Tax & Trade Blog

Recently we’ve noticed an uptick in the number of Canada Border Services Agency (“CBSA”) audits regarding the tariff classification of gloves (see our prior blog).  With its mid-year update, the CBSA has officially upgraded this focus to a Trade Compliance Verification Priority!

This marks the third time gloves have been a “verification priority” having previously been in the spotlight in 2017 and 2019.  The results from the first two rounds revealed that 82% of the 49 companies targeted were non-compliant, resulting in reclassification duties and penalties totalling over $2.6 million.

On June 27, 2024, the Canada Border Services Agency (“CBSA”) issued a notice that it will be conducting a re-investigation in respect of oil country tubular goods originating in or exported from Chinese Taipei, India, Indonesia, South Korea, Thailand, Türkiye and Vietnam (the "Subject Goods”).  This re-investigation falls under measure in force code OCTG2.  Detailed information, including the definition of the Subject Goods, can be found on the OCTG2 page.

Additionally, the CBSA has announced it will also update the surrogate normal values for certain seamless carbon and oil country tubular goods originating in or exported from China, under measure in force codes SC and OCTG1 respectively!

On June 20, 2024, the Canadian International Trade Tribunal (the “CITT”) issued a preliminary determination of injury, concluding that there was evidence that the alleged dumping and subsidizing of certain pea protein from China (the “Subject Goods”) has caused material injury to the domestic industry.

More details, including the definition of the Subject Goods and product inclusion can be found in the determination here.

On January 17, 2024, the Canada Border Services Agency (the “CBSA”) announced that it has initiated a re-investigation of the normal values and export prices in respect of certain gypsum board (known more colloquially as “drywall” or “wallboard”) originating in or exported from the United States (the “Subject Goods”) for use or consumption in Western Canada (i.e., BC, AB, SK, YU, and NT).

On June 20, 2024, the CBSA released a notice concluding the re-investigation with updated normal values and export prices.