMA): 2021 updates
What is SIMA?
One of CBSA’s roles is to protect Canadian producers from unfair foreign competition. The Special Import Measures Act (SIMA) is part of that effort, specifically addressing the subsidizing and dumping of imported goods.
But what does that actually mean? And what is new or ongoing for this year?
What is dumping?
Dumping occurs when:
goods are sold to Canadian importers at prices 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.
What is subsidizing?
Subsidizing occurs when:
goods imported into Canada benefit from foreign government financial assistance, such as
loans at preferential rates, grants, or tax incentives.
The amount of subsidizing on imported goods may be offset by the application of "countervailing" duty.
What is injury?
A critical factor is whether the dumped or subsidized imports are causing injury or are threatening to cause injury to the Canadian industry.
Injury may be demonstrated by:
- reduced prices;
- lost sales;
- lost market share;
- decreased profits; and
- similar difficulties.
When are anti-dumping or countervailing duty applied on imported goods?
The CITT is responsible for establishing if dumping or subsidizing is causing injury to Canadian industry. If so, the CBSA then imposes anti-dumping or countervailing duty on the dumped or subsidized imports.
These duties offset any price advantages and give Canadian industry an opportunity to compete fairly with the imported goods.
The Special Import Measures Act (SIMA) includes investigations conducted to help protect Canadian industry from injury caused by the dumping and subsidizing of imported goods.
Investigations ongoing in 2021:
- Container chassis from China
- Certain small power transformers from Austria, Taiwan and South Korea
Normal value reviews
CBSA conducts normal value reviews to update normal values, export prices, or amounts of subsidy to ensure that these values accurately reflect current market conditions.
Normal value reviews ongoing in 2021:
- Carbon and alloy steel line pipe 2: Husteel, Korea
- Carbon steel fasteners: Kind-Auspice, Taiwan; Newfast, Taiwan; Jau Yeou Industry, Taiwan
- Oil country tubular goods 2: Nexsteel, South Korea; Jindal Saw, India
Generally, where CBSA makes a preliminary determination of dumping and/or subsidizing, goods of the same description that are imported into Canada are subject to provisional duty during the provisional period.
Provisional cases ongoing in 2021:
- Certain concrete reinforcing bar originating or exported from Oman and Russia
- Upholstered domestic seating originating or exported from China and Vietnam
- Certain grinding media originating or exported from India
The purpose of expiry reviews is to review SIMA orders and findings to determine whether the measure will be rescinded or continued for another five years.
Expiry reviews ongoing in 2021:
- Refined sugar originating or exported from USA, Denmark, Germany, Netherland, United Kingdom, and the European Union
- Certain whole potatoes from USA for use or consumption in the province of British Columbia
- Steel grating originating or exported from China
SIMA cases rescinded in 2021:
- Decorative and other non-structural plywood from China
- Sucker rods from Argentina, Brazil, and Mexico
Our experienced customs professionals are ready to help you determine if your goods are subject to SIMA duties—and navigate the intricacies of the Special Measures Import Act.
Information provided by: Canadian Customs Consulting Dept. - Cole International
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