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CBSA PRELIMINARY FACTS: NO CIRCUMVENTION!

PRELIMINARY ASSESSMENT ON CONTAINER CHASSIS FROM VIETNAM

On April 9, 2025, the Canada Border Services Agency (“CBSA”) released a Statement of Essential Facts (“SEF”) related to its first-ever anti-circumvention investigation with respect to whether container chassis originating from Vietnam are circumventing Canada’s trade remedy measures on container chassis from China. 

This post provides an overview of the SEF and the CBSA’s Preliminary Assessment (see our earlier blog for the background on this).

What is a SEF?

The SEF is a report issued by the CBSA that outlines its preliminary views on the facts in an anti-circumvention investigation.  It includes an assessment of whether there is a reasonable indication that circumvention is occurring and a summary of the supporting facts.

The CBSA’s analysis follows the framework set out in section 71 of the Special Import Measures Act (the “SIMA”).  Specifically, the CBSA considers whether there has been a change in the pattern of trade, whether a “prescribed activity” is undermining the effects of existing SIMA measures, and whether that change is a result of the imposition of anti-dumping/countervailing duties.

CBSA Preliminary Assessment

In this case, the CBSA found that there was a change in the pattern of trade in that virtually equivalent percentages of container chassis imported into Canada previously from China were now being imported from Vietnam.  CBSA also found that this change was caused by the anti-dumping and countervailing duties imposed.  However, the CBSA concluded that a “prescribed activity” – such as slight modification or insignificant processing – was not taking place.

According to CBSA, container chassis assembled in Vietnam do not use parts or components from China in a “major portion”, and the manufacturing processes in Vietnam are not considered insignificant - given the extent of machinery and equipment used in the processes and the level of research and development related to those processes. 

As a result, the CBSA’s Preliminary Assessment is that container chassis imported from Vietnam are not circumventing the existing Canadian International Trade Tribunal (the “CITT”) Order.

Next Steps

Despite this Preliminary Assessment, the process is not yet complete.  Interested parties may submit written comments on the SEF, as well as responses to those comments.  The CBSA will consider all submissions before issuing its final determination on May 23, 2025.

Takeaways

The first SEF issued in an anti-circumvention investigation highlights the complexity and extensive information reviewed by CBSA in the process – which in this case included onsite verification at the manufacturing facilities in Vietnam!

Given the technical nature of the process and the potential for significant anti-dumping duties, specialized legal advice is recommended for businesses dealing with such these investigations. 

For help with a SIMA investigation, click here.

Download a PDF copy of this Blog here.