What are anti-dumping and countervailing duties?

If you import goods into Canada, you may have heard about anti-dumping and countervailing duties—two measures that can impact the amount you pay at the border and ultimately affect your profit margin.

These duties are applied by the Canada Border Services Agency (CBSA) under the Special Import Measures Act (SIMA) to address unfair trade practices, such as when goods are sold in Canada at prices lower than in their home market, or when foreign producers receive government subsidies that affect competition in Canada.

While these measures aim to protect domestic industries from unfair pricing or subsidies, for importers, this means there’s more to consider than just the regular customs duties.

Understanding what anti-dumping and countervailing duties are, why they exist, and how they’re applied will help you stay compliant and plan your imports more accurately. Read on to learn more.

What are anti-dumping and countervailing duties?

When you bring goods into Canada, you’re expected to pay the applicable customs duties and taxes based on their classification, origin, and value.

But in some cases, CBSA may also impose anti-dumping and countervailing duties (AD/CVD) on specific products from certain countries.

• Anti-dumping duties are applied when a foreign exporter sells goods in Canada at a price lower than their “normal value” (the price they would sell for in their home market).
• Countervailing duties are imposed when a foreign producer benefits from a government subsidy that gives them an unfair cost advantage.

These additional duties apply only to products that have been investigated under SIMA and found to be entering the Canadian market under unfair conditions.

Knowing whether your goods are listed in a current anti-dumping or countervailing duty case can help you avoid unexpected costs, shipment delays, and possible reassessments after import.

How SIMA regulates AD/CVD

SIMA governs how Canada investigates and applies measures for anti-dumping and countervailing duties (AD/CVD).

It outlines when and how these trade measures can be applied, as well as who is responsible for enforcing them.

Under SIMA, CBSA and the Canadian International Trade Tribunal (CITT) share the following responsibilities:

• CBSA investigates whether goods are being dumped or subsidized and determines the margin or amount of dumping or subsidy.
• CITT determines whether those imports have caused, or are likely to cause, injury to Canadian producers of similar goods.

If both agencies determine that dumping or subsidizing is taking place and that injury exists, SIMA authorizes the CBSA to impose specific duties on imports of those goods.

AD/CVD are calculated based on the dumping margin or subsidy amount and are applied in addition to normal duties and taxes.

SIMA also regulates how long these measures stay in place, and an order or finding generally expires after five years.

The process of determining AD/CVD

When a Canadian industry or producer believes imported goods are being sold at unfair prices or supported by subsidies, they can file a complaint under SIMA. 

Here’s how the process generally works:

1. A Canadian producer files a formal complaint, accompanied by supporting evidence. Under certain conditions, the CBSA may initiate an investigation without a formal complaint.
2. The CBSA reviews each complaint to decide whether to launch an investigation. An investigation can only proceed if producers representing at least 25% of Canadian production support the complaint, and overall industry backing outweighs opposition.
3. If the CBSA decides to initiate an investigation, questionnaires will be sent to exporters, importers, and the foreign government involved (in cases of subsidy investigations).
4. The CITT initiates a preliminary inquiry to determine whether the evidence suggests a reasonable indication that the dumping or subsidizing of the goods has caused (or is likely to cause) injury to the Canadian industry. Notice of the decision is then published in the Canada Gazette and sent to all relevant parties.
5. The CBSA calculates the “normal value” and compares it with the export price (and quantifies subsidies) to determine the margin of dumping or subsidy amount.
6. If the evidence supports the claim, provisional duties may be applied until a final determination confirms whether duties are permanent and at what rate.
7. The final determination is made with the precise margin of dumping or amount of subsidy specified for each exporter. Once it is finalized, all parties involved are notified in writing, and a notice is published in the Canada Gazette.

How to declare AD/CVD through the CCP

When you import goods that fall under SIMA, you will need to declare them accurately in the CARM Client Portal (CCP) through your Commercial Accounting Declaration (CAD).

Failing to account for your imports correctly may result in additional duty assessments, interest charges, Administrative Monetary Penalties (AMPs), or, in cases of fraud or deliberate evasion, criminal prosecution.

For goods subject to anti-dumping or countervailing duties, CBSA requires more detailed product information.

In your CAD, you must complete specific SIMA-related fields, including:

• Product description
• SIMA quantity and unit of measure
• SIMA invoice price (exporter’s selling price or purchase price)
• SIMA invoice currency
• SIMA export value deduction, if applicable
• SIMA date of sale
• SIMA exporter ID and model ID, if applicable
• Measure in force code
• Incoterms
• Whether security (surety) is used

If you’re claiming that your goods are excluded from SIMA duties, you must also provide a full and accurate description. The CBSA uses this information to calculate and verify the correct duty amount.

Next steps for Canadian importers

As the importer of record, you are 100% liable for all duties, even if you weren't aware of them.

Surprise duties, such as AD/CVD, can eliminate your entire profit margin.

So, by taking the following proactive steps, you can help protect your business:

Consult your customs broker to identify risks

This is the most important first step. Before importing your goods, ask your broker to verify if they are at risk. They will check your goods against the official measures in force list, which details every product subject to AD/CVD.

Know your product's full supply chain

A common trap for importers is not knowing how their goods are defined under a SIMA finding. To avoid misclassification, speak to your supplier and make sure you know the full description, origin, and composition of your goods.

Prepare required documentation

If your goods are on the SIMA list, you must have the correct SIMA-specific documentation at the time of import. Work with your broker to ensure your supplier provides all the required information and documents.

How Cole International can help

Dealing with anti-dumping and countervailing duties can be complex, especially if you’re managing multiple suppliers, products, and countries of origin.

Our role is to help you navigate these trade measures with clarity and confidence, so you can focus on running your business.

At Cole International, we provide trade consulting and customs brokerage services to help Canadian businesses streamline the entry of their goods.

We work with importers every day to:

• Identify whether their products are listed under any active anti-dumping or countervailing duty measures
• Help them prepare and maintain the proper documentation to support their entries
• Monitor CBSA updates to keep them informed about any new investigations or changes that might impact their imports
• Provide personalized guidance to reduce their duty exposure and ensure compliance

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

Reach out to one of our trade professionals to determine whether your goods are subject to anti-dumping and/or countervailing duties.