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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)

State Trading Countries (continued)

 For the purposes of subsection 20(1) of the Act, the following customs territories are prescribed countries:

  • (a) the People’s Republic of China;

  • (b) the Socialist Republic of Vietnam; and

  • (c) the Republic of Tajikistan.

  • SOR/2002-349, s. 1
  • SOR/2013-81, s. 1
  • SOR/2015-33, s. 1

 [Repealed, SOR/2015-33, s. 1]

Discount Rate for Normal Value

 For the purposes of subsection 21(1) of the Act, where it is not possible to ascertain the interest rate referred to in clause 21(1)(a)(ii)(A) of the Act or there is no such interest rate, the interest rate to be selected is

  • (a) the interest rate prevailing, in the country in which the like goods were sold, at the date of the sale of the like goods, for commercial loans available in that country in the same currency in which the payments for the like goods are expressed and on credit terms, other than the interest rate, that most closely approximate the credit terms on which the sale was made;

  • (b) where the interest rate described in paragraph (a) cannot be ascertained or where there is no such interest rate, the lowest interest rate prevailing, in any country other than the country in which the like goods were sold, at the date of the sale of the like goods, for commercial loans available in that other country in the same currency in which the payments for the like goods are expressed and on credit terms, other than the interest rate, comparable to the credit terms on which the sale was made;

  • (c) where the interest rates described in paragraphs (a) and (b) cannot be ascertained or where there are no such interest rates, the lowest interest rate prevailing, in any country other than the country in which the like goods were sold, at the date of the sale of the like goods, for commercial loans available in that other country in the same currency in which the payments for the like goods are expressed and on credit terms, other than the interest rate, that most closely approximate the credit terms on which the sale was made;

  • (d) where the interest rates described in paragraphs (a) to (c) cannot be ascertained or where there are no such interest rates, the interest rate equal to the average yield in the year preceding the sale of the like goods on securities, for terms not exceeding one year, issued by the government that issues the currency in which the payments for the like goods are expressed; or

  • (e) where the interest rates described in paragraphs (a) to (d) cannot be ascertained or where there are no such interest rates, the average interest rate paid on Special Drawing Rights held by the International Monetary Fund in the year preceding the sale of the like goods.

 Where the normal value of any goods is to be determined under paragraph 20(1)(d) of the Act, section 18 of these Regulations shall be read with the substitution of

  • (a) the word “Canada” for the expressions “the country in which the like goods were sold” and “that country”, wherever those expressions occur therein; and

  • (b) the expression “sale of the imported like goods” for the expression “sale of the like goods”, wherever that expression occurs therein.

  • SOR/2000-138, s. 12

EXPORT PRICE ADJUSTMENTS

Profits

 For the purpose of subparagraph 25(1)(c)(ii) of the Act, the expression an amount for profit, in relation to a sale of goods by an importer, means the amount of profit that would be made in the ordinary course of trade on the sale of the goods.

  • SOR/96-255, ss. 7, 25

 For the purpose of subparagraph 25(1)(d)(i) of the Act, the expression an amount for profit, in relation to any assembled, packaged or otherwise further manufactured goods or any goods into which imported goods have been incorporated, means the amount of profit that would be made in the ordinary course of trade on the sale of the goods.

  • SOR/96-255, ss. 7, 25

 For the purposes of sections 20 and 21, the amount of profit that would be made in the ordinary course of trade on the sale of the goods is

  • (a) the amount of profit that generally results from sales of like goods in Canada by vendors 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;

  • (b) where 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 in Canada by vendors 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; 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. 8, 25

Discount Rate for Export Price

 For the purposes of subsection 27(1) of the Act, where it is not possible to ascertain the interest rate referred to in clause 27(1)(a)(ii)(A) of the Act or there is no such interest rate, the interest rate to be selected is

  • (a) the interest rate prevailing, at the date of the sale of the goods to the importer in Canada, in the country in which the vendor is located, for commercial loans available in that country in the same currency in which the payments for the goods are expressed and on credit terms, other than the interest rate, that most closely approximate the credit terms on which the sale was made;

