Dear Members of the CBA International Law Section, here are the international trade articles and publications of interest for the month of April 2022.This month’s edition has been prepared by Susana Lee. Susana is an international trade lawyer at Cassidy Levy Kent LLP and the current Secretary of the Section.
News
“Extreme” supply chain snafus hit lumber industry, forcing output curbs as prices hover near record, Financial Post (April 1, 2022)
Canfor Corp., one of North America’s biggest lumber producers, said {the week of April 1} that it will shift to a four-day workweek at most of its 11 mills in British Columbia and Alberta starting April 4; not because of inadequate demand, but because it’s run out of room to pile the boards that customers are ordering at a startling rate.The main issue appears to be a shortage of rail cars in Western Canada, where Canadian National Railway Co. and Canadian Pacific Railway Ltd. are struggling to keep up with the post-pandemic surge in demand for virtually every commodity that Canada exports in bulk. That means companies have been piling up inventory, as they wait for the railways to clear their backlogs. Things got so bad for Canfor that it ran out of space; the company said the new production schedule will reduce output by at least 100 million board feet at a time when lumber prices are sitting near an all-time high.
Court rejects bid to ban imports from China’s Xinjiang Region over Labour Concerns, CTV News (April 12, 2022)
Activists concerned about forced labour have lost a court bid for a general ban on the Canadian importation of all goods from the Xinjiang region of China. The Federal Court has rejected their application to overturn a Canada Border Services Agency (CBSA) decision that said the agency had no authority to enact such a ban.In her recent decision, Federal Court Associate Chief Justice Jocelyne Gagne said she saw no element of either the Customs Act or the tariff in question that imposed a duty on the border agency to make a decision such as the one sought by the refugee group and its allies. Further, she said each shipment of goods that arrives in Canada is subject to an officer's determination on origin, tariff and value, and such decisions can be appealed through administrative mechanisms.
Russia-Ukraine conflict puts fragile global trade recovery at risk, World Trade Organization (April 13, 2022)
Prospects for the global economy have darkened since the outbreak of war in Ukraine on 24 February, prompting WTO economists to reassess their projections for world trade over the next two years. The organization now expects merchandise trade volume growth of 3.0% in 2022—down from its previous forecast of 4.7%—and 3.4% in 2023, but these estimates are less certain than usual due to the fluid nature of the conflict.
Windward: 1 in 5 Containerships Globally are Stuck Waiting Outside Congested Ports, Article by Mike Schuler, gCaptain (April 22, 2022)
The number of containerships waiting outside of congested ports has risen sharply in recent months, with 20% of all containerships trading globally now stuck in backups, according to maritime data intelligence firm Windward. Widespread COVID-19 lockdowns in China have heavily impacted congestion outside the country’s ports, with the number of waiting ships nearly doubling since lockdowns first went into place—climbing from 206 in February to 506 in April, according to Windward…Congestion at ports during the COVID-19 pandemic has contributed to a dramatic rise in freight rates in over past two years, and now China’s latest COVID lockdowns, sparked by the country’s zero-COVID strategy, are now adding even more headwinds to global supply chains as ships are stuck outside ports. Some experts believe there could be bounce back on the horizon once lockdowns are lifted, threatening progress made by some ports, such as Los Angeles and Long Beach, in reducing the backlog of ships in recent months.
Canada plans to reopen embassy in Ukraine in coming days or weeks: Joly, CTB News (April 28, 2022)
Foreign Affairs Minister Melanie Joly says the Canadian government intends to reopen its embassy doors in Ukraine shortly, following in the footsteps of its allies. Appearing before the Senate foreign affairs and international trade committee on Thursday, Joly said Ottawa is considering “different scenarios” to do so…“My objective is to do so in the coming days, coming weeks. We just need to make sure that there is a secure environment for staff and also we're looking at what our other Five Eyes colleagues and allies are doing,” Joly said.
Press Releases & Governmental Notices
Canadian Sanctions Related to Russia and Belarus, Updates and Excerpts from the Government of Canada
Regulations Amending the Special Economic Measures (Russia) Regulations (SOR/2022-074)
On April 5, 2022, Canada amended the Special Economic Measures (Russia) Regulation to prohibit the provision of all insurance, reinsurance, and underwriting services for aircraft, aviation and aerospace products either owned by, controlled by, registered to, chartered by, or operated by entities and individuals resident, incorporated, or domiciled in Russia. Nine individuals were also added to the sanctions list.
