Canada Customs and Revenue Agency Imposes Provisional Duties

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Oct 10, 2002

Canada Customs and Revenue Agency Imposes Provisional Duties

The Canada Customs and Revenue Agency (CCRA) announced that it will assess provisional duties on imports of certain waterproof footwear, including waterproof footwear bottoms constructed wholly or in part of rubber or plastic and worn over the foot or shoe, with or without liners, linings, fasteners, or safety features, originating in or exported from Hong Kong, Macao, and Vietnam. The duties will not apply to imports of equestrian riding boots, ski boots, and skating boots.

This decision follows an investigation initiated by the CCRA on April 26, 2002, after receiving a complaint filed by the Shoe Manufacturers Association of Canada (SMAC) of Beaconsfield, Quebec. The SMAC alleges that the dumping of the goods is harming Canadian production in the form of lost sales, loss of market share, negative return on investment, and reduced profitability.

The preliminary results of the investigation show that the imports from Hong Kong, Macao, and Vietnam were dumped into Canada at prices that were 40% below normal levels. Provisional duties ranging from 26% to 187% are being imposed on imports from Hong Kong, Macao, and Vietnam to eliminate the dumping.

Dumping occurs when goods are sold to importers in Canada at prices that are less than their selling prices in the exporter's domestic market, or at unprofitable prices. The Special Import Measures Act protects Canadian producers from the damaging effects of such unfair trade.

The Canadian International Trade Tribunal (CITT) will now begin its full inquiry into the question of injury to the Canadian industry and conduct a public hearing. The CITT is required to issue its final decision by January 8, 2003. At the same time, the CCRA will continue its investigation and will issue a final decision on the dumping by December 9, 2002.

If the CITT finds that the dumping has not caused injury or is not threatening injury, the proceedings will be terminated and all provisional duties collected will be refunded. If a decision of injury is made, anti-dumping duties will be imposed on imports of the subject goods.

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