Refined Sugar Anti-dumping Duty Remission Order, 2026: SOR/2026-108
Canada Gazette, Part II, Volume 160, Number 12
Registration
SOR/2026-108 June 4, 2026
CUSTOMS TARIFF
P.C. 2026-548 June 4, 2026
Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, makes the annexed Refined Sugar Anti-dumping Duty Remission Order, 2026 under section 115footnote a of the Customs Tarifffootnote b.
Refined Sugar Anti-dumping Duty Remission Order, 2026
Remission
1 (1) Subject to subsection (2), remission is granted of the anti-dumping duties that were paid under the Special Import Measures Act in respect of refined sugar products that were imported by a company set out in column 1 of the schedule and recorded under a transaction number (B3-3 or B2 Form) set out in column 2.
Conditions
(2) Remission is granted on the following conditions:
- (a) a claim for remission is made to the Minister of Public Safety and Emergency Preparedness within two years after the day on which this Order comes into force; and
- (b) on request of the Canada Border Services Agency, the claimant files all evidence that is required by the Agency to determine eligibility for remission.
Coming into force
2 This Order comes into force on the day on which it is registered.
SCHEDULE
(Subsection 1(1))
| Item | Column 1 Company |
Column 2 Transaction Number (B3-3 or B2 Form) |
|---|---|---|
| 1 | Bagos Bun Bakery ULC |
|
| 2 | Heritage Coffee Company Limited | (a) 11676301275943 |
REGULATORY IMPACT ANALYSIS STATEMENT
(This statement is not part of the Order.)
Issues
Anti-dumping duties on imports of refined sugar from the United States (U.S.) have been in place since October 1995 to protect the Canadian industry from unfair trading practices. In 2022, Bagos Bun Bakery (Bagos) and Heritage Coffee (Heritage) each sourced refined sugar from the United States and paid anti-dumping duties. These companies requested remission of the duties paid because at the time of importation they were unable to source refined sugar domestically, due to a temporary short supply on the domestic market, resulting from production issues experienced by a major supplier. To refund the amounts paid, a remission order is needed.
Background
Anti-dumping duties address instances where unfair trade is injuring Canadian producers. Dumping occurs when a manufacturer exports a product to another country at a price either below the price charged in its home market or below its cost of production. Anti-dumping duties are imposed on imported goods to increase the prices of imported goods to a level that reflects non-dumped prices. In Canada, anti-dumping duties may be imposed following investigations by the Canada Border Services Agency (CBSA) and the Canadian International Trade Tribunal (CITT), which are conducted in an independent, impartial, and transparent manner.
Anti-dumping duties on refined sugar originating in or exported from the United States have been imposed at varying levels since 1995. Refined sugar originating in the United States is currently subject to anti-dumping duties of 180%. These duties were imposed following determinations by the CBSA and the CITT that the dumping of refined sugar had threatened to cause injury to domestic producers.
The remission of duties (reimbursement) is being provided to Bagos and Heritage for specific importations of refined sugar because, at the time the sugar was purchased and imported in June and July 2022, no Canadian producer was able to supply the refined sugar needed to maintain these companies’ manufacturing operations. Bagos is a commercial bakery located in Brampton, Ontario, and supplies hamburger buns to restaurants in Canada and the United States. Heritage is located in London, Ontario, and manufactures hot chocolate, cappuccino, and other hot soluble products. Refined sugar is a key ingredient in products produced by both companies.
Anti-dumping duties are intended to prevent injury to Canadian industry, but at the time the refined sugar was imported, Canadian industry was unable to supply these companies. Therefore, the remission of duties for this specific period does not undermine the protection afforded by the Special Import Measures Act.
While the remission authority is broad, it is not intended to override the purpose of anti-dumping duties, which is to remedy the injury caused by dumped goods to domestic producers of competing goods. Remission of anti-dumping duties is typically only granted in extraordinary circumstances, such as pursuant to a public interest inquiry by the CITT (where it has been determined that application of the duties in their full amount would not be in the public interest) or if there was short supply domestically at the time of importation.
Objective
To provide a remedy in response to the finite period of short supply of refined sugar in the Canadian market.
