Special Import Measures Regulations (SOR/84-927)

12 For the purposes of subparagraphs 11(1)(a)(ii) and 11.1(a)(ii), where the costs that are directly attributable to the design or engineering of the goods (in this section referred to as “first-mentioned goods”) cannot be determined, but the costs that are directly attributable to the design or engineering of goods of the same general category as the first-mentioned goods, produced and sold by any exporter or producer, can be determined, the costs that are directly attributable to the design or engineering of the first-mentioned goods shall be considered to be the amount that reflects the cost of the design or engineering of the goods of the same general category, such amount being adjusted to reflect the value of any differences in the design or engineering between the first-mentioned goods and the goods of the same general category.

13 For the purposes of paragraph 11(1)(b),

• (a) sales that are such as to permit a proper comparison are sales, other than any sale referred to in subsection 16(2) of the Act, that satisfy the greatest number of the conditions set out in paragraphs 15(a) to (e) of the Act, taking into account subsection 16(1) of the Act;

• (b) the price of like goods shall be adjusted in the manner provided for in sections 3 to 10; and

• (c) the price of goods of the same general category or of goods of the group or range of goods that is next largest to the category referred to in subparagraph 11(1)(b)(iv) shall be adjusted in the manner provided for in sections 3 to 10, and for that purpose the expression “like goods” shall be read as “goods of the same general category” or “goods of the group or range of goods that is next largest to the category referred to in subparagraph 11(1)(b)(iv)”, as the case may be, wherever that expression occurs in those sections.

• 13.1 (1) Subject to subsection (2), for the purpose of section 23.1 of the Act, the cost of production of goods, and the administrative, selling and all other costs with respect to the goods, for a start-up period of production shall be determined in accordance with sections 11 and 11.1.

• (2) Where any of the costs determined under subsection (1) are affected by start-up operations that limit the level of production associated with the initial phases of commercial production owing to technical difficulties during the start-up period of production that are related to the use of new production facilities or the production of a new or substantially different product, the affected costs shall be adjusted on the basis of the costs that exist at the end of the start-up period of production or, if the period extends beyond the investigation period, on the basis of the costs that exist at the end of that period.

State Trading Countries

14 For the purpose of determining the normal value of any goods under paragraph 20(1)(c) of the Act, sections 4 to 6, 9, 11 and 11.2 shall be read with the substitution of

• (a) the expression “country of production” for the expression “country of export”, wherever that expression occurs therein; and

• (b) the word “producer” for the word “exporter”, wherever that word occurs therein.

15 For the purpose of determining the normal value of any goods pursuant to paragraph 20(1)(d) of the Act, sections 4 to 6 shall be read with the substitution of

• (a) the expression “vendor in Canada of the imported like goods” for the word “exporter”, wherever that word occurs therein; and

• (b) the word “Canada” for the expression “the country of export”, wherever that expression occurs therein.

16 For the purpose of determining the normal value of any goods pursuant to paragraph 20(1)(d) of the Act, the price of like goods sold in Canada shall be adjusted by deducting therefrom an amount equal to the sum of

• (a) all costs, including any duties and taxes, that result from the importation of the like goods or their sale by the importer to the purchaser in Canada;

• (b) the amount of profit, determined in accordance with section 17, made by the importer of the like goods on their sale;

• (c) all costs, charges and expenses incurred by the importer or exporter of the like goods, or any other person, in preparing the like goods for shipment to Canada that are additional to the costs, charges and expenses generally incurred on sales of the like goods for domestic consumption in the country of export; and

• (d) all other costs, charges and expenses incurred by the exporter or importer of the like goods, or any other person, that result from the exportation of the like goods or arise from their shipment to Canada.

17 For the purposes of paragraph 16(b), the amount of profit made by an importer on the sale of like goods in Canada is

• (a) the amount of profit that generally results from sales of like goods by vendors in Canada who are at the same or substantially the same trade level as the importer of the like goods to purchasers in Canada who are not associated with those vendors;

• (b) if the amount described in paragraph (a) cannot be determined, the amount of profit that generally results from sales of goods of the same general category as the like goods by vendors in Canada, who are at the same or substantially the same trade level as the importer of the like goods to purchasers in Canada who are not associated with those vendors; or

• (c) where the amounts described in paragraphs (a) and (b) cannot be determined, the amount of profit that generally results from sales of goods that are of the group or range of goods that is next largest to the category referred to in paragraph (b), by vendors in Canada who are at the same or substantially the same trade level as the importer, to purchasers in Canada who are not associated with those vendors.

17.1 For the purposes of subsection 20(1) of the Act, the following customs territories are prescribed countries:

• (a) the People’s Republic of China;

• (b) the Socialist Republic of Vietnam;

• (c) the Republic of Tajikistan;

• (d) the Russian Federation; and

• (e) the Republic of Belarus.

