Canadian Border Services Agency (CBSA) has many functions, but one of its roles is to protect Canadian producers from unfair foreign competition.
Together with the Canadian International Trade Tribunal, the two organizations administer the Special Import Measures Act (SIMA), which protects against unfair subsidizing and dumping of imported goods.
According to the CBSA website, dumping occurs when goods are sold to importers in Canada at prices that are lower than the selling price of comparable goods in the country of export or when goods are sold to Canada at unprofitable prices. The amount of dumping on imported goods may be offset by an anti-dumping duty.
Subsidizing occurs when goods imported into Canada benefit from foreign government financial assistance. The amount of subsidizing on imported goods may be offset by a countervailing duty.
Should a complaint be filed citing unfair practices, CBSA will investigate to determine if there was injury to Canadian industry. If there was, an appropriate level of anti-dumping duties will be applied to the imported products (duties can range from 50% to 350% of the value of the goods depending on the type of product and the country of origin, among other factors).
Country of Origin
Another way a country can protect its products is through Country of Origin (COO), which indicates where a product is manufactured, produced, processed, or grown.
COO is important because it can entitle business owners to preferential duty programs through law or trade agreements; it determines the rate of duty; determines whether goods can be legally imported/exported; it provides statistical reporting; differentiates product from competitors; and allows the product to clear customs smoothly.
In Canada, failure to report the correct COO could result in Administrative Monetary Penalties, which are levied by the CBSA.
Some of the items that don’t award COO designation include simple assembly; finishing work such as painting or applying a preservative; packaging or repackaging into measured doses; repairs, cleaning, laundering or simple alterations; and dilution with water or other substances.