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On July 31, 2026, the Canadian Minister of Finance and National Revenue announced the imposition of a temporary safeguard measure in the form of a 25% surtax on the value for duty of certain imported wooden cabinets and vanities.
Scope and Duration of the Measure
The temporary safeguard measure took effect on July 31, 2026, and will remain in place for a maximum period of 200 days, expected to run until mid-February 2027. The Canadian Government stated that the measure aims to address the difficulties faced by domestic manufacturers, including the risk of “trade diversion” that could adversely affect Canadian wooden cabinet producers.
In parallel with the temporary measure, the Canadian International Trade Tribunal (CITT) is conducting a formal safeguard investigation into certain wood products, including wooden cabinets, vanities, hardwood flooring, and cabinets made of processed wood. The investigation was initiated in April 2026 and is expected to be completed by January 15, 2027.
If the CITT determines that the domestic industry has not suffered serious injury, the temporary safeguard measure will terminate upon the issuance of the finding. Conversely, Canada may impose a definitive safeguard measure for a period of up to three years.
Products Covered by the Measure
The temporary measure applies to certain types of cabinets and vanities made wholly or partly of wood, including solid wood, engineered wood, particleboard, fiberboard, plywood, and bamboo, designed for permanent installation in kitchens, bathrooms, or as built-in cabinetry.
The scope also covers accompanying assembled components, such as frames, cabinet boxes, doors, drawers, backs, and end panels, regardless of whether the products are finished, assembled, or imported in flat-pack or ready-to-assemble form.
The main relevant HS codes include 9403.40.00.10; 9403.60.10.31; 9403.60.10.39; and 9403.91.00.90.
Certain products are excluded from the measure, including freestanding furniture not designed for permanent installation, including office furniture; aftermarket accessories installed inside cabinets; non-wood hardware such as hinges, handles, and metal drawer slides; and wall-mounted medicine cabinets with mirrors having a maximum depth of 17.78 cm.
Vietnam Is Not Among the Exempted Countries
The temporary safeguard surtax does not apply to goods originating in the United States, Mexico, Chile, Israel, or countries eligible for preferential treatment under the Canada-Israel Free Trade Agreement (CIFTA). In addition, certain developing countries listed in Schedule 2 to the surtax order are exempt.
Vietnam is not included in the list of exempted countries. Accordingly, in-scope goods originating in Vietnam will be subject to the 25% surtax from July 31, 2026.
For shipments that were in transit to Canada before July 31, 2026, enterprises may be exempt from the surtax if they can demonstrate the date of shipment through appropriate supporting documents, such as bills of lading, declarations, and cargo control documents.
Recommendations for Vietnamese Enterprises
In light of the new measure, Vietnamese manufacturers and exporters should review their HS classifications and accurately determine whether their products fall within the scope of the measure, while assessing the impact of the 25% surtax on existing orders and export plans to Canada.
Enterprises with shipments in transit to Canada before July 31, 2026 should prepare complete transportation records and supporting documents to assess their eligibility for exemption from the temporary surtax.
In addition, enterprises should proactively participate in the CITT investigation and coordinate with Canadian counsel or advisors to provide relevant information and protect their legitimate rights and interests. Closely monitoring developments in the investigation, diversifying export markets, and developing contingency plans will also be important should Canada ultimately impose a definitive safeguard measure.
Relevant associations and enterprises are advised to maintain regular communication with the Trade Remedies Authority of Vietnam (TRAV) to obtain updates and support in handling the case.
To protect their legitimate interests, manufacturers and exporters should familiarize themselves with the procedure and actively contact Vietnam Antidumping Law Firm specializing in anti-dumping and trade remedy for timely assistance.
ASL Law is a leading full-service and independent Vietnamese law firm made up of experienced and talented lawyers. ASL Law is ranked as the top tier Law Firm in Vietnam by Legal500, Asia Law, WTR, and Asia Business Law Journal. Based in both Hanoi and Ho Chi Minh City in Vietnam, the firm’s main purpose is to provide the most practical, efficient and lawful advice to its domestic and international clients. If we can be of assistance, please email to [email protected].
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