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Canada Customs & Other Regulatory Trade Updates: January-February 2018

Posted February 09, 2018


A summary of recent regulatory updates, notifications, and technical bulletins from the Canada Border Services Agency and other federal government departments, agencies and administrative entities concerning Canadian imports and exports.

Legal

Canada Border Services Agency


Memorandum D11-5-3: CCRFTA Rules of Origin
Editing revision made to provide a stable link to the Department of Justice for the official version of the Canada-Costa Rica Free Trade Agreement Rules of Origin.

Memorandum D11-5-4: CCFTA Rules of Origin
Editing revision made to provide a stable link to the Department of Justice for the official version of the Canada-Chile Free Trade Agreement Rules of Origin.

Memorandum D13-4-10: Price Reductions
Re-issuance of a memorandum (formerly called “Discounts”) dealing with the treatment of price reductions in determining the value for duty under the transaction value method to explain the CBSA’s revised policy on the treatment of reductions to the price paid or payable, which result from agreements in writing that are in effect at the time goods are imported to Canada.

CPF2 2017 IN: Certain Copper Pipe Fittings
On January 25, 2018, the CBSA, pursuant to subsection 38(1) of the Special Import Measures Act, made preliminary determinations of dumping and subsidizing with respect to certain copper pipe fittings (classified variously under heading 74.12) originating in or exported from Vietnam.

SC 2018 ER: Certain Seamless Casing
Statutory notice pursuant to SIMA that as result of a CITT expiry review, the CBSA has initiated an expiry review investigation to determine whether expiry of the order is likely to result in the continuation or resumption of dumping and/or subsidizing of certain seamless casing originating in or exported from China.

Canadian Food Inspection Agency


MHD 2018-03: Meat Hygiene Directives
Changes to Chapter 11 of the Meat Hygiene Manual of Procedures updating the export requirements concerning meat imported from Mexico and destined for export to the United States.

Canadian International Trade Tribunal


Appeal AP-2017-011: J. Fersch v. President of the Canada Border Services Agency
The issue in this appeal is whether the value for duty of an imported motorhome should be calculated by deducting the trade-in allowance for an older motorhome from the full purchase price of the good in issue. Absent any legal basis to support the claim and finding that the appellant had not discharged his burden of proof with regard to a previous transaction where he allegedly received the deduction that he is seeking in the present case, the Tribunal dismissed the appeal.

Appeal AP-2017-013: Apple Canada Inc. v. President of the Canada Border Services Agency
The issue in this appeal is whether the iPad Air 2 Smart Case, which the parties agree is properly classified under 4202.91.90 as a case with an outer surface of leather, also meets the requirements of tariff item 9948.00.00 as an article for use in automatic data processing machines or for use in a part of an ADP machine, which would entitle it to a preferential, duty-free tariff rate. The appeal is allowed as the Tribunal finds that the goods in issue are “functionally joined” to the iPad for which it is designed and therefore meets the “for use in” requirements of 9948.00.00.

Appeal AP-2017-003: Costco Wholesale Canada Ltd. v. President of the CBSA
The issue in this appeal is whether the 2pk Large Mop Snowman (decorative items constructed from a textile body and head, filled with plastic pellets and adorned with various plastic and textile components) should be classified as claimed by Costco under 9505.10.00 as articles for Christmas festivities, or as determined by the CBSA under 6307.90.99 as other made-up articles of other textile materials. Finding in accordance with Rule 1 of the General Rules that the goods in issue should be classified in heading No. 95.05 as festive articles, the appeal is allowed.

Inquiry NQ-2017-002: Carbon and Alloy Steel Line Pipe
Further to the CITT’s inquiry, and following a final determination of dumping by the CBSA, the Tribunal finds, pursuant to SIMA, that the dumping of certain carbon and alloy steel line pipe originating in or exported from South Korea has caused injury to domestic producers.

Inquiry NQ-2017-004: Copper Pipe Fittings
Following a preliminary determination by the CBSA, the CITT has initiated an inquiry to determine whether the dumping and subsidizing of pressure pipe fittings and drainage, waste and vent pipe fittings, made of cast copper alloy, wrought copper alloy or wrought copper for use in heating, plumbing, air conditioning and refrigeration applications, originating in or exported from Vietnam have caused or is likely to cause injury or retardation to domestic producers.

Expiry Review RR-2017-006: Seamless Carbon or Alloy Steel Oil and Gas Casing
Statutory notice pursuant to SIMA of an upcoming expiry review of a 2008 finding concerning the dumping and subsidizing of seamless carbon or alloy steel oil and gas well casing originating or exported from China. Revisions have been made to the expiry review schedule.

Appeal AP-2014-023: Dealers Ingredients Inc. v. President of the Canada Border Services Agency
The issue in this appeal is whether various enzyme-modified cheese or butter flavourings are properly classified under 2106.90.94 as other food preparations containing 50% or more by weight of dairy content (over access commitment) as determined by the CBSA, or as claimed by the appellant under 2106.90.95 as other food preparations containing, in the dry state, over 10% by weight of milk solids but less than 50% by weight of dairy content. Based on an extensive range of conflicting evidence described as being “far from ideal,” the Tribunal nonetheless allowed the appeal in the case of one of the products in question, but upheld the CBSA’s determination for the remainder of the subject goods.

Global Affairs Canada


Canada Amends Sanctions Against the Democratic People's Republic of Korea
Amendments to the sanctions imposed against North Korea under the Special Economic Measures Act to reflect a 2017 United Nations Resolution in response to an ICBM launch last November.