Special Import Measures Regulations (SOR/84-927)

1 [Repealed, SOR/2019-314, s. 2]

Interpretation

2 In these Regulations,

Act

Act means the Special Import Measures Act; (Loi)

American Secretariat

American Secretariat means the United States section of the Secretariat provided for by Article 1909 of the Free Trade Agreement; (secrétariat américain)

industrial research

industrial research[Repealed, SOR/2001-54, s. 1]

officer

officer means an officer as defined in subsection 2(1) of the Customs Act; (agent)

pre-competitive development activity

pre-competitive development activity[Repealed, SOR/2001-54, s. 1]

production

production includes manufacturing, growing and processing; (production)

start-up period of production

start-up period of production means the period that

• (a) begins on the date that

  • (i) new production facilities are first used for commercial production, or

  • (ii) production first commences for commercial purposes of a product that is new, or substantially different from products previously produced by the producer, and that requires production equipment or technology that is new or substantially different from production equipment or technology previously used by the producer, and

• (b) ends on the date that the level of production is no longer limited to a significant degree owing to technical difficulties related to the use of new production facilities or the production of a new or substantially different product. (période de démarrage de la production)

Application

2.1 The operation of the definition American Secretariat in section 2, of Part II.1 and of sections 46 to 49 is suspended for the period during which subsections 56(1.02), 58(1.2) and 59(3.3) and section 77.038 of the Act are in force, except in respect of a definitive decision that was made before the coming into force of subsections 56(1.02), 58(1.2) and 59(3.3) and section 77.038 of the Act.

PART INormal Value and Export Price

NORMAL VALUE ADJUSTMENTS

Quantitative Adjustments

3 For the purposes of sections 15, 19 and 20 of the Act, the price of like goods shall be adjusted to reflect the quantity discount generally granted in connection with a sale of like goods in the same or substantially the same quantities as the quantities of the goods sold to the importer in Canada.

4 Where the quantity discount referred to in section 3 cannot be ascertained, the price of like goods shall be adjusted by

• (a) adding thereto the amount that would reflect the costs that would be incurred by the exporter, or

• (b) deducting therefrom the amount that would reflect the savings that would accrue to the exporter,

if the like goods were sold by the exporter in the same or substantially the same quantities as the quantities of goods sold to the importer in Canada.

Qualitative Differences

5 For the purposes of sections 15, 19 and 20 of the Act, where the goods sold to the importer in Canada and the like goods differ

• (a) in their quality, structure, design or material,

• (b) in their warranty against defect or guarantee of performance,

• (c) in the time permitted from their date of order to the date of their scheduled shipment, or

• (d) in their conditions of sale, other than the conditions referred to in paragraphs (b) or (c) or any conditions that result in any adjustment being made pursuant to any other section of these Regulations,

and that difference would be reflected in a difference between the price of the like goods and the price at which goods that are identical in all respects, including conditions of sale, to the goods sold to the importer in Canada would be sold in the country of export, the price of the like goods shall be adjusted

• (e) where the price of the like goods is greater than the price of the identical goods, by deducting therefrom the estimated difference between those prices; and

• (f) where the price of the like goods is less than the price of the identical goods, by adding thereto the estimated difference between those prices.

Discounts

6 For the purposes of sections 15, 19 and 20 of the Act, where any rebate, deferred discount or discount for cash is generally granted in relation to the sale of like goods in the country of export, the price of the like goods shall be adjusted by deducting therefrom the amount of any such generally granted rebate or discount for which the sale of the goods to the importer in Canada would qualify if that sale occurred in the country of export.

Delivery Costs

7 For the purposes of sections 15 and 19 and subparagraph 20(1)(c)(i) of the Act, where like goods are sold at a delivered price, the price of the like goods shall be adjusted by deducting therefrom the cost of their delivery.

8 For the purposes of sections 15 and 19 and subparagraph 20(1)(c)(i) of the Act, where like goods are generally sold at a common delivered price when delivered to any destination within a zone that, under the ordinary commercial practice of the vendor of the like goods, is considered to be a common transportation zone, the price of the like goods shall be adjusted by deducting therefrom an amount that reflects the average cost incurred by the vendor in delivering the like goods to destinations in that zone.

Substitution of Trade Level

9 For the purposes of sections 15 and 19 and subparagraph 20(1)(c)(i) of the Act, where purchasers of like goods who are at the trade level nearest and subsequent to that of the importer in Canada have been substituted for purchasers who are at the same or substantially the same trade level as that of the importer, the price of the like goods shall be adjusted by deducting therefrom

• (a) the amount of any costs, charges or expenses incurred by the vendor of the like goods in selling to purchasers who are at the trade level nearest and subsequent to that of the importer that result from activities that would not be performed if the like goods were sold to purchasers who are at the same or substantially the same trade level as that of the importer; or

• (b) in the absence of information relating to the costs, charges and expenses mentioned in paragraph (a), an amount not exceeding the discount that is generally granted on the sale of like goods by other vendors in the country of export to purchasers who are at the same or substantially the same trade level as the importer.

Taxes and Duties

10 For the purposes of sections 15, 19 and 20 of the Act, where any taxes or duties that are borne by like goods or any materials or components forming a part thereof are not borne by the goods sold to the importer in Canada, the price of the like goods shall be adjusted by deducting therefrom the amount of those taxes or duties.

