CALL US TODAY
(416) 864 - 6200
  • Home
  • Recent blog posts

Tax & Trade Blog

  • Home
    Home This is where you can find all the blog posts throughout the site.
  • Categories
    Categories Displays a list of categories from this blog.
  • Tags
    Tags Displays a list of tags that have been used in the blog.
  • Bloggers
    Bloggers Search for your favorite blogger from this site.
  • Archives
    Archives Contains a list of blog posts that were created previously.
Recent blog posts

On April 26, 2023, the Canadian Border Services Agency (“CBSA”) issued a notice concluding its re-investigation in respect of corrosion-resistant steel sheet (“COR”) originating in or exported from China, Taiwan, India, or South Korea, and updating normal values and export prices. Normal values previously in place expired as of April 26, 2023!

Three (3) producers/exporters in China, three (3) in Taiwan, and two (2) in South Korea fully co-operated with CBSA and were assigned normal values (and export prices, as applicable) as part of the re-investigation. All other producers and exporters will be subject to the following rates of ADDs:

  • China:................. 53.3%
  • Taiwan:.............. 32.2%
  • India:.................. 40.0%
  • South Korea:...... 40.0%
Last modified on
Hits: 270
0

On May 4, 2023, the Canadian Border Services Agency (“CBSA”) issued a notice that it will be conducting a re-investigation in respect of carbon steel welded pipe originating in or exported from Taiwan, India, Oman, South Korea, Thailand, and the UAE (the “Listed Countries”). CBSA has issued a Request for Information (“RFI”) to both importers and exporters, and responses are due June 5, 2023 and June 12, 2023, respectively!

Normal values established during the re-investigation will be effective as of the end date of the re-investigation, and all normal values currently in place will expire on that date.

Exporters of Subject Goods from the Listed Countries should consider cooperating with CBSA, as the potential anti-dumping duties (“ADDs”) for goods without normal values range from 29.6% for goods from Taiwan, to 54.2% for goods from the other Listed Countries. Exports from India are also subject to a countervailing duty (“CVD”) of 23,872 rupees per metric ton!

Last modified on
Hits: 288
0

We frequently act for Clients whose goods or vehicles have been seized by Canada Border Services Agency (“CBSA”).   More often that one would think, these seizures involve goods or conveyances (e.g., tractor-trailers, utility vehicles, transport trailers) that are owned by a person other than the importer (e.g., lease goods, borrowed goods, goods subject to a PPSA security).

Where this happens, the true owner is a third party to the seizure but must often take specific steps to protect its legal interest in the seized property.   If nothing is done, the owner can often find the goods subject to forfeit and sold or disposed of by CBSA!

Last modified on
Hits: 485
0

One of the most difficult aspects of dealing with anti-dumping measures can be figuring out whether goods are caught by an active measure or not. Because appeals in this area are pay-to-play, getting these issues right up front is extremely important!

Luckily, the Special Import Measures Act (SIMA”) provides a formal process – called a “scope proceeding” – which will determine whether a good is caught by an Order (as well as Findings or Undertakings)!

While the technical aspects of a scope proceeding are complicated, based on historical jurisprudence in this area, many Clients prefer the certainty of a scope proceeding than simply importing on speculation – especially where the potential costs of CBSA taking a different view are measured in one, two and three times of goods sold!

Last modified on
Hits: 446
0

On April 21, 2023, the Canada Border Services Agency (“CBSA”) released a notice that it was initiating investigations under the Special Import Measures Act into the alleged dumping and subsidizing of certain wind towers from China. The investigation was initiated following a complaint by Marmen Inc. and Marmen Énergie Inc., from Trois-Rivières, Québec.

According to the posted Investigation Schedule, responses to Importer and Exporter questionnaires are due May 12, 2023 and May 29, 2023 respectively! These dates are unlikely to change or be extended.  The CITT also recently announced its parallel process, with notices of participation due May 4, 2022!

