CBSA Dumping Duties: Unforeseen Cost Increases And The Consequences For Parties To Construction Contracts

Background

In April 2016, CertainTeed Gypsum Canada Inc. (CertainTeed Canada) filed a complaint with the Canada Border Services Agency (CBSA) alleging that imports of U.S. gypsum board were being dumped¹ in Western Canada and causing injury to the domestic drywall manufacturing industry.² As a result of its preliminary investigation, CBSA determined that dumping was occurring and that significant duties should be imposed to safeguard the Western Canadian drywall manufacturing industry.

These provisional duties, combined with limited domestic production in Western Canada, have resulted in significant increases in the price of drywall, which has important practical implications and raises questions as to who is contractually required to pay those costs.