Judgments

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Creative Shoes Limited, Danmor Shoe Company Limited and Créations Marie-Claude Inc. (Plaintiffs)
v.
Deputy Minister of National Revenue for Cus toms and Excise, Minister of National Revenue, The Queen and The Anti-Dumping Tribunal (Defendants)
Trial Division, Walsh J.—Montreal, November 15, 1971; Ottawa, January 20, 1972.
Judicial review—Jurisdiction—Certiorari—Prohibition— Decisions under Anti-Dumping Act made before Federal Court Act came into force—Jurisdiction of Trial Division to grant certiorari and prohibition.
On May 31, 1971, the Minister of National Revenue, pursuant to section 11 of the Anti-Dumping Act, prescribed that the normal value and the fair market value of women's footwear imported by the three plaintiffs from Italy and Spain should be determined on the basis of export price plus specified percentages. On June 1, 1971, the Deputy Minister made a preliminary determination under the Act that the shoes were being dumped in Canada, and subse quently, following a hearing by thé Anti-Dumping Tribunal, made a final determination of dumping and imposed an anti-dumping duty.
The three plaintiffs applied for writs of certiorari and prohibition to stay proceedings on the decisions of the Minister, Deputy Minister and the Anti-Dumping Tribunal and for a declaration that they were void in whole or in part, and also sought an injunction against the Deputy Minister. Defendant moved to dismiss plaintiffs' application on the grounds, inter alia, that no cause of action was disclosed in the pleadings and that the Trial Division was without jurisdiction.
Held, having regard to the provisions of sections 28 and 61 of the Federdl Court Act (which came into force on June 1, 1971), the Trial Division had jurisdiction to grant a writ of certiorari or prohibition and quash the Minister's pre scriptions made on May 31, 1971 if it appeared that there was an error of law on the face of the record or a failure to observe a principle of natural justice, but such jurisdiction with respect to orders and prescriptions made after May 31, 1971, was within the exclusive jurisdiction of the Court of Appeal.
Held also, plaintiffs had the right to apply for a writ of certiorari or prohibition, such right not having been specifi cally taken away by the Customs Act, the Anti-Dumping Act or the Federal Court Act, despite the fact that certain appeal procedures were set out in those Acts.
APPLICATION for writs of certiorari and prohibition.
Richard S. Gottlieb for plaintiffs.
C. R. O. Munro for defendants.
WALSH J.—This case came on for hearing in Montreal on an application by plaintiffs con taining 110 paragraphs and 29 pages long for a writ of certiorari and prohibition and for declaratory relief against defendants. In the conclusions plaintiffs claim as follows:
A. That a writ issue calling upon Defendants:
i) to answer the demand contained in the present Application;
ii) to suspend all proceedings, past and future in virtue of the decision of the Anti-Dumping Tribunal, the Ministerial Prescriptions dated May 31, 1971, and the Application of the Ministerial Prescription by the Deputy Minister of National Revenue in virtue of his determinations dated June 3rd [sic] and August 27th, 1971, pending final judgment herein;
iii) pending final judgment herein, to refrain from col lecting duty and anti-dumping duty other than on the basis of the export price on women's footwear, includ ing last-made dress or casual shoes and boots originat ing in Italy and Spain;
iv) to transmit to this Honourable Court within such delay as may be fixed, all records and documents relating to its investigation initiated in June, 1970 and to the imposition and collection of duty and anti-dump ing duty on footwear originating in Italy and Spain on the basis of the advance of the export price by 71% and 12%, respectively;
B. That by final judgment to intervene herein:
(1) The Ministerial Prescriptions dated May 31, 1971, be declared null and void, inoperant and/or ultra vires;
(2) The application of the Ministerial Prescriptions by the Deputy Minister of National Revenue and/or his determi nations dated June 3rd [sic] and August 27th, 1971, to the extent that they direct the levying and collection of ordi nary duties and anti-dumping duties on the basis of the advance of the export price of women's footwear, includ ing last-made dress or casual shoes and boots, originating in Italy and Spain by 71% and 12% respectively be declared null and void, inoperant and/or ultra vires;
(3) The levying and collection of ordinary and anti-dump ing duties on women's footwear, including last-made dress or casual shoes and boots, originating in Italy and Spain on the basis of the advance of the export price by 71% and 12% in the cases of Italy and Spain respective ly, be declared null and void, inoperant and/or ultra vires;
(4) It be declared that the provisions of S.40(2) of the Customs Act and Regulation 11 of the Anti-Dumping Act provide for deduction for duty and anti-dumping duty purposes of all taxes and duties rebated upon export, whether said duties and taxes are imposed or levied on the finished product or otherwise;
(5) The decision of the Anti-Dumping Tribunal dated August 25, 1971, to the extent that it orders the imposi tion and collection of anti-dumping duties in connection with women's last-made dress or casual shoes and boots originating in Italy and Spain be declared null and void, ultra vires and inoperant;
(6) All duties and anti-dumping duties levied and collect ed on the basis of the advance of the export price of women's footwear including last-made dress or casual shoes and boots, originating in Italy and Spain by 7 .1% and 12% respectively, to be reimbursed to Plaintiffs;
(7) After final judgment, herein, that the Deputy Minister of National Revenue be enjoined from making a prelimi nary determination of dumping in respect of women's footwear originating in Italy and Spain, save and except after a complete investigation, after inquiring into all facts of a nature to affect its decision, after providing ample opportunity to exporters and Plaintiffs to make represen tations, and only if it finds injurious dumping as outlined in S. 13 and following of the Anti-Dumping Act; said dumping duty to be applied in' such case, only to women's footwear originating from the dumping factories and to be levied and imposed only to the extent of the margin of dumping in each case;
the whole with costs.
The application was supported by the affida vit of one of plaintiffs' attorneys, and by three affidavits from importers each supporting some of the paragraphs of the application enumerated therein. The affidavit of William B. Gladstone, President of plaintiff Creative Shoes Ltd., states that that company is not practising dump ing and is importing footwear from Italy and Spain at prices which are equal to or greater than the fair market value or normal value and that the Department of National Revenue never confronted Creative Shoes Ltd. with any infor mation which it had in respect to the factories from which it is importing, never advised Crea tive Shoes Ltd. of the reasons for its conclu sions for dumping, nor has it afforded them the opportunity to correct, complete or to con tradict the information which it had.
The affidavit of Leonard Tucker, the General Manager of plaintiff Danmor Shoe Co. Ltd., states that that company at all relevant times imported women's footwear from Italy and Spain at prices equal to or greater than the fair market value or normal value and continues to do so to this date and has not dumped and is not dumping, that the Department of National Revenue never provided the company with the information upon which it based its decision to advance the export price of women's footwear by 71% and 12% in the case of Italy and Spain, respectively, and that the business activities of the company in marketing the women's foot wear originating in Italy and Spain have been and are being unduly hampered to the point where it has caused grave and irreparable damage to the company.
The affidavit of Aurele Lacroix, President of plaintiff Créations Marie-Claude Inc., states that that company has not been practising dumping and is importing footwear from Italy and Spain at prices that are equal to or greater than the fair market value or normal value and that the Department of National Revenue never confronted Créations Marie-Claude Inc. with any information which it had in respect of the factories from which it is importing and never advised Créations Marie-Claude Inc. of the rea sons for its conclusions of dumping, nor has it afforded them the opportunity to correct, com plete or contradict the information which it had.
The application was accompanied by seven exhibits as follows:
(a) Copy of a notice of investigation and questionnaire sent by the Department of National Revenue to exporters in Italy and Spain dated June 8, 1970.
