Notice of conclusion of administrative review: Upholstered domestic seating (UDS 2026 UP1)
Ottawa,
The Canada Border Services Agency (CBSA) has today concluded an administrative review (review) concerning the amount of subsidy applicable to upholstered domestic seating (UDS) originating in or exporter from the People’s Republic of China (China) by Zhejiang Trayton Co., Ltd. (“Zhejiang Trayton”).
In accordance with the Special Import Measures Act (SIMA), the review is part of the CBSA’s enforcement of the Canadian International Trade Tribunal’s (CITT) finding issued on September 2, 2021. For further information on administrative reviews, refer to Memorandum D14-1-8: Administrative Review Policy – Special Import Measures Act (SIMA).
The product definition and the applicable tariff classification numbers of the subject goods can be found on the CBSA’s Measures in force.
Period of investigation
The period of investigation (POI) and profitability analysis period (PAP) for the subsidy review is January 1, 2025 to December 31, 2025.
Administrative review process
At the initiation of the review, the CBSA sent a subsidy request for information (RFI) to the exporter in order to solicit information on potential actionable subsidies and financial contributions received from the Government of China. The information was requested for purposes of determining amounts of subsidy for subject goods imported into Canada.
The Government of China was sent the CBSA’s government subsidy RFI requesting information concerning the subsidy programs available to producers/exporters of subject goods.
For the purposes of the subsidy review, Government of China refers to all levels of government, i.e., federal, central, provincial/state, regional, municipal, city, township, village, local, legislative, administrative or judicial, singular, collective, elected or appointed. It also includes any person, agency, enterprise, or institution acting for, on behalf of, or under the authority of, or under the authority of any law passed by, the government of that country or that provincial, state or municipal or other local or regional government.
The Government of China and the exporter were notified that in cases where either the government or the exporter fail to provide complete and accurate submissions in a timely manner, enabling the determination of specific amounts of subsidy, countervailing duties may be assessed at the rate of 1,390.65 CNY per unit for China in accordance with a ministerial specification pursuant to subsection 30.4(2) of SIMA.
Zhejiang Trayton provided a response to the subsidy RFI. However, the Government of China did not provide a response to the subsidy RFI by the deadline of April 2, 2026. The government’s response was received on May 19, 2026, over a month after the due date. Therefore, the amount of subsidy for the subject goods produced or exported from China by Zhejiang Trayton will be determined pursuant to the ministerial specification, under subsection 30.4(2) of SIMA, as described above. For information please see the CBSA’s Measures in force.
The CBSA will continue its administrative review with respect to normal values and export prices for Zhejiang Trayton and HTL Furniture Vietnam Company (“HTL Vietnam”), and with respect to the amount of subsidy for HTL Vietnam.
Importer responsibility
Importers are reminded that it is their responsibility to declare their anti-dumping and countervailing duty liability. If importers are using the services of a customs broker to clear importations, the brokerage firm should be advised that the goods are subject to anti-dumping and countervailing measures and be provided with sufficient information necessary to clear the shipments. To determine their liability for anti-dumping and countervailing duty, importers should contact the exporters to obtain the applicable normal values and amounts of subsidy. For further information on this matter, refer to Memorandum D14-1-2: Disclosure of Normal Values, Export Prices, and Amounts of Subsidy Established under the Special Import Measures Act.
The Customs Act applies, with any modifications that the circumstances require, with respect to the accounting and payment of anti-dumping and countervailing duties. As such, failure to pay the duties within the prescribed time will result in the application of the interest provisions of the Act.
Should the importer disagree with the determination made on any importation of goods, a request for re-determination may be filed. For more information on how to file a request for re-determination, please refer to the Guide for appealing a duty assessment.
Contact us
Email: trade_remedies_registry-registre_recours_commerciaux@cbsa-asfc.gc.ca
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