Memorandum D14-1-8: Administrative Review Policy – Special Import Measures Act (SIMA)
ISSN 2369-2391
Ottawa,
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This memorandum outlines the policy governing administrative reviews to update normal values, export prices, and/or amounts of subsidy (collectively referred to as “SIMA values”) applicable to imported goods subject to Canadian International Trade Tribunal (CITT) orders or findings.
Plain language summary
Target audience: Importers and exporters of commercial goods.
Key content: Administrative reviews of normal values, export prices and/or amount of subsidy under the Special Import Measures Act.
Keywords: Special Import Measures Act (SIMA); imports; SIMA values; administrative reviews; normal values; export prices; amounts of subsidy; trade.
On this page
- Updates made to this D-memo
- Policy overview
- Conducting administrative reviews
- Considerations for administrative review
- Procedures for exporters without specific SIMA values
- Scope of administrative review
- Administrative review process
- Use of review information for re-determinations
- Ministerial specification
- Making representations
- References
- Contact us
Updates made to this D-memo
1. This document reflects a change in approach from an ad hoc system to an annual review system for the administrative conduct of Special Import Measures Act (SIMA) value updates. This change aims to ensure more consistent and accurate maintenance of SIMA values to support the enforcement of CITT findings and orders.
Policy overview
2. The Canada Border Services Agency (CBSA) recognises the need to keep normal values, export prices, and amounts of subsidy (collectively, “SIMA values”) current to ensure effective enforcement of CITT findings and orders.
3. The CBSA will review SIMA values annually, monitoring market dynamics to identify changes that may necessitate updates.
Conducting administrative reviews
4. Where updates to SIMA values are necessary, the CBSA will conduct administrative reviews. These reviews involve issuing a request for information (RFI) and following a tiered review process that considers the complexity of the required update. Further details on the tiered review process are set out below.
5. Exporters are advised to adjust their selling prices to Canada in response to changes in market conditions, prices, costs, and terms of sale that could reasonably be expected to impact values. This ensures that the export price of subject goods sold to Canada reflects domestic selling prices and/or cost increases.
6. Under the Special Import Measures Act, the CBSA has and uses the authority to administer retroactive duty assessments when exporters do not adjust selling prices accordingly.
Considerations for administrative review
7. The CBSA will annually review SIMA measures to determine if updates to SIMA values are required. In making this determination, the CBSA may consider these factors among others:
- Volume of imports;
- Changes affecting ministerial specifications;
- Changes in market conditions and/or the provision of subsidies.
8. If updates are required, the CBSA will request information from all known parties to the proceeding. Responses to these requests must be complete, verifiable, and provided within the specified time frame.
Procedures for exporters without specific SIMA values
9. The CBSA will notify all known exporters to whom the administrative review applies of the initiation of administrative reviews and will post these notifications on the CBSA’s website. Any exporters that have not been notified and wish to participate can communicate with the SIMA Registry and Disclosure Unit.
Scope of administrative review
10. Each administrative review will examine dumping and subsidy issues separately. The CBSA will evaluate the factors listed in paragraph 7 when determining whether to initiate an administrative review.
11. In an administrative review, the CBSA is not bound by the methodologies used in previous proceedings to determine normal values, export prices and/or amount of subsidy. This means the CBSA may adjust its methodologies based on the facts and circumstances of the case. For subsidy updates, the CBSA will determine if existing programs have ended, or if amounts of subsidy have changed. Supplemental questionnaires may be issued on any relevant matter arising during the review.
Administrative review process
12. If an update is required, the CBSA will notify all known parties to the proceeding, which may include domestic producers, unions, trade associations, importers, exporters, and foreign governments.
13. Notices of the administrative review initiation and schedule of key dates, including deadlines for responses to RFIs, will be published on CBSA’s Dumping and subsidy administrative reviews webpage. Late or incomplete submissions may not be considered and a ministerial specification may apply.