(b) Ministerial Prescriptions dated May 31, 1971, by virtue of section 11 of the Anti- Dumping Act advancing the export price of women's footwear originating in Italy on the
basis of the export price being determined under section 10 of the Act by 7.5%.
(c) Ministerial Prescription dated May 31, 1971 under the same section of the Anti- Dumping Act advancing the export price of women's footwear originating in Spain by 12%.
(d) Ministerial Prescriptions dated May 31, 1971, under section 40 of the Customs Act similarly advancing the export prices for ordi nary duty purposes by the same percentages on the basis that insufficient information is available to enable the determination of the fair market value under section 36 or 37 of that Act.
(e) Decision of the Anti-Dumping Tribunal dated August 25, 1971.
(f) Letter from plaintiffs' attorneys dated August 30, 1971 to the Dominion Customs Appraiser of the Department of National Revenue which sets out most of plaintiffs' arguments and objecting to the determina tions made.
(g) Copies of relevant correspondence between plaintiffs' attorneys and officers of the Department of National Revenue.
Defendants presented the same day a motion to dismiss the proceedings or strike out the pleadings therein on the grounds that:
(a) the relief claimed is discretionary in nature and in the circumstances alleged would not be granted;
(b) the pleadings disclose no reasonable cause of action;
(c) the Trial Division of this Honourable Court is without jurisdiction;
(d) the pleadings are throughout interspersed with allega tions that are immaterial and redundant, including, inter alia, allegations as to the investigation into dumping con ducted by the Deputy Minister of National Revenue for Customs and Excise;
(e) the pleadings are throughout interspersed with allega tions that may prejudice, embarrass or delay the fair trial of the action, including, inter alia, allegations as to the investigation into dumping conducted by the Deputy Min ister of National Revenue for Customs and Excise.
It was agreed to hear argument on both motions simultaneously.
The mode of procedure adopted by plaintiffs herein appears to be somewhat unusual. Rule 603 of the Rules of the Federal Court provides that proceedings under section 18 of the Act, such as the present proceedings, may be brought either
(a) by way of an action under Rule 400; or
(b) by way of an application to the Court under Rule 319 et seq.
The present proceedings are entitled "Applica- tion for a Writ of Certiorari and Prohibition and for Declaratory Relief" and supported by affidavits and accompanied by a notice of pre sentation as in the case of a motion, but the parties are designated therein as plaintiffs and defendants and the form the proceedings take is similar to that of a declaration or a statement of claim, the method now provided for originating an action under Rule 400. The prayer for relief is divided into two sections, the relief asked for in section A being in effect the certiorari and prohibition referred to in the heading, and the relief under section B being the relief which the plaintiffs hope to obtain by final judgment, which includes the declaratory relief sought and a request for an injunction against future con duct of the Deputy Minister of National Revenue.
While the proceedings as brought are there fore somewhat hybrid in nature, and some of the relief sought cannot be granted by the Trial Division, this would not justify dismissing them at this stage. This is in accordance with the principle set out in Dyson v. Attorney General [1911] 1 K.B. 410, referred to by Mr. Justice Pigeon in the Supreme Court in Jones and Maheux v. Gamache [1969] S.C.R. 119 at p. 129, in which judgment Farwell L.J. said at page 424:
I will quote the Lord Chief Baron in Deare v. Attorney General (I Y. & C. Ex. at p. 208): "It has been the practice, which I hope will never be discontinued, for the officers of the Crown to throw no difficulty in the way of proceedings for the purpose of bringing matters before a Court of justice
when any real point of difficulty that requires judicial decision has occurred".
The questions that have to be decided at this stage of the proceedings are whether the relief asked for by plaintiffs in paragraphs A(i) to (iv) of the conclusions should be granted, and with respect to defendants' motion, whether the pro ceedings should be dismissed, or the pleadings struck out at this stage for the reasons set out therein.
The application concerns two statutes, namely, the Anti-Dumping Act R.S.C. 1970, c. A-15 and the Customs Act R.S.C. 1970, c. C-40. It will be useful at this stage to examine the relevant sections of these statutes.
Dealing first with the Anti-Dumping Act, sec tion 8 provides that goods are dumped if the normal value of the goods exceeds the export price, the margin of dumping being the amount of the excess. Section 9 sets out the manner for determining the normal value of goods, which broadly speaking is the price at which like goods are sold to purchasers with whom the exporter is dealing at arm's length, in the ordi nary course of trade, for home consumption under competitive conditions, during a period of time relating to the period of time at which these goods are imported into Canada, at the place from which the goods were shipped into Canada, with allowances to reflect differences in terms and conditions of sale and taxation and other differences relating to price comparabili ty. Subsection (5) of section 9 provides that where the normal value of any goods cannot be determined in this way because there was not a sufficient number of sales of like goods under these conditions, then the normal value shall be determined at the option of the Deputy Minister on the basis of either the price of like goods when sold by the exporter to importers in any country other than Canada after making allow ances to reflect the differences in the terms and conditions of sale, taxation and other differ ences relating to price comparability, or the aggregate of the cost of production of the goods plus an amount for administrative, selling and other costs and profits calculated as prescribed by the regulations. I have not quoted section 9 in extenso as it is quite lengthy and makes
frequent references to regulations, which regu lations are not before me, with the exception of Regulation 11 referred to in paragraph 48 of plaintiffs' plea which provides:
The normal value of any goods, as otherwise determined, may be adjusted by deducting therefrom the amount of any taxes and duties levied on the sales of like goods when destined for home consumption that are not borne by the goods sold to the importer in Canada.
Section 10 provides for the manner of deter mination of the export price of goods, again at some length, and with reference to regulations. Section 11, which is the important section in connection with the present proceedings, reads as follows:
11. Where, in the opinion of the Deputy Minister, suffi cient information has not been furnished or is not available to enable the determination of normal value or export price under section 9 or 10, the normal value or export price, as the case may be, shall be determined in such manner as the Minister prescribes.
Section 13 sets out the procedure for an investigation respecting the dumping of goods, which may be initiated either by the Deputy Minister on his own initiative or on receipt of a complaint in writing by or on behalf of pro ducers in Canada of like goods. Notice must be given to the importer, the exporter, the govern ment of the country of export, the complainant, if any, and such other persons as may be speci fied by the regulations, as well as being pub lished in the Canada Gazette.
By section 14, when the Deputy Minister, as a result of the investigation, is satisfied that the goods are being dumped and the margin of dumping and the actual or potential volume thereof is not negligible, he shall make a pre liminary determination of dumping. Notice of this determination must be given to the same parties, as well as to the Secretary of the Anti- Dumping Tribunal and provisional duty then commences to be collected in an amount not greater than the dumping.
By section 16, the Anti-Dumping Tribunal upon receipt of a notice of a preliminary deter mination of dumping from the Deputy Minister then makes an inquiry and within three months from the receipt of the notice must make a final determination taking into account paragraph 4(a) of the Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade signed at Geneva, Switzerland, on June 30, 1967, hereinafter referred to as the "GATT" Agreement. Among other matters which the Tribunal must inquire into is the question whether the dumping of the goods that are the subject of the inquiry has caused, is causing, or is likely to cause material injury to the production in Canada of like goods (section 16(1)(a)(i)).
