Canada Border Services Agency (“CBSA”) recently updated their policy on administrative reviews under the Special Import Measures Act. These changes are substantial, and amount to an overhaul of the previous policy.
From Ad Hoc To Annual Reviews
The new changes are reflected in Memo D14-1-8, the most significant being the shift from an ad hoc review system to one of annual reviews. The purpose of the change is to ensure that any updates to normal values, export prices, and subsidy values (“SIMA values”) are more consistently maintained and updated as necessary.
The CBSA will now review SIMA values annually, identifying those for which further administrative reviews are necessary.
Some of the factors that may be considered when determining if administrative review is necessary include the volume of imports, changes affecting ministerial specifications, and changes in market conditions.
Administrative Reviews
Before undertaking an administrative review, the CBSA will request information from any interested parties. Interested parties should ensure that information is complete, verifiable, and provided within the specified time frame.
The CBSA will then conduct their review through a tiered process. There are three tiers of review available:
- Tier 1: CBSA conducts and concludes the review without further input when the CBSA is working with limited information, for example because interested parties are aligned, the products are new, or because insufficient information was received.
- Tier 2: CBSA will conduct further analysis and source further input.
- Tier 3: CBSA will conduct further analysis, seek additional input on complex issues (which may include new information on non-market conditions), and conduct a comprehensive verification.
References to Normal Value Reviews and Re-Investigations (previously carried out on specific exporters of subject goods, or all exporters of subject goods respectively) have been removed from Memo D14-1-8. This serves as a noticeable example of the CBSA moving away from its previous ad hoc system – including abandoning the former terminology.
Interested parties can, however, make representations to the CBSA suggesting an update to SIMA values for specific measures. These representations must include any relevant information suggesting that an update is necessary and will be considered by the CBSA when determining whether an administrative review is necessary and, if it is, which of the previously described tiers the review will fall under.
Importers and exporters should familiarize themselves with the new SIMA administrative review system. Input from interested parties remains crucial and those who wish to participate should ensure their input is submitted correctly.
The new administrative review systems should ideally ensure that SIMA values are more consistently reviewed and updated. However, it also means potentially more work for exporters and producers who could find their normal values subject to more regular reviews.
All interested parties should take the opportunity to familiarize themselves with the new administrative review system and seek legal advice should they have any questions about their ability to participate in and request reviews.
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