On January 17, 2024, the Canada Border Services Agency (the “CBSA”) announced that it has initiated a re-investigation of the normal values and export prices in respect of certain gypsum board (known more colloquially as “drywall” or “wallboard”) originating in or exported from the United States (the “Subject Goods”) for use or consumption in Western Canada (i.e., BC, AB, SK, YU, and NT).

On June 20, 2024, the CBSA released a notice concluding the re-investigation with updated normal values and export prices. 

The Subject Goods are defined to be composed primarily of a gypsum core and faced or reinforced with paper or paperboard, including gypsum board meeting or supplied to meet ASTM C 1396 or ASTM C 1396M or equivalent standards, regardless of end use, edge-finish, thickness, width, or length.  However, five (5) specific products are excluded from the description.  More details about the product description and exclusions can be found here.

Background

On June 8, 2016, the CBSA originally initiated an investigation in respect of the Subject Goods in response to a complaint from CertainTeed Gypsum Canada Inc.  On December 5, 2016, the CBSA made a final determination that Subject Goods were being dumped into Western Canada.

On January 4, 2017, the Canadian International Trade Tribunal (the “CITT”) issued a finding that the dumping of the Subject Goods had caused injury to the Canadian domestic industry.  As a result of this finding, anti-dumping duties (“ADD”) were imposed on the Subject Goods for use or consumption in Western Canada.

The CBSA conducted a previous re-investigation in 2018.

The CITT also conducted an expiry review after 5 years, as required by section 76.03 of the Special Import Measures Act (“SIMA”), and on October 19, 2022, continued its finding (and the ADDs) in respect of the Subject Goods.

Updated Normal Values and Export Prices

As part of this 2024 re-investigation, the following three (3) producers/exporters were assigned updated normal values:  Saint-Gobain Gypsum USA, Georgia-Pacific Gypsum LLC, and United States Gypsum Company.  

Normal values previously in place expired on June 20, 2024, and imports from all other producers/exporters of the Subject Goods from the United States will be subject to 324.1% ADD (i.e., there has been no change in the general ADD rate). 

What’s Next?

Importers are responsible for calculating and declaring any anti-dumping duties or countervailing duties.  This means checking with suppliers to find out normal values (and subsidy rates, where applicable), if the subject goods are exported/produced by one of the listed companies.  These amounts can be confirmed with CBSA.

Exporters, including those with normal values, should ensure compliance with their ongoing obligations, including informing the CBSA of relevant changes, for example, increases in domestic prices, costs, and changes in market conditions.

Want a PDF copy of this blog?