- with readers working within the Aerospace & Defence industries
- within Cannabis & Hemp, Finance and Banking and Accounting and Audit topic(s)
- with Senior Company Executives, HR and Finance and Tax Executives
CITT TO DETERMINE WHETHER IMPORTS THREATEN CANADIAN PRODUCERS
On April 21, 2026, the Canadian International Trade Tribunal (“CITT”) issued a Notice of Commencement of Safeguard Inquiry (the “Notice”) under the Canadian International Trade Tribunal Act in respect of imports of certain wood goods (“Subject Goods”). The matter was referred to the CITT by the Government of Canada through an Order in Council on April 20, 2026, which was prompted by a formal request from the Canadian Wood Products Alliance.
Contextual Background
It is worth noting that one potential catalyst for the CITT’s safeguard inquiry into the Subject Goods is the fact that United States (“US”) has placed 25% tariffs on similar wooden products (i.e., upholstered wooden furniture, kitchen cabinets and vanities, etc.) since October 14, 2025, through a Presidential Proclamation. It is possible, if not likely, that many of these products destined for the US market have been diverted to the Canadian market to avoid the US tariffs.
The Subject Goods
The goods under investigation fall under specific classes of wood goods with detailed definitions. The classes of goods are as follows:
- Solid and engineered wood cabinets and vanities;
- Solid and engineered hardwood Flooring; and
- Engineered-wood storage furniture.
The detailed description of the Subject Goods, including their typical HS classification codes, can be found in Appendix A of the Notice.
What is a Safeguard Inquiry?
A Safeguard Inquiry tasks the CITT with determining if increased imports of goods into Canada are causing or are threatening to cause serious injury to domestic producers of like or directly competitive goods. A Safeguard Inquiry can be global (considering the impact of goods imported from all countries) or bilateral (considering the impact of goods imported from a country Canada has a bilateral trade agreement with).
In contrast to an Anti-Dumping Injury Inquiry under the Special Import Measures Act, it is not necessary for imports to have been dumped or subsidized. Moreover, the remedies are different in a Safeguard Inquiry, as the CITT can recommend the imposition of a surtax under the Customs Tariff or import restrictions (such as an import quota or tariff-rate quota) under the Export and Import Permits Act.
Why Do I Care & What is the Timeline for Next Steps?
If the CITT ultimately concludes that increased imports of the Subject Goods are the principal cause of serious injury, or a threat thereof, to domestic producers, then importers of the Subject Goods could see their costs rise substantially or their ability to import the Subject Goods significantly curtailed. The Safeguard Inquiry offers Canadian importers and foreign producers the opportunity to participate in the investigation and make submissions before the CITT.
Under the Inquiry Review Schedule, interested parties must submit their Notices of Participation by May 15, 2026, and their questionnaire replies by June 5, 2026. A case management conference is also scheduled to take place on June 5, 2026, with the public hearing set for October 1-9, 2026.
How Do I Get Involved?
Specialized legal advice is generally required. Given the strict timelines, and amount of work involved in responding to CITT questionnaires, any parties potentially impacted should contact their lawyers immediately to discuss next steps.
For help with a Safeguard Investigation, please click here.
Download a PDF copy of this Blog here.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
[View Source]