By section 17, the Deputy Minister, upon receipt of the finding of the Tribunal, then makes a final determination of dumping. A series of appeals is provided with respect to the similarity of the goods and the appraisal of the normal value and export price. By section 18(1) the importer may appeal to a Dominion customs appraiser for a re-determination or a re-apprais al of the appraisal made upon entry, which save for such appeal is final and conclusive. By section 18(3) a decision of the Dominion cus toms appraiser is final and conclusive unless the importer, within 90 days, appeals to the Deputy Minister for a re-determination or a re-apprais al. By section 18(4) the Deputy Minister may re-determine any determination or re-appraise any appraisal of the normal value or export price within two years, or at any time for the purpose of giving effect to a decision of the Tariff Board, the Federal Court of Canada or the Supreme Court of Canada with respect to those goods.
Section 19 provides for an appeal to the Tariff Board from a decision of the Deputy Minister made pursuant to section 17(1) or sec tion 18(4) of the Act within 60 days from the decision. The Tariff Board may declare what duty is payable or whether no duty is payable on the goods with respect to which the appeal
was taken. By section 20 there is a further appeal within 60 days to the Federal Court of Canada "upon any question of law". The Feder al Court may declare what duty is payable or that no duty is payable, or refer the matter back to the Tariff Board for re-hearing.
Turning now to the Customs Act we find that section 36, although worded differently from section 9 of the Anti-Dumping Act, and using the term "fair market value" instead of "normal value", contains substantially the same provi sions. Section 37 provides an alternative method of valuation where like goods were not sold for home consumption in the same circum stances as the imported goods were sold, stating that in this event the value for duty shall be based on the aggregate of the cost of production plus an amount that is the same percentage of the cost of production of the goods imported as the gross profit on the similar goods is of the cost of production of the similar goods.
Section 40, which was used in this case, reads as follows:
40. Where sufficient information has not been furnished or is not available to enable the determination of cost of production, gross profit or fair market value under section 36 or 37, the cost of production, gross profit or fair market value, as the case may be, shall be determined in such manner as the Minister prescribes.
Section 41(2), which provides for certain tax rebates in the country of export, reads as follows:
41. (2) The amount of any internal tax imposed within the country of export or origin on any goods imported into Canada, from which such goods have been exempted or have been or will be relieved by means of a refund or drawback, shall be deducted from the value for duty of such goods as determined under sections 36 to 40.
By virtue of section 46 there is an appeal within 90 days from the date of entry to a Dominion customs appraiser for a re-determina tion or a reappraisal, whose decision may, in turn, within 90 days be appealed to the Deputy Minister. As in the Anti-Dumping Act, the
Deputy Minister may re-appraise the value at any time to give effect to a decision of the Tariff Board, the Federal Court of Canada or the Supreme Court of Canada with respect to those goods. By section 47, there is an appeal from the Deputy Minister to the Tariff Board within 60 days to, inter alia, determine the value for duty of the specific goods or class of goods. By section 48 there is a further appeal to the Federal Court of Canada upon any question of law and it may declare what rate of duty is applicable or if no rate of duty is applicable to the specific goods or class of goods, declare the value for duty for the specific goods or class of goods, or refer the matter back to the Tariff Board for re-hearing. There is a further appeal from this judgment to the Supreme Court of Canada.
Pursuant to section 11 of the Anti-Dumping Act, and on the basis that in the opinion of the Deputy Minister of National Revenue sufficient information had not been furnished or was not available to enable the determination of the "normal value" under section 9 of the Act of women's footwear originating in Italy, the Min ister on May 31, 1971, made the prescription already referred to that this value should be determined on the basis of the export price determined under section 10 of the Act advanced by 7.5 per cent. On the same date and on the same basis he made a prescription that the normal value of women's footwear originat ing in Spain should be determined on the basis of the export price determined under section 10 of the Act advanced by 12%. Again, on the same date, he made two further prescriptions pursuant to section 40 of the Customs Act and on the basis that sufficient information had not been furnished or was not available to enable the determination of "fair market value" under sections 36 and 37 of that Act of women's footwear originating in Italy and Spain, the Min ister made a prescription that such value should be determined on the basis of the export price
determined under section 10 of the Anti-Dump ing Act advanced by 7.5% and by 12% respectively.
Pursuant to the procedure set forth in the Anti-Dumping Act an investigation was made by the Anti-Dumping Tribunal as a result of the preliminary determination of dumping made by the Deputy Minister of National Revenue for Customs and Excise on June 1, 1971. Its find ing dated August 25, 1971, refers to the fact that the Deputy Minister on June 3, 1970, caused an investigation to be initiated under section 13(1) of the Anti-Dumping Act respect ing the importation of women's footwear origi nating in France, Italy and Spain, and that as a result of his investigation he was satisfied that women's footwear originating in Italy and Spain was being dumped and that the margin of dump ing of the dumped goods and the actual or potential volume was not negligible. Thereafter, pursuant to section 14(2)(b) of the Act, he gave notice under section 14(1) of his preliminary determination on June 1, 1971, of the dumping. His notice of preliminary determination indicat ed that the Department had ascertained that a number of firms were not dumping, and the names of such firms were made available to the Anti-Dumping Tribunal. His notice went on to say that, where possible, normal value was determined under section 9 of the Act, but where, in the opinion of the Deputy Minister, sufficient information had not been furnished or was not available, the normal value was then determined pursuant to section 11 of the Act, the export price being established under section 10 of the Act on an ex factory basis, and that in numerous instances the normal value of the goods exceeded the export price. Under section 15(1) of the Act the goods are deemed to be entered provisionally and during the period commencing on the day the preliminary deter mination was made, i.e., June 1, 1971, and ending on the day that an order or finding was made by the Anti-Dumping Tribunal, the importer was obliged to pay a provisional duty in an amount not greater than the margin of dumping.
The Tribunal held a public hearing at which submissions from interested parties were made and it found that it was necessary in reaching its conclusion to rely upon research and interviews pursued on its own initiative. The public ses sions were attended by only a token representa tion from among the membership of the Shoe Manufacturers Association of Canada and, according to the findings of the Anti-Dumping Tribunal, the quality of testimony and argument submitted indicated a lack of preparation. The opinion of the Tribunal indicated that those Canadian plants which had been forced to close had done so for a variety of reasons, none of which appeared to relate in any significant way to imports from Italy and Spain, and that retail ers who testified indicated that the rising imports from those countries were not occa sioned in any material degree by dumping, but rather resulted from an explosively changing fashion in footwear to which the domestic industry had failed to conform, reflecting the more casual look in women's footwear general ly. There was agreement that style trends now originate in Europe, with the result that for a significant part of the range of footwear the retailers required, no effective domestic source was available. The manufacturers for their part had argued before the Tribunal that if they had failed to produce the styles of footwear required this arose not because of inability to do so but because they could not in competition with dumped prices. The Tribunal further point ed out that responsible retailers had expressed the view that prices in Italy and Spain were rising so rapidly—an estimated 12% for the 1972 season—that they are likely to be a declin ing factor in the Canadian market in future years. The finding concluded:
While there is little convincing evidence that dumped imports from Italy and Spain have been other than an insignificant factor in the difficulties facing the industry in Canada, we are satisfied that continued dumping might well preclude the kind of adjustments which we feel are impera tive if the Canadian industry is to retain a substantial position in the market. We are satisfied that many of the Canadian producers, given reasonable assurances that future dumping will attract dump duty, are prepared to make the necessary changes in their operations to produce, merchandise most of the types of footwear now imported from Italy and Spain. There are some styles of footwear, of which Spanish weaves are an example, which are unsuitable for manufacture in Canada and will continue to be imported.
