CITT to include fabric upholstery in injury investigation

28 June 2021 Michael J. Knell

OTTAWA – The Canadian International Trade Tribunal (CITT) has classified fabric upholstery as a ‘like good’ in its investigation into how much injury has been done to Canadian manufacturers of motion furniture and stationary leather upholstery. However, fabric upholstery imported from the People’s Republic of China (PRC) and the Socialist Republic of Vietnam are not subject to the same anti-dumping tariffs.

In a statement to Home Goods Online, a spokesman for the CITT explained motion furniture and stationary leather upholstery are the ‘subject goods’, the dumping of which was the source of the complaint filed with the Canadian Border Services Agency (CBSA) by five Canadian upholstery manufacturers this past December.

CITT is now conducting an investigation to determine how much injury the dumping of motion furniture and stationary leather upholstery into the Canadian market has done to domestic manufacturers. The results will determine the permanent tariffs to be imposed on these products.

In early May, the CBSA imposed tariffs averaging 60% on imports of motion furniture and stationary leather upholstery from the PRC and Vietnam. The maxim tariff on imports from the PRC is 295%, which was levied on those PRC-based factories who did not respond to the CBSA’s requests for information.

The tribunal is currently sending out requests for information to all interested parties including retailers, importers and manufacturers. A quasi-judicial body, the CITT is expected to hold hearings some in August 2021 although the format – in person or virtual – has yet to be announced. Those opposed to a finding of injury have until July 12 to submit their argument in writing.

Click here for to view the CITT’s Notice of Commencement of Injury and its timetable.Its ruling is expected to be announced in early September.