Upholstered domestic seating: Measures in force

Measure in force code (MIF code)

UDS

Product information

Product definition

Exclusion

On September 2, 2021, the Canadian International Trade Tribunal excluded the following products from its finding:

1. Specialized reclining massage chairs, not intended to be used for general seating purposes, with padded seat, headrest, back, and footrest, and containing built-in motorized mechanical components that operate by way of computerized controls to provide a full body massage for a single person, including to the head and/or neck, shoulders, back, buttocks, arms, and legs and/or feet
2. Medical lift chairs containing electric motion mechanisms and motorized positioning controls, designed to carefully lift, lower and tilt (by raising or lowering the base and back of the seating) the occupant, and otherwise adjust the occupant’s seating position by adjusting one or more of the headrest, footrest, and seat; designed, manufactured, and tested to meet or exceed the requirements of Health Canada’s Medical Devices Regulations (SOR/98-282) applicable thereto and conforming with the following, or equivalent, standards and testing methodologies: EN12182, ANSI/AAMI/ISO10993, ANSI/AAMI/ES60601-1, CAL117, BSEN1021, ISO8191, ANSI/AAMI/ES60601-1-2, ISO14971
3. Height-adjustable ergonomic gaming chairs for use with a desk and intended to be used primarily while playing video games, upholstered in leather or a leather-substitute, with armrests, headrests, lumbar support pillows, five-star swivel bases, and wheels or castors

Investigations information

The dates of the proceedings concerning this case are:

Tariff classification numbers

The subject goods are usually classified under the following tariff classification numbers:

• 9401.41.00.00
• 9401.49.00.00
• 9401.61.10.10
• 9401.61.10.90
• 9401.71.10.10
• 9401.71.10.90

Please note that these tariff classification numbers may apply to goods which are not subject to the Special Import Measures Act (SIMA) measures, may change because of amendments to the Departmental Consolidation of the Customs Tariff, or the subject goods may be imported under tariff classification numbers that are not listed. Refer to the product definition for the authoritative details regarding the subject goods.

Refer to the product definition for the authoritative details regarding the subject goods. For more information on the tariff classification numbers, please refer to the Canada Border Services Agency’s (CBSA) Harmonized commodity description and coding system.

Duty liability (Anti-dumping duties)

Country of origin or export: China and Vietnam

The following table identifies the exporters who currently have been issued normal values. Please refer to the Normal value model ID table for information relating to model IDs, model descriptions and units of measure. Information regarding the normal values of subject goods should be obtained from the exporter. Please note that model information is posted only for exporters who have successfully enrolled in an Exporter ID.

For importations of subject goods originating in or exported from China and Vietnam, for which the exporter has not been issued specific normal values, the anti dumping duties are equal to:

As a result of the CITT finding on September 2, 2021, model-specific normal values for future shipments of subject goods from exporters of certain upholstered domestic seating will be determined pursuant to sections 15 to 23 of the SIMA where sufficient information to allow this determination is available to the CBSA. Subject goods for which model-specific normal values have not been established will be determined based on the export price plus an amount equal to the exporter’s weighted average margin of dumping determined at the final determination. Normal values for any exporter not listed will be determined pursuant to section 29 of SIMA based on the export price as determined under section 24, 25 or 29 of SIMA, plus an amount equal to 188.0% for China or 179.5% for Vietnam of that export price.

It should be noted that while this methodology will be applied for the purpose of assessing an amount of anti-dumping duty at the time of importation, the normal value and export price of such goods may subsequently be re-determined by a designated officer where a request for redetermination is made, or where the designated officer deems it advisable. Such redeterminations could result in retroactive changes to the amount of anti-dumping duty assessed.

Duty liability (Countervailing duties)

Country of origin or export: China and Vietnam

The following table identifies the exporters who currently have a specific amount of subsidy:

The CBSA, pursuant to paragraph 41(1)(a) of SIMA, terminated the investigation of subsidizing of certain upholstered domestic furniture originating in or exported from China and Vietnam by the exporters listed in the table below, as there was no subsidizing found or the amounts of subsidy were insignificant.

