Canada announces final dumping margins for China, Vietnam upholstery in Canada

The Canada Border Services Agency (CBSA) has announced countrywide dumping margins for upholstered seating from China and Vietnam sold in the Canadian market. The margins assigned are 188% for China and 179.5% for Vietnam. CBSA issued separate margins for individual manufacturers, ranging from 9.3% to 102.1% for 32 Chinese manufacturers and 9.9% to 179.5% for eight Vietnamese manufacturers in its final determination of the investigation into alleged subsidization of these goods.

The Canadian International Trade Tribunal (CITT) is currently conducting an investigation into the injury to the domestic industry from these subject goods, with an order finding expected by Sept. 2. The margins issued by CBSA this week may not reflect the final duties that will be applied to seating from Vietnam and China.

CBSA’s final determination also calculated the amount of subsidy as a percentage of export price, which for most manufacturers in both countries was in the low single digits. If the final margins are based on these figures, it could result in rebates of duties paid at a higher rate during the course of the investigation after CITT’s final determination of injury to domestic Canadian manufacturers. Provisional duties will continue to apply on imports of subject goods until the date of the CITT’s order or finding.

The CBSA’s determination also includes specific margin rates for individual Chinese and Vietnamese manufacturers, ranging from 11.00% to 61.70% for China, and from 9.90% to 185.00% for Vietnam. The duty rates assigned in May by the CITT were 295.5% for China and 101.5% for Vietnam.

The investigation by CBSA was initiated in December based on a complaint filed by Palliser Furniture, supported by other Canadian manufacturers including Elran Furniture Ltd., Jaymar Furniture Corp., EQ3 Ltd., and Fornirama Inc. The objective of the investigation is to limit the penetration of motion upholstery and leather stationary furniture from China and Vietnam into Canada, with the Canadian market for such merchandise estimated at $675 million annually. Importers are required to declare their company’s liability for provisional duties and taxes on subject goods imported into Canada under Canada’s Special Import Measures Act, and it is their responsibility to ensure proper declaration and payment of duties through their customs broker.