Livingston International https://www.livingstonintl.com/ Simplify Trade Wed, 27 Mar 2024 21:06:41 +0000 en-US hourly 1 SIMA duties continue on certain dry wheat pasta from Turkey https://www.livingstonintl.com/sima-duties-continue-on-certain-dry-wheat-pasta-from-turkey/ Wed, 27 Mar 2024 21:06:39 +0000 https://www.livingstonintl.com/?p=59900 The Canadian International Trade Tribunal (CITT), on March 20, 2024, in conjunction with the CBSA, concluded an expiry review of the Dry wheat pasta SIMA case currently in force. As a result of the investigation, the CITT is continuing its finding, and importers will continue to pay anti-dumping and countervailing duties on goods subject to... Read more »

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The Canadian International Trade Tribunal (CITT), on March 20, 2024, in conjunction with the CBSA, concluded an expiry review of the Dry wheat pasta SIMA case currently in force. As a result of the investigation, the CITT is continuing its finding, and importers will continue to pay anti-dumping and countervailing duties on goods subject to this case.

Importers are reminded that, if using the services of a customs broker to clear their importations, the brokerage firm should be advised whether or not the goods are subject to anti-dumping and countervailing duties, and be provided with sufficient information necessary to accurately assess SIMA if applicable

Complete details regarding CITT’s decision are available here. The CBSA Expiry Review Determination can be reviewed here.

Please contact your Livingston account representative should you have any questions.

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CBSA concludes normal value review on mattress exporter from China https://www.livingstonintl.com/cbsa-concludes-normal-value-review-on-mattress-exporter-from-china/ Wed, 20 Mar 2024 14:12:14 +0000 https://www.livingstonintl.com/?p=59886 The Canada Border Services Agency (CBSA), on March 4, 2024, concluded a normal value and export price review of Shenzhen Lantise Technology Co., Ltd, an exporter in China of Mattresses subject to the Mattresses SIMA case currently in force. It was determined during the review that the information provided by the exporter was deficient for... Read more »

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The Canada Border Services Agency (CBSA), on March 4, 2024, concluded a normal value and export price review of Shenzhen Lantise Technology Co., Ltd, an exporter in China of Mattresses subject to the Mattresses SIMA case currently in force.

It was determined during the review that the information provided by the exporter was deficient for the purposes of determining normal values. As such, subject goods imported from this exporter will be subject to the “all other exporter” anti-dumping and countervailing rates indicated in the Measures in Force.

Details regarding the review are available here.

Please contact your Livingston account representative should you have any questions.

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Government of Canada initiates SIMA investigation on wire rod https://www.livingstonintl.com/government-of-canada-initiates-sima-investigation-on-wire-rod/ Wed, 13 Mar 2024 13:15:08 +0000 https://www.livingstonintl.com/?p=59882 Canada Border Services Agency (CBSA) announced on March 8, 2024, that it has launched a SIMA investigation respecting the alleged dumping of certain wire rod, originating in, or exported China, Egypt, and Vietnam. The investigation follows a complaint filed by Ivaco Rolling Mills 2004 LP. Subsequently the Canadian International Trade Tribunal (CITT) initiated a preliminary... Read more »

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Canada Border Services Agency (CBSA) announced on March 8, 2024, that it has launched a SIMA investigation respecting the alleged dumping of certain wire rod, originating in, or exported China, Egypt, and Vietnam. The investigation follows a complaint filed by Ivaco Rolling Mills 2004 LP.

Subsequently the Canadian International Trade Tribunal (CITT) initiated a preliminary inquiry to determine if the alleged dumping of said goods has caused injury or is threatening to cause injury to Canadian manufacturers. The CITT is scheduled to make their determination no later than May 7, 2024.      

Full details regarding the CBSA’s investigation are available here.

Details of the CITT preliminary injury inquiry are available on the CITT website.

Please contact your Livingston account representative should you have any questions.

