Surprise! U.S. distributors who act as an importer of record for imports into Canada may face a unexpected SIMA bill sent by the Canada Border Services Agency (CBSA). It is happening with exceptional frequency. U.S. distributors are blind-sided by Canada’s AD/CVD regime because they did not know about the decisions.
U.S. distributors of (1) aluminum railings and components and (2) carbon steel screws are finding that when they import the goods into Canada, they need to know (a) the country of origin and (b) if Canada has an antidumping and/or countervailing order against the goods from that location. Canada imposes a AD (all others rate is 101%)/CVD (all others rate is 15.84 RMB/kilogram) duties against certain aluminum extrusions originating in or exported from China. Canada imposes AD duties ( all others rate is 170%) against carbon steel screws from China and Taiwan. Canada also imposes AD (all others rate is 170%)/CVD (all others rate is 1.25 RMB / kilogram), duties against carbon steel screws from China. Canada also imposes AD and/or CVD duties against greenhouse bell peppers from the Netherlands; copper pipe fittings from China, Korea and the United States; thermoelectric containers from China, OCTG from China; mattress springs from China, to name a few.
Currently, distributors of aluminum goods imported under H.S Code 76.10 are under the microscope. We are helping 3 different importers who were not informed of the CBSA’s AD/CVD investigation in 2008/2009. All of them have been importing outdoor aluminum railing components since before 2009. They have two or more full years of imports under scrutiny. Some are being warned that they will be assessed (called DASed in Canada) for millions of dollars (because they have imported significant volumes in the last two+ years).
The reality is that there is not free movement of goods in North American. NAFTA does not establish a customs union. Under the North American Free Trade Agreement, Canada, the United States and Mexico have maintained their AD/CVD regimes.