The Canadian International Trade Tribunal explained

Know the functions and powers of the CITT, and why this organization matters for producers, exporters, and importers
The Canadian International Trade Tribunal explained

International trade laws apply when Canadian businesses enter into contracts with foreigners, or when they import or export goods to and from the country. Following these laws is important to keep Canada's economy stable and ensure fairness among all the players in the country's international trade.

Guarding the borders when products enter the country is the Canadian International Trade Tribunal. It plays a huge role that both importers and exporters should know. Here, we will discuss what this Tribunal is, and what laws it administers. If you're currently dealing with them, you can also talk to an international trade lawyer.

What is the Canadian International Trade Tribunal?

The Canadian International Trade Tribunal (CITT) was established in 1988 through the passing of the Canadian International Trade Tribunal Act (CITTA). It is accountable to the Parliament of Canada through the Minister of Finance.

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As a quasi-judicial body, the main purpose of the CITT is to resolve matters related to Canadian trade law. It does this by:

  • inquiries: conducting inquiries on anti-dumping and subsidizing violations, the government's procurements, and other economic-, trade-, and tariff-related matters
  • appeals: hear and decide appeals of decisions made by other government bodies

The CITT is composed of seven permanent members, including a chairperson and two vice chairpersons. All of them are appointed by the Governor in Council. The Tribunal is based in Ottawa, Ontario.

In addition to the CITTA, the CITT is empowered by other Canadian laws, which may directly or indirectly affect international trade. These include:

  • Special Import Measures Act (SIMA)
  • Customs Act
  • Excise Tax Act

This video from the CITT shows what happens when a federal government's procurement decision is challenged before the Tribunal:

Want to know more about the CITT? Ask any of the best international trade lawyers in Canada as ranked by Lexpert.

Mandate of the Canadian International Trade Tribunal

Under the CITTA, the CITT is mandated to perform the following duties:

  • conduct inquiries and reviews: the CITT can review matters referred to it by the Governor in Council or by the Minister of Finance, and report the results of these inquiries back to them
  • conduct mid-term reviews: the CITT has the power to review the surtaxes on imported goods from a free-trade partner and on goods that must be included in the Import Control List (ICL) of the Export and Import Permits Act
  • hear complaints from domestic producers: the CITT can conduct inquiries, and eventually rule on complaints and extension requests filed by domestic producers who might be adversely affected by the importation of certain goods
  • address surge complaints: when there's a surge of imported goods as defined in the CITTA, the CITT can receive complaints, conduct inquiries, and make decisions
  • hear appeals: the CITT hears appeals of decisions made under statutes such as the Customs Act and the Special Import Measures Act (e.g., CBSA determinations)

What laws does the Canadian International Trade Tribunal administer?

In Canada, the rules on international trade law are governed by different laws. Apart from the CITTA, the CITT either administers or forms the basis for conducting review and appeals processes of the following laws:

  • Export and Import Permits Act (EIPA): governs export and import controls, including permits and the Import Control List
  • Consumer Packaging and Labelling Act (CPLA): governs labelling and packaging standards for consumer products
  • Special Import Measures Act (SIMA): prohibits dumping and subsidizing of imported goods, and imposes anti-dumping and countervailing duties
  • Customs Act: establishes the authority of government bodies to administer and enforce the collection of taxes and other customs duties
  • Customs Tariff: sets tariff rates and provides for applicable relief
  • Excise Tax Act (ETA): imposes the Goods & Services Tax (GST) and/or Harmonized Sales Tax (HST) on goods and products in Canada

Under these laws are other regulations covering other aspects of international trade law, including documentary requirements and importation or exportation procedures.

Know more about international trade laws with this video:

Head over to our Lexpert 500 Cross Border page for a directory of the Lexpert-ranked best cross-border lawyers, who can also help businesses deal with international trade laws.

What are the international trade rules in Canada?

Certain international trade rules apply on the importation of goods and products into Canada. Violations of these international trade rules (or allegations of violations) may trigger a review or inquiry by the CITT:

  • Dumping and subsidizing
  • Unfair procurement

We'll discuss these below.

1. Dumping and subsidizing

One type of complaint under unfair trade is called dumping and subsidizing, and these are prohibited acts under Canadian international trade rules. They fall under the SIMA, which implements these World Trade Organization (WTO) agreements on:

  • the implementation of Article VI of the General Agreement on Tariffs and Trade 1994
  • Subsidies and Countervailing Measures

The SIMA defines dumping and subsidizing in the following way:

  • Dumping: occurs when imported goods are sold in Canada at prices lower than their normal value (e.g., home‑market price or cost of production). Anti‑dumping duties may be applied
  • Subsidizing: occurs when imported goods benefit from foreign government financial assistance or are sold below fair market value due to a subsidy. Countervailing duties may be applied

Role of Canadian International Trade Tribunal on dumping and subsidizing

Complaints are filed with the CBSA. If CBSA finds dumping or subsidizing, the matter is referred to the CITT to determine whether the dumped or subsidized imports have caused or threatened to cause injury to domestic industry. If injury is found, CBSA applies anti‑dumping or countervailing duties.

2. Unfair procurement

The CITT reviews complaints regarding designated federal procurements alleged to contravene applicable trade agreements (e.g., CFTA, GPA).

An example of this is the Canadian Free Trade Agreement (CFTA). The CFTA prohibits the discrimination of goods or services of a Canadian province or territory in a procurement by the federal government. Its goal is to promote equal access among all Canadian suppliers to any federal government procurement.

Other trade agreements on regulating government procurement include:

  • Revised Agreement on Government Procurement, administered by the WTO
  • other bilateral agreements between Canada and other countries

 

 

Role of the Canadian International Trade Tribunal on unfair procurement

Suppliers, both Canadian and foreigners, can file a complaint with the CITT or the Office of the Procurement Ombud (OPO) on an unfair procurement by the federal government. Where to file specifically depends on the threshold amounts for the goods, services, and construction contracts in question:

  • CITT:
  • $33,400 and above for goods
  • $133,800 and above for services and construction
  • OPO:
  • below $33,400 for goods
  • below $133,800 for services and construction

When the complaint is accepted by the CITT, it will then review the matter and provide the other party an opportunity to respond.

After establishing that a complaint against an unfair procurement is valid, the CITTA allows the CITT to order remedies relating to the designated contract, such as:

  • issuance of the designated contract's new solicitation
  • re-evaluation of the bids
  • termination of the designated contract
  • awarding of the designated contract to the complainant
  • compensation to the complainant

How can lawyers help clients deal with the Canadian International Trade Tribunal?

If you're involved in a matter before the CITT, international trade or cross-border lawyers can help you deal with them:

  • with their knowledge of trade laws, lawyers can guide you on the alleged violation, what to do next, and what your remedies are under these laws
  • lawyers can assist you with the procedures before the CITT, which can be similar to court proceedings or may be entirely done through written submissions
  • when required to submit written documents, lawyers can help you prepare them, so that it fully shows your side of the story
  • to prepare your case before the CITT, lawyers know what pieces of evidence must be gathered and if expert witnesses are necessary

The Canadian International Trade Tribunal: Guarding Canada's trade

Somehow acting like a border patrol for products, the Canadian International Trade Tribunal is very important. Its presence is vital not just to importers or foreign exporters, but also to producers and industries in the country.

With the laws and remedies that the Tribunal enforces, all parties in a trade and export transaction would be dealing with it at some point. When that time comes, one can easily consult with international trade or cross-border lawyers.

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