Bakery Gets Anti-Dumping Duties Relief

CANADIAN REFINED SUGAR SHORTAGE LEADS TO SUCCESSFUL REMISSION!

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Canadian Anti-Dumping Duties (“ADDs”) apply on a variety of goods from numerous countries and are often set at extremely high rates to protect domestic Canadian producers of like goods.

But what happens when Canadian suppliers cannot provide the products needed to maintain manufacturing operations due to industry shortages, and importers are forced to source from countries subject to ADDs?

A Remission Order granted by the Canadian Government on June 4, 2026, to two Canadian importers of refined sugar offers a glimpse into the difficult choices manufacturers sometimes face – and why applying for remission of ADDs may be worth considering.

Refined Sugar Remission Order

In June and July of 2022, a commercial bakery and a manufacturer of hot chocolate, cappuccino and other hot beverages, both located in southern Ontario, imported refined sugar from the United States and paid ADDs which were, and continue to be, set under the Special Import Measures Act (“SIMA”) at 180%!

The companies later sought remission of those duties on the basis that they had been unable to source refined sugar domestically due to a temporary shortage in the Canadian market caused by production issues experienced by a major supplier.

Upon review, the Government determined that no Canadian producer had been able to supply the refined sugar needed to maintain the importers’ manufacturing operations.

While ADDs are intended to protect Canadian industry from injury caused by dumped imports, the Canadian industry was unable to supply the product at the relevant time. Accordingly, the remission of the duties would not undermine the protection afforded by SIMA.

The Government therefore issued an Order under section 115 of the Customs Tariff, allowing the two importers to obtain refunds totalling over $264,000, provided their claims were made within two years and supported with all necessary documentation.

Why do I Care?

The recent Refined Sugar Remission Order highlights that anti-dumping duties may not always be a hard cost.

Remission refunds may be available where an importer paying ADDs can demonstrate either (1) a shortage of the goods in the domestic supply, or (2) that the application of the ADDs in their full amount would not be in the public interest.

While duty remission is exceptional and determined on a case-by-case basis, the recent order demonstrates that ad hoc remission requests may provide an often overlooked avenue for relief.

Takeaways

Canadian businesses are sometimes left with no practical choice but to source products from outside of Canada that are subject to heavy ADDs. The recent Refined Sugar Remission Order demonstrates that remission applications can provide a good avenue for relief where ADDs have been incurred out of necessity.

Businesses facing significant ADDs should consult with Experienced Trade professionals to consider whether they can benefit from remission!