Conclusion of normal value review: Upholstered Domestic Seating (UDS 2024 UP1)
Ottawa,
The Canada Border Services Agency (CBSA) has today concluded a normal value review (review) to establish the normal values, export prices and amounts of subsidy applicable to upholstered domestic seating (UDS) originating in or exported from China by Shenzhen Zhuangjia Wanchang Technology Co. Ltd. (Wanchang).
The review follows a request for re-determination filed by an importer and is part of the CBSA’s enforcement of the Canadian International Trade Tribunal’s (CITT) finding issued on September 2, 2021 in Inquiry No. NQ-2021-002, respecting the dumping and subsidizing of UDS originating in or exported from China and Vietnam, in accordance with the Special Import Measures Act (SIMA).
The product definition and the applicable tariff classification numbers of the goods subject to the CITT’s finding (subject goods) can be found on the CBSA's Measures in Force.
Period of investigation
For this review, the Period of Investigation and the Profitability Analysis Period were from January 1, 2023 to December 31, 2023.
Normal value review process
On February 1, 2024, the CBSA sent a Dumping and Subsidy Request for Information (RFI) to Wanchang in order to solicit information on the costs and selling prices of subject goods and like goods, and subsidy programs. The information was requested for purposes of determining normal values, export prices and amounts of subsidy applicable to subject goods exported to Canada.
On March 17, 2024, Wanchang provided responses to the dumping RFIFootnote 1 and subsidy RFIFootnote 2.
The CBSA sent subsequent Dumping and Subsidy SRFIs to Wanchang. During the week of August 12, 2024, the CBSA sent Verification Questionnaires (VQs)Footnote 3, to which Wanchang provided timely and complete responsesFootnote 4. On August 28, 2024, the record for this review was closed.
The CBSA did not receive any case briefs or reply submissions from interested parties with respect to this review.
Normal values and amount of subsidy for future shipments
During the course of this review, Wanchang provided substantially complete responses to the CBSA’s dumping RFI and subsidy RFI as well as SRFIs. Wanchang was also subject to verification questionnaires.
Wanchang provided a database of domestic sales of UDS during the POI. However, normal values could not be determined in accordance with section 15 of SIMA as there were not such a number of sales of like goods that complied with all the terms and conditions referred to in sections 15 and 16 of SIMA as to permit a proper comparison with the sales of the goods to the importer in Canada.
Wanchang provided sufficient cost of production and administrative, selling and all other costs to determine normal values pursuant to paragraph 19(b) of SIMA. However, the CBSA was unable to determine an amount for profits under paragraph 11(1)(b) of the SIMR. As a result, normal values were determined pursuant to section 29 of SIMA using a method similar to that of paragraph 19(b), based on the aggregate of the cost of production of the goods, a reasonable amount for administrative, selling and all other costs, and a reasonable amount for profits (31.92%) determined by ministerial specification.
Wanchang reported a small amount of a subsidy benefit received during the POI. The CBSA found no other evidence of subsidies for Wanchang and determined the amount of subsidy to be insignificant.
Exporter responsibility
Please note that exporters with normal values are required to promptly inform the CBSA in writing of changes to domestic prices, costs, market conditions or terms of sale associated with the production and sales of the goods. If there are changes to the exporter’s domestic prices, costs, market conditions or terms of sale associated with the production and sales of the goods, and where the CBSA considers such changes to be significant, the normal values and export prices will be updated to reflect current conditions. All parties are cautioned that where there are increases in domestic prices, and/or costs as noted above, the export price should be increased accordingly to ensure that any sale made to Canada is not only above the normal value but at or above selling prices and full costs and profit of the goods in the exporter’s domestic market. If exporters do not properly notify the CBSA of any such changes, do not adjust export prices accordingly, or do not provide the information required to make any necessary adjustments to normal values and export prices, retroactive assessments will be applied where such action is warranted.
Importer responsibility
Importers are reminded that it is their responsibility to calculate and declare their anti-dumping duty liability. If importers are using the services of a customs broker to clear importations, the brokerage firm should be advised that the goods are subject to SIMA measures and be provided with sufficient information necessary to clear the shipments. To determine their anti-dumping liability, importers should contact the exporter(s) to obtain the applicable normal values. For further information on this matter, refer to Memorandum D14-1-2: Disclosure of Normal Values, Export Prices, and Amounts of Subsidy Established under the Special Import Measures Act.
The Customs Act (Act) applies, with any modifications that the circumstances require, with respect to the accounting and payment of anti-dumping duties. As such, failure to pay the duties within the prescribed time will result in the application of the interest provisions of the Act.
Contact us
- Telephone:
- Shaunet Lewinson: 343-597-1188
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