Application of anti-dump duty, in appropriate circum stances, would remove some of the uncertainty regarding the future and would probably allow local manufacturers to obtain a moderately better price for their output.
Accordingly the Tribunal is of the opinion that any future dumping of women's last made dress or casual shoes and boots from Italy and Spain might forestall the necessary adjustments in the Canadian industry, and finds, pursuant to section 16, subsection (3) of the Anti-Dumping Act, that future dumping of women's last made dress or casual shoes and boots from Italy and Spain "is likely to cause material injury to the production in Canada of like goods".
While the application of anti-dumping duty is, in appropriate circumstances, necessary and helpful in facilitating the adjustment of the Canadian industry to the needs of the market, its application does not guarantee that such adjust ment will, in fact, occur.
As a result of this finding of the Anti-Dump ing Tribunal, the Deputy Minister made a final determination of dumping pursuant to section 17(1) of the Act, and refunded the provisional duties paid by the importer in accordance with the provisions of section 15(1) and (2) of the Act, but under section 3 imposed an anti-dump ing duty equal to the margin of dumping on all women's last made dress or casual shoes and boots from Italy and Spain entered into Canada after August 25, 1971. Certain firms listed on the schedule attached to the final determination, which allegedly were those who were found not to be guilty of dumping, were exempted, as were women's ski boots and women's boots or shoes for special types of sports activities. This decision and the notice of final determination,
published in the Canada Gazette on September 11, 1971, were not filed as exhibits but were set out in extenso in plaintiffs' application—para- graphs 67 and 68. This finding was based on section 3 of the Act which makes the collection of anti-dumping duty depend on the finding by the Anti-Dumping Tribunal that the dumping of goods of the same description
(a) has caused, is causing or is likely to cause material injury to the production in Canada of like goods; or
(b) has materially retarded or is materially retarding the establishment of the production in Canada of like goods. (Italics mine.)
The next step was to give notice of this decision pursuant to section 17(3) of the Anti- Dumping Act. A copy of one letter giving such notice was produced as part of the correspond ence filed under Exhibit P-7 and this letter advises the exporter that until he has given the information requested in appendices to the letter the Department will be assessing duty at 7.5% (or 12% as the case may be) of the ex factory selling price on imports of this footwear from him, and that value for duty will be simi larly determined. The questionnaire requests detailed information, including copies of orders or contracts for all sales of women's footwear to Canadian clients since August 25, 1971, copies of orders scheduled for future shipment, information as to whether the model, design or shape used in the production of this footwear for the Canadian market has been furnished them at no charge, details relating to discounts, packing and shipping, commission, etc., wheth er the firm is selling identical footwear in the domestic market, footwear in the domestic market which is not identical, or whether the manufacturer is exclusively exporting. In each of these three events a different questionnaire is enclosed. Taking, for example, the exporter who sells identical footwear in the domestic market, he is asked in the questionnaire to give information as to any difference in the style or model numbers, to furnish copies of invoices
concerning sales to domestic clients during the 60 days preceding the sale to Canada, and of domestic price lists for the same period, to give information respecting any discounts or rebates on the basis of quantity, details of the quantity sold in the domestic market and in the export market during the period from June 25, 1971, information as to cash discounts granted to domestic buyers, transportation procedure for domestic sales, explanation of any difference in packing for sales for domestic market, and any other explanations he may deem necessary.
Since no new Ministerial Prescriptions were issued after August 25, 1971, according to the letter of the Deputy Minister dated October 19, 1971 to plaintiffs' attorney, the Ministerial Pre scriptions of May 31, 1971 are being relied upon for the re-imposition of the anti-dumping and special customs duty after August 25, 1971, despite the refund of such duties paid up to that date pursuant to section 15(2) of the Act, fol lowing the decision of the Anti-Dumping Tribu nal. Evidently, any current information obtained as a result of the questionnaire sent in the letters of September 1, 1971, has not result ed in any new Ministerial Prescriptions.
The Deputy Minister had reached the conclu sion that sufficient information was not avail able to determine "normal value" as defined in section 9 of the Anti-Dumping Act or "fair market value" or "cost of production" within the meaning of section 36 and section 37 of the Customs Act and that the Minister was there fore justified in relying on section 11 of the Anti-Dumping Act and section 40 of the Cus toms Act respectively, partly on the basis of questionnaires sent on June 8, 1970 to export ers in Spain and Italy. A copy of one such letter and questionnaire was filed as Exhibit P-1. This letter states that the Deputy Minister is of the opinion that there is evidence that women's
footwear originating in Spain (or Italy, as the case may be) has been or is being dumped, stating: "In forming his opinion, the Deputy Minister had on hand certain confidential infor mation." The letter states that information is required in respect of all shipments of women's footwear invoiced since December 1, 1969, as well as for any orders on hand for future deliv ery to Canadian customers and concludes with this paragraph:
In the event that all the information requested from you has not been received within a reasonable period of time from the date of this letter, the department will have no alterna tive but to assume that it is your intention not to provide the information requested or that such information is not avail able. In these circumstances, such further proceedings will be taken in this matter as are provided for under the law.
The questionnaire is a very lengthy one requir ing, inter alla, copies of purchase orders or contracts for all sales invoiced since December 1, 1969, and copies of invoices for goods that have already been shipped to Canada, details of the identity of this footwear with that sold on the domestic market, copies of domestic price lists, information relating to discounts covering trade, quantity, or deferred discounts on goods sold to domestic customers, copies of- invoices covering sales to domestic customers during the sixty day period preceding the date of each sale to Canada, information relating to total sales during the relevant period both in volume and value, details relating to the cost of production of each type of footwear shipped or to be shipped to Canada broken down into the head ings, material, direct labour, and factory over head, together with information respecting the administrative selling and other costs attribut able to the goods, costs of styling, designing and lasts, information as to whether the styling, designing and lasts for shoes sold on the Canadian market were supplied free of charge by a Canadian importer, copies of profit and loss accounts of the exporters' two most recent fiscal years adjusted to exclude all export sales, details of cash discounts, freight policy on both domestic sales and export sales to Canada, internal taxes including internal taxes or import duties applicable to raw materials, information relating to drawbacks or rebates applicable to either the domestic or export market, informa-
tion as to government subsidies and how they are calculated, descriptions of differences between domestic and export packing and costs of same, and information as to all other costs, charges and expenses incurred on goods shipped or to be shipped to Canada. It can readily be appreciated that such a question naire, while no doubt seeking information highly pertinent to the Department of National Revenue, Customs and Excise, in connection with its investigation, nevertheless asks ques tions which would be considered highly imperti nent by an exporter in Spain or Italy, who is certainly not obliged to give information to a foreign country as to his profits, volume of domestic sales or similar information. In fact, only the largest exporters would be likely to be so organized and have such detailed accounting and tax advice at their disposal, as to be able to answer such a questionnaire fully and complete ly even if they were disposed to do so. It is not surprising, therefore, that allegedly only ten per cent replied. Apparently, among those who replied there were some who gave sufficient information to satisfy the Department that they were not guilty of dumping practices and hence were included in the list of those exempted from the imposition of these duties. Despite this, on the basis of the somewhat scanty infor mation obtained in answer to this questionnaire, supplemented by such additional information as he was able to obtain by such investigations as his representatives may have carried out in Spain and Italy and what is referred to in the letter of June 8, 1970 as "certain confidential information", the Deputy Minister was able to reach two conclusions:
(a) That dumping was taking place with respect to ladies' footwear from Spain and Italy (although not from France); and
(b) That there was insufficient information available to determine the "normal value" of goods under section 9 of the Anti-Dumping Act or the similar "fair market value" or "cost of production" under sections 36 and 37 of the Customs Act, thereby justifying the determination of these values by the Minister as a result of the Deputy Minister's said opin ion, so that the Ministerial Prescriptions of May 31, 1971 and the preliminary determina tion of dumping of June 1, 1971 could be made.
