calculator costs of anti-dumping and countervailing dutiesEnacted in 1984, the Special Imports Measures Act (SIMA) was implemented to protect Canadian industry from potential sales and revenue loss resulting from unfair trade practices by foreign producers. Jointly administered by the Canada Border Services Agency (CBSA) and the Canadian International Trade Tribunal (CITT), SIMA provides the legislative framework for the application of trade remedies, including anti-dumping and countervailing duties, on imported goods that are injuriously dumped or subsidized.

Dumping occurs when foreign producers sell their goods in the Canadian market for less than the price of comparable goods in their home markets or when goods are sold to Canadian importers at unprofitable prices. The amount of dumping on imported goods may be offset by the application of “anti-dumping” duty.

Subsidizing occurs when foreign governments provide financial assistance to their producers to reduce the costs of production. Examples of subsidies include tax incentives, grants, or loans at preferential rates. The amount of subsidizing on imported goods may be offset by the application of “countervailing” duty.

The Canadian International Trade Tribunal is responsible for establishing whether the dumping or subsidizing of imported goods is causing injury to Canadian producers. A positive injury decision by the tribunal provides the authority for the CBSA to impose anti-dumping and countervailing duties on dumped or subsidized imports. These duties offset the price advantage caused by dumping or subsidizing and allows Canadian industry the opportunity to compete fairly.

While SIMA duties offer protectionism to Canadian industry, it is important to be aware that the costs and reporting of any applied anti-dumping and countervailing duties become the responsibility of the importer. Therefore, when purchasing products from foreign countries we recommend understanding the types of products that are currently subject to anti-dumping or countervailing measures as well as the detailed costs of the goods being purchased.

On their website, the CBSA provides the Measures in Force, a listing of goods currently subject to anti-dumping or countervailing measures pursuant to SIMA, as well as a list of ongoing investigations.

We recommend contacting your customs broker early in the purchasing process for help in determining whether your imports are subject to SIMA duties. For more information or assistance with your import/export needs, please contact us.