Recently the Canada Border Services Agency (CBSA) has announced they are investigating the alleged dumping of and subsiding of mattresses from China under the  Special Import Measures Act (SIMA) to determine whether injury is being caused to Canadian Industry.

This is a courtesy notice to inform of this investigation.

Please see the CBSA Notice of initiation of investigations for complete details.  Following is a recap of the new requirements.

Affected Commodities:

The mattresses that are being investigated are defined as:

“Mattresses, mattress toppers, and mattresses for use and incorporation into furniture regardless of size and core type, originating in or exported from the People’s Republic of China, whether imported independently or in a set with a mattress foundation, mattress topper, or both.

The following are excluded from the investigations:

1. Pet mattresses
2. Mattresses which are incorporated into furniture and which are subject to the Canadian International Trade Tribunal’s Finding in NQ‑2021‑002
3. Mattress foundations
4. Tufted futon mattresses which do not include innersprings or foam
5. Camping mattresses
6. Stretcher or gurney mattresses
7. Custom mattresses for boats, RVs, or other vehicles
8. Airbeds
9. Water beds and
10. Mattress toppers less than three inches in thickness”

The HS codes the allegedly dumped and/or subsidized goods are usually imported under are:

9404.21.00.00

9404.29.00.00

The CBSA has 90 days from February 24th, 2022 to investigate the alleged dumping and/or subsidizing of these mattresses.  If you receive a request for information from the CBSA, we recommend that you reply with as much detail as possible prior to the deadline stated in the letter.

Potential Outcomes Of The Investigation You Should Be Aware Of:

If you import mattresses made in or exported from China, you will want to keep a close eye on this investigation. If the CBSA makes a preliminary decision that injury is being made to industry a provisional duty may be applied to imports while the final investigation is being made. Provisional duties are temporary and are intended to protect Canadian producers until the Canadian International Trade Tribunal (CITT) makes its final injury decision.  If the determination is that no injury is made then provisional duties will be refunded.

If the determination is that dumping and/or subsidizing is causing injury to Canadian industry then SIMA anti-dumping and/or countervailing duties will be established for imported subject goods.

How SIMA Is Calculated:

These SIMA anti-dumping duties are usually calculated as an additional percentage payable on the value for duty of the goods at time of importation, whereas countervailing duties are calculated as a set rate per unit. For example if the anti-dumping rate is established at 125% and you import a subject mattress valued at $500.00 CAD you will be paying an additional $625.00 CAD in SIMA duties at time of importation.  The CBSAs determination will provide specific details about the calculation of SIMA anti-dumping and countervailing duties.

This does not mean you should rush out and make a larger than normal purchase from your favorite supplier(s) to avoid additional duties. There is a mechanism in place where retroactive duties may be applied to massive imports of subject goods made during the 90 days prior to the CBSA making their preliminary determination of dumping or subsidizing.

As a valued client of PCB Customs Brokers, we will keep a close eye on this investigation and inform you of all updates.

Please reach out to your account manager with any questions you have about these new requirements at any time by emailing compliance@pcb.ca or calling 604.538.1566. We are here for you always.