In the decision of the Anti-Dumping Tribunal dated August 25, 1971, reference was made to the letter of June 1, 1971 to the Secretary of the Tribunal in which the Deputy Minister referred to his preliminary determination of dumping made on that date as the result of his investiga tions, which letter concludes: "relevant material relating to the determination is enclosed". The decision states: "this material was supplied to the Tribunal in confidence". Neither the plain tiffs nor the Court, therefore, have at this stage access to the material on which the determina tion was allegedly made) The Tribunal does not appear to have gone in any great detail into the question of whether or not any actual dumping was established but dealt primarily with the damage, if any, which such dumping had caused or might cause to Canadian manufacturers, and after having found, as already stated, that little or no damage had resulted from any dumping which might have taken place to the date of its findings, nevertheless felt it necessary to give assurance to Canadian manufacturers that "fu- ture dumping will attract dump duty". To state that future dumping is likely to cause material injury to the production in Canada of like goods or is materially retarding the establishment of the production in Canada of like goods as required by section 3 of the Anti-Dumping Act, is not at all the same thing as determining that dumping has taken or is taking place.
One of the arguments raised by plaintiffs is based on the wording of section 11 of the Anti-Dumping Act which can be applied only when sufficient information has not been fur nished or is not available "to enable the deter mination of normal value or export price under section 9 or 10". Their argument is to the effect that since the Minister had, and admits having had, sufficient information as to the export price (see letter of December 21, 1971 from Deputy Minister to plaintiffs' attorney, part of Exhibit P-7) he could not apply this section. I find no merit in this argument. "Normal value" and "export price" are two entirely different things. Section 8(b) of the Act defines the margin of dumping as the amount by which the normal value exceeds the export price. Section 9 goes on to explain how normal value is deter mined, and section 10, for its part, sets out how the export price is to be determined, while section 11 provides that if either one or the other cannot be determined on the basis of the information furnished or available, the Minister can determine "the normal value or export price, as the case may be". In his Ministerial Prescriptions of May 31, 1971, the Minister was not determining the export price, for which he admittedly had sufficient information, but rather the normal value for which he did not feel he had sufficient information. The real question before the Court is not whether he had the right to make such a determination, which he undoubtedly had, but whether in exercising the right he acted improperly, without giving due consideration to the information which he had or without confronting the opposing parties, i.e. the importers and their representatives with his so-called "confidential information" and giving them an opportunity to answer it and be heard. In short, without considering the matter in a judicial or quasi-judicial manner as he is required to do even though the decision be an administrative one.
Defendants' attorney raised the question of the jurisdiction of the Trial Division to hear the present application on the basis that the prelimi-
nary determination of dumping was not made by the Deputy Minister until June 1, 1971 and the final determination on August 27, 1971, and hence by virtue of section 61(1) of the Federal Court Act the right of review of the Deputy Minister's decision exists under section 28(1) of that Act, and by virtue of section 28(3) the Trial Division has no jurisdiction to entertain any proceedings in respect of that decision or order. 2
The present proceedings attack not only the preliminary determination of dumping made by the Deputy Minister on June 1, 1971, but also the Ministerial Prescriptions made by the Minis ter, all of which were dated May 31, 1971 determining "normal value" under section 10 of the Anti-Dumping Act by applying section 11 of that Act and "fair market value" or "value for duty" under sections 36 and 37 of the Customs Act by applying section 40' of that Act and increasing the export prices for women's shoes made in Italy and Spain by 71% and 12% respectively. While the Trial Division would have no jurisdiction over the decision made on June 1, 1971, the date on which the Federal Court Act came into effect, it would have juris diction to grant a writ of certiorari or prohibi tion and quash the Ministerial Prescriptions made on May 31, 1971 if it appears that there is an error of law on the face of the record or an abuse of natural justice. If these decisions were made in such a manner as to give rise to the relief asked for by plaintiffs then it would be the Trial Division which would have jurisdiction to quash them. While the formal preliminary determination of dumping under section 14(1) of the Act was only made by the Deputy Minis ter on June 1, 1971, it was certainly evident that the Minister, in making the Ministerial Prescrip tions on May 31, had reached the conclusion on the advice of the Deputy Minister that, accord ing to the investigation conducted, dumping of this merchandise was taking place, as otherwise he would have had no reason to increase the value of the export prices as he did. The two decisions must obviously go hand in hand and I should have thought that the preliminary deter mination of dumping would have had to be made before the Ministerial Prescription which, in effect, determined the extent of it, was made.
Nevertheless, the provisions of the Federal Court Act prevent the Trial Division from deal ing with the preliminary determination of dump ing of June 1, 1971, the decision of the Anti- Dumping Tribunal of August 25, 1971, or the final determination of dumping made by the Deputy Minister to take effect from that date.
While I have reviewed at some length the entire background of the issue in dispute before me, including decisions made on June 1, 1971 and subsequently in order to present the com plete picture, I am forced to conclude that, because of the dichotomy resulting from the provisions of the Federal Court Act, I can only deal with the Ministerial Prescriptions made on May 31, 1971, leaving it to the Appeal Court, if appropriate proceedings are brought before it, to deal with the decisions as to dumping made by the Deputy Minister and Anti-Dumping Tribunal on June 1, 1971 and subsequently.
The matters in issue before me in the Trial Division, therefore, are confined to
(a) the use of section 11 of the Anti-Dumping Act and section 40 of the Customs Act in determining the "normal value" and "value for duty" respectively of the goods in question;
(b) the fixing of the rates at 71% and 12% for Italy and Spain respectively; and
(c) the application of these rates to all women's footwear originating in those coun tries, rather than to exports by specific manufacturers.
Since the decisions made on June 1, 1971 and subsequently cannot be dealt with in the Trial Division it follows that certain paragraphs, and part of the conclusions of the application before me must be struck and I will not deal with the arguments made relating to these.
It is also important to note that, despite cer tain amendments made to both the Anti-Dump ing Act and the Customs Act by the Federal
Court Act both statutes still retain the right of appeal from a decision of the Tariff Board to the Federal Court "upon any question of law" (see section 20(1) Anti-Dumping Act and sec tion 48(1) Customs Act). Section 29 of the Federal Court Act reads as follows:
29. Notwithstanding sections 18 and 28, where provision is expressly made by an Act of the Parliament of Canada for an appeal as such to the Court, to the Supreme Court, to the Governor in Council or to the Treasury Board from a decision or order of a federal board, commission or other tribunal made by or in the course of proceedings before that board, commission or tribunal, that decision or order is not, to the extent that it may be so appealed, subject to review or to be restrained, prohibited, removed, set aside or other wise dealt with, except to the extent and in the manner provided for in that Act.
and were this a decision of the Tariff Board upon a question of law, the Trial Division would have no right to entertain the present proceed ings. However, the matter has not yet been dealt with by the Tariff Board so this question does not arise.