14. The CBSA will establish deadlines, as well as an anticipated date for closing the administrative record after which no new or unsolicited information will be accepted.
Tiered review process
15. To manage different case complexities, the CBSA will conduct reviews through a tiered process. Each tier considers factors such as the novelty of the information, as well as the completeness and reliability of received information. The tiers are as follows:
- Tier 1: CBSA conducts and concludes the review without further input when:
- Information received aligns among interested parties;
- Limited models from a cooperative exporter require SIMA values, or new product models need values; or
- Insufficient information is received from necessary parties (should this occur, the proceeding will cease for the deficient exporters).
- Tier 2: CBSA conducts further analysis and seeks additional input where necessary, for example to address discrepancies or to clarify certain information.
- Tier 3: CBSA conducts further analysis, comprehensive verification and seeks additional input to resolve complex issues, which may include consideration of new information on non-market economic conditions and/or particular market situations.
Notification of review results
16. All notified parties will be informed of the review’s results. The CBSA will publish a public notice of the conclusion on its website.
17. Generally, new SIMA values will apply to goods released from customs on or after the administrative review’s conclusion date or the date of the exporter’s decision letter, whichever comes first. For details on the disclosure of SIMA values to importers, refer to Memorandum D14-1-2: Disclosure of Normal Values, Export Prices, and Amounts of Subsidy Established Under the Special Import Measures Act.
Use of review information for re-determinations
18. Information gathered during administrative reviews may be used in ongoing or future re-determinations by the CBSA by the date the review concludes. For re-determinations and appeal procedures, consult Memorandum D14-1-3: Re-determinations and Appeals Under the Special Import Measures Act.
19. SIMA values are typically provided in the domestic currency of the exporting or originating country. If the exchange rate is unstable and would require frequent updates, SIMA values may instead be provided in Canadian dollars.
Ministerial specification
20. Ministerial specifications may apply to exporters who participate in a review but have not provided sufficient information or failed to meet submission deadlines. Specifications are also used for new products and exporters entering the market after a review. The notice of conclusion will detail how values will be determined using ministerial specifications, and this information will be posted on the CBSA’s SIMA webpages.
Making representations
21. Interested persons may make representations regarding the need to update SIMA values for specific measures. These should be sent to the SIMA Registry and Disclosure Unit. Submissions should identify the applicable measure and provide relevant available information to demonstrate the need for an update. Evidence may include, but is not limited to:
- Changes in domestic selling prices;
- Increase in import volumes;
- Changes in cost of production;
- Changes in distribution channels, including the involvement of related parties in sales to Canada;
- Changes in market conditions;
- Changes in amounts of subsidy received;
- Changes in business names or corporate addresses;
- New or expanded production facilities; or
- Mergers and acquisitions.
22. Confidential information in representations must be accompanied by a non-confidential version. In order to be accepted and taken into consideration by the CBSA, an accompanying non-confidential version must contain sufficient detail to convey a reasonable understanding of the substance and the nature of the information submitted in the confidential version. The non-confidential version will be available to other interested persons, with confidential versions accessible to counsels with valid disclosure undertakings. For more information, refer to the CBSA's Administrative Guideline for Submission of Confidential and Non-Confidential Information (Confidentiality and disclosure guidelines).
23. The CBSA will consider all representations and responses, factoring them into the decision-making process for the administrative review’s tier. The CBSA will ultimately decide on the initiation of an administrative review, notifying subscribers of the initiation through its email alert service and posting the decision on its website.
References
Consult these resources for further information.
Applicable legislation
Related D memoranda
- Memorandum D14-1-2: Disclosure of Normal Values, Export Prices, and Amounts of Subsidy Established Under the Special Import Measures Act
- Memorandum D14-1-3: Re-determinations and Appeals Under the Special Import Measures Act
Superseded D memoranda
D14-1-8 dated
Issuing office
SIMA Investigations Division
Trade and Anti-dumping Programs Directorate
Commercial and Trade Branch
Contact us
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