Importers must stay up to date on regulatory changes that impact Canada trade — or the potential for changes. SIMA investigations are one tool that Canada Border Services Agency uses to assess the compliance of importers and identify possible amendments to regulatory framework.
Canada Border Services Agency stated mid-June 2021 that they are launching an investigation regarding the subsidizing or dumping of container chassis acquired from China. The investigation takes place under the SIMA act, and it takes place due to a complaint coming from Max-Atlas Equipment International INC.
Aside from that company, there’s also Innovative Trailer Design from Toronto and Di-Mond from Stony Creek that are both offering support for the Max-Atlas complaint. This complaint comes mostly due to a recent increase in the amount of subsidized — or even dumped — imports that came from China. According to the complaint, the companies within this industry are dealing with multiple problems, like lower capacity, price depression or undercutting, less sales, and a decreased market share.
Both the Canadian International Trade Tribunal and the CBSA are a part of the investigations. The CIIT already started an inquiry to identify whether these imports are actively damaging any of the Canadian manufacturers and producers. The investigation is ongoing, but a decision is set to arrive by August 9th.
In addition, the CBSA has their own investigation. Their focus is to identify whether these container chassis imports are sold at prices well under the market average. They are also studying the market to see if the imports are subsidized as well. They will share their decision until September 8th.
Companies like Di-Mond, Max-Atlas Equipment International and Innovative Trailer Design have continually seen these issues happening for quite some time now. These complaints and investigations are warranted in their eyes, since they want to eliminate unfair competition. While it might take some time for the SIMA investigation to reach its conclusion, it’s important for such problems to be studied and solved in case there’s any real issue regarding them.
The Container Chassis Market
It’s important to note that the Canadian market for container chassis is around $75 million per year, so it’s a rather fruitful business. At this time, there are 127 special import measures that are used in Canada. They cover a variety of consumer and industrial products. Until the last day of 2019, these special import measures managed to protect $9.56 billion in national production and 34810 jobs. Having import measures is extremely important, and it can help any unfair advantage that importers might bring at this time.
Every Canadian importer is curious about the way these investigations will turn out. The CBSA investigation and SIMA investigation in particular will most likely show whether there are any issues with the container chassis market. In the event of identified issues, the government will start making changes in order to protect Canadian jobs and the economy as a whole.
We still have to wait roughly a month until both investigations are finished. However, a copy for the Statement of Reasons will be available from the CBSA website, and this will offer more insight and details regarding the investigations and how they took place.
Keeping a close eye on SIMA investigations (even if they are not directly related to markets you operate in) is important. The results of these investigations may have impacts on the regulatory framework that your industry relies on for success. Partnering up with a customs broker to stay up to date on the regulatory changes by CBSA is the ideal move to protect your business. You can start a conversation here.