Counsel for defendants argued that plaintiffs should exhaust the appeal procedures provided in the two Acts before resorting to an applica tion to the Federal Court, whether by way of section 18 or section 28 of the Federal Court Act, but there is some doubt whether an appeal to the Tariff Board could result in a review of a Ministerial Prescription made by the Minister. In a recent decision in Tariff Board Appeal No. 982, International Metal Fabricators v. Deputy Minister of National Revenue, which was a hearing under the Anti-Dumping Act it was held, however, that the Board could consider the method of evaluation used by the Deputy Minister who had applied section 9(5)(b) of the Act instead of 9(5)(a) in determining the "nor- mal value" of goods.
Even if appropriate relief could be obtained by plaintiffs by following the appeal procedures set out in the two Acts, however, considerable delays would be involved which would have serious consequences for them. It is small con-
solation to have the right to a refund of duties in the event it is eventually determined that they have been wrongly imposed if, as a conse quence of the imposition, plaintiffs have been forced to cease importing the merchandise in question having concluded same is no longer competitive as a result of the additional duties imposed.
Unless the right to certiorari or prohibition is specifically taken away by the Customs Act, Anti-Dumping Act or the Federal Court Act, and I do not find this to be the case, plaintiffs have a right to avail themselves of it despite the fact that certain appeal procedures are set out in those Acts.
The jurisprudence has been clearly to the effect that even although the Court should not inquire into the merits of a decision by the Minister nor by a Board or similar tribunal given discretionary powers to make a decision, it nevertheless may, unless such decision was clearly one which did not require to be made on a judicial or quasi-judicial basis, (and even in the case of a purely administrative decision affecting private rights which has been made with disregard of the rules of natural justice— see Ridge v. Baldwin [1964] A.C. 40) inquire as to the reasons for the decision and that unless such reasons are given then there is no means whereby the Court may know whether it was made on a proper judicial or quasi-judicial basis. Furthermore, there is a constant line of jurisprudence to the effect that the opposite party must be given a full opportunity to be heard and be confronted with any evidence against him in order that he may have an oppor tunity of answering same before a decision is made. While some of these cases are appeals rather than applications for certiorari, man- damus or other prerogative writs, the principles to be applied are similar. See Nicholson Ltd. v. M.N.R. [ 1945] Ex.C.R. 191, in which Thorson J. (as he then was) said at page 205:
The Minister's discretion under section 6(2) must be exercised in a proper manner. If in making his determina tion he has not acted judicially, within the meaning of the cases cited, he has not exercised the discretion required by
the section at all, and if his determination so made is included in an assessment the assessment is, to such extent, incorrect. Whether the discretion has been exercised in a proper manner is, therefore, a question connected with the assessment over which the Court has jurisdiction. Indeed, the Court owes a duty of supervision over the manner of its exercise in order to ensure that the Minister acts as the law ordains. The fact that it has appellate jurisdiction does not alter the nature of the principles to be applied in its duty of supervision; they are the same as those applied by the courts in the certiorari and mandamus cases.
The Supreme Court case of Wrights' Canadi- an Ropes Ltd. v. M.N.R. [1946] S.C.R. 139, dealt with the exercise of discretion by the Minister of National Revenue under what was then section 6(2) of the Income War Tax Act. At page 157, Hudson J. states:
The ruling of the Minister does not disclose any reasons. No doubt he had what appeared to him perfectly sound reasons for his decision, but none are before us. It is not for the Court to weigh the reasons but we are entitled to know what they aré, so that we may decide whether or not they are based on sound and fundamental principles.
At page 163, Kellock J. refers to the case of The King v. Noxzema Chemical Company of Canada Ltd. [1942] S.C.R. 178 in which Davis J. said at page 180:
If, on the other hand, the function of the Minister under the section may be said to be of a quasi-judicial nature, even then all that was necessary was that the taxpayer be given a fair opportunity to be heard in the controversy; and to correct or to contradict any relevant statement prejudicial to its interests.
Again, at page 168, Kellock J. states:
... I do not think the appellant is in the position where his appeal must fail because, not knowing the ground of deci sion, he is unable to point to its error. I further think it cannot be said that the Statute contemplates that an appeal under its provisions is to be rendered abortive by the mere silence of the decision itself as to the grounds upon which it proceeds.
In the case of Randolph and World Wide Mail Services Corp. v. The Queen [1966] Ex.C.R. 157 dealing with an order by the Post master General under section 7 of the Post Office Act prohibiting the delivery of mail to or for suppliants without affording them an oppor tunity to be heard before the order was made,
Jackett P. (as he then was) states the general principle at page 164:
It is a general rule that, unless Parliament has, in a particular class of matters, otherwise provided, every person has a right to be heard and to be given a fair opportunity for correcting or contradicting what is alleged against him before an order is made against him. This is a fundamental rule of British justice that is read into statutes conferring power to make decisions. It applies not only when the power to make decisions is conferred upon judi cial tribunals constituted as such but whenever such a power is conferred upon administrative agencies, Ministers of the Crown or other purely executive authorities. The rule only applies, however, in the absence of any express statu tory rule to the contrary, to decision making powers con ferred by statute that are of the kind sometimes referred to as being of a judicial or quasi-judicial nature because they are primarily directed to the determination or abrogation of rights of members of the public by application of a statutory rule to the facts of a particular case as determined by the tribunal.
In the case of L'Alliance des Professeurs Catholiques de Montréal v. Labour Relations Board of Quebec and Montreal Catholic School Commission [1953] 2 S.C.R. 140, Rand J. states at page 161 as follows:
... Audi alteram partem is a pervading principle of our law, and is peculiarly applicable to the interpretation of statutes which delegate judicial action in any form to inferior tribu nals: in making decisions of a judicial nature they must hear both sides, and there is nothing in the statute here qualifying the application of that principle.
The only answer suggested to this is that the Board, being an "administrative body", can, in effect, act as it pleases. But in this we are too much the prisoners of words. In one sense of administration, in the enactment of subordinate legislation or quasi-legislation, the principle has a limited application; but in the complexity of governmental activities today, a so-called administrative board may be charged not only with administrative and executive but also with judicial functions, and it is these functions to which we must direct our attention. When of a judicial character, they affect the extinguishment or modification of private rights or interests. The rights here, some recognized and other conferred by the statute, depend for their full exercise upon findings by the Board; but they are not created by the Board nor are they enjoyed at the mere will of the Board; and the Associa tion can be deprived of their benefits only by means of a procedure inherent in judicial process.
Specifically, in order for certiorari to be applicable, the decision attached must be one which affects the rights of subjects and in which the error of law appears on the face of the proceedings. In Regina v. London Commit tee of Adjustment Ex Parte Weinstein [1960] O.R. 225 Morden J.A., in rendering the judg ment of the Court at page 234 referred with approval to the statement of Atkin L.J. in Rex v. Electricity Commissioners [1924] 1 K.B. 171 at pp. 204-5:
The matter comes before us upon rules for writs of prohibition and certiorari which have been discharged by the Divisional Court. Both writs are of great antiquity, forming part of the process by which the King's Courts restrained Courts of inferior jurisdictions from exceeding their powers. Prohibition restrains the tribunal from pro ceeding further in excess of jurisdiction; certiorari requires the record or the order of the Court to be sent up to the King's Bench Division, to have its legality inquired into, and, if necessary, to have the order quashed. It is to be noted that both writs deal with questions of excessive jurisdiction, and doubtless in their origin dealt almost exclu sively with the jurisdiction of what is described in ordinary parlance as a Court of Justice. But the operation of the writs has extended to control the proceedings of bodies which do not claim to be, and would not be recognized as, Courts of Justice. Wherever any body of persons having legal authori ty to determine questions affecting the rights of subjects, and having the duty to act judicially, act in excess of their legal authority they are subject to the controlling jurisdic tion of the King's Bench Division exercised in these writs.
