(a) the producers in the market sell all or almost all of their production of like goods in the market; and

    (b) the demand in the market is not to any substantial degree supplied by producers of like goods located elsewhere in Canada.

Producers related to exporters or importers

(1.2) For the purposes of the definition ``domestic industry'' in subsection (1), a domestic producer is related to an exporter or an importer of dumped or subsidized goods where

    (a) the producer either directly or indirectly controls, or is controlled by, the exporter or importer,

    (b) the producer and the exporter or the importer, as the case may be, are directly or indirectly controlled by a third person, or

    (c) the producer and the exporter or the importer, as the case may be, directly or indirectly control a third person,

and there are grounds to believe that the producer behaves differently towards the exporter or importer than does a non-related producer.

Where there is deemed to be control

(1.3) For the purposes of subsection (1.2), a person is deemed to control another person where the first person is legally or operationally in a position to exercise restraint or direction over the other person.

When domestic support measure ceases to be a non-actionabl e subsidy

(1.4) A domestic support measure referred to in paragraph (c) of the definition ``non-actionable subsidy'' in subsection (1) ceases to be a non-actionable subsidy on the day on which the implementation period in respect of the Agreement on Agriculture referred to in that paragraph, as defined in Article 1 of that Agreement for the purposes of Article 13 of that Agreement, expires.

Threat of injury

(1.5) For the purposes of this Act, the dumping or subsidizing of goods shall not be found to be threatening to cause injury or to cause a threat of injury unless the circumstances in which the dumping or subsidizing of goods would cause injury are clearly foreseen and imminent.

Financial contribution

(1.6) For the purposes of paragraph (a) of the definition ``subsidy'' in subsection (1), there is a financial contribution by a government of a country other than Canada where

    (a) practices of the government involve the direct transfer of funds or liabilities or the contingent transfer of funds or liabilities;

    (b) amounts that would otherwise be owing and due to the government are exempted or deducted or amounts that are owing and due to the government are forgiven or not collected;

    (c) the government provides goods or services, other than general governmental infrastructure, or purchases goods; or

    (d) the government permits or directs a non-governmental body to do any thing referred to in any of paragraphs (a) to (c) where the right or obligation to do the thing is normally vested in the government and the manner in which the non-governmental body does the thing does not differ in a meaningful way from the manner in which the government would do it.

(5) Subsection 2(5) of the Act is repealed.

(6) Section 2 of the Act is amended by adding the following after subsection (7):

Criteria and conditions for non-specificit y

(7.1) A subsidy is not specific where the criteria or conditions governing eligibility for, and the amount of, the subsidy are

    (a) objective;

    (b) set out in a legislative, regulatory or administrative instrument or other public document; and

    (c) applied in a manner that does not favour or is not limited to a particular enterprise.

When subsidy is specific

(7.2) A subsidy is specific where it is

    (a) limited, pursuant to an instrument or document referred to in paragraph (7.1)(b), to a particular enterprise within the jurisdiction of the authority that is granting the subsidy; or

    (b) a prohibited subsidy.

Determination of specificity by Deputy Minister

(7.3) Notwithstanding that a subsidy is not limited in the manner referred to in paragraph (7.2)(a), the Deputy Minister may determine the subsidy to be specific having regard as to whether

    (a) there is exclusive use of the subsidy by a limited number of enterprises;

    (b) there is predominant use of the subsidy by a particular enterprise;

    (c) disproportionately large amounts of the subsidy are granted to a limited number of enterprises; and

    (d) the manner in which discretion is exercised by the granting authority indicates that the subsidy is not generally available.

Additional considerations

(7.4) Where any of the factors listed in paragraphs (7.3)(a) to (d) is present, the Deputy Minister shall consider whether the presence is due to

    (a) the extent of diversification of economic activities within the jurisdiction of the granting authority, or

    (b) the length of time that the subsidy program has been in operation,

and where the Deputy Minister is of the opinion that the presence is due to one of the reasons set out in paragraph (a) or (b), the Deputy Minister may find the subsidy not to be specific notwithstanding that, were it not for that opinion, the Deputy Minister would have found the subsidy to be specific.

145. (1) The portion of section 3 of the Act before paragraph (a) is replaced by the following:

Anti-dumping and countervailing duty

3. (1) Subject to section 7.1, there shall be levied, collected and paid on all dumped and subsidized goods imported into Canada in respect of which the Tribunal has made an order or finding, before the release of the goods, that the dumping or subsidizing of goods of the same description has caused injury or retardation or is threatening to cause injury, a duty as follows:

(2) Section 3 of the Act is amended by adding the following after subsection (1):

Duty where undertaking violated

(2) Where the Tribunal has made an order or finding referred to in subsection (1) in respect of goods that are subject to an undertaking referred to in section 7.1 and the undertaking is subsequently violated, there shall be levied, collected and paid on all of those goods that were released on or after the day on which the undertaking was violated, a duty as provided under paragraphs (1)(a) and (b).

1988, c. 65, s. 25

146. Sections 4 to 6 of the Act are replaced by the following:

Other cases

4. (1) Subject to section 7.1, there shall be levied, collected and paid a duty as set out in subsections (3) and (4) on all dumped and subsidized goods imported into Canada

    (a) in respect of which the Tribunal has made an order or finding, after the release of the goods, that the dumping or subsidizing of goods of the same description

      (i) has caused injury, or

      (ii) would have caused injury except for the fact that provisional duty was applied in respect of the goods; and

    (b) that were released during the period beginning on the day on which the preliminary determination is made with respect to the goods and ending on the day on which the Tribunal makes the order or finding.

