Canada imposes anti-dumping duties on Vietnam's upholstered seats

Upholstered furniture from China and Vietnam sold in Canada now is subject to country-wide duties of 295.5% and 101.5%, respectively, according to information released by the Canada Border Services Agency (CBSA).
May 09, 2021 | 09:02
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Canada imposes anti-dumping duties on Vietnam's upholstered seats
Illustrative photo.

Upholstered seats originating from Vietnam are set to be subject to an anti-dumping tax rate of 101.5% when being exported to the Canadian market. The move comes following the Canadian International Trade Tribunal (CITT) conducting a preliminary investigation into acts of dumping, VOV reported.

CITT found “reasonable indication” that dumping and subsidizing of upholstered seating made in China and Vietnam has or is threating to damage Canada’s domestic furniture manufacturing industry. The CITT will continue its inquiry and expects to issue its ultimate finding by Sep. 2.

A letter from the Canada Border Services Agency (CBSA) notified importers that provisional duties will be collected on subject merchandise as of May 5.

According to details posted by the CBSA, numerous products will be subject to anti-dumping and subsidy duties when exported to the Canadian market, including those with HS code 9401.40.00.00, 9401.61.10.10, 9401.61.10.90, 9401.71.10.10, and 9401.71.10.90.

Most notably, upholstered furniture originating from both China and Vietnam will be subject to a tax rate of 295.5% and 101.5%, respectively, when entering the Canadian market.

In total 28 Chinese manufacturers are anticipated to face anti-dumping tax rates ranging from 20.65% to 226.45%, while seven Vietnamese manufacturers will be subject to duties of between 17.44% and 89.77%.

This follows the CBSA initiating an investigation in December, 2020, based on Palliser Furniture's complaint, with support from other manufacturers such as Canadian Elran Furniture Ltd., Jaymar Furniture Corp., EQ3 Ltd. and Fornirama Inc. The move looks to limit the penetration of motion upholstery and leather stationary furniture from China and Vietnam into Canada.

CBSA has also revealed that the market size of some upholstered seats in Canada stands at an estimated USD 675 million per year.

Under Canada’s Special Import Measures Act, importers are required to declare their company’s liability, if any, for provisional duties and taxes on any subject goods imported into Canada, and it is their responsibility to inform their customs broker if they are importing goods subject to provisional duties and to ensure proper declaration of subject goods and proper payment of duties. Importers can go here for a self-assessment.

A ‘Statement of Reasons’ summarizing the information on which these decisions were based as well as general terms of future activities related to the investigations, will be issued within 15 days, when it will be available on CBSA’s website.

Since 2017, Vietnam has maintained its position as the largest trade partner of Canada in ASEAN, with bilateral trade hitting 5.1 billion USD in 2020./.

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