The Canada Border Services Agency (CBSA) has concluded an administrative review to determine the normal values and export prices applicable to upholstered domestic seating (UDS) originating in or exported from the People’s Republic of China by Zhejiang Trayton Co., Ltd. (“Zhejiang Trayton”) and the normal values, export prices and amounts of subsidy applicable to UDS originating in or exported from the Socialist Republic of Vietnam by HTL Furniture Vietnam Company Limited (“HTL Vietnam”).
In accordance with the Special Import Measures Act (SIMA), the review is part of the CBSA’s enforcement of the Canadian International Trade Tribunal’s (CITT) finding issued on September 2, 2021. For further information on administrative reviews, refer to Memorandum D14-1-8: Administrative Review Policy – Special Import Measures Act (SIMA).
The product definition and the applicable tariff classification numbers of the subject goods can be found on the CBSA’s Measures in force.
Period of investigation
The period of investigation (POI) and the profitability analysis period (PAP) for the dumping review is July 1, 2024 to December 31, 2025.
The POI for the subsidy review is January 1, 2025 to December 31, 2025.
Administrative review process
At the initiation of the review, the CBSA sent a dumping request for information (RFI) to exporters and their known importer to solicit information on the costs and selling prices of subject goods and like goods. The information was requested for purposes of determining the normal values and export prices for subject goods imported into Canada. Normal values determined on the basis of the review will also be applied to any entries of subject goods under appeal.
At the initiation of the review, the CBSA also sent a subsidy RFI to HTL Vietnam in order to solicit information on potential actionable subsidies and financial contributions received from the Government of Vietnam. The information was requested for purposes of determining amounts of subsidy for subject goods imported into Canada.
The Government of Vietnam was sent the CBSA’s government subsidy RFI requesting information concerning the alleged subsidy programs available to producers/exporters of subject goods.
For the purposes of the subsidy review, the Government of Vietnam refers to all levels of government, i.e., federal, central, provincial/state, regional, municipal, city, township, village, local, legislative, administrative or judicial, singular, collective, elected or appointed. It also includes any person, agency, enterprise, or institution acting for, on behalf of, or under the authority of, or under the authority of any law passed by, the government of that country or that provincial, state or municipal or other local or regional government.
The Government of Vietnam and the exporter were also notified that in cases where either the government or the exporter fail to provide complete and accurate submissions enabling the determination of specific amounts of subsidy, countervailing duties may be assessed at the rate of 1,914,726.79 VND per unit for Vietnam in accordance with a ministerial specification pursuant to subsection 30.4(2) of SIMA.
Both the Government of Vietnam and HTL Vietnam provided a response to the subsidy RFIs. Details pertaining to the information submitted by the exporters and producers in response to the RFIs as well as the results of the CBSA’s reviews are provided below.
Normal values, export prices and amounts of subsidy
China
Zhejiang Trayton Co., Ltd
Zhejiang Trayton is a producer and exporter of subject goods located in China. Zhejiang Trayton provided a response to the CBSA’s dumping RFI. A deficiency and supplemental RFIs (SRFI) were sent to Zhejiang Trayton to gather additional information.
Zhejiang Trayton did not have sufficient domestic sales of like goods that complied with all the terms and conditions referred to in sections 15 and 16 of the SIMA as to permit a proper comparison with the sales of the goods to the importer in Canada. As such, normal values were determined pursuant to paragraph 19(b) of SIMA, based on the aggregate of the cost of production of the goods, a reasonable amount for administrative, selling and all other costs, and a reasonable amount for profits.
The cost of production was determined in accordance with paragraph 11(1)(a) of the Special Import Measures Regulations (SIMR), based on Zhejiang Trayton’s cost data associated with the subject goods shipped to Canada. The amount for administrative, selling, and all other costs was determined in accordance with subparagraph 11(1)(c)(ii) of the SIMR, based on Zhejiang Trayton’s selling and administrative expenses incurred during the PAP.
The amount for profits for Zhejiang Trayton could not be determined in accordance with subparagraphs 11(1)(b)(i) to 11(1)(b)(vi) of the SIMR. As such, the amount for profits was determined pursuant to section 29 of SIMA, using the weighted-average amount for profits found during the investigation.
For subject goods exported to Canada by Zhejiang Trayton during the POI, export prices were determined pursuant to section 24 of SIMA, based on the lesser of the exporter’s selling price and the importer’s purchase price, adjusted by deducting the costs, charges and expenses incurred in preparing the goods for shipment to Canada and resulting from the exportation and shipment of the goods.
The review concerning the amount of subsidy for Zhejiang Trayton concluded on June 8, 2026. For additional information, refer to the Notice of Conclusion of the subsidy review for China, which was posted on the CBSA’s Dumping and subsidy administrative reviews.