Description
This Order allows the Government to remit $196,047 in anti-dumping duties paid by Bagos and $68,000 in anti-dumping duties paid by Heritage with respect to importations of refined sugar from the United States between June and July 2022. The Order sets out the conditions for granting remission, including that the importer make a claim to the Minister of Public Safety and Emergency Preparedness within two years after the day on which the Order comes into force.
Regulatory development
Consultation
Canadian sugar producers have been consulted through their industry association, the Canadian Sugar Institute, and none opposed the remission of the anti-dumping duties covered by the Order. Therefore, this Order was granted an exemption from the requirement to prepublish in the Canada Gazette, Part I.
Indigenous engagement, consultation and modern treaty obligations
Following the completion of the assessment of modern treaty implications, no adverse impacts on potential or established Indigenous or treaty rights, which are recognized and affirmed in section 35 of the Constitution Act, 1982, were identified.
Instrument choice
Section 23 of the Financial Administration Act (FAA) provides broad authority to remit taxes, penalties, or other debts on the recommendation of the appropriate minister or the Treasury Board when the enforcement of which is unreasonable or unjust or it is otherwise in the public interest to remit. Therefore, section 23 of the FAA is general in nature. In contrast, section 115 of the Customs Tariff provides authority specifically for the remission of duties (including anti-dumping duties). Therefore, a Remission Order under section 115 of the Customs Tariff is the most appropriate mechanism, as it was created to provide remission from duties.
Regulatory analysis
Benefits and costs
As this Order concerns specific importations for specific companies, the refund is definitive and will amount to a total of $264,047 for the return of already paid anti-dumping duties.
The cost to the Government of reduced revenue and the benefit to the companies from receipt of the refund are offsetting and represent a transfer payment. The CBSA will incur some minimal cost to administer the Order. There may also be some administrative burden for importers who could be required upon request by the CBSA to provide evidence to demonstrate eligibility for the refund. However, any such administrative burden is expected to require minimal incremental effort, as the concerned companies are already in possession of any documentation that would be required.
Small business lens
Analysis under the small business lens determined that the measure will impose administrative requirements on Canadian small businesses, as the importers will be required to submit forms to the CBSA requesting refunds. However, the process for claiming remission is not onerous, as the importers already possess the original customs forms required to justify remission and will benefit from the remitted funds.
One-for-one rule
The Order does not make changes to processes for the importing of goods. However, it will result in an increase in administrative burden on businesses, as importers would be required to apply to the CBSA for remission of duties paid. Duties are considered to be “taxes” under the one-for-one rule, and the Red Tape Reduction Regulations authorize the Treasury Board to exempt administrative burden associated with tax and tax administration from the requirement to offset. Therefore, the Order has been exempted from the requirement to offset the administrative burden and new regulatory title introduced.
Regulatory cooperation and alignment
Given this in an ad hoc request for the remission of anti-dumping duties, there is no regulatory cooperation or alignment component associated with the Order.
International obligations
The Order does not engage Canada’s international obligations.
Effects on the environment
In accordance with the Cabinet Directive on Strategic Environmental and Economic Assessment, a preliminary scan concluded that the Order would not have positive or negative effects on the environment; therefore, a strategic environmental and economic assessment is not required.
Gender-based analysis plus
No impacts based on gender and other identity factors have been identified for this order.
Rationale
Anti-dumping duties are intended to prevent injury to Canadian industry, but a temporary shortage in the Canadian market necessitated the import of refined sugar for Bagos and Heritage to continue their manufacturing operations and avoid costly shutdowns. As such, the remission of duties would not undermine the protection afforded by anti-dumping duties and provides a remedy in response to the finite period of short supply of refined sugar in the Canadian market.
Granting remission on these requests would be consistent with government policy that situations of domestic short supply constitute appropriate grounds for remission of anti-dumping duties.
Implementation, compliance and enforcement, and service standards
This Order comes into force on the day on which it is registered.
The CBSA is responsible for the administration of, and compliance with, customs legislation and regulations. They will administer the provisions of this Order in the normal course of its administration of customs legislation and regulations.
Contact
Jason Christie
International Trade Policy Division
Department of Finance Canada
Ottawa, Ontario
K1A 0G5
Telephone: 343‑550‑7777