Notice of conclusion of a re-investigation: Gypsum Board (GB 2024 RI)

Period of investigation

The period of investigation (POI) and the profitability analysis period (PAP) for the re-investigation was from January 1, 2023 to December 31, 2023.

Re-investigation process

At the initiation of the re-investigation, the CBSA sent a request for information (RFI) to all known importers, exporters, producers and vendors to solicit information on the costs and selling prices of subject goods and like goods. The information was requested for purposes of updating the normal values and export prices for subject goods imported into Canada.

During the course of the re-investigation, two exporters, namely, Saint-Gobain Gypsum USA, Inc. and Georgia-Pacific Gypsum LLC and their related importers, provided sufficient information in response to the CBSA’s RFIs. On-site verifications were conducted at the premises of the two exporters located in the United States as well as their respective related importers. Another exporter, United States Gypsum Company (USG) and its related importer, CGC Inc., also responded to the CBSA’s RFIs; however, the CBSA determined that the information provided by USG was deficient for the purposes of this re-investigation.

As part of the re-investigation, case briefs and reply submissions were provided by counsel representing the complainants and responding exporters. Details of the representations are provided in Appendix 1. Details pertaining to the information submitted by the exporters in response to the RFIs as well as the results of the CBSA’s re-investigation are provided below.

Specific normal values and export prices for future shipments of gypsum board have been determined for exporters that submitted a complete response to the RFI, Supplemental RFIs, and for whom the verification was considered reliable.

Normal values and export prices

Normal value

Normal values are generally determined based on the domestic selling prices of like goods in the country of export, in accordance with section 15 of SIMA, or on the aggregate of the cost of production of the goods, a reasonable amount for administrative, selling and all other costs, plus a reasonable amount for profits, in accordance with paragraph 19(b) of SIMA.

Where, in the opinion of the CBSA, sufficient information has not been furnished or is not available, normal values are determined pursuant to a ministerial specification in accordance with subsection 29(1) of SIMA.

Normal values established during this re-investigation will be effective for the subject goods released from the CBSA on or after the date of the conclusion of the re-investigation. The updated normal values determined in this re-investigation do not have an effect on the reference values determined pursuant to the Gypsum Board Products Anti-dumping Duty Remission Order, 2017, issued by the Governor General in Council, on recommendation of the Minister of Finance on February 24, 2017. In addition, the normal values determined on the basis of the re-investigation will be applied to any entries of subject goods under appeal that have yet to be re-determined at the time of the conclusion of this re-investigation.

Export prices

The export price of goods sold to importers in Canada is generally determined in accordance with section 24 of SIMA, based on the lesser of the adjusted exporter’s sale price for the goods or the adjusted importer’s purchase price. These prices are adjusted where necessary by deducting the costs, charges, expenses, duties and taxes resulting from the exportation of the goods as provided for in subparagraphs 24(a)(i) to 24(a)(iii) of SIMA.

Where, in the opinion of the CBSA, sufficient information has not been furnished or is not available, export prices are determined pursuant to a ministerial specification under subsection 29(1) of SIMA.

Where there are sales between associated persons or a compensatory arrangement exists, the export price may be determined based on the importer’s resale price of the imported goods in Canada to non associated purchasers, less deductions for all costs incurred in preparing, shipping and exporting the goods to Canada that are additional to those incurred on the sales of like goods for use in the country of export, all costs that are incurred in reselling the goods (including duties and taxes) or associated with the assembly of the goods in Canada and an amount representative of the average industry profit in Canada, pursuant to paragraphs 25(1)(c) and 25(1)(d) of SIMA. In any cases not provided for under paragraphs 25(1)(c) and 25(1)(d) of SIMA, the export price is determined in such a manner as the Minister specifies, pursuant to paragraph 25(1)(e).

United States

Saint-Gobain Gypsum USA

Saint-Gobain Gypsum USA (CT US) is a manufacturer and exporter of subject goods and its head office is located in Malvern, Pennsylvania. It operates under the name “CertainTeed” in both Canada and the United States. The company has multiple production facilities and the subject goods shipped to Western Canada were produced at some of those facilities. During the POI, all of the subject goods were sold to a related importer, CertainTeed Canada Inc. (CT Canada).

CT US and CT Canada provided sufficient information in response to the CBSA’s RFI and supplemental RFI. An on-site verification of CT US was conducted at its Seattle facility and for CT Canada at its Mississauga facility in April 2024.

CT US had domestic sales of like goods during the PAP. Where there were sufficient profitable sales of like goods, normal values were determined pursuant to section 15 of SIMA, based on the domestic selling prices of gypsum board in the United States. Where there were insufficient profitable domestic sales of like goods or there were no domestic sales of like goods, normal values were determined pursuant to paragraph 19(b) of SIMA, based on the aggregate of the cost of production of the goods, a reasonable amount for administrative, selling and all other costs plus a reasonable amount for profits. The amount for profit was determined pursuant to subparagraph 11(1)(b)(i) of the SIMR.