Last modified on
Hits: 353
0

On March 31, 2023, the Canada Border Services Agency (“CBSA”) released a notice confirming that its re-investigation in respect of grinding media originating in or exported from India had concluded, updating normal values and export prices.

One (1) producer/exporter fully co-operated with CBSA (AIA Engineering Ltd., or “AIA”, and associated subsidiaries), and was assigned normal values as part of the re-investigation. All other exporters of subject goods from India will be subject to 38.7% anti-dumping duties (“ADD”) and counter-vailing duties (“CVD”) of 24,831 Indian rupee per metric tonne.

Last modified on
Hits: 1024
0

If you disagree with a decision made by the Canada Border Services Agency (CBSA) regarding imported goods, you may have the right to administratively appeal the decision under section 60 of the Customs Act. Recently, key CBSA administrative materials which govern this procedure were updated with the aim to “streamline” this process. The result contains both good and bad news for parties hoping to resolve disputes before escalating to further tribunals or courts.

Last modified on
Hits: 764
0

An oft-overlooked component of Canada’s Excise Tax Act (“ETA”) involves the special registration rules which apply to taxi businesses – in place well before the advent of ride-sharing services like Uber and Lyft.

CRA has recently updated its administrative policies on these registration rules to reflect changes made to the ETA on this issue back in 2017!  The new changes update CRA’s published position to incorporate commercial ride-sharing services within the definition of taxi business and is indicative of the risk in relying on such positions which could be out of date and offside current law.

Last modified on
Hits: 560
0

We are no strangers to helping individuals who find themselves subject to a Canada Border Services Agency (“CBSA”) seizure and all the consequences that come with that – including NEXUS seizures and revocation. But when it comes to bringing plant or animals (or their derivatives – e.g., food) into Canada, travellers can inadvertently commit a violation which is very punitive and difficult to defend.

Specifically, the Agriculture and Agri-Food Administrative Monetary Penalties Act (“AAAMPA”) imposes violations (“AAAMPs”) which leave no room for reasonableness or diligence. Even with the hurdles involved, however, appealing an AAAMP might be worthwhile (and successful) – particularly given that it can lead to continual secondary screening and a loss of NEXUS eligibility!

Last modified on
Hits: 390
0

As we discussed in our prior blog, the Canada Border Services Agency (“CBSA”) has been conducting a re-investigation in respect of oil country tubular goods (“OCTG”) and certain seamless casing originating in or exported from China.

On March 17, 2023, CBSA released a notice confirming that the re-investigation concluded, updating normal values and export prices. That means normal values previously in place expired on March 17!

Last modified on
Hits: 374
0

On March 13, 2023, the Canadian International Trade Tribunal (“CITT”) issued a notice that it was beginning an expiry review in respect of certain steel piling pipes originating in or exported from the People's Republic of China (China). Anyone wanting to participate in the expiry review must file a Notice of Participation with the CITT by March 28, 2023!

Both domestic producers and exporters should consider participating in the expiry review, as current anti-dumping duties (“ADDs”) for goods without a normal value are 96.4%, and countervailing duties (“CVD”) are 641.35 Chinese Renminbi (RMB) per metric tonne!

Last modified on
Hits: 718
0

On Friday, March 10, 2023, the Canadian government announced it is banning the import of certain aluminium and steel products from Russia. This comes as a sanction against Russia for its actions in Ukraine, and is coordinated with the US’s 200% tariff on aluminum products that came into effect the same day.

Last modified on
Hits: 409
0

On February 21, 2023, the Canada Border Services Agency (“CBSA”) concluded its normal value review of refined sugar exported from the US by United Food Group Inc. (“United”).

Unlike re-investigations, where the CBSA reviews and redetermines normal values for all exporters in the industry, in a normal value review the CBSA only reviews the normal values of the named party – in this case United.

