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Investigation into Imports of Sofas

The CITT has issued notice that they are initiating an inquiry into whether there is evidence of dumping and subsidizing of imported upholstered seating. This inquiry is aimed specifically at seating manufactured in China or Vietnam. Let’s take a look at what this means.

What is the CITT?

CITT stands for Canadian International Trade Tribunal and has been in existence in various forms since the 1930s. Its current iteration has been in place since 1988. Canada is a trading nation and international trade is a significant contributor to Canada’s economy. The CITT plays a central role in administering international and Canadian rules governing trade. Inquiries into dumping and subsidizing are meant to see if the subject goods are causing, or are a threat to, a domestic industry.

What is the Point of this Inquiry?

The Canada Border Services Agency (CBSA) acting on behalf of the CITT has launched an investigation into dumping and subsidizing of imported seating. They claim to have information indicating that there is reasonable threat to the Canadian industry due to imports of these items from China and Vietnam. To find out more about dumping and subsidizing, visit our SIMA blog

What Goods are being Investigated?

The goods being investigated include;

  • – seating with frames constructed from metal, wood or both;
  • – upholstered motion seating with reclining, swivel, rocking, zero‑gravity, gliding, adjustable headrest, massage functions or similar functions;
  • – seating produced as sectional items or parts of sectional items;
  • – seating with or without arms, whether part of sectional items or not; and
  • – foot rests and foot stools (with or without storage).

What Happens Next?

At this time, the CBSA is contacting importers of these products to provide them with information that will allow them to establish a normal value. If they find that the normal value is higher than export prices, the difference would be considered the margin of dumping. The deadline for responses from importers is January 21, 2020. Within 60 days, the CITT will issue a decision. Should they find that there is threat to the Canadian industry, they will impose provisional duties on future imports into Canada.

As Canadian Customs Brokers, Orbit Brokers monitors the activities of the CITT as it relates to imported goods. Should you have any questions or require further information, please Contact Us.

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