Regulations Amending the Special Economic Measures (Belarus) Regulations (SOR/2022-075)
On April 5, 2022, Canada amended the Special Economic Measures (Belarus) Regulation to prohibit the provision of all insurance, reinsurance, and underwriting services for aircraft, aviation and aerospace products either owned by, controlled by, registered to, chartered by, or operated by entities and individuals resident, incorporated, or domiciled in Belarus. Nine individuals were also added to the sanctions list.
Regulations Amending the Special Economic Measures (Russia) Regulations (SOR/2022-081)
On April 8, 2022, Canada amended the Special Economic Measures (Russia) Regulations to add 33 entities belonging to the defence sector to the sanctions list.
Regulations Amending the Special Economic Measures (Russia) Regulations (SOR/2022-084)
On April 19, 2022, Canada amended the Special Economic Measures (Russia) Regulations to add 14 individuals belonging to the defence sector to the sanctions list.
Canada imposes sanctions on 203 individuals complicit in attempted annexation of certain areas of Donbass, Ukraine, Government of Canada, Global Affairs Canada press release (April 27, 2022)
The Honourable Mélanie Joly, Minister of Foreign Affairs…announced that Canada is imposing new sanctions under the Special Economic Measures (Ukraine) Regulations.These new measures impose restrictions on 11 senior officials and 192 other members of the People’s Councils of the so-called Luhansk and Donetsk People’s Republics who are complicit in the Russian regime’s ongoing violations of Ukraine’s sovereignty and territorial integrity.
Statement from the Chief Plant Health Officer: Amended U.S. Federal Order on Potato Wart in Prince Edward Island, Government of Canada, Canadian Food Inspection Agency (April 6, 2022)
The Canadian Food Inspection Agency (CFIA) welcomes the news from the United States Department of Agriculture's Animal and Plant Health Inspection Service (USDA-APHIS) today, that imports of Prince Edward Island (PEI) potatoes for consumption can now resume to the United States with conditions. Field grown seed potatoes from PEI may not be exported to the U.S. at this time.
Upholstered domestic furniture, Notice of normal value review, Canada Border Services Agency (April 6, 2022)
UDS 2022 UP2: Upholstered domestic furniture
UDS 2022 UP3: Upholstered domestic furniture
The CBSA has initiated a normal value review (review) to update all normal values and export prices applicable to certain upholstered domestic furniture (UDS) from China from the below companies: Man Wah Furniture Manufacturing (Huizhou) Co., Ltd, HTL Furniture (China) Co., Ltd., and Gu Jia Intelligent Household Jiaxing Co., Ltd.
Expiry review decision, Copper pipe fittings, Canada Border Services Agency (April 8, 2022)
On November 8, 2021, the Canadian International Trade Tribunal (CITT), pursuant to subsection 76.03(3) of the Special Import Measures Act (SIMA), initiated an expiry review of its orders made on November 28, 2016, in Expiry Review No. RR‑2015‑003, concerning the dumping of copper pipe fittings originating in or exported from the United States, Korea and China and the subsidizing of such goods originating in or exported from China. On November 9, 2021, the CBSA initiated an expiry review investigation to determine whether the rescission of the orders is likely to result in the continuation or resumption of dumping and/or subsidizing of the subject goods.
The investigation has now been completed, pursuant to paragraph 76.03(7)(a) of SIMA, the CBSA has determined that the rescission of the orders is likely to result in the continuation or resumption of dumping of such goods originating in or exported from the United States, Korea and China and is likely to result in the continuation or resumption of subsidizing of such goods originating in or exported from China
The CITT will now conduct an inquiry to determine whether the rescission of the orders is likely to result in injury to the Canadian industry and has announced that it will issue its decision no later than September 14, 2022.
Statement of Reasons – Initiation of Investigation, Drill Pipe, Canada, Canada Border Services Agency (April 11, 2022)
Pursuant to subsection 31(1) of the Special Import Measures Act, the Canada Border Services Agency initiated investigations on March 25, 2022, respecting the alleged injurious dumping and subsidizing of certain drill pipe originating in or exported from China.