For importations of subject goods originating in or exported from China and Vietnam, for which the exporter has not been issued a specific amount of subsidy, the countervailing duties are equal to:

Disclosure of normal values and amounts of subsidy

The liability for anti-dumping and countervailing duty results from the proceedings conducted under SIMA and from the finding of the CITT. Information regarding the normal value and amount of subsidy of the subject goods in question and the amount of anti-dumping and countervailing duty payable should be obtained from the exporter. Related information may be made available to importers on a need-to-know basis in accordance with the provisions of Memorandum D14-1-2: Disclosure of Normal Values, Export Prices, and Amounts of Subsidy Established Under the Special Import Measures Act to importers.

General information for CBSA assessment and revenue management (CARM)

CARM is the official system of record for the assessment and collection of duties and taxes on imported commercial goods. In most circumstances, the CARM system will automatically calculate the amount of SIMA duties payable based on information provided; however, it is still your responsibility to verify that the amounts assessed are correct and, if necessary, self-declare correct amounts. For additional information relating to CARM and self-assessing SIMA duties, please refer to the Guide for self-assessing Special Import Measures Act duties and applicable D-Memorandums.

Requests for re-determination information for CARM

Requests for re-determination relating to SIMA duties must be filed by the importer or the importer’s agent via the CARM Client Portal (CCP), through the Statements of adjustment and appeals. Failure to submit correctly may result in rejection and/or delayed processing.

Summary decisions made by the CBSA respecting whether an imported good is subject to this measure in force can be found on President-level re-determinations.

Information required on customs documents

The import documentation should include the information listed below. Failure to provide this information may result in the application of penalties to the importer, pursuant to the Administrative Monetary Penalty System (AMPS).

The import documentation should clearly indicate the following:

• Confirmation whether the product is subject to anti-dumping duty and/or countervailing duties
• Exporter ID
• Name and address of producer/manufacturer
• Name and location of plant/mill of production
• Place from which direct shipment to Canada began
• Name and address of vendor (if different from the producer)
• Country of origin
• Country of export
• Canadian customer’s name and address
• Canadian importer’s name and address (if different from the customer)
• Full product description of the goods, including:
  • Model ID
  • Model description
  • Product type
  • Length
  • Number of seats
  • Cover material
  • Padding:
    • Maximum foam density of seat cushions
    • % memory foam used in seat cushion
    • Feathers
  • Motion mechanisms:
    • Number of power recline
    • Number of power headrest
    • Number of power lumbar
    • Number of manual recline
    • Number of manual headrest
    • Number of rocking, gliding, or swivel mechanisms
    • Number of zero gravity mechanisms
    • Number and type of additional motion mechanisms
  • Special features:
    • Number of USB outlets
    • Number of AC power outlets
    • Heating
    • Cooling
    • Lights (including LEDs)
    • Massage—Mechanical
    • Massage—Air bladder
    • Vibration (e.g. for movie and gaming effects)
    • Number of speakers
    • Number of cup holders
    • Storage
    • Number and type of additional special features

Other relevant characteristics

• Date of sale, date of shipment
• Quantity (state unit of measure, e.g. kilograms, pounds, metric tonnes, etc.)
• Unit selling price and total selling price to importer in Canada
• Currency of settlement used (e.g. US$, CDN$, etc.)
• Terms and conditions of sale (e.g. FOB, CIF, etc.)
• All costs, expenses, and charges incurred by the exporter and vendor in the shipment of the subject goods to Canada (includes inland and ocean freight, insurance, duties, port and handling charges, etc.) and
• The amount of any export taxes applicable to the goods

Appeal decisions relating to subjectivity

Summaries of appeal decisions made by the CBSA respecting whether an imported good is subject to this measure in force can be found on President-level re-determinations.

Email for duty assessment questions

SIMA_Compliance-Observation_LMSI@cbsa-asfc.gc.ca

CITT reference number(s)

• NQ-2021-002