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U.S. Sets Dumping Duties on Canadian Softwood Lumber

: US Customs

U.S. Makes a Preliminary Determination of Countervailing Duties on Softwood Lumber from Canada 2017-04-26

On April 26, 2017, the U.S. Department of Commerce (DOC) published a Fact Sheet regarding a preliminary affirmative countervailing duty (CVD) determination for softwood lumber from Canada.
U.S. Customs and Border Protection (CBP) is being instructed to impose cash deposits based on preliminary CVD rates on all softwood products imported into the U.S.
The U.S. Federal Register – April 26, 2017, stated:
In accordance with section 733(e)(2) of the Act, because we have preliminarily found that critical circumstances exist with regard to imports exported by certain producers and exporters, if we make an affirmative preliminary determination that sales at less than fair value have been made by these same producers/exporters at above de minimis rates, we will instruct CBP to suspend liquidation of all entries of subject merchandise from these producers/exporters that are entered, or withdrawn from warehouse, for consumption on or after the date that is 90 days prior to the effective date of “provisional measures” (e.g., the date of publication in the Federal Register of the notice of an affirmative preliminary determination of sales at less than fair value at above de minimis rates). At such time, we will also instruct CBP to require a cash deposit equal to the estimated preliminary dumping margins reflected in the preliminary determination published in the Federal Register. This suspension of liquidation will remain in effect until further notice.
According to the DOC fact sheet, the merchandise subject to this investigation is: “softwood lumber, siding, flooring and certain other coniferous wood (“softwood lumber products”).”  
The scope includes: 
  • Coniferous wood, sawn, or chipped lengthwise, sliced or peeled, whether or not planed, whether or not sanded, or whether or not finger-jointed, of an actual thickness exceeding six millimeters.
  • Coniferous wood siding, flooring, and other coniferous wood (other than moldings and dowel rods), including strips and friezes for parquet flooring, that is continuously shaped (including, but not limited to, tongued, grooved, rebated, chamfered, V-jointed, beaded, molded, rounded) along any of its edges, ends, or faces, whether or not planed, whether or not sanded, or whether or not end-jointed.
  • Coniferous drilled and notched lumber and angle cut lumber.
  • Coniferous lumber stacked on edge and fastened together with nails, whether or not with plywood sheathing.
  • Components or parts of semi-finished or unassembled finished products made from subject merchandise that would otherwise meet the definition of the scope above.
Softwood lumber products that are subject to these investigations are currently classifiable under the following ten-digit U.S. HTS subheadings:
4407.10.01.01;         4407.10.01.02;         4407.10.01.15;         4407.10.01.16;
4407.10.01.17;         4407.10.01.18;         4407.10.01.19;         4407.10.01.20;
4407.10.01.42;         4407.10.01.43;         4407.10.01.44;         4407.10.01.45;
4407.10.01.46;         4407.10.01.47;         4407.10.01.48;         4407.10.01.49;
4407.10.01.52;         4407.10.01.53;         4407.10.01.54;         4407.10.01.55;

4407.10.01.56;         4407.10.01.57;         4407.10.01.58;         4407.10.01.59;
4407.10.01.64;         4407.10.01.65;         4407.10.01.66;         4407.10.01.67;
4407.10.01.68;         4407.10.01.69;         4407.10.01.74;         4407.10.01.75;

4407.10.01.76;         4407.10.01.77;         4407.10.01.82;         4407.10.01.83;
4407.10.01.92;         4407.10.01.93;         4409.10.05.00;         4409.10.10.20;
4409.10.10.40;         4409.10.10.60;         4409.10.10.80;         4409.10.20.00;

4409.10.90.20;         4409.10.90.40;         4418.90.25.00.
Subject merchandise as described above may also be classified as “stringers, square cut box-spring-frame components, fence pickets, truss components, pallet components, flooring, and door and window frame parts” under the following ten-digit U.S. HTS subheadings:
4415.20.40.00;         4415.20.80.00;         4418.90.46.05;         4418.90.46.20;
4418.90.46.40;         4418.90.46.95;         4421.90.70.40;         4421.90.94.00;

Although these HTS subheadings are provided for convenience, the written
description of the scope of the investigations is dispositive.
The preliminary subsidy rates established by the DOC are as follows: 
  • West Fraser Mills, Ltd.                  24.12%
  • Resolute FP Canada, Inc.              12.82%
  • Tolko Marketing and Sales Ltd.     19.50%
  • Tolko Industries Ltd.                    19.50%
  • Canfor Corporation                       20.26%
  • J.D. Irving, Limited                         3.02%
  • All others                                     19.88% 
Related Article from Reuters.
Milgram will continue to monitor this situation and will advise of any changes or updates as needed.

Source: U.S. Dept. of Commerce


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