Again, at page 236, Morden J.A. states:
Mr. Williston argued that where an appeal lies, then the Court has a discretion whether or not to grant certiorari and based this submission upon the cases, recently decided, of Ex p. Atikokan, [1959] O.W.N. 200 and Reg. v. Shea Ex p. Weston, [1959] O.R. 664. In those cases the error of law did not appear on the face of proceedings as it does in the instant case and they are therefore distinguishable.
In the case of Local Government Board v. Arlidge [1915] A.C. 120 referred to by McRuer C.J.H.C. in The Queen v. Board of Broadcast Governors and The Minister of Transport, Ex parte Swift Current Telecasting Co. Ltd. [1962] O.R. 190 at p. 197 Lord Parmoor, in referring to the failure to disclose an inspector's report, stated at pages 143-44:
If I thought that this non-disclosure deprived the respond ent of a fair hearing in accord with the terms of substantial justice, I should accede to the argument on behalf of the respondent, and should hold the same view whether the appeal is to be regarded as a quasi-judicial act or as a decision on review of the administrative action of the local authority.
At this stage of the proceedings we have the affidavits from officers of the three plaintiffs, all importers who, in addition to denying that any dumping has taken place with respect to any of the women's footwear imported by them from Italy or Spain, state that they have never been confronted with any information which the Department of National Revenue had with respect to the factories from which they are importing, nor have they been given any oppor tunity to contradict this information nor reasons for the conclusions reached as to dumping, and in the case of Mr. Tucker's affidavit that his company was never provided with information upon which the decision to advance the export prices by 71% and 12% respectively was reached.
In so far as the Ministerial Prescriptions of May 31, 1971 are concerned, plaintiffs' grounds for attacking these decisions can be summa rized as follows:
(a) The Deputy Minister was wrong in finding that insufficient information had been fur nished or was available to determine normal value under section 9 of the Anti-Dumping Act, or fair market value or alternatively cost of production under sections 36 and 37 of the Customs Act, and as a consequence in using section 11 of the Anti-Dumping Act and sec tion 40 of the Customs Act authorizing the Ministerial Prescription of these values. While there is some doubt as to whether all parties who wished to be heard were, in fact, heard before he made this decision, or wheth er or not the information which had been provided to him by the answers to the ques tionnaire and by the importers who did make submissions was, in fact, insufficient to enable him to determine normal value, fair market value, or cost of production, there does not appear to be any error on the face of the record which would justify the quashing of his decision for this reason.
(b) There is nothing to indicate the basis on which the Minister, in applying section 11 of the Anti-Dumping Act and section 40 of the Customs Act, reached the conclusion that export prices should be advanced by 71% in the case of women's shoes emanating from Italy and 12% for those emanating from Spain. In the absence of such explanation there is no way for plaintiffs or for the Court to conclude that these figures were reached after an examination of the material before him in the proper judicial manner. While the Court should not review his decision as to the rates arrived at, it should be satisfied that he reached these conclusions only after a fair and full appraisal of the evidence available, and did not simply select these rates arbitrari ly. There is absolutely nothing to indicate in any of the material before me how the Minis ter arrived at his figures of 71% in the case of Italy, and 12% in the case of Spain. There is nothing magical in these figures, and in the absence of an explanation they could just as easily have been fixed at 15% and 24% or 3% and 5%. When section 11 of the Anti-Dump ing Act and section 40 of the Customs Act permit the normal value or fair market value, as the case may be, to be determined "in such manner as the Minister prescribes", surely this does not give him a free hand to pre scribe percentage figures taken out of the air without any explanation as to how they were arrived at. The plaintiffs are entitled to an explanation as to how they were arrived at, and should have been given an opportunity to dispute them before a decision was reached. The Court is not in a position to decide, in the absence of any explanation, whether these figures were arrived at after a proper judicial or quasi-judicial consideration of the evi dence before the Minister at the time these determinations were made. Paragraph 45 of plaintiffs' application sets out that the Department of National Revenue refused and failed to permit adjustments in the normal value applicable in all but a few cases so as to allow for turnover tax rebate amounting to 10% in the case of Spain and 51% in the case of Italy, cash discounts of 3% in each case,
quantity discounts of 10% in each case, and discounts relating to commissions paid by the factory to salesmen in the home market for the marketing of their products not paid when the goods are exported, being in the order of 7% in the case of Spain and 5% in the case of Italy. From this it is argued that if due consid eration had been given to these factors, the total of the allowances would be well above the alleged margin of dumping established by the Ministerial Prescriptions. This allegation in the pleadings has not, of course, been proved at this stage, nor is it my intention to go into the arguments raised by plaintiffs' attorney respecting the proper allowance to be made under Anti-Dumping Regulation 11 (supra) beyond saying that according to the letter dated September 10, 1971 from the Dominion customs appraiser to him (part of Exhibit 7) it is stated that "for adjustments for normal value purposes the Department allows the amount of any taxes and duties levied on the sale of like goods when destined for home consumption that are not borne by the goods sold to the importer in Canada. This adjustment does not cover any duties and taxes levied on the sales of component materials used in the production of like goods". This rejects any adjustment for the rebate on export of duties and taxes levied on the various stages of production of the foot wear under what plaintiffs refer to in their pleadings as the "cascade" type of turnover tax system in force in Italy and Spain. Plain tiffs' counsel argued that this interpretation is contrary to the provisions of Article VI of paragraph 4 of the GATT Agreement. The fact that such arguments can be raised under lines the necessity for some explanation as to how the figures of 72% and 12% were arrived at, such explanation being at least sufficiently detailed to enable the Court to determine that these figures were not reached as a result of an arbitrary decision without due considera tion of all the facts on which the decision should be based. The absence of explanation appears to constitute an error of law on the face of the record. Moreover, the plaintiffs were not given a hearing before the Ministeri al Prescriptions which affected their personal rights were made. The decision was based at
least in part on confidential information with which the plaintiffs were not confronted nor were they given any opportunity to answer it. Moreover, it appears that at least some of the exporters were not dumping and there is no indication as to how many instances of dump ing were disclosed as a result of the investiga tion. To apply the Ministerial Prescriptions to plaintiffs under these circumstances would seem to constitute a denial of natural justice.
(c) The question also arises as to whether either section 11 of the Anti-Dumping Act or section 40 of the Customs Act is intended to, or does in fact, permit such a broad applica tion of the Ministerial Prescription as to apply it to all goods of a certain category coming from a given country or whether, on the contrary, the Ministerial Prescription must not be applied to each individual shipment, or at least to imports from a given exporter who has been found to be exporting at a price indicating that his goods are being dumped into Canada. In an industry such as the shoe industry there are, as was pointed out in argument, thousands of different manufactur ers in each of the countries in question rang ing from large factories to small home indus tries, each of whom may be manufacturing dozens of different lines of women's shoes. Not all of them export to Canada, but there are nevertheless a great many exporters and different styles of shoes involved. It is not surprising that when so many different ship ments are involved, dumping may exist in some cases. On the other hand, it would be equally surprising to find that every model of shoe of every exporter in Spain or Italy was being exported to Canada at prices lower than
those charged domestic customers, after making due allowances for tax rebates, dis counts for quantity purchases and so forth, as permitted by the statutes and regulations. To make a global finding that dumping is taking place to the extent of 71% and 12% respec tively with respect to all women's shoes imported from either Italy or Spain and then impose on the exporter (or in practice the importer who will no doubt have to get the necessary information from the exporter) the burden of proving that in the case of each shipment of his shoes no such duty should be applied, seems to impose an undue hardship, and to constitute a reversal of the usual burden of proof. I would doubt whether the Minister can sincerely say that the normal value or fair market price of women's shoes shipped from either Italy or Spain should be increased in all cases by these percentages. If the Minister cannot proceed in this manner this would constitute an error in law on the face of the record.