  • (b) where the interest rate described in paragraph (a) cannot be ascertained or where there is no such interest rate, the lowest interest rate prevailing, at the date of the sale of the goods to the importer in Canada, in any country other than the country in which the vendor is located, for commercial loans available in that other country in the same currency in which the payments for the goods are expressed and on credit terms, other than the interest rate, comparable to the credit terms on which the sale was made;

  • (c) where the interest rates described in paragraphs (a) and (b) cannot be ascertained or where there are no such interest rates, the lowest interest rate prevailing, at the date of the sale of the goods to the importer in Canada, in any country other than the country in which the vendor is located, for commercial loans available in that other country in the same currency in which the payments for the goods are expressed and on credit terms, other than the interest rate, that most closely approximate the credit terms on which the sale was made;

  • (d) where the interest rates described in paragraphs (a) to (c) cannot be ascertained or where there are no such interest rates, the interest rate equal to the average yield in the year preceding the sale of the goods to the importer in Canada on securities, for terms not exceeding one year, issued by the government that issues the currency in which the payments for the goods are expressed; or

  • (e) where the interest rates described in paragraphs (a) to (d) cannot be ascertained or there are no such interest rates, the average interest rate paid on Special Drawing Rights held by the International Monetary Fund in the year preceding the sale of the goods to the importer in Canada.

 Where an export price is determined under section 25 of the Act, section 23 of these Regulations shall be read with the substitution of

  • (a) the word “Canada” for the expressions “the country in which the vendor is located” and “that country”, wherever those expressions occur therein; and

  • (b) the expression “sale of the goods by the importer in Canada” for the expression “sale of the goods to the importer in Canada”, wherever that expression occurs therein.

Goods in Transit

 For the purpose of subsection 30(1) of the Act, the normal value and export price of goods exported to Canada from one country but passing in transit through another country shall be determined as if the goods were shipped directly to Canada from the first-mentioned country if

  • (a) the goods are conveyed to Canada from the first-mentioned country on a through bill of lading to a consignee in Canada;

  • (b) the goods have not been entered for trade or consumption in an intermediate country or have not remained in an intermediate country for any purpose other than transhipment; and

  • (c) where requested by an officer, the importer of the goods submits

    • (i) the original bill of lading for the goods, or a certified copy of it, or

    • (ii) if the original bill of lading for the goods, or a certified copy of it, is not available, any other information or documents that are available to the importer for the purpose of determining the country of export of the goods.

  • SOR/92-590, s. 1(E)
  • SOR/96-255, ss. 9, 25

Sustained Movement in the Rate of Exchange

  •  (1) For the purpose of section 30.2 of the Act, where a sale of goods to an importer in Canada takes place during a period in which there is a sustained movement in the rate of exchange that results in an appreciation of the value of the foreign currency in which the normal value of the goods is denominated in terms of the currency in which the exporter’s selling price of those goods is denominated, and the exporter’s selling price of those goods is adjusted from the price prevailing 60 days before the date of the sale to reflect the sustained movement in the rate of exchange, the export price of the goods shall be adjusted by multiplying that price by the result obtained by dividing the prevailing rate of exchange in respect of the foreign currency for the date of sale, by the average of the rates of exchange in respect of that foreign currency prevailing for each of the 30 days before the 60th day before the date of sale.

  • (2) Where the exporter’s selling price of the goods is denominated in Canadian dollars, the prevailing rate of exchange for the purpose of subsection (1) shall be the rate of exchange referred to in section 5 of the Currency Exchange for Customs Valuation Regulations.

  • (3) Where the exporter’s selling price of the goods is denominated in foreign currency, the prevailing rate of exchange for the purpose of subsection (1) shall be determined on the basis of rates of exchange referred to in section 5 of the Currency Exchange for Customs Valuation Regulations.

  • SOR/95-26, s. 4
  • SOR/96-255, ss. 10, 25
 
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