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New country of melt and pour requirement on imports of certain steel products beginning November 2024    https://www.livingstonintl.com/new-country-of-melt-and-pour-requirement-on-imports-of-certain-steel-products-beginning-november-2024/ Thu, 29 Feb 2024 22:32:58 +0000 https://www.livingstonintl.com/?p=59868 The following broadcast message from Global Affairs Canada: As of February 21, 2024, importers using the Single Window Integrated Import Declaration now have the option to provide “country of melt and pour” (COM) information to the Canada Border Services Agency (CBSA) when completing their customs declarations. Country of melt and pour refers to the country... Read more »

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The following broadcast message from Global Affairs Canada:

As of February 21, 2024, importers using the Single Window Integrated Import Declaration now have the option to provide “country of melt and pour” (COM) information to the Canada Border Services Agency (CBSA) when completing their customs declarations.

Country of melt and pour refers to the country where raw steel was first produced in a liquid state and then poured into its first solid shape. This information is usually available on a mill test certificate. Collection of this data is intended to provide greater supply chain transparency and a more comprehensive picture of the origins of imported steel goods.

This is the first part of a phased approach to collecting import data regarding country of melt and pour. The optional provision of country of melt and pour will provide importers and brokers with sufficient time to transition and implement any necessary technical changes prior to the start of phase two. The CBSA has communicated directly with its Trade Chain Partners to provide specific technical details and requirements.

Following forthcoming regulatory changes later this year, the second phase will be implemented on November 5, 2024. This phase will require steel importers to use the Single Window Integrated Import Declaration and report COM information to the CBSA for all applicable steel imports as a condition of using the General Import Permits No. 80 and 81.

Stakeholders will have further opportunity to provide their views. Proposed regulations will be published in Part I of the Canada Gazette for open consultation later this year. Further updates will be added to the steel website as they become available. Stakeholders are encouraged to participate by reviewing and commenting on the proposed regulations when they are available.

Public reports containing aggregate data on COM will be published on the steel import monitoring reports webpage after the full implementation of COM collection.

If you have any questions, please contact us by email.

Contact Information

Non-Supply Managed Trade Controls (TNC)

Global Affairs Canada

Email: Steel-acier@international.gc.ca         

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Ban on Russian diamond imports expanded to include those processed in third countries https://www.livingstonintl.com/ban-on-russian-diamond-imports-expanded-to-include-those-processed-in-third-countries/ Thu, 29 Feb 2024 22:31:12 +0000 https://www.livingstonintl.com/?p=59866 U.S. Customs and Border Protection (CBP) issued notice that a ‘certification statement’ will be required for imports of diamonds, non-industrial diamonds, diamond jewelry and unsorted diamonds, effective March 1, 2024, confirming they do not contain diamonds of Russian origin, which are prohibited. The Office of Foreign Assets Control (OFAC) expanded prohibitions on imports of Russian... Read more »

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U.S. Customs and Border Protection (CBP) issued notice that a ‘certification statement’ will be required for imports of diamonds, non-industrial diamonds, diamond jewelry and unsorted diamonds, effective March 1, 2024, confirming they do not contain diamonds of Russian origin, which are prohibited.

The Office of Foreign Assets Control (OFAC) expanded prohibitions on imports of Russian Diamonds to now include diamonds processed or substantially transformed in third countries, also effective March 1, 2024. 

CBP requires a statement which differs depending on the product shipped, but must be on company letterhead in a PDF format.

  • For non-industrial diamonds with a weight of 1.0 carat or greater:

“I certify that the non-industrial diamonds in this shipment were not mined, extracted, produced, or manufactured wholly or in part in the Russian Federation, notwithstanding whether such diamonds have been substantially transformed into other products outside of the Russian Federation.”

  • For diamond jewelry and unsorted diamonds:

“I certify that the diamond jewelry and unsorted diamonds in this shipment are not of Russian Federation origin or were not exported from the Russian Federation.”

Only one self-certification document will be required per Entry.

