The Canada Border Services Agency (CBSA) has imposed temporary tariffs on sofas and chairs from China and Vietnam and are flooding the market.
In an email to Global News, the agency said an investigation is currently underway for dumped and subsidized products from the two countries.
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Rights against Chinese manufacturers vary between 20% and 295% while those against Vietnamese manufacturers range from 17% to 101%.
“The CBSA has completed the preliminary stage of its investigations and found that imports of upholstered interior seats from China and Vietnam have been dumped and subsidized,” a statement from spokesperson Mark read. Stuart.
“As of May 5, 2021, provisional duties are imposed on these imports, in order to offset the injurious effects of dumping and subsidizing.”
The statement also noted that Canadian producers have the right to be protected against goods imported at unfair prices under the Special Import Measures Act.
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The investigation was triggered by a written complaint from Canadian manufacturers.
Global News contacted two Canadian organizations representing furniture makers, but received no response.
Furniture stores across the country are concerned about the impact the royalties will have on affordability for customers.
The Retail Council of Canada said many small and medium-sized businesses in rural areas were already suffering and that was another blow.
“(They say), ‘I’m barely surviving because of the pandemic and the various restrictions across the country and these tasks are just the last nail in the coffin,” CEO Diane Brisebois told Global News.
A Saskatchewan retailer said it had to contact 64 customers who had placed previous orders to advise them of rates and was unable to sell the sofas and recliners at the listed price.
“They had to make a decision. Do you think even one of those customers decided to go ahead with the sale? Not a chance, ”said Chris Odishaw of Battleford Furniture.
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The tax could be fully implemented in the coming months.
The CBSA said final determinations regarding dumping and subsidized furniture will be made by August 3.
The agency said if a final decision on whether to maintain tariffs is made, the Canadian International Trade Tribunal (CITT) will hold an inquiry into the severity of the damage to Canadian manufacturers.
Brisebois and Odishaw said wait times for Canadian manufacturers of sofas and recliners are three to nine months.
The member for Surrey-Newton also collects letters and petitions from businesses.
Sukh Dhaliwal’s office said it intended to raise the issue at Liberal caucus meetings this week.
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