  
  
G/ADP/N/1/CAN/4/Suppl.3  
30 September  2019 
(19-6276) Page: 1/3 
Committee on Anti -Dumping Practices  Original:  English  
 
  
NOTIFICATION OF LAWS  AND REGULATIONS UND ER  
ARTICLE 18.5 OF THE  ANTI -DUMPING AGREEME NT 
CANADA  
Supplement  
The following communication, dated 27 September  2019, is being circulated at the re quest of the 
delegation of Canada . 
 
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Enclosed please find a copy of a supplementary notification pursuant to Article 18.5 of the WTO Anti -
Dumping Agreement, concerning amendments to the Special Import Measures Regulations , related 
to the conduct of anti -dumping investigation s. 
 
Pursuant to Article 18.5 of the WTO Anti -Dumping Agreement, Canada hereby notifies the Committee 
on Anti -Dumping Practices of amendments to the Special Import Measures Regulations , which came 
into force on 23 August 2019.  
 
The changes are contained in the Regulations Amending the Special Import Measures Regulations  
(attached), published in the Canada Gazette , Part II, on 4 September 2019.1 
 
The key elements of the changes are as follows:  
 
• Particular market situation: Where a particular market situation has been found, in 
determining the costs of production for goods, alternative methodologies can be used 
to determine the cost of inputs, if they do not allow for a proper comparison between 
the sale of goods in the country of export and the sale of goods exported to Canada due 
to the particular market situation. The amendments provide a hierarchy of alternatives 
to be used to determine the costs of inputs, with price adjustments to be made as 
necessary to reflect the actual cost of the input in th e country of export.  
• Associated parties: In situations where inputs are supplied by an associated supplier 
(e.g. a subsidiary or affiliated company), the Canada Border Services Agency may now 
use, for this cost, the highest of the transfer price between pa rties, the actual costs to 
the supplier, or a reasonable benchmark determined in the country of export if such 
information is available.  
 
 
 
 
 
  
                                                
1 http://gazette.gc.ca/rp -pr/p2/2019/2019 -09-04/html/sor -dors314 -eng.html . G/ADP/N/1/CAN/4/Suppl.3  
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  ANNEX  
REGULATIONS AMENDING  THE SPECIAL IMPORT  
MEASURES REGULATIONS  (SOR/2019 -314) 
Amendments  
1 The long title o f the Special Import Measures Regulations is replaced by the following:  
Special Import Measures Regulations  
2 Section 1 of the Regulations and the heading before it are repealed.  
3 The portion of paragraph 11(1)(a) of the Regulations before subparagraph (i ) is 
replaced by the following:  
(a) subject to sections 11.2 and 12, the expression cost of production , in relation to any 
goods, means the aggregate of all costs that are  
4 The portion of paragraph 11.1(a) of the Regulations before subparagraph (i) is replaced 
by the following:  
(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  
5 The Regulations are amended by adding the following after section 11.1:  
11.2 (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 th e 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 in put; 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 th e 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, u nder 
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 produc tion 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 t hat 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;  G/ADP/N/1/CAN/4/Suppl.3  
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  (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 an d 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 ex port. 
6 The portion of section 14 of the Regulations before paragraph (a) is replaced by the 
following:  
14 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  
Coming into Force  
7 These Regulations come into force on the day on which they are registered.  
 
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