Tax & Trade Blog

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CBSA COMPLIANCE VERIFICATION PRIORITIES

FOCUS ON U.S. & CHINA SURTAX ORDERS

The Canadian Border Services Agency (the “CBSA”) has released the July 2025 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 July 2025 update, the CBSA has placed a significant focus on the U.S surtaxes, alongside other ongoing compliance areas from previous rounds.  We provide a detailed breakdown of these priorities below.

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TARIFF REMISSION UPDATE

CANADA AMENDS UNITED STATES SURTAX REMISSION ORDER

With Canadian businesses still facing down the debilitating financial effects of the Canada-United States (US) trade war, the Government of Canada is attempting to provide businesses with further relief from its retaliatory tariffs.

On July 16, 2025, Canada enacted an Order in Council amending the United States Surtax Remission Order (2025) (the “Remission Order”), extending remission relief to a number of new products (adding further Schedules 2 to 5) and we report on the further opportunities for remission relief here.

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CBSA INVESTIGATING CAST IRON SOIL PIPE!

DUMPING & SUBSIDIZING OF CAST IRON SOIL PIPE FROM CHINA

On July 11, 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 and subsidizing of cast iron soil pipe from China.  This investigation was prompted by a joint complaint filed by Canada Pipe Company ULC, d/b/a Bibby-Ste-Croix.

The goods under investigation are more specifically described as: 

Cast iron soil pipe originating in or exported from the People’s Republic of China, whether finished or unfinished, regardless of industry or proprietary specifications, and regardless of wall thickness, length, surface finish, end finish, or stenciling, having a nominal outside diameter from 1.5 inches to 18 inches. Cast iron soil pipe is non-malleable iron pipe of various designs and sizes, including but not limited to both hub-less and hub and spigot cast iron soil pipe (the “Subject Goods”).

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CITT ISSUES CONTINUATION ORDER

CONTINUING DUTIES ON THERMOELECTRIC CONTAINERS FROM CHINA

The Canadian International Trade Tribunal has issued a continuation order in respect of “thermoelectric containers from China”.  This order continues an order issued on September 5, 2019, relating to the dumping and subsidizing of thermoelectric containers originating in or exported from the People’s Republic of China (“China”).  In turn, these continuing orders go back to 2008.  Those goods are officially defined as:

Thermoelectric containers that provide cooling and/or warming with the use of a passive heat sink and a thermoelectric module, excluding liquid dispensers, originating in/or exported from the People's Republic of China.

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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.