Tax & Trade Blog

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NO RETROACTIVE DUTIES ON PEA PROTEIN

DESPITE MASSIVE IMPORTATIONS, CITT RULES NO RETROACTIVE DUTIES

On December 4, 2024, the Canadian International Trade Tribunal (the “CITT”) announced its Finding in Inquiry NQ-2024-002, concluding that the dumping of certain pea protein from China (the “Subject Goods”) has caused injury to the domestic industry. 

While that may sound like a clear-cut finding, the CITT’s Finding held a twist: despite finding “massive importations” occurred during the investigation, the CITT determined it was unlikely to seriously undermine the remedial effect of the anti-dumping duties.  As a result, retroactive duties were not imposed.

This blog focuses on the massive importation framework under the Special Import Measures Act (the “SIMA”) and why a finding of massive importation does not always lead to retroactive duties.

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IGNORING THE CITT CAN COME AT A COST 

CONTEMPT FINDING SERVES AS A REMINDER TO IMPORTERS

In the rush of everyday business, both Canadian and foreign businesses can occasionally overlook the importance of responding to requests from the Canadian International Trade Tribunal (the “CITT” or “Tribunal”).  

A recent Expiry Review that escalated into a contempt hearing against a U.S.-based steel importer serves as a reminder of the Tribunal’s power to issue orders reaching those across the border!

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PROVISIONAL DUTIES IMPOSED ON PET RESINS

DUMPING OF POLYETHYLENE TEREPHTHALATE RESIN 2 FROM CHINA AND PAKISTAN

On June 17, the Canada Border Services Agency (“CBSA”) issued its Notice of Preliminary Determination under subsection 38(1) of the Special Import Measures Act (“SIMA”), imposing provisional duties on polyethylene terephthalate (PET) resin originating in or exported from the Peoples’s Republic of China (“China”) and the Islamic Republic of Pakistan (“Pakistan”).  The investigation was prompted by a complaint filed by Compagnie Alpek Polyester Canada.

The Subject Goods

The goods under investigation are more specifically described as:

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CBSA INVESTIGATING THERMAL PAPER

DUMPING OF THERMAL PAPER FROM CHINA

On June 12, 2025, the Canada Border Services Agency (“CBSA”) issued a Notice of Initiation of Investigation under the Special Import Measures Act (“SIMA”) in respect of the alleged dumping of certain thermal paper rolls originating in or exported from the People’s Republic of China (“China”).  This investigation was prompted by a complaint filed by three Canadian manufacturers.

The investigation continues a trend by the CBSA of scrutinizing imports from China, which continues to be the jurisdiction with highest number of Anti-Dumping and Countervailing duty orders.

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CANADIAN EXPORT CONTROLS

MORE ENFORCEMENT COMING ON CANADIAN EXPORT SANCTIONS?

Canada, like many of its trading partners has a significant framework of export sanctions, targeting the controlled export of goods and technology to sensitive destinations, governments, and foreign actors worldwide.  Yet, for the duration of my International Law practice to date — some 35+ years — the unspoken joke has been that Canada’s enforcement actions were almost nonexistent, at least relative to the situation in the US.  (Indeed, one needs to look far and wide for caselaw regarding Canadian export controls enforcement).

With the recent trade wars and President Trump‘s desire to strengthen borders, this appears to have changed.  We review a recent Canadian arrest for sanctions evasion below, which may be a harbinger of greater action to come despite the rarity of such cases.