Customs Notice 22-08: Order Repealing the Certain Goods Remission Order (COVID-19), Canada Border Services Agency (April 14, 2022)
Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to section 115 of the Customs Tariff, made the Order in Council SOR/2022-0078, Order Repealing the Certain Goods Remission Order (COVID-19), registered on April 7, 2022, which sets a date limit to the entitlement to the relief of customs duties on imported goods provided by SOR/2020-101. This entitlement to the relief ends on May 7, 2022, being the 30th day after the day of the registration of SOR/2022-0078.
Customs Notice 22-09: Expiry of Customs Notice 20-08 Imported Goods for Emergency Use in Response to COVID-19, Canada Border Services Agency (April 19, 2022)
Due to the COVID-19 pandemic, the CBSA provided for the relief of customs duties and taxes on goods imported on or after March 16, 2020, that were required on an emergency basis, when imported by or on behalf of certain entities, including health authorities (e.g., public health bodies, first responders), pursuant to existing authorities under Tariff Item No. 9993.00.00 of the Customs Tariff and the Goods for Emergency Use Remission Order. Relief was further extended on April 6, 2020 to goods required on an emergency basis and imported by, or on behalf of, public or private care residences, such as seniors' residences, retirement homes, nursing homes and shelters…As domestic shortages of medical goods/PPE have subsided and relief is no longer warranted, this relief will expire May 7, 2022.
Expiry of Certain Fabricated Industrial Steel Components from China, Korea, and Spain, Government of Canada, Canadian International Trade Tribunal (April 19, 2022)
The Canadian International Trade Tribunal (CITT) gave notice that the finding made by the Tribunal on May 25, 2017, in inquiry NQ‑2016‑004, as amended on June 26, 2020, in inquiry NQ‑2016‑004R, concerning the dumping of certain fabricated industrial steel components, originating in or exported from the People’s Republic of China, the Republic of Korea and the Kingdom of Spain, and the subsidizing of the above‑mentioned goods originating in or exported from the People’s Republic of China, will expire on May 24, 2022. On February 28, 2022, the Tribunal issued notice of expiry LE‑2021‑007 relating to the aforementioned finding. Persons or governments requesting or opposing the initiation of an expiry review of the finding were requested to file written submissions. The Tribunal received no submissions in support of an expiry review or a continuation of the finding. Consequently, no expiry review will be initiated, and the finding will expire on its scheduled date.
Certain Mattresses from Canada – Determination of Reasonable Indication of Injury, Government of Canada, Canadian International Trade Tribunal (April 25, 2022)
The CITT determined that there is a reasonable indication that the dumping and subsidizing of certain mattresses from the People’s Republic of China have caused injury to the domestic industry. The Tribunal’s inquiry was conducted pursuant to the Special Import Measures Act as a result of the initiation of dumping and subsidizing investigations by the CBSA. The CBSA will continue its investigations and, by May 25, 2022, will issue preliminary determinations.
Opinions & Editorials
U.S. revokes Most-Favoured-Nation (MFN) Status for Russia and Belarus and Bans Russian Energy Imports, Myles S. Getlan, Ulrika K. Swanson, Chase J. Dunn, and Stephen Laufer, Cassidy Levy Kent LLP (April 15, 2022)
President Biden signed two bills on April 8, 2022, to further punish Russia for its invasion of Ukraine. The two bills, which passed in Congress with large bipartisan support, revoke Russia’s and Belarus’s MFN status (also referred to as Permanent Normal Trade Relations (PNTR) in the United States) and codify President Biden’s recent Executive Order (E.O.) banning Russian energy imports.
Polish sanctions list now available, Agnieszka Wardak and Joanna Kornaszewska, Dentons (April 27, 2022)
The Polish Ministry for Internal Affairs and Administration has published on its website the first decisions listing individuals and entities subject to restrictive measures (sanctions). The listings and related restrictions are effective as of 27 April 2022.The national sanctions list was created based on the provisions of the 13 April 2022 Act on special measures to combat support for aggression against Ukraine and to protect national security.