In March 2016, Canadian producers of gypsum board filed a
complaint with Canada Border Services Agency (CBSA) alleging that
US exporters of gypsum board were dumping their product into
western Canada and causing injuring production of gypsum board in
Canada. Dumping occurs when an imported product is being sold into
Canada below what it would be sold for in the USA, or below its
cost of production.
Under Canadian law, if the CBSA finds that the goods are dumped
and the Canadian International Trade Tribunal (CITT) finds that
those dumped goods are causing injury to Canadian producers of
those goods, then dumping duties can be applied on US imports for
up to 5 years.
On September 6, 2016, CBSA found that US imports of gypsum board
were being dumped into western Canada at a rate of up to 276%, and
imposed preliminary duties at that rate. This means that effective
September 6, all imports of gypsum board from the US will be
assessed a duty of up to 276% upon entry into Canada. The importers
are required under Canadian law to pass on the duties to their
Canadian customers. See http://www.cbsa-asfc.gc.ca/sima-lmsi/i-e/gb2016/gb2016-np-eng.html
On September 7, 2016, the CITT initiated its inquiry into
whether the dumping of US gypsum board into western Canada is
causing injury to Canadian producers of gypsum board. The CITT
notice of investigation and schedule can be found at http://www.citt.gc.ca/en/node/7831
The purpose of the CITT investigation is to determine whether
the Canadian produces are suffering injury, and if so whether the
cause of that injury is US imports or other non-import factors such
as Canadian labor issues/strikes, a general economic slowdown,
financial mismanagement, etc. In addition the Tribunal will examine
the extent to which Canadian producers have the capacity to supply
western Canada and whether US imports are needed to fill any gap in
the Canadian producers' ability to supply.
The Tribunal is scheduled to hold a public hearing into the
matter on December 5, 2016. Importers and end users of gypsum board
have until September 21, 2016 to file a notice to participate in
the CITT process.
Importers and end-users of gypsum board in Canada can protect
their interests in this investigation by participating in the CITT
process (as individuals or as part of a coalition) to argue against
the importation of duties; and to also request that certain US
gypsum products be excluded from any application of duties in the
future. There is also an opportunity to argue that the imposition
of duties would not be in the public interest of consumers and
building products/construction companies in western Canada,
especially in light of current economic conditions.
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guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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