The ban on Russian origin diamonds was first imposed on March 11, 2022 by Executive Order 14068, banning the import into the U.S. of non-industrial diamonds of Russian Federation origin, which included ‘non-industrial diamonds’ of Harmonized Tariff Schedule (HTS) subheadings 7102.31.00 and 7102.39.00, ‘diamonds’ of HTS subheadings 7102.10, 7102.31, and 7102.39, ‘unsorted diamonds of HTS subheading 7102.10., and ‘diamond jewelry’ of HTS heading 7113, incorporating diamonds. 

These changes are the result of coordinated effort with world leaders to impose phased restrictions on the importation of certain Russian diamonds, including diamonds processed in third countries.  

General questions may be directed to your Livingston account manager.

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SIMA – Government of Canada initiates expiry review of certain welded pipe from China https://www.livingstonintl.com/sima-government-of-canada-initiates-expiry-review-of-certain-welded-pipe-from-china/ Mon, 26 Feb 2024 14:06:25 +0000 https://www.livingstonintl.com/?p=59843 The Government of Canada has, on February 20, 2024, commenced an expiry review of the Carbon steel welded pipe SIMA case currently in force Expiry reviews are conducted jointly by the Canada Border Services Agency (CBSA) and the Canadian International Trade Tribunal (CITT) to determine if a SIMA measure will be rescinded after 5 years... Read more »

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The Government of Canada has, on February 20, 2024, commenced an expiry review of the Carbon steel welded pipe SIMA case currently in force

Expiry reviews are conducted jointly by the Canada Border Services Agency (CBSA) and the Canadian International Trade Tribunal (CITT) to determine if a SIMA measure will be rescinded after 5 years in force or will be continued for another 5 years. These reviews must be initiated before the scheduled expiry date of the measure.

Details regarding the CBSA’s expiry review investigation are available here.

Information on the CITT’s portion of the expiry review is found on the CITT website.

Please contact your Livingston account representative should you have any questions.

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A minimum universal tariff? What’s at stake for U.S. businesses https://www.livingstonintl.com/a-minimum-universal-tariff-whats-at-stake-for-u-s-businesses/ Wed, 14 Feb 2024 14:14:16 +0000 https://www.livingstonintl.com/?p=59803 By Jill Hurley The vast number of businesses that rely on the import of intermediate industrial goods would be wise to keep their eye on the political landscape in the lead up to the 2024 presidential election. The specter of past protectionist policies looms large. Former U.S. President and 2024 presidential hopeful Donald Trump’s recent... Read more »

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By Jill Hurley

The vast number of businesses that rely on the import of intermediate industrial goods would be wise to keep their eye on the political landscape in the lead up to the 2024 presidential election. The specter of past protectionist policies looms large. Former U.S. President and 2024 presidential hopeful Donald Trump’s recent proposal for a universal 10% tariff on all goods coming into the U.S. has sparked significant debate and raised concerns for business decision-makers.

The bigger picture:

The purpose of the proposed tariff is to discourage U.S. importers from sourcing materials abroad and encouraging them to source domestically. This has been a consistent mantra of the Trump and Biden administrations – both of which are seeking to reduce America’s dependency on foreign labor and materials in hopes of boosting domestic labor and protecting against foreign control over the country’s economy.

If implemented, a universal minimum tariff could have far-reaching implications for the U.S. economy, which is heavily dependent on international trade. The tariffs would affect critical industries, including fuel, critical components such as semiconductors, travel, and transport. With approximately 1.3 billion barrels of duty-free Canadian crude oil imported annually to the U.S. for refining into fuel, the imposition of a 10% tariff on such feedstock imports could significantly impact fuel prices, potentially resulting in annual duties of $8.71 billion passed on to consumers. It remains unclear whether businesses with integrated supply chains in countries with which the U.S. has liberalized trade, including close partners like Canada and Mexico (under the USMCA), could face significant challenges.

