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Special Import Measures Regulations (SOR/84-927)

Regulations are current to 2020-09-09 and last amended on 2020-07-01. Previous Versions

PART INormal Value and Export Price (continued)

NORMAL VALUE ADJUSTMENTS (continued)

Cost of Production and Other Costs (continued)

 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.

  • SOR/96-255, ss. 3, 25
  • SOR/2019-314, s. 4
  •  (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.

  • SOR/2019-314, s. 5

 For the purposes of subparagraphs 11(1)(a)(ii) and 11.1(a)(ii), where the costs that are directly attributable to the design or engineering of the goods (in this section referred to as “first-mentioned goods”) cannot be determined, but the costs that are directly attributable to the design or engineering of goods of the same general category as the first-mentioned goods, produced and sold by any exporter or producer, can be determined, the costs that are directly attributable to the design or engineering of the first-mentioned goods shall be considered to be the amount that reflects the cost of the design or engineering of the goods of the same general category, such amount being adjusted to reflect the value of any differences in the design or engineering between the first-mentioned goods and the goods of the same general category.

  • SOR/95-26, s. 3
  • SOR/96-255, ss. 4, 25

 For the purposes of paragraph 11(1)(b),

  • (a) sales that are such as to permit a proper comparison are sales, other than any sale referred to in subsection 16(2) of the Act, 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;

  • (b) the price of like goods shall be adjusted in the manner provided for in sections 3 to 10; and

  • (c) the price of goods of the same general category or of goods of the group or range of goods that is next largest to the category referred to in subparagraph 11(1)(b)(iv) shall be adjusted in the manner provided for in sections 3 to 10, and for that purpose the expression “like goods” shall be read as “goods of the same general category” or “goods of the group or range of goods that is next largest to the category referred to in subparagraph 11(1)(b)(iv)”, as the case may be, wherever that expression occurs in those sections.

  • SOR/95-26, s. 3
  • SOR/2000-138, s. 2
  • SOR/2018-88, s. 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.

  • SOR/95-26, s. 3
  • SOR/96-255, ss. 5, 25

State Trading Countries

 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.

  • SOR/2000-138, s. 3
  • SOR/2019-314, s. 6

 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.

  • SOR/2000-138, s. 12

 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.

  • SOR/2000-138, s. 12

 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.

  • SOR/96-255, ss. 6, 25
 
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