Vietnam
HTL Furniture Vietnam Co., Ltd.
HTL Vietnam is an exporter and producer of subject goods located in Ho Chi Minh City, Vietnam. During the POI, HTL Vietnam sold subject goods directly to an importer in Canada.
HTL Vietnam provided a response to the CBSA’s dumping RFI and supplemental RFIs were sent to gather additional information and to seek clarification on certain questions. HTL Vietnam purchased inputs from two related suppliers in significant quantities. Responses to the CBSA’s related supplier questionnaires were received from all required parties. Officers of the CBSA met with representatives of HTL Vietnam at their facility in Vietnam to verify the information provided.
HTL Vietnam did not have sufficient sales of like goods that complied with all the terms and conditions referred to in sections 15 and 16 of SIMA as to permit a proper comparison with the sales of the goods to the importer in Canada. As such, normal values were determined pursuant to paragraph 19(b) of SIMA, based on the aggregate of the cost of production of the goods, a reasonable amount for administrative, selling and all other costs, and a reasonable amount for profits.
The cost of production was determined in accordance with paragraph 11(1)(a) of the SIMR, based on HTL Vietnam’s cost data associated with the subject goods shipped to Canada. As HTL Vietnam acquired inputs from associated suppliers, the CBSA investigated whether an adjustment should be made pursuant to paragraph 11.2(1) of the SIMR, however no adjustment was required. The amount for administrative, selling and all other costs, was determined in accordance with subparagraph 11(1)(c)(ii) of the SIMR, based on HTL Vietnam’s selling and administrative expenses incurred during the PAP.
The amount for profits for HTL Vietnam could not be determined in accordance with subparagraphs 11(1)(b)(i) to 11(1)(b)(vi) of the SIMR as there was not a sufficient amount of profits from exporters from Vietnam. As such, the amount for profits was determined pursuant to section 29 of SIMA, using the weighted-average amount for profits found during the investigation.
For subject goods exported to Canada by HTL Vietnam during the POI, export prices were determined pursuant to section 24 of SIMA, based on the lesser of the exporter’s selling price and the importer’s purchase price, adjusted by deducting the costs, charges and expenses incurred in preparing the goods for shipment to Canada and resulting from the exportation and shipment of the goods.
Following the timely responses to the subsidy RFIs from both HTL Vietnam and the Government of Vietnam, the CBSA determined a countervailing duty of VND 47,381.20 per piece, pursuant to subsection 30.4(1) of SIMA. Throughout the review, both parties consistently refuted any specific subsidy benefits, however, CBSA found evidence of assistance in the form of tax refunds/exemptions on imported machinery, as declared in HTL Vietnam’s submissions. During the government verification, officials provided the legal framework for this import tax exemption program, but were unable to name other beneficiary companies. This omission resulted in CBSA being unable to verify the broad application of the program. As such the CBSA determined that Program 1: Exemptions of Import Tax and Duty constituted a specific subsidy, enabling the calculation of specific subsidy amounts.
Exporter responsibility
All parties are cautioned that, where there are increases in domestic prices and/or costs, the export price should be increased accordingly to ensure that any sale made to Canada is not only above the normal value but at or above selling prices and full costs and profit of the goods in the exporter’s domestic market. If exporters do not adjust export prices accordingly, retroactive assessments of anti-dumping duties may be warranted. Please refer to the Memorandum D14-1-8: Administrative Review Policy – Special Import Measures Act (SIMA) for details.
Importer responsibility
Importers are reminded that it is their responsibility to declare their anti-dumping and countervailing duty liability. If importers are using the services of a customs broker to clear importations, the brokerage firm should be advised that the goods are subject to anti-dumping and countervailing measures and be provided with sufficient information necessary to clear the shipments. To determine their liability for anti-dumping and countervailing duty, importers should contact the exporters to obtain the applicable normal values and amounts of subsidy. For further information on this matter, refer to Memorandum D14-1-2: Disclosure of Normal Values, Export Prices, and Amounts of Subsidy Established under the Special Import Measures Act.
The Customs Act applies, with any modifications that the circumstances require, with respect to the accounting and payment of anti-dumping and countervailing duties. As such, failure to pay the duties within the prescribed time will result in the application of the interest provisions of the Act.
Should the importer disagree with the determination made on any importation of goods, a request for re-determination may be filed. For more information on how to file a request for re-determination, please refer to the Guide for appealing a duty assessment.
Contact us
Email: trade_remedies_registry-registre_recours_commerciaux@cbsa-asfc.gc.ca
https://www.cbsa-asfc.gc.ca/sima-lmsi/ar-ra/uds2026/uds202601-nc2-eng.h…