As the importer of record, you are responsible for any SIMA duties on your goods, so you’ll want to check the CBSA's active measures in force before you order.
Measures in force can add significant duties to your shipment at the time of customs clearance.
Imposed under the Special Import Measures Act (SIMA), these trade remedy measures apply to specific imported goods from specific countries and, in some cases, specific exporters.
Exposure can happen even before a final measure is confirmed because SIMA allows for provisional duties during investigations and limited retroactive assessments.
In this article, we explain what measures in force are, how they are triggered, and what to check before you place your next order.
Measures in force are SIMA trade remedy measures that apply to goods currently subject to anti-dumping or countervailing duties.
When Canadian producers believe that imported goods are being sold in Canada at unfairly low prices or with foreign government subsidies, they can file a complaint with the Canada Border Services Agency (CBSA).
If the CBSA investigates and makes the required dumping or subsidizing determinations, and the Canadian International Trade Tribunal (CITT) finds that the dumped or subsidized imports have caused injury, retardation, or threat of injury to Canadian industry, anti-dumping or countervailing duties may become payable, and the case is reflected on the CBSA’s measures in force registry.
SIMA duty exposure can vary widely. Depending on the case, duties may be based on exporter-specific normal values, subsidy amounts, or specified rates, and in some cases can exceed 100% of the value of the goods.
Duty exposure can also begin before a final measure is confirmed. If a new investigation is underway, provisional duties may apply once the CBSA makes a preliminary determination, generally covering subject goods released on or after that date. In rare cases involving massive importation, duties can also be applied retroactively.
As the importer of record, you are responsible for paying any duties assessed, even if you were not involved in the original investigation.
The CBSA maintains a publicly available measures in force list that can be reviewed by product, country, and type of measure.
To get started, confirm your goods' HS code, country of origin or export, and product description. If a measure comes up, the individual measure page will include the product definition, subject countries, applicable exclusions, and duty liability guidance.
Whether your goods fall within the product definition and which rate applies depends on those details, which is where things can get complicated. Your customs broker can work through this with you before you place an order.
You may be able to source the same goods from a country not subject to the measure. The alternative origin may be subject to a different tariff treatment, and if the country is covered by a measure, the SIMA rate may vary by exporter.
But switching origins is not always straightforward, and the cost difference may not justify the change. Your broker can help you evaluate your options.
You can also apply for a re-determination if you believe the CBSA has incorrectly assessed duties on your goods.
If a new investigation is underway for a product you import, you may have the right to participate, respond to questionnaires, and submit evidence relevant to the investigation or injury inquiry.
At Cole International, we offer trade consulting and customs brokerage services to help Canadian businesses assess the impact of trade measures on their bottom line.
Reach out to one of our trade professionals to confirm whether measures in force apply to your goods before placing your next shipment.