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Canada gives final conclusion on anti-dumping duty to upholstered seating from China and Vietnam

The Canada Border Service Agency (CBSA) has made the final determination on its investigation into the dumping and subsidising of certain upholstered domestic seating from China and Vietnam, according to the Ministry of Industry and Trade’s Trade Remedies Authority of Vietnam (TRAV).

Accordingly, out of eight Vietnamese enterprises who cooperate in the investigation, only one is subjected to the anti-subsidy tax of 3.7 percent and the rest don't have to pay this tax. The anti-subsidy tax rate for non-cooperating businesses is 5.5 percent.

The Ministry of Industry and Trade attributed the positive result to the close cooperation between the ministry and relevant agencies and People's Committees of provinces and cities to collect information and answer questions from the Canadian side.

The fact that Canada believed that the majority of Vietnamese enterprises do not receive subsidies from the Government shows the transparency of the country’s policy and law enforcement. It also reflected that Vietnam's economic sectors are operating in an equally competitive market,  said the TRAV.

Regarding anti-dumping behaviour investigation, in the CBSA’s final conclusion, most of the enterprises that cooperate in the investigation receive duty rates ranging from 10 to 20 percent, compared to preliminary levels of 20-90 percent.

The duty rate for those who didn’t cooperate in the investigation is up to 179.5 percent. Meanwhile, Chinese enterprises are subject to anti-subsidy tax from 1.1 percent to 81.1 percent and anti-dumping duty of between 9.3 and 188 percent.

In addition to the CBSA's investigation into dumping and subsidising, the Canadian International Trade Court (CITT) is investigating to determine the damage to the domestic industry.

The Canadian International Trade Tribunal (CITT) is reported to continue its inquiry to determine whether the imports are harming the Canadian producers. It is expected to issue a decision by September 2.

According to the Canadian data, during the investigation period of the case from June 2019 to the end of September 2020, the export turnover of upholstered seats from Vietnam to Canada reached approximately 135.6 million USD, accounting for 10.08 percent of Canada's total imports of this item.

The TRAV has urged the concerned exporters to keep a close watch on the case and fully cooperate with the CBSA during its investigation. They must also closely coordinate with the TRAV to receive timely support./