Provisional Duties on Chinese Decorative Plywood

Summary#

The Canada Border Services Agency (CBSA) announced preliminary findings that certain decorative and other non-structural plywood from China is being dumped and subsidized under the Special Import Measures Act (SIMA). As of October 23, 2020, provisional duties may be charged while a full inquiry is carried out.

What it does#

• The CBSA made preliminary determinations that some plywood imports from China are dumped and subsidized.
• The Canadian International Trade Tribunal (CITT) will hold a full inquiry into whether the Canadian industry is injured and must issue an order or finding within 120 days after it gets the notice.
• Provisional duties are payable on subject goods released from the CBSA starting October 23, 2020, and continue until whichever happens first: the investigation ends, the CITT makes an order/finding, or an undertaking is accepted.
• If the margins of dumping or amounts of subsidy are judged insignificant, the investigations will continue but provisional duties will not be collected.
• The amount charged as provisional duty will not be more than the estimated margin of dumping and the estimated amount of subsidy. The rules in the Customs Act about accounting, payment and interest apply if duties are not paid in time.
• A Statement of Reasons for these decisions will be published within 15 days and will be available on the CBSA website. For more information contact Jody Grantham at 613‑954‑7405, Jeffrey Laplante at 613‑954‑7236, or note the decision signed by Doug Band.

Who's affected#

• Importers and distributors in Canada who bring in the listed plywood products.
• Exporters and manufacturers in China of the affected plywood.
• Canadian plywood producers, because the CITT will investigate possible injury to the domestic industry.
• Customs brokers, freight forwarders and businesses handling imports of these goods, since provisional duties and Customs Act procedures apply.
• The subject goods are usually classified under tariff numbers such as 4412.10.00.00, 4412.31.00.00, 4412.33.00.10, 4412.33.00.20, 4412.33.00.30, 4412.33.00.90, 4412.34.00.00, 4412.39.00.10, 4412.39.00.21, 4412.39.00.22, 4412.39.00.23, 4412.39.00.90, 4412.94.00.00, 4412.99.10.00, 4412.99.90.10.

Why it matters#

• Businesses importing these plywood products may face extra costs immediately because provisional duties can be charged as goods are released.
• The CITT inquiry could lead to final duties or other measures that change the long-term cost and availability of these plywood products in Canada.
• Canadian producers may get protection if the inquiry finds they were injured by dumped or subsidized imports.
• If duties are not paid on time, interest and other Customs Act consequences can apply, potentially complicating cash flow for importers.