We are a super-boutique Canadian tax and trade law firm, with litigation and planning expertise in tax, trade, GST/HST and customs matters. Our client base is comprised of national and international leaders in almost every industry sector who have come to rely on us for the specific and cost-effective litigation services and advice that we can provide.
When matters cannot be resolved with the governmental authorities to our clients’ satisfaction, we represent them in tax and trade litigation before all relevant courts, and at all levels of court, including before the Tax Court of Canada, the Canadian International Trade Tribunal, the Federal Court and Federal Court of Appeal, and the Supreme Court of Canada.
Our tax practice includes a focus on Canada’s GST/HST system, which is a multi-level, value-added taxing system, imposed under Canada's Excise Tax Act (the ETA), and administered by the Canada Revenue Agency (the CRA). The GST applies at a 5% rate federally, and the HST applies an additional provincial component by province, resulting in GST/HST rates ranging from 5% to 15% nationally.
Our Customs and Trade practice focuses on all Canadian issues affecting the movement of goods to and from Canada, including tariff classification, origin, valuation, marking, seizures and ascertained forfeitures, and export controls. Our trade practice also includes assisting clients on NAFTA, and Anti-Dumping & Countervail (SIMA) matters, and much much more.
Our firm has a special focus on direct selling companies. Our firm is truly a “one stop shop” for direct sellers looking to expand into the Canadian marketplace. From tax structuring assistance to help with incorporation, to compliance with Canada’s anti-pyramid laws and provincial consumer protection licensing, we have assisted hundreds of direct selling companies in the Canadian marketplace with their legal compliance, including four of the last six DSA Rising Star Award winners!
While Canadian businesses may have a 30-day reprieve from the threatened Trump and Canadian retaliatory tariffs, businesses should take the opportunity now to put plans in place to minimize the fallout should tariffs be enacted. One avenue businesses can pursue to mitigate the impact of the tariffs is duty drawback.
While President Trump’s Executive Order removes the option for American businesses to claim duty drawback, Canada Border Services Agency (“CBSA”) has confirmed that duty drawback remains available for Canadian businesses engaged in the import and subsequent export of goods, even if retaliatory tariffs come into force.
The 30-day moratorium on Trump’s and Canadian retaliatory tariffs should give Canadian importers and exporters some breathing room. But that breathing room ought to be put to good use considering current duty minimization opportunities, with the future possible implementation of these tariffs in mind. “Unbundling” is one technique for dealing with punitive tariffs and is reviewed here.
What is Unbundling?
While we are generalizing here, unbundling involves lawfully stripping away non-dutiable components from otherwise dutiable goods. When goods are imported into a country, the value of those goods needs to be determined so that the proper amount of duty can be applied. Both Canada and the United States (“US”) are parties to the General Agreement on Tariffs and Trade (the “GATT”) and employ a version of the GATT Valuation Code. Under that code, the “transaction value” method is the primary system, and focusses on the “price paid or payable” for the imported goods, plus certain additions and less certain deductions.
On October 7, 2024, the Canadian International Trade Tribunal (the “CITT”) issued a notice thatit was beginning an expiry review in respect of certain hot-rolled carbon steel plate and high-strength low-alloy steel plateoriginating in or exported from the Republic of Bulgaria, the Czech Republic and Romania (the “Subject Goods”). On October 8, 2024, the Canada Border Services Agency (the “CBSA”) similarly gave noticeof the initiation of their parallel expiry review investigation.
More details on the technical definition of the Subject Goods can be found here.
On April 22, 2024, the Canada Border Services Agency (“CBSA”) issued a Notice of Initiation of Investigation under the Special Import Measures Act (“SIMA”) in respect of the alleged dumping and subsidizing of certain pea protein from China. This investigation was prompted by a joint complaint filed by two manufacturers in Manitoba.
The goods under investigation are more specifically described as:
High protein content (“HPC”) pea protein originating in or exported from the People’s Republic of China in all physical forms regardless of packaging, with a minimum pea protein content of 65 percent on a dry weight basis calculated using a Jones factor of 6.25 (the “Subject Goods”).
On March 27, 2024, the Canada Border Services Agency ("CBSA") received a representation from Tenaris Canada ("Tenaris"), requesting a reinvestigation of normal values and subsidy amounts for oil country tubular goods ("OCTG1") and seamless casing ("SC") exported from China. Under the CBSA’s policy, other interested persons have the opportunity to respond to this representation by submitting comments to the CBSA.
Canada Border Services Agency (“CBSA”) has announced that the final iteration of its recent revamping of Canada’s import systems will arrive May 13, 2024.
Direct Sellers importing their products into Canada for further distribution or sale to their salesforce or customers (including with the assistance of a customs broker) – will be particularly concerned with these changes!
The CITT has announced an Expiry Review of its finding made on February 15th, 2019 (NQ-2018-003) in respect of Carbon Steel Welded Pipe from Pakistan, the Philippines, Türkiye and Vietnam.
What is an Expiry Review
Expiry reviews are conducted jointly by the Canada Border Services Agency (“CBSA”) and the Canadian International Trade Tribunal (“CITT”) to review prior Anti-Dumping Duty (“ADD”) or Countervailing Duty (“CVD”) orders made by the CITT (“Orders”) under Special Import Measures Act (“SIMA”). They generally occur every five years following the original Order or subsequent renewal.
