On May 5, 2021 the Canada Border Services Agency (CBSA), pursuant to subsection 38(1) of the Special Import Measures Act (SIMA), made preliminary determinations of dumping and subsidizing with respect to certain upholstered domestic seating from China and Vietnam.
The subject goods are usually classified under the following tariff classification numbers:
9401.40.00.00
9401.61.10.10
9401.61.10.90
9401.71.10.10
9401.71.10.90
Note that the tariff classification numbers are for convenience of reference only. Refer to the product definition for authoritative details regarding the subject goods.
The subject goods are defined as: Upholstered seating for domestic purposes originating in or exported from the People’s Republic of China and the Socialist Republic of Vietnam, whether motion (including reclining, swivel and other motion features) or stationary, whether upholstered with a covering of leather (either full or partial), fabric (including leather substitutes) or both, including, but not limited to seating such as sofas, chairs, loveseats, sofa beds, day beds, futons, ottomans, stools and home theatre seating (HTS).
Excluding:
Stationary (i.e. non motion) seating upholstered only with fabric (rather than leather), even if the fabric is a leather‑substitute (such as leather like or leather‑look polyurethane or vinyl)
dining table chairs or benches (with or without arms) that are manufactured for dining room end‑use, which are commonly paired with dining table sets
upholstered stools with a seating height greater than 24 inches (commonly referred to as “bar stools” or “counter stools”), with or without backs, and/or foldable
seating manufactured for outdoor use (e.g. patio or swing chairs)
bean bag seating and
foldable or stackable seating
For greater certainty, the product definition includes:
Upholstered motion seating with reclining, swivel, rocking, zero gravity, gliding, adjustable headrest, massage functions or similar functions
seating with frames constructed from metal, wood or both
seating produced as sectional items or parts of sectional items
seating with or without arms, whether part of sectional items or not and
foot rests and foot stools (with or without storage)
Provisional duties will now be payable on the subject goods that are released from customs on or after May 5, 2021. Where amounts of dumping and/or subsidy are considered insignificant, the investigations will continue but provisional duties will not be payable.
Duty liability (Provisional anti‑dumping duties)
Country of origin or export: China and Vietnam
Provisional anti‑dumping duty is payable on subject goods that are released from the CBSA during the period commencing May 5, 2021, and ending on the earlier of the day the dumping investigation is terminated, the day on which the Canadian International Trade Tribunal (CITT) makes an order or finding, or the day an undertaking is accepted.
For information regarding the rates of provisional anti‑dumping duty, please consult the CBSA’s Notice of preliminary determinations.
For importations of subject goods for which the exporter has not been issued a specific rate, the rates of anti‑dumping duty are equal to:
Country of origin or export Provisional anti‑dumping duty1
China 206.36%
Vietnam 89.77%
Duty liability (Provisional countervailing duties)
Country of origin or export: China and Vietnam
Provisional countervailing duty is payable on subject goods that are released from the CBSA during the period commencing May 5, 2021, and ending on the earlier of the day the subsidy investigation is terminated, the day on which CITT makes an order or finding, or the day an undertaking is accepted.
For information regarding the rates of provisional subsidy duty, please consult the CBSA’s Notice of preliminary determinations.
For importations of subject goods for which the exporter has not been issued a specific rate, the rates of countervailing duty are equal to:
Country of origin or export Provisional countervailing duty1
China 89.54%
Vietnam 11.73%
Source: CBSA https://www.cbsa-asfc.gc.ca/sima-lmsi/mif-mev/uds-eng.html