On November 25, 2024, the Canada Border Services Agency (the “CBSA”) announced that it has initiated an investigation into whether container chassis imported from Vietnam are circumventing Canada’s trade remedy measures on container chassis from China.

This marks Canada’s first anti-circumvention investigation!

What is an Anti-Circumvention Investigation

According to the CBSA, circumvention occurs when trade and business practices are altered to specifically avoid the liability for Special Import Measures Act (“SIMA”) duties.  Anti-circumvention investigations are designed to address and prevent such practices, ensuring that the intent and effectiveness of existing trade remedy measures is upheld.

Container Chassis Investigation

This anti-circumvention investigation follows a complaint from Max-Atlas International Inc., from Quebec, alleging that key components of container chassis originating in China are being used to assemble or complete these goods in Vietnam, potentially avoiding duties applied under the SIMA.

For more information on the current Measure in Force for container chassis from China, see  Measure in Force CC.

Key Timeline

The investigation process begins with the CBSA sending Requests for Information (“RFIs”) to importers, exporters, vendors and foreign producers of the goods, as well as domestic producers of like goods in Canada.  Importer responses to RFIs are due on December 16, 2024, while Exporter responses are due on January 2, 2025.  While these timelines may seem tight, the CBSA is legislatively required to issue a decision within 180 days of commencing their investigation. 

Why Do I Care?

If the investigation determines circumvention has occurred, the CBSA will notify the Canadian International Trade Tribunal (the “CITT”), who will modify the original finding or order to address this circumvention.  This would be expected to result in the retroactive application of anti-dumping and countervailing duties on any circumventing goods imported on or after the investigation’s initiation date.  Specifically, Container Chassis originating in or exported from Vietnam could potentially be subject to anti-dumping duty of 126.4% and countervailing duty of approximately $2,300 per unit.

Takeaways

Given the tight deadlines to response to CBSA RFIs, importers and exporters who deal in container chassis from Vietnam should ask CBSA for a Request for Information (“RFI”) package if they have not yet received one and start working on it ASAP!

If you may be impacted by this investigation, legal advice from counsel with experience in the area is highly recommended in order to put your best foot forward and try to minimize the impacts of anti-dumping and countervailing duties!

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