Tax & Trade Blog

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CBSA INVESTIGATING FORGED GRINDING MEDIA

ALLEGED DUMPING OF FORGED GRINDING MEDIA FROM CHINA

On January 9, 2026, 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 forged grinding media originating in or exported from the Peoples’s Republic of China (“China”).  This investigation was prompted by a complaint filed by Moly-Cop Canada.

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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A CUSTOMS YEAR-END REVIEW

THE TRADE WAR & NOTABLE CASES IN 2025 YOU SHOULD KNOW ABOUT

What just happened to me!   That is probably the sentiment of most people in customs and trade in Canada, after a frenetic 2025.

We present a year-in-review below, starting quite understandably with a high-point review of the Canada-US Trade War (the “Trade War”), followed by some other major developments that dominated customs in the Canadian context.

THE GREAT TRADE WAR OF 2025

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CUSTOMS 101: NO PROOF, NO FREIGHT DEDUCTION?

CITT TIGHTENS EVIDENTIARY REQUIREMENTS FOR FREIGHT DEDUCTIONS

Transaction value has traditionally been used to value imported goods to Canada in approximately 95% of cases.  An important deduction available to importers when using transaction value is for transportation costs incurred from the place of direct shipment to Canada.

In Korhani of Canada Inc. v. CBSA (AP-2022-030), the Canadian International Trade Tribunal (“CITT”) serves notice that it supports the CBSA’s position that transportation cost deductions must be supported by objective documentation evidencing the actual transportation costs, such as payment records or shipping invoices.

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CBSA COMPLIANCE VERIFICATION PRIORITIES

CONTINUED FOCUS ON U.S. & CHINESE SURTAXES

The Canada Border Services Agency (“CBSA”) has released its January 2026 update to its compliance and verification priorities.  This update is part of the CBSA’s semi-annual process of resetting its verification priorities, which occurs in January and July of each year.

In this January 2026 update, new priorities include certain global surtaxes, amongst other items. Enforcement of Surtaxes Orders on Chinese and U.S. goods also remain a prominent holdover from previous rounds.  We provide a detailed breakdown of these priorities below.

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BILL C-251 AND MODERN SLAVERY

CANADA'S PROPOSED PRESUMPTION AGAINST FORCED-LABOUR IMPORTS

Bill C-251 (An Act to amend the Customs Act and the Customs Tariff) was introduced in October 2025. If enacted, it would establish a statutory presumption that goods originating from designated countries are made in whole or in part by forced or child labour and are therefore prohibited from importation into Canada.

The Bill would also impose due diligence obligations on importers, who would be required to demonstrate to the Canada Border Services Agency (“CBSA”) that they have performed effective due diligence on their supply chain. Given the potential impact of this Bill, all importers should closely monitor developments as the bill moves through Parliament.