Understanding SIMA duties and how they are assessed

SIMA duties are assessed under case-specific rules, not assumptions based on invoices or HS codes. Confirm whether they apply early to ensure better landed cost planning.

You can’t usually identify SIMA duties from a supplier quote or commercial invoice.

In fact, many businesses only discover that they apply after accounting or release of their goods, through a CBSA review, a reassessment, or an unexpected invoice from their customs broker.

In this article, we explain what SIMA is, how SIMA duties are assessed, and common unexpected SIMA causes. This will help you budget your imports accurately from the start.

What is SIMA?

The Special Import Measures Act (SIMA) is Canada’s trade remedy law that can result in additional duties on certain imports found to be dumped or subsidized, and that may cause injury to domestic industries.

There are two types of SIMA duties:

1. Anti-dumping duties

Anti-dumping duties may apply when goods are exported to Canada at a price lower than their normal value.

2. Countervailing duties

Countervailing duties may apply when goods benefit from foreign government subsidies.

SIMA is applied through a two-step process:

• The CBSA confirms whether dumping or subsidizing exist, and
• The Canadian International Trade Tribunal (CITT) decides whether the dumped or subsidized imports are harming (or are likely to harm) Canadian producers.

SIMA duties apply only to specific goods from specific countries where a CITT finding or order is currently in force. They do not apply broadly to all imports within a general product category, and they are not triggered simply because a product falls under a particular HS code.

How are SIMA duties assessed?

SIMA duties are not calculated the same way as regular customs duties. They are assessed based on case-specific determinations made under SIMA.

What you owe depends on whether the goods are subject to anti-dumping duties, countervailing duties, or both.

For anti-dumping duties, the CBSA compares the export price to the normal value. If the export price is lower than the normal value, you may owe duties based on the difference.

For countervailing duties, the CBSA assesses duties based on the amount of subsidy it has determined applies to those goods from that country.

Factors that affect SIMA duties

Whether the CBSA has an established normal value for your exporter

Normal values are set by the CBSA on an exporter-specific basis. They may also vary depending on the specific product model or terms of sale.

Whether your exporter has established values in place

If the CBSA has not established values for your exporter, SIMA duties can be higher and less predictable.

The status of the case at the time of import

During an active SIMA investigation, you may be required to pay provisional duties before the CBSA issues its final determination.

How SIMA stacks with other costs

SIMA duties are charged in addition to any applicable customs duties and GST/HST, so you need to include them in your landed cost.

What causes unexpected SIMA duties?

You can do everything right on your paperwork and still be surprised by SIMA duties. Here’s where you may be caught off-guard:

1) SIMA wasn’t flagged before shipment

SIMA measures are product- and country-specific and apply where a CITT finding or order is currently in force.

The most common mistake is relying on a supplier description or a past shipment, without verifying whether the goods fall within the scope of an active SIMA case.

What to do: Treat SIMA as a pre-shipment verification step and confirm applicability through your customs broker based on the exact goods and origin.

2) The goods are within scope, but you relied on an HS code or invoice description

SIMA is applied based on the legal scope of a specific finding or order. HS codes and invoice descriptions can be helpful indicators, but they are not the deciding factors.

What to do: Confirm scope using the product details that determine coverage, not just the name used on documents.

3) A SIMA measure was extended or amended through an expiry review

SIMA measures can be extended or updated after they are reviewed. If a case you thought had ended is kept in place, or the scope changes, duties may apply again.

What to do: Monitor active cases and expiry review proceedings for goods you import regularly, or ask your customs broker to flag any changes.

How we can help

At Cole International, we offer trade consulting and customs brokerage services to help Canadian importers identify SIMA exposure early and avoid duty surprises that can disrupt their import processes.

Our team can work with you to:

• Confirm whether SIMA duties apply to your goods and country of origin
• Build more accurate landed cost estimates that account for potential duties
• Support post-entry reviews when duties are assessed after release

We don’t believe in guesswork. We get it right the first time.

Reach out to one of our trade professionals to discuss how SIMA duties may affect your imports and how to reduce unexpected exposure on future shipments.