For the foregoing reasons I find that plain tiffs' application for a writ of certiorari and prohibition against defendants should be grant ed and that defendants be required to certify and return to the Office of the Administrator of the Federal Court of Canada, at Ottawa, within thirty days of the date of this judgment or such further delay as this honourable Court may permit on application duly made, all records and documents relating to the investigation initiated in June 1970 and to the imposition and collec tion of duty and anti-dumping duty on women's footwear originating in Italy and Spain on the basis of the advance of the export prices by 71% and 12% respectively, together with the Ministerial Prescriptions dated May 31, 1971 and the reasons for same and all things touching the same, as fully and entirely as they remain in the custody of the said defendants, together with the order to be made herein, so that this Court may further cause to be done thereupon what it shall see fit to be done, and further that defendants suspend all proceedings in virtue of the said Ministerial Prescriptions dated May 31,
1971 and the application of them by the Deputy Minister of National Revenue, and pending final judgment herein, refrain from collecting duty and anti-dumping duty other than on the basis of the export price on women's footwear including last made dress or casual shoes and boots originating in Italy and Spain, the costs of this application to be in the event of the cause.
Dealing with defendants' motion to dismiss or strike out the pleadings, I find that it is not correct to say that, in the circumstances, the relief claimed would not be granted at least in part, nor that the pleadings disclose no reason able cause of action, or that the Trial Division is entirely without jurisdiction. On the other hand, as already stated, the Trial Division has no jurisdiction over the preliminary determination of dumping, the final determination of dumping, or the decision of the Anti-Dumping Tribunal, all of which were made on June 1, 1971 or subsequently and it is evident therefore that certain paragraphs of plaintiffs' pleadings are immaterial and irrelevant and should be struck together with some of the conclusions of same.
Although plaintiffs' application is unneces sarily verbose and argumentative and quotes extracts from statutes, regulations, orders and correspondence at length, defendants' attack on same was directed rather to an attempt to have the proceedings dismissed altogether at this stage than to the striking of certain specific paragraphs of the application. Nevertheless, in view of my findings that the present proceed ings in the Trial Division can only deal with the attack on the Ministerial Prescriptions of May 31, 1971I will direct as follows:
(a) The Anti-Dumping Tribunal should not be included as one of defendants and it should be struck from the record. Since the only decision being attacked is that of the Minister
himself, the Deputy Minister should not remain as a defendant, even if the Ministerial Prescriptions were made on the basis of the opinion formed by the Deputy Minister, as it is the Minister who must assume the ultimate responsibility for making the prescriptions. It seems unnecessary to add Her Majesty the Queen as a defendant but I will not interfere with this at this stage of the proceedings especially since this question was not raised before me;
(b) Paragraph 55 should be struck, being a reference to hearsay and argumentative as to the motives of the Department;
(c) Paragraphs 60, 62, 63, 64, 65, 66, 67, 68, 71, 72, 73 and 74 should be struck;
(d) Subparagraphs (a), (c), (d) and (e) of para graph 75 should be struck, retaining only paragraph (b) which alleges that the onus of proving dumping and the margin of the dump ing lies with the Department of National Revenue;
(e) Subparagraph (c) of paragraph 76 should be struck;
(f) The words "which had become inoperative in virtue of the decision of the Anti-Dumping Tribunal and the final determination of the Deputy Minister of National Revenue of August 27, 1971 and" should be struck from paragraph 77 so that it will now read:
77. In so acting, the Department of National Revenue continued to rely upon the Ministerial prescription dated May 31, 1971 which in any event was based on fragmentary information of a questionable nature obtained during the summer and fall of 1970;
(g) Paragraphs 79, 80, 81, 82, 83, 84, 85, 86, 87, 88, 89, 90, 91 and 99 should be struck;
(h) Paragraphs B(2) and B(5) of the conclu sions of plaintiffs' claim should be struck.
The costs of this motion to strike shall be in favour of defendants.
' Section 29(3), dealing with the Anti-Dumping Tribunal, reads as follows:
29. (3) Where evidence or information that is in its nature confidential, relating to the business or affairs of any person, firm or corporation, is given or elicited in the course of any hearing before the Tribunal, the evidence or informa tion shall not be made public in such a manner as to be available for the use of any business competitor or rival of the person, firm or corporation.
While the necessity for such a safeguard is apparent and this justifies the Deputy Minister in supplying certain material to the Anti-Dumping Tribunal in confidence, it cannot be used to justify the failure to confront each individual exporter with any such confidential evidence as may have been obtained relating to his exports and giving him an opportunity to refute same. Despite this the ques tionnaire sent to individual exporters on June 8, 1970 merely states that the Deputy Minister is of the opinion that dumping is taking place and that in forming this opinion he had on hand "certain confidential information" without in any way indicating the nature of it. The exporter is, in effect, confronted with a decision based on some unspeci fied information which allegedly exists but which he has been given no opportunity of meeting and is invited to provide information indicating why anti-dumping duty should not be applied in his case. Should this confidential information be of such a nature that it could reveal compa ny trade secrets, steps could be taken in line with what this court has been doing for some time whereby the informa tion is given to the court and to counsel for the parties under their personal undertaking not to divulge it to their respective parties or to the public in general and argument is received on such matters in camera.
2 These sections read as follows:
61. (1) Where this Act creates a right of appeal to the Court of Appeal or a right to apply to the Court of Appeal under section 28 to have a decision or order reviewed and set aside, such right applies, to the exclusion of any other right of appeal, in respect of a judgment, decision or order given or made after this Act comes into force, unless, in the case of a right of appeal, there was at that time a right of appeal to the Exchequer Court of Canada.
28. (1) Notwithstanding section 18 or the provisions of any other Act, the Court of Appeal has jurisdiction to hear and determine an application to review and set aside a decision or order, other than a decision or order of an administrative nature not required by law to be made on a judicial or quasi-judicial basis, made by or in the course of proceedings before a federal board, commission or other tribunal, upon the ground that the board, commission or tribunal
(a) failed to observe a principle of natural justice or otherwise acted beyond or refused to exercise its jurisdiction;
(b) erred in law in making its decision or order, whether or not the error appears on the face of the record; or
(c) based its decision or order on an erroneous finding of fact that it made in a perverse or capricious manner or without regard for the material before it.
(3) Where the Court of Appeal has jurisdiction under this section to hear and determine an application to review and set aside a decision or order, the Trial Division has no jurisdiction to entertain any proceeding in respect of that decision or order.
Section 2(g) defines "federal board, commission or other tribunal" as follows:
2. In this Act,
(g) "federal board, commission or other tribunal" means any body or any person or persons having, exercising or purporting to exercise jurisdiction or powers conferred by or under an Act of the Parliament of Canada, other than any such body constituted or established by or under a law of a province or any such person or persons appoint ed under or in accordance with a law of a province or under section 96 of The British North America Act, 1867;
and is broad enough to include decisions by the Minister or
Deputy Minister.
 You are being directed to the most recent version of the statute which may not be the version considered at the time of the judgment.