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Sima Expiry Review Order: Gypsum Board
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The Canadian International Trade Tribunal (the “CITT”) announced an Order in Expiry Review RR-2021-004 on October 19, 2022 (the “Order”), continuing its order made on January 4, 2017, in Expiry Review NQ-2016-002, in respect of the dumping of certain gypsum board products originating in or exported from the U.S., imported into Canada for use or consumption in the provinces of BC, AB, SK, and MB, as well as NT and YK (the “Subject Goods”).
What is an Expiry Review
Expiry Reviews are conducted jointly by the Canada Border Services Agency (the “CBSA”) and the CITT to review prior Anti-Dumping Duty (“ADD”) or Countervailing Duty (“CVD”) orders made by the CITT (the “Orders”) under the Special Import Measures Act (“SIMA”). These Expiry Reviews generally occur every 5 years following the original Orders or subsequent continuation Orders.
Expiry Reviews are designed to allow the CBSA to investigate whether the expiry of a prior order is likely to result in the continuation or resumption of dumping or subsidizing of the subject goods, and the CITT to determine whether a material injury to the domestic industry would be likely as a result.
Detailed Description of the Subject Goods
The CITT’s Order for the Subject Goods covered gypsum board 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, the CITT excluded 5 specific products from the above description.
The CITT conducted a “likelihood of injury analysis” to determine the potential impact of the Subject Goods on the domestic industry if the 2017 order was rescinded. The factors considered by the CITT included: U.S. and domestic market conditions for the Subject Goods, import volume, price effects of dumping (including price undercutting, price depression and price suppression), and the ultimate impact on the domestic industry.
The CITT concluded that if the 2017 order was rescinded, there would likely be a resumption of dumping of the Subject Goods from the U.S., which would cause material injury to the domestic industry.
Why Do I Care?
With the conclusion of the Expiry Review, the Order will likely remain in force for another 5 years until the next Expiry Review. At that time, Canadian importers and foreign exporters and producers need to determine whether to take part in the Expiry Review or risk the continued application of potentially punitive ADDs and CVDs. Canadian domestic producers (i.e., those benefitting from the Order) are effectively required to participate (or risk a conclusion that there is insufficient domestic support to continue the Order).
Can I Get Involved Now?
While this Expiry Review has concluded, exporters impacted by the Order may be able to request an Expedited Review from the CBSA. An Expedited Review is the process by which the CBSA will review the normal value, export price and amount of subsidy (if applicable) on subject goods for an exporter who was not previously asked to submit information to the CBSA in a prior investigation or re-investigation.
Other than the Expedited Review process, or a CBSA re-investigation, the next chance to get involved will be the CITT’s Expiry Review in 2027.