LexSage

BE AWARE: Homeowners and
Contractors in Western Canada
Will Be Surprised By Antidumping
Duties on U.S. Drywall

August 26, 2016

Many homeowners and contractors in Western Canada will soon be asking “Why do I have to pay antidumping duties on imports of gypsum board or drywall?” This is because there is an antidumping case in Canada on gypsum board imported from the United States into Western provinces.

Starting on September 6, 2016, imports of drywall/gypsum board into Western Canada (British Columbia, Alberta, Saskatchewan and Manitoba, and the Yukon and Northwest Territories) will be subject to antidumping duties. This is because CertainTeed filed an antidumping case on gypsum board originating in and/or exported from the United States and the Canadian International Trade Tribunal made preliminary determination of injury on August 5, 2016.  No exclusion was granted for small volumes of drywall imported by homeowners or contractors (sorry, we tried unsuccessfully).

The preliminary antidumping duty rates will be announced by the Canada Border Services Agency (“CBSA”) on September 6th if there is a preliminary determination of dumping (which is expected).  All imports of subject drywall/gypsum board on September 6, 2016 and thereafter until the final determination of duties will be subject to the preliminary duty rate.

The new added expense will come as a surprise to homeowners and contractors who live near the U.S./Canada border.  Just as people are finishing summer renovation projects and summer construction of new residential complexes, the price could double.  The amount of the duties can be at any level (even over 100%).  Many individuals are closer to a building supply store on the US side of the border.  Homeowners will have to change their buying habits and drive further for CertainTeed drywall stocked at a Canadian retail store or pay the premium duties at the border.

What will be subject to duties?

The drywall that is “subject goods” is:

Gypsum board, sheet, or panel (“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.  All dimensions are plus or minus allowable tolerances in applicable standards.

For greater certainty, the gypsum board considered to be subject goods includes but is not limited to:

i. Abuse-resistant gypsum board offering greater resistance to surface indentation, abrasion and penetration than standard gypsum board.
ii. Eased edge gypsum board, which has a tapered and slightly rounded or beveled factory edge. It may be used as an aid in custom finishing of joints.
iii. Gypsum base for veneer plaster serves as a base for thin coats of hard, high strength gypsum veneer plaster.
iv. Impact-resistant gypsum board offer greater resistance to the impact of solid objects from high traffic and vandalism than standard gypsum board.
v. Mold-resistant gypsum board or Mold and moisture resistant gypsum board has a mold/moisture resistant gypsum core and paper facing that incorporates various methods of preventing the growth of mold and mildew on the board’s surface.
vi. Regular gypsum board (gypsum wallboard) is used as a surface layer on walls and ceilings.
vii. Sag-resistant gypsum board is a ceiling board that offers greater resistance to sagging than regular gypsum products used for ceilings where framing is typically spaced 24 inches.
viii. Type C or Proprietary Type-X gypsum board is available in 1/2 inch and 5/8 inch thicknesses and is required in some fire rated assemblies. Additional additives give this product improved fire resistive properties.
ix. Type X gypsum board is available in 1/2 inch and 5/8 inch thicknesses and has an improved fire resistance made possible through the use of special core additives. Type X gypsum board is used in most fire rated assemblies.

What will not be subject to duties?

The following goods are excluded from the subject goods definition:

(a) gypsum board made to a width of 54 inches (1,371.6 mm);

(b) gypsum board measuring 1 inch (25.4 mm) in thickness and 24 inches (609.6 mm) in width regardless of length (commonly referred to and used as “paper-faced shaft liner”);

(c) gypsum board meeting ASTM C 1177 or ASTM C 1177M (commonly referred to and used primarily as “glass fiber re-enforced sheathing board” but also sometimes used for internal applications for high mold/moisture resistant applications);

(d) double layered glued paper-faced gypsum board (commonly referred to and used as “acoustic board”); and

(e) gypsum board meeting ISO16000 23 for absorption of formaldehyde.

If you require any assistance, please contact Cyndee Todgham Cherniak at 416-307-4168 or email to cyndee@lexsage.com.  If you wish the Canadian International Trade Tribunal to know about the import duty shock, please write to citt-tcce@tribunal.gc.ca or write to us and we will send your comments (keep it clean) to the Tribunal.  There is a possibility that the Tribunal will grant an exclusion in January if this is known to be a problem for individuals living in border communities.  But, they will need to hear from the people who have been affected.

This article was originally published on www.Canada-USBlog.com. Republished with permission.