July 20, 2021 – Toronto, ON – The customs experts at ARGO Customs want shippers to know that another investigation into potentially unethical Chinese trade practices is underway. In June 2021, the Canadian Border Services Agency (CBSA) announced that they were looking into whether container chassis from China were being illegally “dumped” on the market.
Dumping means selling products overseas for less than those products cost in their country of manufacture. In some cases, the products may actually be subsidized by the government of that country, to encourage price undercutting. This is widely seen as disruptive and anti-competitive. Under the Special Import Measures Act (SIMA), the CBSA has the authority to levy fines and extra duties on products that are found to be in violation of international trade regulations.
The complaint was originally lodged by Max-Atlas Equipment International Inc, a Quebec-based container chassis manufacturer. The accusations were corroborated by two other chassis manufacturers, Di Mond, and Innovative Trailer Design, both in Ontario. All three companies allege they have suffered material injury through lost sales and market share, as well as secondary effects such as reduced capacity utilization.
The investigation will be carried out by the CBSA, along with the Canadian International Trade Tribunal (CITT). The two will conduct their investigations separately, but concurrently. The CBSA investigation will issue a decision on or before August 9, 2021. The CITT’s investigation will be concluded by September 8, 2021. At that time, if China is found to be in violation of international trade laws, fines or duties may be imposed to balance out the unfair pricing.
ARGO Customs will be following this issue closely. Any shippers involved in the import or export of container chassis are advised to contact expert customs brokers for information on how to proceed.
About Argo Customs
Argo Customs is one of Canada’s leading customs brokers. Their staff specializes in international trade regulations, along with helping shippers clear Canadian customs with a minimum of delay. They proudly facilitate trade across the country.
For more information or press inquiries, please contact Argo Customs at 1-888-311-8303 or visit https://argocustoms.com/.