Certain Softwood Lumber Products From Canada: Amended Final Affirmative Countervailing Duty Determination and Countervailing Duty Order, 347-349 [2017-28483]
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Federal Register / Vol. 83, No. 2 / Wednesday, January 3, 2018 / Notices
Dated: December 21, 2017.
Gary Taverman,
Deputy Assistant Secretary for Antidumping
and Countervailing Duty Operations,
performing the non-exclusive functions and
duties of the Assistant Secretary for
Enforcement and Compliance.
sradovich on DSK3GMQ082PROD with NOTICES
Appendix
Scope of the Investigation
The scope of this investigation covers colddrawn mechanical tubing of carbon and alloy
steel (cold-drawn mechanical tubing) of
circular cross-section, 304.8 mm or more in
length, in actual outside diameters less than
331mm, and regardless of wall thickness,
surface finish, end finish or industry
specification. The subject cold-drawn
mechanical tubing is a tubular product with
a circular cross-sectional shape that has been
cold-drawn or otherwise cold-finished after
the initial tube formation in a manner that
involves a change in the diameter or wall
thickness of the tubing, or both. The subject
cold-drawn mechanical tubing may be
produced from either welded (e.g., electric
resistance welded, continuous welded, etc.)
or seamless (e.g., pierced, pilgered or
extruded, etc.) carbon or alloy steel tubular
products. It may also be heat treated after
cold working. Such heat treatments may
include, but are not limited to, annealing,
normalizing, quenching and tempering, stress
relieving or finish annealing. Typical colddrawing methods for subject merchandise
include, but are not limited to, drawing over
mandrel, rod drawing, plug drawing, sink
drawing and similar processes that involve
reducing the outside diameter of the tubing
with a die or similar device, whether or not
controlling the inside diameter of the tubing
with an internal support device such as a
mandrel, rod, plug or similar device. Other
cold-finishing operations that may be used to
produce subject merchandise include coldrolling and cold-sizing the tubing.
Subject cold-drawn mechanical tubing is
typically certified to meet industry
specifications for cold-drawn tubing
including but not limited to:
(1) American Society for Testing and
Materials (ASTM) or American Society of
Mechanical Engineers (ASME) specifications
ASTM A–512, ASTM A–513 Type 3 (ASME
SA513 Type 3), ASTM A–513 Type 4 (ASME
SA513 Type 4), ASTM A–513 Type 5 (ASME
SA513 Type 5), ASTM A–513 Type 6 (ASME
SA513 Type 6), ASTM A–519 (cold-finished);
(2) SAE International (Society of
Automotive Engineers) specifications SAE
J524, SAE J525, SAE J2833, SAE J2614, SAE
J2467, SAE J2435, SAE J2613;
(3) Aerospace Material Specification (AMS)
AMS T–6736 (AMS 6736), AMS 6371, AMS
5050, AMS 5075, AMS 5062, AMS 6360,
AMS 6361, AMS 6362, AMS 6371, AMS
6372, AMS 6374, AMS 6381, AMS 6415;
(4) United States Military Standards (MIL)
MIL–T–5066 and MIL–T–6736;
(5) foreign standards equivalent to one of
the previously listed ASTM, ASME, SAE,
AMS or MIL specifications including but not
limited to:
(a) German Institute for Standardization
(DIN) specifications DIN 2391–2, DIN 2393–
2, DIN 2394–2);
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(b) European Standards (EN) EN 10305–1,
EN 10305–2, EN 10305–4, EN 10305–6 and
European national variations on those
standards (e.g., British Standard (BS EN),
Irish Standard (IS EN) and German Standard
(DIN EN) variations, etc.);
(c) Japanese Industrial Standard (JIS) JIS G
3441 and JIS G 3445; and
(6) proprietary standards that are based on
one of the above-listed standards.
The subject cold-drawn mechanical tubing
may also be dual or multiple certified to
more than one standard. Pipe that is multiple
certified as cold-drawn mechanical tubing
and to other specifications not covered by
this scope, is also covered by the scope of
this investigation when it meets the physical
description set forth above.
Steel products included in the scope of this
investigation are products in which: (1) Iron
predominates, by weight, over each of the
other contained elements; and (2) the carbon
content is 2 percent or less by weight.
For purposes of this scope, the place of
cold-drawing determines the country of
origin of the subject merchandise. Subject
merchandise that is subject to minor working
in a third country that occurs after drawing
in one of the subject countries including, but
not limited to, heat treatment, cutting to
length, straightening, nondestructive testing,
deburring or chamfering, remains within the
scope of this investigation.
