Trade Remedies Glossary

TRADE REMEDIES
UNDER THE SPECIAL IMPORT MEASURE ACT (SIMA)

 

Anti-dumping Duties

(Droits antidumping)

The application of anti-dumping duties are intended to offset the amount of dumping on imported goods and give to the goods produced in Canada an opportunity to compete fairly with the imported goods. Where the Canadian International Trade Tribunal (Tribunal) finds that the dumping of imports has caused or is threatening to cause material injury to a domestic industry, or has caused material retardation of the establishment of a domestic industry, the Canada Border Services Agency (CBSA) must levy and collect anti-dumping duties on subsequent imports of goods matching the description of the dumped goods.

Appeals

(Appels)

The Tribunal hear appeals of decisions made by the CBSA in respect of the enforcement of the Tribunal’s injury findings, and expiry review or interim review orders.

Classes of Goods

(Catégories de marchandises)

Sub-categories of subject goods or like goods, each consisting of goods the uses and other characteristics of which closely resemble each other, but that are distinct from those of the goods of another sub-category. Classes may be established by the CBSA at the initiation of an investigation (for subject goods) or by the Tribunal in an inquiry (for like goods). When there are multiple classes of like goods, there must be a domestic industry for each class, and the Tribunal must conduct a separate injury analysis for each class.

Countervailing Duties

(Droits compensateurs)

The application of countervailing duties is intended to offset the amount of subsidizing on imported goods and give to the goods produced in Canada an opportunity to compete fairly with the imported goods. Where the Tribunal finds that the subsidizing of imports has caused or is threatening to cause material injury to a domestic industry, or has caused material retardation of the establishment of a domestic industry, the CBSA must levy and collect countervailing duties on subsequent imports of goods matching the description of the subsidized goods.

Cross-cumulation

(Cumul croisé)

In cases where the subject goods from at least one country are both dumped and subsidized, the Tribunal must decide whether to assess the effect of the dumped and subsidized imports on the domestic industry separately or as a single set of effects.

Cumulation

(Cumul)

In cases where there are subject goods from more than one country, the Tribunal must decide whether to assess the effect of the dumped or subsidized imports on the domestic industry relative to each country separately or to assess their cumulative effect.

Determination

(Décision)

A determination is a Tribunal decision resulting from a preliminary injury inquiry. The Tribunal issues its preliminary injury determination of whether there is a reasonable indication of injury or retardation or threat of injury 60 days after the CBSA’s decision to initiate an investigation of dumping and/or subsidizing. The Tribunal’s statement of reasons follows 15 days later.

Domestic Industry

(Branche de production nationale)

As defined in subsection 2(1) of SIMA “domestic industry” means “… the domestic producers as a whole of the like goods or those domestic producers whose collective production of the like goods constitutes a major proportion of the total domestic production of the like goods except that, where a domestic producer is related to an exporter or importer of dumped or subsidized goods, or is an importer of such goods, ‘domestic industry’ may be interpreted as meaning the rest of those domestic producers.”

Dumped

(Sous-évalué)

As defined in subsection 2(1) of SIMA ‘dumped’, in relation to any other goods, means that the normal value of the goods exceeds the export price thereof.”

Dumping

(Dumping)

Dumping occurs when the export price of goods is lower than their normal value, i.e. generally either the domestic selling price of comparable goods in the country of export, or the constructed cost of production of the goods exported to Canada.

Exclusions

(Exclusions)

When the Tribunal finds injury, retardation or threat of injury, or a likelihood of injury or retardation, as the case may be, it has discretionary authority to exclude certain products, exporters or countries from its finding or order if it determines that they are not the cause of the injury, retardation, threat of injury, or likelihood of injury or retardation.

Expiry Proceedings

(Procédure d’expiration)

The Tribunal is responsible for conducting an expiry at least 10 months prior to the expiry of a previous finding or order to determine if an expiry review of such a finding or order is warranted. The Tribunal has 50 days to conduct such an expiry.

Expiry Review

(Réexamen relatif à l’expiration)

If, after completing an investigation, the CBSA determines that the expiry of the previous finding or order is likely to result in the continuation or resumption of dumping and/or subsidizing of imports, the Tribunal has approximately 130 days to conduct an expiry review and determine whether the expiry of such a finding or order is likely to result in injury to a domestic industry or retardation of the establishment of a domestic industry.

