Measure in Force: What It Means for Importers

Navigating the complex waters of international trade requires vigilance, especially when it comes to compliance with government regulations. One critical concept that every Canadian importer must understand is a measure in force. If you import goods that are subject to these specific regulations without realizing it, you could face significant financial penalties and supply chain disruptions.

This guide breaks down what a measure in force is, how it impacts your business, and why working with compliance experts is your best defense against unexpected duties.

What is a Measure in Force?

A measure in force refers to a specific ruling applied to imported goods under the Special Import Measures Act (SIMA). These measures are put in place to protect Canadian industries from unfair trade practices, primarily dumping and subsidizing.

When foreign manufacturers sell goods in Canada at prices lower than they sell them in their own domestic market (dumping), or when they receive financial assistance from their government that allows them to undercut Canadian prices (subsidizing), the Canada Border Services Agency (CBSA) investigates. If the investigation confirms injury to Canadian production, a measure in force is established.

Essentially, a measure in force is a standing order that requires importers to pay additional duties on specific goods from specific countries to level the playing field.

Why Importers Need to Pay Attention

Ignoring a measure in force is not an option. The CBSA maintains a strict list of goods currently subject to these measures. As an importer, the onus is entirely on you to know if the products you are bringing across the border fall under a measure in force.

The list of affected goods is extensive and varied. It includes industrial materials like aluminum extrusions, steel grating, and copper pipe fittings, but also consumer goods like upholstered domestic seating, mattresses, and dry wheat pasta.

If you import a product subject to a measure in force, you are liable for anti-dumping duties, countervailing duties, or both. These aren’t small fees; they can sometimes exceed 100% of the value of the goods, completely erasing your profit margins if you haven’t accounted for them.

Navigating Compliance: Your Responsibilities

Compliance begins with accurate classification and thorough due diligence. Here is how you can ensure you aren’t caught off guard by a measure in force.

1. Check the Official List

The CBSA publishes a “Measures in Force” list. This document details every active case by product, type (dumping or subsidy), and country of origin. Before signing a purchase order with a new supplier, check this list. If you see a product category that matches yours, dig deeper.

2. Verify Specifics

A measure in force is often very specific. For example, not all “steel pipe” is affected—only specific diameters or grades from specific countries might be. Review the full definition of the product in the official SIMA findings to see if your goods match the description of the measure in force.

3. Understand Liability

It is crucial to understand that the importer of record is responsible for all duties owing. Even if your supplier claims their goods are exempt, if the CBSA determines otherwise, you are the one who must pay. A measure in force applies regardless of intent; claiming ignorance will not absolve you of the tax liability.

The Consequences of Non-Compliance

Failing to declare that goods are subject to a measure in force is a serious offense. The CBSA uses sophisticated data analysis to identify potential non-compliance.

If you fail to apply the correct SIMA code or pay the required duties associated with a measure in force, you face:

• Retroactive Assessments: You will owe the unpaid duties, often going back several years.
• AMPS Penalties: The Administrative Monetary Penalty System (AMPS) can impose fines for incorrect information.
• Interest: You will be charged interest on all unpaid amounts.
• Increased Scrutiny: Your future shipments may be flagged for frequent, intense inspections, slowing down your supply chain.

By respecting every measure in force, you protect your business from these damaging outcomes.

Frequently Asked Questions

What is a measure in force?

A measure in force is an active ruling under the Special Import Measures Act (SIMA) that imposes anti-dumping or countervailing duties on specific imported goods to offset unfair trade practices like dumping or subsidies.

How can I find out if a product is subject to a measure in force?

You can verify this by consulting the CBSA’s Measures in Force list. This list categorizes goods by product, country, and type of measure. However, because product descriptions can be technical, it is often wise to consult a trade expert.

What are the penalties for non-compliance?

If you ignore a measure in force, you may face retroactive duty assessments, interest charges, and penalties under the Administrative Monetary Penalty System (AMPS). Additionally, you may face delays at the border for future shipments.

Can a measure in force expire?

Yes. Measures are generally reviewed every five years. If the Canadian International Trade Tribunal (CITT) determines that the injury to domestic industry is unlikely to continue or resume, the measure in force may be rescinded (expired). Conversely, it can be continued for another five years.

Does a measure in force apply to all countries?

No. A measure in force is country-specific and often exporter-specific. For example, carbon steel welded pipe might be subject to measures if imported from China or India, but not if imported from Germany.

Secure Your Supply Chain with Expert Help

Navigating the complexities of SIMA and identifying every relevant measure in force can be overwhelming. The definitions are technical, and the financial stakes are incredibly high. You don’t have to manage this risk alone.

Our team of licensed customs brokers specializes in SIMA compliance. We can help you review your product catalogue, identify potential liabilities, and ensure that every measure in force is correctly accounted for before your goods leave the factory.

Don’t let hidden duties destroy your bottom line. Contact us today for a comprehensive compliance review.