Dear Valued Client,

On July 22, 2024 the Canada Border Services Agency (CBSA) made a preliminary determination under the Special Import Measures Act (SIMA) that the dumping and/or subsidizing of High Protein Content Pea Protein is likely causing injury to Canadian Industry.

Provisional Anti-Dumping and Countervailing Duties are now payable on imports of all subject goods imported on or after July 22, 2024.

This is a courtesy notice to inform you of this determination as you have previously imported products classified under HS codes included in this SIMA Measure in Force.

Following is a recap of the new requirements.

Affected Commodities: Subject High Protein Content Pea Protein is described in the Statement of reasons—Initiation of investigations: High Protein Content Pea Protein as:

High protein content (“HPC”) pea protein originating in or exported from the People’s Republic of China in all physical forms regardless of packaging, with a minimum pea protein content of 65 percent on a dry weight basis calculated using a Jones factor of 6.25, but excluding:

• Texturized pea protein; and
• HPC pea protein that has been incorporated into finished products where the HPC pea protein itself is further processed such that it does not retain its original physical and chemical characteristics and other properties

These goods are usually imported under HS codes*:

• 3504.00.90.00
• 2106.10.00.00

*Note: the HS codes provided are for convenience of reference only. If a product meets the above definition and is classified under a different HS code, it will still be subject to SIMA.

Provisional Anti-Dumping and Countervailing Duties Rates:

Anti-Dumping Duty Rate - 34.8%
Provisional Countervailing Duty Rates - 19.8%

Subject pea protein will be charged both of the above listed additional duties, unless the exporter has been issued a specific rate. The list of exporters and specific rates is found here.

If the product you import does not meet the definition of a subject good and therefore are excluded, please include on your commercial invoices the statement “Not Subject to SIMA HPC2024IN”

How SIMA Is Calculated:

‍Provisional SIMA duties are calculated as an additional percentage payable on the value for duty of the goods at time of importation. For example an import of a subject goods from China valued at $500 CAD the calculation will be: (34.8%+19.8%) x $500.00 CAD = $273.00 SIMA duties payable in addition to any other duties and taxes.

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 finalized for imported subject goods.

Please see the CBSA’s SIMA Measures in Force page for Pea Protein for complete details.

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 this new investigation at any time by emailing compliance@pcb.ca or calling 604.538.1566. We are here for you always.