U.S. imported goods totaled $3.2 trillion in 2022. A universal minimum tariff could potentially result in an annual tax increase of $300 billion for the domestic market. Moreover, the possibility of retaliatory tariffs on U.S. exports, currently valued at $2.8 trillion as per November 2023 YTD estimates, could further threaten as many as 505,000 full-time jobs, which would be enough to shrink the economy by 1.1%.

Consumer impact and global competitiveness:

In addition to economic considerations, the proposed tariff could impact American retail prices. Businesses facing the prospect of increased costs due to these tariffs will be forced to consider two options – absorb the cost and narrow their margins, or pass them on to consumers by raising prices, eventually escalating inflation. Research by the CATO institute shows the Section 301 tariffs applied to goods originating in China amounted to an increase of $166 billion in additional cost to consumers.

In addition to straining relations between the U.S. and its allies and economic rivals, the proposed tariffs would place the U.S. in violation of several Free Trade Agreement (FTA) policies, including the USMCA—a pact endorsed by Trump. Moreover, in lieu of an international arbiter (the World Trade Organization remains impotent), retaliatory tariffs from America’s trade partners are quite likely.

The ensuing trade disputes, both in legal and economic terms, could compound the complexities of existing trade quotas and tariffs, such as those governing the trade of softwood lumber with Canada.

Will it work?

Despite the policy’s goal of bringing back production to the United States, historical instances of tariff usage in the U.S., such as the Smoot-Hawley Act, resulted in adverse outcomes such as deepening the Great Depression and inviting retaliatory actions from trade partners. More recently, tariffs such as the Section 232 tariffs on imports of steel and aluminum from select countries and the aforementioned Section 301 tariffs have produced mixed results. While targeted trade remedies may assist specific industries, widespread tariff increases for all imports have failed to enhance domestic production and have, instead, significantly diminished U.S. export volumes due to retaliatory measures. A report by the U.S. International Trade Commission (ITC) shows that while Section 232 tariffs had the desired effect of reducing imports of steel and aluminum – and generated a corresponding increase to domestic production and domestic producers’ revenues – they also resulted in a negative downstream impact on steel and aluminum-consuming industries such as construction and automotive manufacturing. They also resulted in a sharper inflationary curve in the U.S. relative to the rest of the world.

The U.S. consistently outsources more goods and services than it produces. Additionally, the nation’s savings fall short of fully seizing investment opportunities. In this economic equation, international trade acts as a crucial link, facilitating the U.S. procurement from global markets while attracting investments worldwide into U.S. bonds and businesses.

The Trump administration of 2016-2020 imposed tariffs on more than $300 billion in imports (primarily, though, not exclusively, from China) that have resulted in businesses doling out nearly $80 billion on a range of imports, including steel, aluminum, solar panels, washing machines, semiconductors, and various products from China. When President Biden took office in 2021, he chose to keep the tariffs in place. The consequences were twofold – the manufacturing sector felt the pinch as businesses increased import spending. Secondly, the agricultural sector faced heightened expenses in acquiring farming machinery, predominantly assembled using imported raw materials.

The road ahead:

As the global economy remains intricately connected through trade, businesses must carefully consider the implications of tariff policies – even those that are still conceptual in nature. They should actively explore strategic sourcing options, such as leveraging free trade agreements to reduce the impact of any new tariffs that may emerge. Ensuring that goods qualify for preferential treatment under these arrangements can present valuable opportunities for cost savings and help them enhance their competitive edge.

Many importers and exporters have already begun consulting with trade experts to identify strategic sourcing and tariff-impact reduction opportunities, as well as to obtain analysis on regulatory changes and trends, duty rates, and trade data, which is crucial especially during tariff rate increases.

These businesses are already establishing contingency plans for “what if” scenarios with the goal of reducing their risk of operational and financial disruption. As the saying goes, a goal without a plan is just a hope.

Jill Hurley is the Director of Global Trade Consulting at Livingston. As the practice leader, she spearheads U.S. import and export projects, offering comprehensive reviews of clients’ business models for risk assessment, crafting, and implementing import/export compliance programs, conducting audits, navigating export licensing requirements, and providing support in U.S. trade remedy matters.