All products that meet the written physical
description are within the scope of this
investigation unless specifically excluded or
covered by the scope of an existing order.
Merchandise that meets the physical
description of cold-drawn mechanical tubing
above is within the scope of the investigation
even if it is also dual or multiple certified to
an otherwise excluded specification listed
below. The following products are outside of,
and/or specifically excluded from, the scope
of this investigation:
(1) Cold-drawn stainless steel tubing,
containing 10.5 percent or more of chromium
by weight and not more than 1.2 percent of
carbon by weight;
(2) products certified to one or more of the
ASTM, ASME or American Petroleum
Institute (API) specifications listed below:
• ASTM A–53;
• ASTM A–106;
• ASTM A–179 (ASME SA 179);
• ASTM A–192 (ASME SA 192);
• ASTM A–209 (ASME SA 209);
• ASTM A–210 (ASME SA 210);
• ASTM A–213 (ASME SA 213);
• ASTM A–334 (ASME SA 334);
• ASTM A–423 (ASME SA 423);
• ASTM A–498;
• ASTM A–496 (ASME SA 496);
• ASTM A–199;
• ASTM A–500;
• ASTM A–556;
• ASTM A–565;
• API 5L; and
• API 5CT
except that any cold-drawn tubing product
certified to one of the above excluded
specifications will not be excluded from the
scope if it is also dual- or multiple-certified
to any other specification that otherwise
would fall within the scope of this
investigation.
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347
The products subject to the investigation
are currently classified in the Harmonized
Tariff Schedule of the United States (HTSUS)
under item numbers: 7304.31.3000,
7304.31.6050, 7304.51.1000, 7304.51.5005,
7304.51.5060, 7306.30.5015, 7306.30.5020,
7306.50.5030. Subject merchandise may also
enter under numbers 7306.30.1000 and
7306.50.1000. The HTSUS subheadings
above are provided for convenience and
customs purposes only. The written
description of the scope of the investigation
is dispositive.
[FR Doc. 2017–28405 Filed 1–2–18; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[C–122–858]
Certain Softwood Lumber Products
From Canada: Amended Final
Affirmative Countervailing Duty
Determination and Countervailing Duty
Order
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
SUMMARY: Based on affirmative final
determinations by the Department of
Commerce (Commerce) and the
International Trade Commission (ITC),
Commerce is issuing a countervailing
duty order on Certain Softwood Lumber
Products (Softwood Lumber) from
Canada. Also, Commerce is amending
its final countervailing duty
determination with respect to Softwood
Lumber from Canada, to correct
ministerial errors.
DATES: January 3, 2018.
FOR FURTHER INFORMATION CONTACT:
Nicholas Czajkowski and Kristen
Johnson, AD/CVD Operations, Offices I
and III, Enforcement and Compliance,
International Trade Administration,
U.S. Department of Commerce, 1401
Constitution Avenue NW, Washington,
DC 20230; telephone: 202–482–1395
and (202) 482–4793, respectively.
SUPPLEMENTARY INFORMATION:
AGENCY:
Background
In accordance with sections 705(a),
705(d), and 777(i)(1) of the Tariff Act of
1930, as amended (the Act), and 19 CFR
351.210(c), on November 8, 2017,
Commerce published an affirmative
final determination in the
countervailing duty investigation of
Softwood Lumber from Canada.1
1 See Certain Softwood Lumber Products From
Canada: Final Affirmative Countervailing Duty
Determination, and Final Negative Determination of
Critical Circumstances, 82 FR 51814 (November 8,
2017) (Final Determination).
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348
Federal Register / Vol. 83, No. 2 / Wednesday, January 3, 2018 / Notices
Interested parties submitted timely filed
allegations that Commerce made certain
ministerial errors in the final
determination of Softwood Lumber from
Canada. Section 705(e) of the Act and 19
CFR 351.224(f) defines ministerial errors
as errors in addition, subtraction, or
other arithmetic function, clerical errors
resulting from inaccurate copying,
duplication, or the like, and any other
type of unintentional error which the
administering authority considers
ministerial. We reviewed the allegations
and determined that we made certain
ministerial errors. See ‘‘Amendment to
the Final Determination’’ section below
for further discussion.
On December 26, 2017, the ITC
notified Commerce of its final
determination pursuant to section
705(b)(1)(A)(i) and section 705(d) of the
Act, that an industry in the United
States is materially injured by reason of
subsidized imports of Softwood Lumber
from Canada.2
Scope of the Order
The products covered by this order is
Softwood Lumber from Canada. For a
complete description of the scope of this
order, see Appendix I.
