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 2020:
- Heavy plate: dumping from Chinese Taipei, Germany, South Korea, Malaysia, and Turkey.
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 2020:
- Concrete reinforcing bar: NERVACERO, Belarus, Chinese Taipei, China, Japan, Portugal, and Spain
- Carbon and alloy steel line pipe: SEAH, South Korea
- Copper pipe fittings: NACOBRE, United States
The purpose of expiry reviews is to review SIMA orders and findings to determine whether the measure will be rescinded or continued for another five years.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 2020:
- Photovoltaic modules and laminates: dumping and subsidy from China
- Oil country tubular goods: dumping from Chinese Taipei, India, Indonesia, Philippines, South Korea, Thailand, Turkey, Ukraine and Vietnam. Dumping and subsidy from China
- Hot-roll carbon steel plate: dumping from Ukraine
Scope proceedings establish whether certain goods fall within the product description of an existing anti-dumping or countervailing measure.
Scope proceedings ongoing in 2020:
- Fabricated industrial steel components: dumping and countervailing from China
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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