Background Information

On April 22, 2024, the 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.  See our previous blog post for more information, including a description of the Subject Goods.    

Provisional Duties Effective July 22, 2024!

Following the CBSA’s preliminary determination of dumping, provisional duties are now imposed at the rates specified by CBSA on imports of the Subject Goods released on or after July 22, 2024.

The CBSA has assigned specific provisional anti-dumping duties (“ADDs”) and countervailing duty (“CVDs”) to the Subject Goods for each of the five exporters who participated in its investigation, namely, Shandong Jianyuan Bioengineering Co., Ltd.; Yantai Shuangta Food Co., Ltd.; Yantai Yiyuan Biological Engineering Co., Ltd.; and Yentai T.Full Biotech Co., Ltd.  The provisional duties for Subject Goods from most of these exporters are less than 2.2% of the value for duty of the Subject Goods, with only one exporter subject to 12% provisional duties.  Remarkably, four of the cooperating exporters were found to have 0% margin of dumping (i.e., 0% ADDs), and one exporter was found to have insignificant subsidy (i.e., 0% CVDs).

Exporters who did not cooperate will find their goods subject to a substantially higher provisional ADDs and CVDs: 34.8% and 19.8% respectively.

Final Dumping Investigation and Injury Determination

All eyes are now on the CITT for its final finding on whether the dumping and subsidizing of Subject Goods has caused or is threatening to cause injury to the domestic Canadian industry.  The CITT will hold a public hearing on this issue on October 21, 2024, with the final finding expected by November 19, 2024.  Anyone wishing to participate in the CITT hearing must file a Notice by August 6, 2024.

Concurrently, the CBSA will make a final determination of dumping and subsidizing by October 21, 2024, including issuing normal values to cooperating exporters, with reasons to follow 15 days later.  ADDs and CVDs for all other exporters of Subject Goods will also be finalized at that time.

What does this Mean for Me?

The significant difference in the provisional ADDs and CVDs between cooperative and non-cooperative exporters (1.1% vs. 54.6% in some cases) highlights the importance of participating in CBSA investigations.  Interested parties who have not cooperated with the CBSA investigation should contact counsel as soon as possible to determine potential next steps.

If your business imports Subject Goods or is considering doing so, you should seek Canadian legal advice immediately given the provisional ADDs now in effect.  Failure to consult with Canadian legal counsel on this issue could lead to a costly assessment by the CBSA down the road!

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