June 1, 2021 – Toronto, ON – Canada recently invoked the Special Import Measures Act, or SIMA, to curb imports on products that are viewed as being “dumped” by companies in Asia. This will have a significant impact on the importation of upholstered goods in the foreseeable future.
The customs experts at ARGO Customs wants Canadian importers to be aware of how this will impact furniture imports.
On December 21, 2020, the Canadian Border Services Agency (CBSA) responded to allegations that both China and Vietnam were “dumping” upholstered furniture. In this situation, “dumping” refers to selling exported goods in a foreign country for less money than those goods would cost in the country of origin. This form of dumping is seen as hostile and damaging to the importing market, by undercutting local producers.
As of May 5, 2021, the CBSA has released preliminary findings upholding the charges. Due to this, they have instituted significantly higher duties on a wide range of upholstered furniture items from China and Vietnam. These items include virtually all upholstered seats – including seats that rock or swivel, using any form of upholstering, and seating any number of people. There are a handful of exceptions:
Stationary seating upholstered with fabric, rather than leather
Seats without arms manufactured for dining room end-use.
Upholstered bar stools or other stools elevated higher than 24″
Seating specifically for outdoor use such as patio chairs
Bean bag seats
Folding or stackable chairs
Otherwise, all other upholstered seats are subject to the new duties.
As of May 5, the new duties are as follows:
Upholstered furniture from China is subject to a provisional 206.36% anti-dumping duty, as well as an 89.54% countervailing duty, for a total of 295.9% additional duties.
Upholstered furniture from Vietnam is subject to a provisional 89.77% anti-dumping duty, as well as an 11.73% countervailing duty, for a total of 101.5% additional duties.
Companies involved in the importation of furniture from Asia would be advised to see help from an established customs broker, to help them navigate these new rules.
About ARGO Customs
ARGO Customs are experts in Canadian imports and exports. Their dedicated trade specialists can help companies avoid unnecessary fees and bureaucratic problems while speeding up the delivery of goods.
For more information or press inquiries, please contact 1 (888) 311-8303 or visit https://argocustoms.com/.