Duty imposed on motion and leather imports from PRC
OTTAWA – Imports of motion and leather upholstery from Vietnam and the People’s Republic of China (PRC) will now be subject to duties ranging from 101.5% to 295.9% respectively after the Canadian International Trade Tribunal (CITT) issued a preliminary determination that those products were being illegally dumped into the Canadian market.
The new tariff regime was imposed effective May 5, 2021 and could be levied against imports from those two countries that were valued at some $675 million last year.
In a statement, the CITT said it found a “reasonable indication” that the dumping of these categories of upholstery by producers in the PRC and Vietnam have or is threatening to damage this country’s domestic furniture manufacturers. The agency will continue its investigation and is expected to issue a final determination on September 3, 2021.
The Canadian Border Services Agency (CBSA) launched an investigation this past December based on a complaint filed by five Canadian upholstery makers, including Palliser Furniture and its sister company EQ3 of Winnipeg as well as Elran Furniture, Jaymar and Fornirama, all based in Montreal. The agency is expected to publish a ‘statement of reasons’ for upholding the complaint and recommending the duties sometime over the next two weeks.
Made under the Special Imports Measures Act (SIMA), the complaint the Canadian manufacturers are seeking protection “from large volumes of unfairly dumped and subsidized goods from China and Vietnam.”
Under SIMA, importers are required to declare their company’s liability for provisional duties and taxes on any subject goods imported into Canada. They also must inform their customs broker if they are importing goods subject to those provisional duties, then declare them and pay the duties. Importers needing more information or needing a self-assessment should click here.
While the maximum duty on goods from the PRC is 295.9%, some 28 or so producers from that country will be subject to somewhat smaller levies. For example, product from Natuzzi China will be subject to a tariff of 207.49%. Similarly, seven producers from Vietnam will be subject to tariffs less than the maximum rate of 101.5%. Click here to see the complete list of these companies.
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