The Canada Border Services Agency (CBSA) is busy in its role as the enforcer of anti-dumping and countervailing duty orders of the Canadian International Trade Tribunal (CITT). On March 19, 2009, the CITT issued an anti-dumping and countervailing duty order in respect of certain aluminum extrusions originating in or exported from China. Please go to the following link for the CITT Reasons - http://www.citt.gc.ca/dumping/inquirie/findings/nq2i003_e.asp
In particular, the Tribunal's Order covers:
Aluminum extrusions produced via an extrusion process of alloys having metallic elements falling within the alloy designations published by The Aluminum Association commencing with 1, 2, 3, 5, 6 or 7 (or proprietary or other certifying body equivalents), with the finish being as extruded (mill), mechanical, anodized or painted or otherwise coated, whether or not worked, having a wall thickness greater than 0.5 mm, with a maximum weight per metre of 22 kg and a profile or cross-section which fits within a circle having a diameter of 254 mm, originating in or exported from the People’s Republic of China.
It is important to note that the CITT Order also lists a number of exclusions and the "product description" may also help in removing certain goods from coverage (e.g. finished goods).
The CBSA is following up with importers of goods classified under Harmonized System Chapter 76 "Aluminum and articles thereof". In particular, the CBSA is looking at entries under Heading 76.10 'Aluminum structures ... and parts of structures (for example, bridges, and bridge sections, towers, lattice mastes, roofs, roofing frameworks, doors and windows and their frames and thresholds for doors, balustrades, pillars and columns; aluminum plates, rods, profiles, tubes and the like, prepared for use in structures." Please refer to a May 19, 2011 Revised D-Memorandum on "Certain Aluminum Extrusions Originating In or Exported From China" - http://www.cbsa-asfc.gc.ca/publications/dm-md/d15/d15-2-54-eng.pdf
These verifications are normal ongoing enforcement activity. However, the questions often catch customs brokers and importers unaware because they have been importing the goods since the 2009 Order without paying anti-dumping and countervailing duties.
The rate of anti-dumping duty (if the exporter does not have a special rate) is 101%. The rate of countervailing duty is approximately 48% (15.84 RMB per kilogram). In short, an detailed adjustment statement is unwelcome and especially DASs charging additional duties of 148% plus interest plus GST (on the value for duty including the new anti-dumping and countervailing duties) plus GST interest going back to the date of entry. while an importer who is registered for GST purposes can recover the GST paid, the importer cannot recover the additional duties, interest and GST interest.
It is important to deal with the Detailed Adjustment Statements quickly. It is possible to provide additional information so that the DAS is reversed before it must be paid.
The bad news is that an assessment on a SIMA DAS must be paid before an appeal is perfected. It is possible to challenge the CBSA's determination that imported goods are subject to the CITT's Order.
For more information, please contact Cyndee Todgham Cherniak, a Canadian trade lawyer, at 416-307-4168.