Canada imposes provisional duties on imports of high protein content pea protein from China

Background

On 22 April 2024, the CBSA initiated investigations, pursuant to subsection 31(1) of the SIMA, respecting the alleged injurious dumping and subsidizing of HPC originating in or exported from China.¹

For the purposes of the investigations, the subject goods were defined as HPC pea protein originating in or exported from the People’s Republic of China in all physical forms regardless of packaging, with a minimum pea protein content of 65% on a dry weight basis (calculated using a Jones factor of 6.25). Subject goods exclude:

• Texturized pea protein; and
• HPC pea protein that has been incorporated into finished products if the HPC pea protein itself is further processed such that it no longer retains its initial physical and chemical characteristics and other properties.²

On 7 May 2024, the CBSA concluded that there was sufficient evidence that imports of HPC originating in or exported from China threaten injury to the pea protein industry in Canada.³

Following the CBSA’s conclusion, the Canadian International Trade Tribunal (CITT) began a preliminary inquiry to determine whether available evidence discloses a reasonable indication that the alleged dumping and subsidizing of the subject goods have caused or are threatening to cause injury to Canadian industry.

On 20 June 2024, the CITT made a positive determination of reasonable indication of injury,⁴ following which the CBSA made its preliminary determination of dumping and subsidizing with respect to HPC pea protein and began to levy provisional duties as of 22 July 2024.

Provisional duties

The subject goods are normally imported under the following tariff classification numbers:

• 3504.00.90.00
• 2106.10.00.00

The CBSA identified five exporters that have been assigned specific provisional rates of duty ranging from 1.1% to 12%; all other exporters are subject to a provisional duty rate of 54.6% during the provisional period.⁵

Next steps

The CBSA will issue a Statement of Reasons within 15 days of the date preliminary determinations were made.

The CBSA’s investigations are expected to conclude by 21 October 2024, at which point either final determinations will be made, or the investigations will be terminated. If the CBSA makes final determinations of dumping and/or subsidizing, the CITT will continue its inquiry, and public hearings with respect to the question of material injury to the Canadian industry will be held. The CITT is required to make a finding with respect to the subject goods no later than 120 days after the date of the CBSA’s preliminary determinations.

Learn more

For more information, please contact one of the following EY Global Trade professionals:

Sylvain Golsse
+1 416 932 5165 | sylvain.golsse@ca.ey.com

Kristian Kot
+1 250 294 8384 | kristian.kot@ca.ey.com

Joanna Liang
+1 416 943 5512 | joanna.liang1@ca.ey.com

Camilla Da Matta Lima Costa
+1 416 943 2647 | camilla.damatta1@ca.ey.com

Traci Tohn
+1 514 879 2698 | traci.tohn@ca.ey.com

Denis Chrissikos
+1 514 879 8153 | denis.chrissikos@ca.ey.com

Jocelyn Mao
+1 416 943 2212 | jocelyn.mao@ca.ey.com  

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1. Statement of reasons—Initiation of investigations: High Protein Content Pea Protein (HPC 2024 IN) (cbsa-asfc.gc.ca).
2. Ibid, paragraph 12.
3. Ibid.
4. Tribunal Issues Determination of Reasonable Indication of Injury—Pea Protein from China - Canadian International Trade Tribunal (citt-tcce.gc.ca).
5. Notice of preliminary determinations: High Protein Content Pea Protein (HPC 2024 IN) (cbsa-asfc.gc.ca).

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