At the discretion of the Deputy Minister, the investigation may be suspended before a preliminary decision is issued if exporters have agreed to adjust their prices. (For more information, see the section entitled Undertakings at the end of this brochure.)

In some instances where the case is particularly complex. the 90-day deadline may be extended to 135 days.

The second 90 days: The Final Determination Within 90 days of issuing a preliminary determination, if the Deputy Minister is satisfied that the evidence of dumping or subsidizing is conclusive, a final determination is issued. This will more accurately specify the margin of dumping or amount of the subsidy on the basis of any additional

information.

What is the role of the Canadian Import
Tribunal?

The Tribunal is a court of record, whose function is to investigate the effect of dumped or subsidized goods on Canadian producers. In arriving at its decisions, the Tribunal receives representations. hears evidence and holds public hearings.

The Decision of the Canadian Import Tribunal The Tribunal must issue a finding within 120 days of receiving notice of the preliminary determination issued by the Deputy Minister. If the Tribunal finds that injury has occurred to domestic producers. antidumping or countervail duties are levied on all goods imported from the date of the preliminary determination.

When the Tribunal finds that imports of dumped or subsidized goods have not caused injury in the past. but that they threaten to cause injury in the future. duties are levied only on those goods imported after the date of the Tribunal's decision. Any provisional duties paid on goods prior to that date are refunded.

When the Tribunal finds no injury, all provisional duties are refunded and all proceedings in the case are stopped.

Within six months of a Tribunal finding of past injury, a Customs official will determine the final assessment of anti-dumping duty or countervailing duty on goods imported prior to the Tribunal finding. This may result in a partial refund of the provisional duty previously paid on those goods.

Future Importations

Any goods imported into Canada that are like those for which the Tribunal has found injury to Canadian producers are examined by Customs to determine if they are dumped or subsidized goods. Duty will be assessed accordingly.

Some terms you will encounter "margin of dumping”

The margin of dumping is equal to the difference between what a product would be sold for in the country in which it was produced (normal value) and the price at which it is sold for export to Canada (export price).

When determining normal value, consideration may be given to differences between the goods the exporter sells domestically and those exported to Canada. When an exporter sells goods primarily for export. the price of identical goods in the country of export is used to determine the normal value of the exported goods.

When this comparison is not possible. normal value is determined in one of the following ways:

⚫ the price the exporter charges importers in other countries for the same goods

⚫ the cost of producing the goods. including administrative and selling costs as well as profits

6

"amount of subsidy"

The Special Import Measures Regulations contain examples of the kinds of subsidies which can be considered in countervail case. These include:

government grants provided for the production of goods;

preferential interest rates for business loans; exemption or deferral of corporate income tax; and

⚫ other government incentives designed to benefit exporters.

Undertakings

Written undertakings to revise the selling price of goods imported into Canada can be submitted by foreign exporters to the Deputy Minister before a preliminary determination is issued. Similarly, undertakings from foreign governments to limit or eliminate a subsidy or to limit the amount of subsidized goods exported to Canada can be submitted once an investigation is launched, but before a preliminary decision is issued.

To be acceptable, the undertakings must either completely eliminate the dumping or subsidizing or must eliminate the injury to Canadian production. Before accepting any undertaking, the Department consults with importers and Canadian producers. Once undertakings are accepted by the Deputy Minister, all proceedings in the investigation are suspended and as long as undertakings are in force. no duties are collected.

8