A recent anti-dumping and countervailing duty complaint filed by Tidewater Renewables Ltd. with the Canada Border Services Agency (CBSA) has raised significant questions for businesses involved in the production, export or import of renewable diesel. The complaint alleges that imports of renewable diesel from the United States are being dumped and/or subsidized, resulting in harm to the Canadian industry.

This complaint is the first step in a process governed by Canada’s Special Import Measures Act, which allows domestic industries to seek relief from unfairly traded goods. The CBSA is currently evaluating the complaint to determine whether to initiate a formal investigation. If the investigation proceeds, the CBSA will issue questionnaires to exporters, importers and the U.S. government to collect detailed information. These questionnaires are critical to the investigation and are designed to assess the extent of dumping or subsidization.

If the CBSA finds sufficient evidence to proceed, preliminary duties could be imposed in the coming months, with final duties potentially following after a ruling by the Canadian International Trade Tribunal (CITT). These duties, if imposed, could significantly impact the cost and competitiveness of renewable diesel imported into Canada.

Understanding the Canadian trade remedy system

Canada’s anti-dumping and countervailing process is highly technical and involves multiple stages, including data submission, verification meetings and public hearings before the CITT. Accurate and timely responses to CBSA questionnaires are crucial to minimizing risk, as failure to comply fully can lead to punitive "all others" duty rates.

How legal counsel can help

Expert legal advice is essential to navigating the complexities of Canada’s trade remedy system. Our team provides:

  • Risk analysis: Assessing the implications of the complaint and identifying areas of potential exposure.
  • CBSA questionnaire support: Assisting with data collection, preparation and submission to ensure compliance with CBSA requirements.
  • Advocacy: Representing clients before the CBSA and the CITT to safeguard their interests and minimize duty exposure.

Next steps

If your business is involved in the renewable diesel supply chain or could be affected by this complaint, now is the time to prepare. A proactive approach can significantly mitigate potential risks and ensure compliance with Canada’s trade laws.

Why work with us

Our International Trade & Customs Group has extensive experience guiding clients through anti-dumping and countervailing proceedings. Led by one of Canada’s top-ranked international trade lawyers, our team is equipped to provide practical, results-oriented advice tailored to your needs. Contact one of the authors or a member of our team.