Due to the relationship between CT US and CT Canada, a reliability test was performed to determine whether the section 24 export prices were reliable as envisaged by SIMA. This test was conducted by comparing the section 24 export prices with the section 25 export prices. The test revealed that the export prices pursuant to section 24 of SIMA were reliable and, therefore, export prices were determined pursuant to section 24 of SIMA, based on the exporter’s selling price less all costs, charges and expenses resulting from the exportation of the goods.

Georgia-Pacific Gypsum LLC

Georgia-Pacific Gypsum LLC (GP US) is a manufacturer and exporter of subject goods and its head office is located in Atlanta, Georgia. The company has multiple production facilities and the subject goods shipped to Western Canada were produced at some of those facilities. During the POI, all of the subject goods were sold to a related importer, Georgia-Pacific Canada LP (GP Canada).

GP US and GP Canada provided sufficient information in response to the CBSA’s RFI and supplemental RFIs. GP US’ related input supplier also provided a response to Part D of the CBSA’s RFI. An on-site verification of GP US and GP Canada was conducted at GP US’ head office in Atlanta in April 2024.

GP US had domestic sales of like goods during the PAP. Where there were sufficient profitable sales of like goods, normal values were determined pursuant to section 15 of SIMA, based on the domestic selling prices of gypsum board in the United States. Where there were insufficient profitable domestic sales of like goods or there were no domestic sales of like goods, normal values were determined pursuant to paragraph 19(b) of SIMA, based on the aggregate of the cost of production of the goods, a reasonable amount for administrative, selling and all other costs plus a reasonable amount for profits.

As inputs significant in the production of the goods were acquired by one of GP US’ production facilities from an associated supplier, the cost of the inputs for that facility were determined pursuant to subparagraph 11.2(1)(a) of the SIMR. The amount for profit was determined pursuant to subparagraph 11(1)(b)(ii) of the SIMR.

Due to the relationship between GP US and GP Canada, a reliability test was performed to determine whether the section 24 export prices were reliable as envisaged by SIMA. This test was conducted by comparing the section 24 export prices with the section 25 export prices. The test revealed that the export prices pursuant to section 24 of SIMA were reliable and, therefore, export prices were determined pursuant to section 24 of SIMA, based on the exporter’s selling price less all costs, charges and expenses resulting from the exportation of the goods.

United States Gypsum Company

United States Gypsum Company (USG) is a manufacturer and exporter of subject goods and its head office is located in Chicago, Illinois. The company has multiple production facilities, a number of which produced the subject goods that were shipped to Western Canada. During the POI, all of the subject goods were sold to a related importer, CGC Inc. (CGC).

The CBSA determined that the information provided in response to the RFI and supplemental RFI as well as the responses to the deficiency letters by USG, were incomplete and unreliable for purposes of determining normal values and export prices in this re-investigation. Normal values and export prices for USG were determined pursuant to a ministerial specification in accordance with subsection 29(1) of SIMA.

All other exporters in United States

For all other exporters of subject goods originating in or exported from the United States, including USG, imported into Canada for use or consumption in Western Canada, normal values will be determined by ministerial specification. The normal values for future shipments determined by ministerial specification are calculated by advancing the export price of the goods by 324.1%, pursuant to subsection 29(1) of SIMA.

Normal values previously in place expire on June 20, 2024.

Exporter responsibility

All parties are cautioned that where there are increases in domestic prices and/or costs as noted above, the export price for sales to Canada should be increased accordingly to ensure that any sale made to Canada is not only above the normal value but at or above selling prices and full costs and profit of the goods in the exporter’s domestic market. If exporters did not properly notify the CBSA of any such changes, did not adjust export prices accordingly, or did not provide the information required to make any necessary adjustments to normal values and export prices, retroactive assessments of anti-dumping duties may be warranted. Please refer to the CBSA’s Memorandum D14-1-8: Re-investigation and normal value review policy for details.

Importer responsibility

Importers are reminded that it is their responsibility to calculate and declare their anti-dumping and countervailing duty liability. If importers are using the services of a customs broker to clear importations, the brokerage firm should be advised that the goods are subject to anti-dumping and countervailing measures and be provided with sufficient information necessary to clear the shipments. To determine their liability for anti-dumping and countervailing duty, importers should contact the exporters to obtain the applicable normal values and amounts of subsidy. For further information on this matter, refer to Memorandum D14-1-2: Disclosure of normal values, export prices, and amounts of subsidy established under the Special Import Measures Act.

The Customs Act applies, with any modifications that the circumstances require, with respect to the accounting and payment of anti-dumping and countervailing duties. As such, failure to pay the duties within the prescribed time will result in the application of the interest provisions of the Act.

Should the importer disagree with the determination made on any importation of goods, a request for re-determination may be filed. For more information on how to file a request for re-determination, please refer to the Guide for appealing a duty assessment.

