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ANTI-DUMPING INVESTIGATION COULD IMPOSE ADDITIONAL DUTIES
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On April 20, 2026, the Canada Border Services Agency (“CBSA”) issued a Notice of Initiation of Investigation under the Special Import Measures Act (“SIMA”) in respect of the alleged dumping of steel racks from China. This investigation was prompted by a complaint filed by producers of steel racks in Canada.
Contextual Background
The goods under investigation are more specifically described as:
Certain components of steel storage systems of racks, assembled to any extent, or unassembled, being: posts or columns; bracing; beams; cantilever arms; beam connectors; base or foot plates; pallet safety or support bars; cross-aisle ties; row spacers; and wall ties, including parts thereof, with each component made of steel that is at least 1.0668 mm (0.042 inches) thick; each post or column having a width that is greater than 50.8 mm (2.0 inches); and each beam having a height that is equal to or greater than 50.8 mm (2.0 inches).
The following are excluded from Subject Goods:
Heavy duty shelving, boltless shelving, wide-span shelving or light duty racking; wire shelving units; wall-mounted shelving and racks; ceiling-mounted shelving and racks; tubular racks such as garment racks and drying racks; and portable tier racks.
Further details on the Subject Goods and exclusions can be found in the Notice itself.
Parallel CITT Investigation
On April 21, 2026, the Canadian International Trade Tribunal (the “CITT”) issued a notice initiating a preliminary injury inquiry in respect of the same Subject Goods, a parallel process to determine whether the alleged dumping and subsidizing has caused or is threatening to cause injury to the Canadian industry.
Why Do I Care?
If the CBSA and CITT ultimately conclude that dumping of the Subject Goods has caused injury or is threatening to cause injury to the Canadian industry, Anti-Dumping Duties (“ADDs”) will be imposed, effectively increasing the costs of the Subject Goods.
Anti-dumping investigations offer Canadian importers and foreign exporters and producers the opportunity to participate in the CBSA investigation and obtain their own specific Normal Values, which are preferable to the ADDs payable on imports from producers who do not have Normal Values.
It may also be possible to request a product exclusion from the CITT on the basis that certain goods are unique and the Canadian industry is incapable of manufacturing a substitutable product.
What is the Timeline for Next Steps?
Under SIMA the matter will proceed along two parallel tracks:
- The CBSA will send out Requests for Information: Importers must respond by May 11th, and exporters by May 27th; and
- The CITT requires any interested participants and their counsel to file Forms with the CITT by May 4th, and any opposing submissions must be filed by noon on May 20th.
The CITT’s preliminary determination is expected by June 18, 2026, and CBSA’s preliminary determination is expected by July 20, 2026, each followed by a Statement of Reasons 15 days later.
How do I get involved?
Specialized legal advice is generally required. Given the strict timelines, and amount of work involved in responding to CBSA and CITT questionnaires, any parties potentially impacted should contact their lawyers immediately to discuss next steps – regardless of whether you have received a questionnaire!
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.
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