Where undertaking subsequently terminated

(2) There shall be levied, collected and paid a duty as set out in subsections (3) and (4) on all dumped and subsidized goods imported into Canada

    (a) that are the subject of an undertaking accepted by the Deputy Minister under subsection 49(1) that was terminated under paragraph 52(1)(d);

    (b) in respect of which the Tribunal has made an order or finding, after the release of the goods, that the dumping or subsidizing of goods of the same description

      (i) has caused injury, or

      (ii) would have caused injury except for the fact that provisional duty was applied in respect of the goods; and

    (c) that were released, where paragraph 52(1)(a), (b) or (c) applies, during the period beginning on the day on which the preliminary determination was made and ending on the day the undertaking was accepted, and

      (i) where paragraph 52(1)(a) applies, during the period beginning on the later of

        (A) the day on which the undertaking is violated, and

        (B) the ninetieth day before the day on which notice of the termination was given under paragraph 52(1)(e),

      and ending on the day on which the Tribunal makes the order or finding referred to in paragraph (b), or

      (ii) where paragraph 52(1)(b) or (c) applies, beginning on the day on which notice of termination was given under paragraph 52(1)(e) and ending on the day on which the Tribunal makes the order or finding referred to in paragraph (b).

Amount of duty

(3) The duty applicable to goods under subsection (1) or (2) is

    (a) in the case of dumped goods, an anti-dumping duty in an amount that is equal to the margin of dumping of the goods; and

    (b) in the case of subsidized goods, a countervailing duty in an amount that is equal to the amount of subsidy on the goods.

Limitation

(4) The duty referred to in subsection (3) shall not exceed the duty, if any, paid or payable in respect of the goods under section 8.

Anti-dumping duty

5. There shall be levied, collected and paid on all dumped goods imported into Canada

    (a) in respect of which the Tribunal has made an order or finding, after the release of the goods, that

      (i) either

        (A) there has occurred a considerable importation of like goods that were dumped, which dumping has caused injury or would have caused injury except for the application of anti- dumping measures, or

        (B) the importer of the goods was or should have been aware that the ex porter was practising dumping and that the dumping would cause injury, and

      (ii) injury has been caused by reason of the fact that the imported goods

        (A) constitute a massive importation into Canada, or

        (B) form part of a series of importa tions into Canada, which importations in the aggregate are massive and have occurred within a relatively short peri od of time,

      and in order to prevent the recurrence of the injury, it appears necessary to the Tribunal that duty be assessed on the imported goods, and

    (b) that were released during the period of ninety days preceding the day on which the Deputy Minister made a preliminary determination of dumping in respect of the goods or goods of that description, other than goods that were released before the initiation of an investigation referred to in section 31,

an anti-dumping duty in an amount equal to the margin of dumping of the imported goods.

Countervailin g duty

6. Where any subsidy on subsidized goods is a prohibited subsidy, there shall be levied, collected and paid on all such subsidized goods imported into Canada

    (a) in respect of which the Tribunal has made an order or finding, after the release of the goods, that

      (i) injury has been caused by reason of the fact that the imported goods

        (A) constitute a massive importation into Canada, or

        (B) form part of a series of importa tions into Canada, which importations in the aggregate are massive and have occurred within a relatively short peri od of time, and

      (ii) a countervailing duty should be imposed on the subsidized goods in order to prevent the recurrence of such injury,

    (b) that were released during the period of ninety days preceding the day on which the Deputy Minister made a preliminary determination of subsidizing in respect of the goods or goods of that description, other than goods that were released before the initiation of an investigation referred to in section 31, and

    (c) in respect of which the Deputy Minister has made a specification pursuant to clause 41(1)(a)(iv)(C),

a countervailing duty in an amount equal to such of the amount of the subsidy on the imported goods as is a prohibited subsidy.

147. (1) The portion of subsection 7(1) of the Act before paragraph (a) is replaced by the following:

Governor in Council may impose countervailing duty by order

7. (1) The Governor in Council may order an investigation to determine the amount of subsidy on any subsidized goods that are the product of a country specified in the order, and where

(2) Paragraph 7(1)(b) of the Act is replaced by the following:

    (b) the Committee has authorized Canada to impose countervailing duties on the subsidized goods,

148. The Act is amended by adding the following after section 7:

Non-applicati on

7.1 Sections 3 and 4 do not apply in respect of goods in respect of which an undertaking has been accepted and not terminated.

149. (1) The portion of subsection 8(1) of the Act before paragraph (a) is replaced by the following:

Imposition of provisional duty

8. (1) Where the Deputy Minister makes a preliminary determination of dumping or subsidizing in an investigation under this Act and considers that the imposition of provisional duty is necessary to prevent injury, retardation or threat of injury, the importer of dumped or subsidized goods that are of the same description as any goods to which the preliminary determination applies and that are released during the period commencing on the day the preliminary determination is made and ending on the earlier of

(2) Subparagraph 8(2)(a)(iii) of the Act is replaced by the following:

      (iii) the Tribunal makes an order or finding with respect to goods of that description if the order or finding is only to the effect that the dumping or subsidizing of those goods is threatening to cause injury; and

R.S., c. 1 (2nd Supp.), s. 198(1)

(3) Paragraph 8(2)(b) of the Act is replaced by the following:

    (b) except to the extent of any duty payable in respect of the imported goods, be returned to the importer forthwith after a determination is made in respect of the imported goods by a designated officer pursuant to such of paragraphs 55(1)(c) to (e) as are applicable.

(4) Section 8 of the Act is amended by adding the following after subsection (4):

Suspension of collection

(5) Where the Deputy Minister accepts an undertaking with respect to dumped or subsidized goods, the collection of provisional duties on any dumped or subsidized goods, as the case may be, that are of the same description as any goods to which the preliminary determination applies is suspended for the period during which the undertaking is in force.