Upholstered Seating: Dumping and Subsidy Findings

Summary#

On August 3, 2021, the Canada Border Services Agency (CBSA) announced results of investigations into certain upholstered domestic seating from China and Vietnam under the Special Import Measures Act. The CBSA ended the subsidy (countervailing) investigation for some exporters but made final findings of dumping and subsidizing for other exporters; a separate injury decision from the Canadian International Trade Tribunal (CITT) is due by September 2, 2021.

What it does#

• Ends the subsidy investigation for certain named exporters from China and Vietnam because no subsidies or only insignificant subsidies were found. (The Gazette lists the specific companies.)
• Issues final determinations of dumping and subsidizing for other exporters from China and Vietnam that were not cleared.
• Keeps provisional anti‑dumping and countervailing duties in place on the subject goods from both countries until the CITT issues its injury decision by September 2, 2021.
• Stops provisional countervailing duties for the exporters whose subsidy investigations were terminated, and refunds any provisional duty or security paid for those cases, where appropriate.
• Signals that if the CITT finds dumping and/or subsidizing caused injury (or is threatening to), then antidumping and/or countervailing duties will apply to future imports and importers in Canada would have to pay them.
• The affected products are generally classified under these tariff numbers: 9401.40.00.00, 9401.61.10.10, 9401.61.10.90, 9401.71.10.10, 9401.71.10.90.

Who's affected#

• Importers and customs brokers who bring upholstered domestic seating into Canada from China and Vietnam.
• Exporters of the same goods from those countries — some are no longer subject to countervailing duties; others remain under investigation or subject to duties.
• Canadian manufacturers and retailers of upholstered domestic seating, who may be affected if duties change the price or availability of imported goods.
• The CITT, which must decide whether the dumping/subsidizing has injured the Canadian industry by September 2, 2021.

Why it matters#

• Importers could continue to face provisional duties (and possibly permanent duties later) on many upholstered seating imports, which can raise costs or change supply choices.
• Some foreign exporters get immediate relief because countervailing duties were stopped for them; that can affect competition and pricing.
• The CITT decision by September 2, 2021 will determine whether duties become final and who ultimately pays them, so businesses that trade in these goods should watch that deadline.
• The notice affects specific tariff‑classified goods, so people selling or buying those items should check whether their products match the listed tariff numbers.