17.2 [Repealed, SOR/2015-33, s. 1]

Discount Rate for Normal Value

18 For the purposes of subsection 21(1) of the Act, where it is not possible to ascertain the interest rate referred to in clause 21(1)(a)(ii)(A) of the Act or there is no such interest rate, the interest rate to be selected is

• (a) the interest rate prevailing, in the country in which the like goods were sold, at the date of the sale of the like goods, for commercial loans available in that country in the same currency in which the payments for the like goods are expressed and on credit terms, other than the interest rate, that most closely approximate the credit terms on which the sale was made;

• (b) where the interest rate described in paragraph (a) cannot be ascertained or where there is no such interest rate, the lowest interest rate prevailing, in any country other than the country in which the like goods were sold, at the date of the sale of the like goods, for commercial loans available in that other country in the same currency in which the payments for the like goods are expressed and on credit terms, other than the interest rate, comparable to the credit terms on which the sale was made;

• (c) where the interest rates described in paragraphs (a) and (b) cannot be ascertained or where there are no such interest rates, the lowest interest rate prevailing, in any country other than the country in which the like goods were sold, at the date of the sale of the like goods, for commercial loans available in that other country in the same currency in which the payments for the like goods are expressed and on credit terms, other than the interest rate, that most closely approximate the credit terms on which the sale was made;

• (d) where the interest rates described in paragraphs (a) to (c) cannot be ascertained or where there are no such interest rates, the interest rate equal to the average yield in the year preceding the sale of the like goods on securities, for terms not exceeding one year, issued by the government that issues the currency in which the payments for the like goods are expressed; or

• (e) where the interest rates described in paragraphs (a) to (d) cannot be ascertained or where there are no such interest rates, the average interest rate paid on Special Drawing Rights held by the International Monetary Fund in the year preceding the sale of the like goods.

19 Where the normal value of any goods is to be determined under paragraph 20(1)(d) of the Act, section 18 of these Regulations shall be read with the substitution of

• (a) the word “Canada” for the expressions “the country in which the like goods were sold” and “that country”, wherever those expressions occur therein; and

• (b) the expression “sale of the imported like goods” for the expression “sale of the like goods”, wherever that expression occurs therein.

EXPORT PRICE ADJUSTMENTS

Profits

20 For the purpose of subparagraph 25(1)(c)(ii) of the Act, the expression an amount for profit, in relation to a sale of goods by an importer, means the amount of profit that would be made in the ordinary course of trade on the sale of the goods.

21 For the purpose of subparagraph 25(1)(d)(i) of the Act, the expression an amount for profit, in relation to any assembled, packaged or otherwise further manufactured goods or any goods into which imported goods have been incorporated, means the amount of profit that would be made in the ordinary course of trade on the sale of the goods.

22 For the purposes of sections 20 and 21, the amount of profit that would be made in the ordinary course of trade on the sale of the goods is

• (a) the amount of profit that generally results from sales of like goods in Canada by vendors who are at the same or substantially the same trade level as the importer to purchasers in Canada who are not associated with those vendors;

• (b) where the amount described in paragraph (a) cannot be determined, the amount of profit that generally results from sales of goods of the same general category in Canada by vendors who are at the same or substantially the same trade level as the importer to purchasers in Canada who are not associated with those vendors; or

• (c) where the amounts described in paragraphs (a) and (b) cannot be determined, the amount of profit that generally results from sales of goods that are of the group or range of goods that is next largest to the category referred to in paragraph (b), by vendors in Canada who are at the same or substantially the same trade level as the importer, to purchasers in Canada who are not associated with those vendors.

Discount Rate for Export Price

23 For the purposes of subsection 27(1) of the Act, where it is not possible to ascertain the interest rate referred to in clause 27(1)(a)(ii)(A) of the Act or there is no such interest rate, the interest rate to be selected is

• (a) the interest rate prevailing, at the date of the sale of the goods to the importer in Canada, in the country in which the vendor is located, for commercial loans available in that country in the same currency in which the payments for the goods are expressed and on credit terms, other than the interest rate, that most closely approximate the credit terms on which the sale was made;

• (b) where the interest rate described in paragraph (a) cannot be ascertained or where there is no such interest rate, the lowest interest rate prevailing, at the date of the sale of the goods to the importer in Canada, in any country other than the country in which the vendor is located, for commercial loans available in that other country in the same currency in which the payments for the goods are expressed and on credit terms, other than the interest rate, comparable to the credit terms on which the sale was made;

• (c) where the interest rates described in paragraphs (a) and (b) cannot be ascertained or where there are no such interest rates, the lowest interest rate prevailing, at the date of the sale of the goods to the importer in Canada, in any country other than the country in which the vendor is located, for commercial loans available in that other country in the same currency in which the payments for the goods are expressed and on credit terms, other than the interest rate, that most closely approximate the credit terms on which the sale was made;

• (d) where the interest rates described in paragraphs (a) to (c) cannot be ascertained or where there are no such interest rates, the interest rate equal to the average yield in the year preceding the sale of the goods to the importer in Canada on securities, for terms not exceeding one year, issued by the government that issues the currency in which the payments for the goods are expressed; or

• (e) where the interest rates described in paragraphs (a) to (d) cannot be ascertained or there are no such interest rates, the average interest rate paid on Special Drawing Rights held by the International Monetary Fund in the year preceding the sale of the goods to the importer in Canada.