Tax & Trade Blog

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NO RETROACTIVE DUTIES ON PEA PROTEIN

DESPITE MASSIVE IMPORTATIONS, CITT RULES NO RETROACTIVE DUTIES

On December 4, 2024, the Canadian International Trade Tribunal (the “CITT”) announced its Finding in Inquiry NQ-2024-002, concluding that the dumping of certain pea protein from China (the “Subject Goods”) has caused injury to the domestic industry. 

While that may sound like a clear-cut finding, the CITT’s Finding held a twist: despite finding “massive importations” occurred during the investigation, the CITT determined it was unlikely to seriously undermine the remedial effect of the anti-dumping duties.  As a result, retroactive duties were not imposed.

This blog focuses on the massive importation framework under the Special Import Measures Act (the “SIMA”) and why a finding of massive importation does not always lead to retroactive duties.

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”).