Special Import Measures Regulations (SOR/84-927)

• 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.

24 Where an export price is determined under section 25 of the Act, section 23 of these Regulations shall be read with the substitution of

• (a) the word “Canada” for the expressions “the country in which the vendor is located” and “that country”, wherever those expressions occur therein; and

• (b) the expression “sale of the goods by the importer in Canada” for the expression “sale of the goods to the importer in Canada”, wherever that expression occurs therein.

Goods in Transit

25 For the purpose of subsection 30(1) of the Act, the normal value and export price of goods exported to Canada from one country but passing in transit through another country shall be determined as if the goods were shipped directly to Canada from the first-mentioned country if

• (a) the goods are conveyed to Canada from the first-mentioned country on a through bill of lading to a consignee in Canada;

• (b) the goods have not been entered for trade or consumption in an intermediate country or have not remained in an intermediate country for any purpose other than transhipment; and

• (c) where requested by an officer, the importer of the goods submits

  • (i) the original bill of lading for the goods, or a certified copy of it, or

  • (ii) if the original bill of lading for the goods, or a certified copy of it, is not available, any other information or documents that are available to the importer for the purpose of determining the country of export of the goods.

Sustained Movement in the Rate of Exchange

• 25.1 (1) For the purpose of section 30.2 of the Act, where a sale of goods to an importer in Canada takes place during a period in which there is a sustained movement in the rate of exchange that results in an appreciation of the value of the foreign currency in which the normal value of the goods is denominated in terms of the currency in which the exporter’s selling price of those goods is denominated, and the exporter’s selling price of those goods is adjusted from the price prevailing 60 days before the date of the sale to reflect the sustained movement in the rate of exchange, the export price of the goods shall be adjusted by multiplying that price by the result obtained by dividing the prevailing rate of exchange in respect of the foreign currency for the date of sale, by the average of the rates of exchange in respect of that foreign currency prevailing for each of the 30 days before the 60th day before the date of sale.

• (2) Where the exporter’s selling price of the goods is denominated in Canadian dollars, the prevailing rate of exchange for the purpose of subsection (1) shall be the rate of exchange referred to in section 5 of the Currency Exchange for Customs Valuation Regulations.

• (3) Where the exporter’s selling price of the goods is denominated in foreign currency, the prevailing rate of exchange for the purpose of subsection (1) shall be determined on the basis of rates of exchange referred to in section 5 of the Currency Exchange for Customs Valuation Regulations.

PART I.1Margin of Dumping Based on Percentage or Sample

• 25.2 (1) For the purpose of subsection 30.3(3) of the Act, the margin of dumping in relation to the goods of an exporter that were not included in the percentage or sample and the goods of the exporter for which a margin of dumping was not determined in accordance with subsection 30.3(2) of the Act shall be equal to the weighted average margin of dumping established as a result of the application of sections 15 to 30 of the Act in respect of goods from that exporter that are included in the percentage or sample.

• (2) Where a margin of dumping cannot be determined under subsection (1) because no goods from the exporter were included in the percentage or sample, the margin of dumping shall

  • (a) be equal to the weighted average of the margins of dumping established as a result of the application of sections 15 to 28 and 30 of the Act, excluding paragraph 25(1)(e), in respect of goods that are from the same country and are included in the percentage or sample;

  • (b) where a margin of dumping cannot be determined under paragraph (a), be equal to the weighted average of the margins of dumping established as a result of the application of sections 15 to 28 and 30 of the Act, excluding paragraph 25(1)(e), in respect of goods that are from all other countries whose goods are under consideration and are included in a percentage or sample; or

  • (c) where a margin of dumping cannot be determined under paragraph (a) or (b), be determined in a reasonable manner based on the information available to the President.

• (3) Any margin of dumping that is insignificant shall not be taken into account in a determination of the margin of dumping under subsection (2).

25.3 [Repealed, SOR/2001-54, s. 2]

PART IIAmount of Subsidy

General

26 There shall be deducted from the amount of subsidy in relation to any subsidized goods

• (a) the amount of any fee or other expense necessarily incurred by the recipient of the subsidy in obtaining the subsidy;

• (b) the amount of any tax, duty or other charge levied by a government against the recipient of the benefit of the subsidy for the purpose of offsetting the subsidy; and

• (c) the amount of any loss in the value of the subsidy that results from the deferred receipt of the subsidy where the deferral has been imposed by the government that granted the subsidy.