This particular normal value review was triggered by an importer appeal. However, while United responded to the CBSA’s RFI, the producer of the goods did not, and accordingly the CBSA concluded the review.

Last modified on
Hits: 413
0

The right to make a customs or Special Import Measures Act (SIMA”) appeal is very different than the right to make similar income tax or GST appeals. Unlike income tax or GST, appeals for customs and SIMA cases can ONLY be made once full payment of ALL amounts assessed has been made to the government!

This unfair situation is presenting problems for Canadian commercial importers who want to fight their Canada Border Services Agency (“CBSA”) customs and SIMA assessments but lack the financial ability to do so.   The issue is especially severe in the case of SIMA assessments, where the amounts being levied by CBSA can sometimes exceed two or three times the total value of the imported goods themselves – and add up to 10 or 20 times the profit margin that the importer expected to earn from these import transactions.

Last modified on
Hits: 409
0

On February 13, 2023, the Canadian International Trade Tribunal (“CITT”) issued a notice that it was beginning an expiry review in respect of certain liquid dielectric transformers (large power transformers) originating in or exported from the Republic of Korea (South Korea).  Anyone wanting to participate in the expiry review must file a Notice of Participation with the CITT by February 28, 2023!

Both domestic producers and exporters should consider participating in the expiry review, as current anti-dumping duties (“ADDs”) for goods without a normal value are 101%!

Last modified on
Hits: 675
0

The direct selling industry poses a number of unique challenges for Canadian sales tax regimes. The patchwork of separate federal GST/HST and provincial PST/QST regimes only further complicates the matter, making it difficult for new entrants to the Canadian market to determine their collection, remittance, and reporting obligations. This article provides a brief overview of the optional sales tax rules available to direct sellers.

Last modified on
Hits: 649
0

Direct sellers in the United States could soon faceupdated rules which would ban businesses from relying on non-competition clauses in worker contracts. This parallels recent moves in certain Canadian provinces to further restrict same and is a perfect opportunity for direct sellers in Canada to review their own non-competition clauses in anticipation of potential changes.

Last modified on
Hits: 1438
0

On February 2, 2023, the Canadian International Trade Tribunal (“CITT”) released an Order continuing the CITT’s original 2017 finding that the dumping of steel concrete reinforcing bar (“rebar”) originating in or exported from Belarus, Taiwan, Hong Kong, Japan, Portugal, and Spain (the “Listed Countries”) has caused injury to Canadian domestic injury.

The Order effectively means that the current anti-dumping duties (“ADDs”) of up to 108.5% will remain in place for Subject Goods originating in or exported from the Listed Countries.

Last modified on
Hits: 416
0

Canada has bilateral free trade agreements with a number of other nations (e.g., between the US and Mexico under the USMCA, between Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam under the CPTPP, and with most of the European Union under the CETA).

Canada’s next target for free trade appears to be India, and Global Affairs indicates that negotiations toward an Early Progress Trade Agreement have been progressing rapidly!

Last modified on
Hits: 1536
0

Imported goods are identified using Canada’s tariff classification system. Tariff classification is important for two reasons: (1) the duty rate depends on the tariff classification; and (2) tariff classification determines eligibility for preferential duty rates under Canada’s various preferential trade agreements (generally speaking, “Free Trade Agreements” or “FTAs” for short).

Importers can sometimes find themselves in the unfortunate position of facing an enormous increase in duties, or disqualification from preferential FTAs, due to a tariff classification dispute with the Canada Border Services Agency (“CBSA”). As seen in the decision in Canada v. Best Buy Canada Ltd., 2021 FCA 161, classification is not always obvious!

Last modified on
Hits: 484
0

Toronto Office

10 Lower Spadina Avenue, Suite 200, Toronto, Ontario, M5V 2Z2 Canada
Phone: (416) 864-6200| Fax: (416) 864-6201

Client Login

To access the Millar Kreklewetz LLP secure client file transfer system, please log in.