Canada is already imposing duties of up to 300% and 100% on some sofas and recliners from China and Vietnam, respectively, as an anti-dumping action against the subsidies and dumping policies of the countries concerned.
According to an announcement by the Canada Border Services Agency (CBSA), the current anti-dumping tariffs are a preliminary decision. According to a report published by Global News on May 17, the CBSA said it is investigating dumped and subsidized products from China and Vietnam, and that a final decision will be made on Aug. 3.
If the final decision is to maintain the tariffs, the Canadian International Trade Tribunal (CITT) will investigate the extent of the harm suffered by Canadian manufacturers, the CBSA said.
As per a notice issued by the Canada Border Services Agency on May 5 of this year, the agency made preliminary determinations under section 38(1) of the Special Import Measures Act (SIMA) regarding dumping and subsidies on certain upholstered seats from China and Vietnam.
“Provisional duties will now be imposed on targeted shipments issued by Customs on or after May 5, 2021.” If the amount of dumping and/or subsidies is deemed insignificant, the investigation will continue, but no interim duties will be payable, the Border Services Agency announcement said.
The provisional duty rates imposed on the furniture in question from China range from 20 percent to 295.90 percent; the provisional duty rates imposed on the Vietnamese products range from 17 percent to 101.50 percent.
The investigation into the dumping and subsidies in question was triggered by a written complaint from Canadian manufacturers and was launched by the Canada Border Services Agency in December of last year.
In its ruling, the Canadian International Trade Tribunal said it found “reasonable indications” that subsidies and dumping practices on upholstered seating made in China and Vietnam have harmed or are threatening to harm Canada’s domestic furniture manufacturing industry.
In the Canada Border Services Agency’s announcement, 28 companies in China and seven in Vietnam have been listed as subject to anti-dumping duties.
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