Subsection 37.2(2) of the Special Import Measures Regulations (Regulations) requires the Tribunal to look at several factors in determining the likelihood of injury or retardation.

Final Injury Inquiry

(Enquête définitive de dommage)

Upon receipt of a notice of preliminary determination(s) of dumping and/or subsidizing by the CBSA, the Tribunal commences a final injury inquiry and has 120 days to determine whether the dumping and/or subsidizing of imports have caused or are threatening to cause material injury to a domestic industry, or have caused material retardation of the establishment of a domestic industry. The Tribunal must conclude its final injury inquiry and make a finding with respect to the goods to which the CBSA’s final determination applies.

Finding

(Conclusions)

A finding is a Tribunal decision resulting from a final injury inquiry. The Tribunal issues its finding 120 days after receipt of a notice of preliminary determination(s) of dumping and/or subsidizing by the CBSA. The Tribunal issues its statement of reasons 15 days later. A finding that the dumping and/or subsidizing of imports have caused injury or retardation or are threatening to cause injury results in anti-dumping and/or countervailing duties being assessed on the dumped and/or subsidized goods imported.

Hearing

(Audience)

The Tribunal begins an oral hearing about 90 days after the commencement of a final injury inquiry or about 82 days after the initiation of an expiry review.

Injury

(Dommage)

As defined in subsection 2(1) of SIMA, “‘injury’ means material injury to a domestic industry.”

Section 37.1 of the Regulations requires the Tribunal to look at several factors in determining whether the dumping and/or subsidizing of any goods have caused injury.

Interim Review

(Réexamen intermédiaire)

The Tribunal may conduct an interim review at any time after making an affirmative finding or order, either on its own initiative or at the request of the Minister of Finance, the CBSA or any person or government. An interim review may result in an early rescission of a finding or order, in whole or in part. There is no statutory deadline in an interim review.

Like Goods

(Marchandises similaires)

As defined in subsection 2(1) of SIMA “‘like goods’ in relation to any other goods, means:

(a) goods that are identical in all respects to the other goods, or

(b) in the absence of any goods described in paragraph (a), goods the uses and other characteristics of which closely resemble those of the other goods.”

Massive Importation

(Importation massive)

In the event of an injury finding following a final injury inquiry, the Tribunal may determine that, shortly before the CBSA’s preliminary determination(s) of dumping and/or subsidizing, there was a massive importation of dumped and/or subsidized goods. An importation is considered massive when the volume of dumped and/or subsidized goods imported from a particular country has increased by at least 15 percent during a representative period in the 90 days preceding the CBSA’s preliminary determination(s) of dumping and/or subsidizing. When the Tribunal makes such a finding, the CBSA may then retroactively impose duties on those dumped goods or on those subsidized goods if the subsidy is prohibited under the World Trade Organization Agreement on Subsidies and Countervailing Measures.

Opinion/Report

(Avis/rapport)

An opinion is a Tribunal recommendation resulting from a public interest inquiry. A recommendation can take the form of either a report to the Minister of Finance, with supporting facts and reasons, for a reduction of anti-dumping and/or countervailing duties, or a report for no duty reduction. While there is no statutory deadline in a public interest inquiry, the Tribunal endeavours to issue its report 100 days or 140 days (if it is a complex case) after issuing a notice of commencement of public interest inquiry.

Order

(Ordonnance)

An order is a Tribunal decision resulting from an expiry, an expiry review or an interim review. It can also be a procedural decision in any type of case.

In an expiry, the Tribunal issues an order 50 days after issuing its notice of expiry, and a statement of reasons 15 days later, if it determines that an expiry review is not warranted.

In an expiry review, the Tribunal issues an order 130 days after issuing its notice of expiry review, and a statement or reasons 15 days later.

In an interim review, there is no legislated timeline within which the Tribunal must issue its order; however, the Tribunal endeavours to issue an order as soon as possible after the receipt of submissions, with a statement of reasons to follow 15 days later.

Unless the Tribunal orders the rescission of a finding or an order, anti-dumping and/or countervailing duties continue to be payable on the dumped and/or subsidized goods.