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CBSA reviews normal values of certain upholstered seating exported from China https://www.livingstonintl.com/cbsa-reviews-normal-values-of-certain-upholstered-seating-exporter-from-china/ Fri, 02 Feb 2024 21:58:33 +0000 https://www.livingstonintl.com/?p=59777 Normal value reviews are conducted by CBSA to update normal values, export prices or amounts of subsidy of single exporters as necessary, to ensure that these values accurately reflect current market conditions. On February 1, 2024, the CBSA initiated a normal value review to establish normal values and export prices of goods subject to the... Read more »

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Normal value reviews are conducted by CBSA to update normal values, export prices or amounts of subsidy of single exporters as necessary, to ensure that these values accurately reflect current market conditions.

On February 1, 2024, the CBSA initiated a normal value review to establish normal values and export prices of goods subject to the “Upholstered domestic seating” SIMA case, exported to Canada from China by Shenzhen Zhuangjia Wanchang Technology Co., Ltd

Should the exporter decide to participate in this review, they are required to provide complete and accurate responses to the CBSA’s Request for Information (RFI) by March 11, 2024.

Complete details regarding this normal value review are available here.

Please contact your Livingston account representative should you have any questions.

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SIMA – Normal values issued to Korean exporter of Hollow structural steel sections https://www.livingstonintl.com/sima-normal-values-issued-to-korean-exporter-of-hollow-structural-steel-sections/ Tue, 23 Jan 2024 18:29:31 +0000 https://www.livingstonintl.com/?p=59745 The Canada Border Services Agency (CBSA), on January 18th, 2024, concluded an expedited review of the Korean exporter Histeel Co. Ltd, an exporter of goods subject to the Hollow structural sections SIMA case currently in force. During the review, the exporter submitted a satisfactory response to the Requests for Information (RFI) sent out by CBSA.... Read more »

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The Canada Border Services Agency (CBSA), on January 18th, 2024, concluded an expedited review of the Korean exporter Histeel Co. Ltd, an exporter of goods subject to the Hollow structural sections SIMA case currently in force.

During the review, the exporter submitted a satisfactory response to the Requests for Information (RFI) sent out by CBSA. As such, normal values were issued to both companies.

This means that, as of January 18th, subject goods exported to Canada by this that are sold at or above the normal values issued by CBSA, will not be subject to anti-dumping duties.

Importers are reminded that, if using the services of a customs broker to clear their importations, the brokerage firm should be advised whether or not the goods are subject to anti-dumping and countervailing duties, and be provided with sufficient information necessary to accurately assess SIMA if applicable

Complete details are available in CBSA’s Notice of conclusion of expedited review.

Please contact your Livingston account representative should you have any questions.

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CBSA Re-investigates Gypsum Board SIMA case https://www.livingstonintl.com/cbsa-re-investigates-gypsum-board-sima-case/ Tue, 23 Jan 2024 18:26:18 +0000 https://www.livingstonintl.com/?p=59736 The Canada Border Services Agency (CBSA), on January 17th, 2024, initiated a re-investigation of the Gypsum board SIMA case currently in force. Re-investigations are conducted periodically by the CBSA to update normal values, export prices or amounts of subsidy and to establish values for new exporters or new models to ensure that the values in... Read more »

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The Canada Border Services Agency (CBSA), on January 17th, 2024, initiated a re-investigation of the Gypsum board SIMA case currently in force.

Re-investigations are conducted periodically by the CBSA to update normal values, export prices or amounts of subsidy and to establish values for new exporters or new models to ensure that the values in place accurately reflect current market conditions.

Exporters who provide a complete, accurate and timely responses to the CBSA’s request for information (RFI), will be considered cooperative and be provided with normal values. In such case, anti-dumping duties would not apply to imports of subject goods from these exporters which are sold to Canada at or above the normal values issued by CBSA.

Complete details regarding this re-investigation are available here

Please contact your Livingston account representative should you have any questions.

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