September 9, 2020

CBSA Launches Investigation Into Alleged Wheat Gluten Dumping

wheat

As of August 14, 2020, The Canada Border Services Agency, pursuant to subsection 31(1) of the Special Import Measures Act has initiated an investigation to determine whether certain wheat gluten from Australia, Austria, Belgium, France, Germany and Lithuania is being sold at unfair prices in Canada.

The investigation is the result of a complaint filed by ADM Agri-Industries Co. located in Candiac, Quebec, and is supported by Permolex Ltd. The complainant alleges that the Canadian industry is facing an increase in the volume of the allegedly dumped imports, suppression of market share, lost sales, price undercutting, price depression, price suppression, accumulation of inventories, threats to investment plans, negative impacts on the ability to raise capital, impacted financial results and declines in employment wages and a reduction in hours worked.

For the purpose of this investigation, subject goods are defined as:

Wheat gluten, whether or not blended with wheat flour, salt or any other substance, with a minimum wheat protein content of 40% by weight on a dry basis calculated using a Jones factor of 5.7, originating in or exported from Australia, Austria, Belgium, France, Germany and Lithuania, but excluding:

  • devitalized wheat gluten;
  • hydrolyzed wheat gluten;
  • wheat protein isolates; and
  • organic wheat gluten that is certified organic in accordance with and otherwise meets the requirements of the Food and Drugs Act, R.S.C., 1985, c. F‑27, and regulations made thereunder, and the Safe Food for Canadians Act, S.C. 2012, c. 24, and regulations made thereunder including the Safe Food for Canadians Regulations, S.O.R./2018‑108, all of which as may be amended or replaced from time to time.

The allegedly dumped goods are normally classified under the following tariff classification numbers:

  • 1109.00.10.00
  • 1109.00.20.00 

The listing of tariff classification numbers is for convenience of reference only. The tariff classification numbers include non‑subject goods. Additionally, subject goods may fall under tariff classification numbers that are not listed. Refer to the product definition for authoritative details regarding the subject goods.

If you have any questions regarding the alleged dumping of Wheat Gluten, please contact our Trade Advisory group at tradeadvisory@carson.ca.