Cost of Production and Other Costs

• 11 (1) For the purposes of paragraph 19(b) and subparagraph 20(1)(c)(ii) of the Act,

  • (a) subject to sections 11.2 and 12, the expression cost of production, in relation to any goods, means the aggregate of all costs that are

    • (i) attributable to, or in any manner related to, the production of the goods, or

    • (ii) directly attributable to the design or engineering of the goods;

  • (b) the expression a reasonable amount for profits, in relation to any goods, means an amount equal to

    • (i) where the exporter has made in the country of export a number of sales of like goods for use in the country of export, and where those sales when taken together produce a profit and are such as to permit a proper comparison, the weighted average profit made on the sales,

    • (ii) where subparagraph (i) is not applicable but the exporter has made in the country of export a number of sales of goods that are of the same general category as the goods sold to the importer in Canada and are for use in the country of export, and where those sales when taken together produce a profit and are such as to permit a proper comparison, the weighted average profit made on the sales,

    • (iii) where subparagraphs (i) and (ii) are not applicable but producers, other than the exporter, have made in the country of export a number of sales of like goods for use in the country of export, and where those sales when taken together produce a profit and are such as to permit a proper comparison, the weighted average profit made on the sales,

    • (iv) where subparagraphs (i) to (iii) are not applicable but producers, other than the exporter, have made in the country of export a number of sales of goods that are of the same general category as the goods sold to the importer in Canada and are for use in the country of export, and where those sales when taken together produce a profit and are such as to permit a proper comparison, the weighted average profit made on the sales,

    • (v) where subparagraphs (i) to (iv) are not applicable but the exporter has made in the country of export a number of sales of goods that are of the group or range of goods that is next largest to the category referred to in subparagraph (iv) and are for use in the country of export, and where those sales when taken together produce a profit and are such as to permit a proper comparison, the weighted average profit made on the sales, or

    • (vi) where subparagraphs (i) to (v) are not applicable but producers, other than the exporter, have made in the country of export a number of sales of goods that are of the group or range of goods that is next largest to the category referred to in subparagraph (iv) and are for use in the country of export, and where those sales when taken together produce a profit and are such as to permit a proper comparison, the weighted average profit made on the sales; and

  • (c) the expression a reasonable amount for administrative, selling and all other costs, in relation to any goods, means

    • (i) an amount equal to all administrative, selling and other costs, including the costs of any warranty against defect or guarantee of performance and any design or engineering costs, that are not included in the cost of production but are reasonably attributable to the production and domestic sales of like goods made by the exporter, 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, or

    • (ii) where an amount cannot be determined under subparagraph (i), an amount equal to all administrative, selling and other costs, including the costs of any warranty against defect or guarantee of performance and any design or engineering costs, that are not included in the cost of production but are reasonably attributable to the production and sale of the goods.

• (2) For the purposes of subparagraphs (1)(b)(i), (ii) and (v), where the exporter is not the producer of the goods referred to in those subparagraphs, a reasonable amount for profits shall also include the amount of profits earned by the producer and any subsequent vendors in respect of sales of those goods to the exporter.

• (3) For the purpose of subparagraph (1)(c)(i), where the exporter is not the producer of the goods referred to in that subparagraph, a reasonable amount for administrative, selling and all other costs shall also include the amounts incurred by the producer and any subsequent vendors in respect of sales of those goods to the exporter.

11.1 For the purpose of subsection 16(3) of the Act,

• (a) the cost of production, in relation to any goods, shall, subject to subsection 11.2(1) and section 12, be calculated by aggregating all costs that are

  • (i) attributable to, or in any manner related to, the production of the goods, or

  • (ii) directly attributable to the design or engineering of the goods; and

• (b) the administrative, selling and all other costs, in relation to any goods, shall be calculated by aggregating all administrative, selling and other costs, including the cost of any warranty against defect or guarantee of performance and any design or engineering costs that are not included in the cost of production but are attributable to the production and sale of the goods.

• 11.2 (1) For the purposes of subparagraphs 11(1)(a)(i) and 11.1(a)(i), if an input used in the production of the goods is acquired by the exporter or producer from an associated person and is a significant factor in the production of the goods, the cost of that input in the country of export is considered to be the greater of the following amounts:

  • (a) the price paid in respect of that input by the exporter or producer to the associated person;

  • (b) the cost incurred by the associated person in the production of that input, including the administrative, selling and all other costs with respect to that input; and

  • (c) the price in the country of export of the same or substantially the same inputs, if sufficient information is available to enable the price to be determined on the basis of

    • (i) the selling prices of those inputs in the country of export, in the same or substantially the same quantities, between parties who are not associated persons, or

    • (ii) the published prices of those inputs in the country of export.

• (2) For the purposes of subparagraph 11(1)(a)(i), if the President is of the opinion that, under paragraph 16(2)(c) of the Act, a particular market situation exists which does not permit a proper comparison of the sale of like goods with the sale of the goods to the importer in Canada, such that the acquisition cost of an input used in the production of the goods does not reasonably reflect the actual cost of that input, the cost of that input in the country of export shall be considered to be the first of the following amounts that reasonably reflects the actual cost of the input so as to permit a proper comparison:

  • (a) the price of the same or substantially the same inputs that are produced in the country of export and sold to the exporter or to other producers in the country of export;

  • (b) the price of the same or substantially the same inputs that are produced in the country of export and sold from the country of export to a third country;

  • (c) the price of the same or substantially the same inputs determined on the basis of the published prices of those inputs in the country of export;

  • (d) the price of the same or substantially the same inputs that are produced in a third country and sold to the exporter or to other producers in the country of export, adjusted to reflect the differences relating to price comparability between the third country and the country of export; or

  • (e) the price of the same or substantially the same inputs determined on the basis of the published prices outside the country of export, adjusted to reflect the differences relating to price comparability with the country of export.