Contact us

• Telephone:
• Jason Huang: 343-553-1891
• Elena Rrotani: 613-298-5157

Email: simaregistry-depotlmsi@cbsa-asfc.gc.ca

Appendix 1: Representations

During the re-investigation, submissions containing representations were received on behalf of a Canadian producer, CertainTeed Canada Inc. (CT Canada)^{Footnote 1} and by counsel for the International Brotherhood of Boilmakers and Teamsters Local 213 (“Unions”).^{Footnote 2}

Following the closing of the record on May 14, 2024, case arguments were received on behalf of CT Canada and CT US^{Footnote 3} as well as USG.^{Footnote 4}

The CBSA received reply submissions on behalf of CGC Inc. (CGC) and USG,^{Footnote 5} CT Canada and CT US,^{Footnote 6} and GP Canada and GP US.^{Footnote 7}

Certain details provided in case briefs and reply submissions were designated as confidential information by the submitting counsel. This has restricted the ability of the CBSA to discuss all issues raised in these submissions. The material issues raised by the parties through case briefs are summarized as follows:

Retroactive duty assessments

Case briefs

Counsel for CT Canada contended that retroactive duty assessments are warranted for exports of subject goods from USG and GP US. Counsel argues that regardless of whether the duties may be returned due to the Remission Order in place, retroactive duty assessments would serve as an important source of information to quantify the dumping. They further argue that this quantification would be critical information when it comes to both the next expiry review process pertaining to the continuance of the CITT’s order as well as to the evaluation of the Remission Order that is currently in place.^{Footnote 8}

Reply submissions

In their reply submission, counsel for GP Canada and GP US addressed comments concerning retroactivity, arguing that retroactive assessments are not warranted. Counsel pointed to the existence of Remission Order that is in effect for this case, noting that GP has followed the terms that are stipulated under the Remission Order.^{Footnote 9}

CBSA response

Upon completion of the re-investigation, the CBSA will be conducting an analysis of subject imports from exporters of gypsum board during the POI, to determine whether retroactive assessments are warranted. The analysis will rely on information provided via RFI and Supplemental RFI responses received, representations submitted by parties, on-site verifications and any other available relevant information.

Completeness of information provided and the calculation of normal values and export prices

Representations made during the re-investigation

During the re-investigation, counsel for CT Canada and counsel for the Unions highlighted their various concerns pertaining to the responses to the RFIs and Supplemental RFIs provided by exporters and their related parties. Issues that were alleged included: insufficient related supplier and related importer responses, inadequate or missing reconciliations, unacceptable costing and sales methodologies, issues with rebates and discounts, and other various alleged inconsistencies and deficiencies within the responses.^{Footnote 10}

There were a number of company specific issues that were raised in the representations made during the re-investigation. In order to respect the confidentiality designations made by interested parties, the CBSA is limited in the information that can be divulged in response to arguments made concerning certain topics.

Case briefs

In their case brief, counsel for CT Canada reiterated their concerns, alleging continued issues in the responses provided by GP US and GP Canada and alleging that USG and CGC responses are deficient. This included continued concerns about related party information.^{Footnote 11}

In their case briefs, counsel for USG submitted that they have fully cooperated during the re-investigation, alleging that they have provided complete responses which addressed all concerns that were raised during the re-investigation. They further contend that USG was willing and able to complete any necessary verification of the information provided, and as such, the CBSA should proceed to verify and utilize the information submitted by USG.^{Footnote 12}

Reply submissions

In their reply submission, counsel for CT Canada argued that USG has failed to provide any new argument as to why USG’s submissions should not be considered deficient.^{Footnote 13}

In their reply submissions, counsel for GP US and GP Canada addressed the specific issues raised by CT Canada in their case brief relating to GP. Counsel contends that GP had fully cooperated and provided accurate, verified information and the issues identified by CT Canada lack merit and should be set aside.^{Footnote 14}

In their reply submissions, counsel for USG and CGC argued that USG’s information was complete and should be verified and used by the CBSA. Counsel further contented CGC and USG are separate entities and that CGC’s information should be separately considered and the CBSA should find it to be complete and accurate.^{Footnote 15}

CBSA response

After carefully considering the full range of information provided by USG during the investigation process, the CBSA determined that the information provided was deficient for the purposes of this re-investigation.

The accuracy and veracity of the information provided by GP US and GP Canada were thoroughly reviewed and verified during the on-site verifications. The CBSA found that the information provided by GP was complete and reliable, and as such, was used to determine normal values and export prices for this re-investigation. Further, normal values and export prices calculated by the CBSA in this re-investigation were determined in accordance with both SIMA and the SIMR.

Due consideration has been given to submissions on the topics raised in case briefs on a case by case basis and appropriate adjustments were made, as applicable, in accordance with SIMA and the SIMR. Additional information on the calculation of normal values is provided to exporters in the confidential exporter conclusion letters.