Period of Inquiry/Review

(Période visée par l’enquête/le réexamen)

The period of inquiry or review is the period for which data are collected by the Tribunal for the analysis of injury or threat of injury and causation in a final injury inquiry, or likelihood of injury and causation in an expiry review. The Tribunal typically looks at information covering the last three full calendar years of commercial activities and any three-month interim periods in the year of the final injury inquiry or expiry review. This period includes the CBSA’s period of investigation.

Preliminary Injury Inquiry

(Enquête préliminaire de dommage)

When the CBSA initiates a dumping and/or subsidizing investigation, the Tribunal commences a preliminary injury inquiry and has 60 days to determine whether the evidence discloses a reasonable indication that the dumping and/or subsidizing of imports have caused or are threatening to cause material injury to a domestic industry, or have caused material retardation of the establishment of a domestic industry.

Public Interest Inquiry

(Enquête d’intérêt public)

If, as a result of a final injury inquiry, the Tribunal makes a finding of injury, retardation or threat of injury caused by dumped and/or subsidized imports, which leads to the imposition of anti-dumping and countervailing duties, it may, within 45 days of an affirmative finding, initiate, on its own initiative or on the request of an interested person, a public interest inquiry to determine whether the imposition of part or all of those duties may not be in the public interest. While there is no statutory deadline in a public interest inquiry, the Tribunal endeavours to complete such an inquiry in 100 days or 140 days (if it is a complex case).

Request for Importer Ruling (Demande de décision sur l’identité de l’importateur)

An importer is liable to pay any applicable anti-dumping and/or countervailing duties. Under certain circumstances, however, the CBSA may deem the real importer to be someone different from the person listed on the import shipping documents. If there is a dispute as to the identity of the real importer, i.e. the one who is liable to pay the duties, the Tribunal may be requested to rule on who is the importer in Canada of certain goods.

The ruling may be initiated by the Tribunal, or it may be requested by the CBSA on behalf of an importer who contests the CBSA’s determination.

Retardation

(Retard)

As defined in subsection 2(1) of SIMA, “retardation” means “material retardation of the establishment of a domestic industry,” therefore, there can be no retardation if a domestic industry is already established.

Section 37.1 of the Regulations requires the Tribunal to look at several factors in determining whether the dumping and/or subsidizing of any goods have caused retardation.

Subject Goods

(Marchandises en question)

The term “subject goods” refers to goods imported from the countries or exporters identified by the CBSA in its preliminary determination(s) of dumping and/or subsidizing. The CBSA has the exclusive authority under SIMA to determine the definition of the goods that are subject to an inquiry, i.e. the subject goods. This term is not defined in SIMA.

Subsidized Goods

(Marchandises subventionnées)

As defined in subsection 2(1) of SIMA “‘subsidized goods’ means:

(a) goods in respect of the production, manufacture, growth, processing, purchase, distribution, transportation, sale, export or import of which a subsidy has been or will be paid, granted, authorized or otherwise provided, directly or indirectly, by the government of a country other than Canada, and

(b) goods that are disposed of by the government of a country other than Canada for less than fair market value,

and includes any goods in which, or in the production, manufacture, growth, processing or the like of which, goods described in paragraph (a) or (b) are incorporated, consumed, used or otherwise employed.”

Subsidizing

(Subventionnement)

Subsidizing occurs when goods imported into Canada benefit from foreign government financial contributions.

Threat of Injury

(Menace de dommage)

If the Tribunal determines that there is no injury, it must consider whether there is a threat of injury.

Subsection 2(1.5) of SIMA provides that:

“. . . the dumping or subsidizing of goods shall not be found to be threatening to cause injury or to cause a threat of injury unless the circumstances in which the dumping or subsidizing of goods would cause injury are clearly foreseen and imminent.” [Emphasis added]

Section 37.1 of the Regulations requires the Tribunal to look at several factors in determining whether the dumping and/or subsidizing of any goods are threatening to cause injury.

Trade Level

(Niveau du circuit de distribution)

“Trade level” refers to the level at which a company conducts its commercial activities. For example, a company can conduct its commercial activities as a wholesaler, distributor, retailer, end user, contractor or service centre.