Amendment to the Final Determination
On November 9, 2017, West Fraser
Mills Ltd. and its cross-owned affiliates
(collectively, West Fraser) submitted a
timely, properly filed allegation that
Commerce made certain ministerial
errors in the Final Determination.3 On
November 13, 2017, Resolute FP Canada
Inc. and Resolute FP US Inc.
(collectively, Resolute) and Conseil de
l’Industrie Forestiere du Quebec (CIFQ)
submitted a timely, properly filed
allegation that Commerce made certain
ministerial errors in the Final
Determination.4 On November 17, 2017,
the petitioner 5 submitted rebuttal
comments to the Resolute and CIFQ
allegation.
Commerce reviewed the record and,
on December 4, 2017, agreed that the
error referenced in West Fraser’s
allegation constitutes a ministerial error
within the meaning of 705(e) of the Act
and 19 CFR 351.224(f).6 Commerce
found that it erroneously calculated
West Fraser’s benefit under the Alberta
Tax-Exempt Fuel Program for Marked
Fuel, and this error was contrary to our
methodological intention.7 Pursuant to
19 CFR 351.224(e), Commerce is
amending the Final Determination to
reflect the correction of the ministerial
error described above. However,
Commerce did not find a ministerial
error with regard to the Resolute and
CIFQ allegation,8 and thus Commerce is
not amending the Final Determination
with regard to that allegation. Based on
our correction of the ministerial error in
West Fraser’s calculation, the subsidy
rate for West Fraser decreased from
18.19 percent ad valorem to 17.99
percent ad valorem.9 Because the ‘‘allothers’’ rate is based, in part, on West
Fraser’s ad valorem subsidy rate, the
correction noted above also decreases
the ‘‘all-others’’ rate determined in the
Final Determination to 14.19 percent ad
valorem.10 All other countervailing duty
rates remain unchanged from the Final
Determination.
Countervailing Duty Order
In accordance with sections
705(b)(1)(A)(i) and 705(d) of the Act, the
ITC notified Commerce of its final
determinations that an industry in the
United States is materially injured by
reason of of subsidized imports of
Softwood Lumber from Canada.11
Therefore, in accordance with section
705(c)(2) of the Act, we are issuing this
countervailing duty order. Because the
ITC determined that imports of
Softwood Lumber from Canada are
materially injuring a U.S. industry,
unliquidated entries of such
merchandise from Canada, entered or
withdrawn from warehouse for
consumption, are subject to the
assessment of countervailing duties.
As a result of the ITC’s final
determination, in accordance with
section 706(a) of the Act, Commerce
will direct U.S. Customs and Border
Protection (CBP) to assess, upon further
instruction by Commerce,
countervailing duties equal to the net
countervailable subsidy rates, for all
relevant entries of Softwood Lumber
from Canada. Countervailing duties will
be assessed on unliquidated entries of
Softwood Lumber from Canada entered,
or withdrawn from warehouse, for
consumption on or after April 28, 2017,
the date of publication of the
Preliminary Determination,12 but will
not include entries occurring after the
expiration of the provisional measures
period and before publication of the
ITC’s final injury determination as
further described below.
Amended Cash Deposits and
Suspension of Liquidation
In accordance with section 706 of the
Act, Commerce will instruct CBP to
reinstitutue suspension of liquidation
on all relevant entries of Softwood
Lumber from Canada. These
instructions suspending liquidation will
remain in effect until further notice.
Commerce will also instruct CBP to
require cash deposits equal to the
amounts as indicated below.
Accordingly, effective on the date of
publication of the ITC’s final affirmative
injury determination, CBP will require,
at the same time as importers would
normally deposit estimated duties on
this subject merchandise, a cash deposit
equal to the subsidy rates listed below.13
The all-others rate applies to all
producers or exporters not specifically
listed, as appropriate.
Subsidy rate
(%)
Company
sradovich on DSK3GMQ082PROD with NOTICES
Canfor Corporation and its cross-owned affiliates 14 ..........................................................................................................................
J.D. Irving Limited and its cross-owned affiliates 15 ............................................................................................................................
2 See Letter from ITC concerning Softwood
Lumber from Canada USITC Investigation Nos.
701–TA–566 and 731–TA–1342, USITC Publication
4749 (December 2017) (ITC Letter).
3 See Letter from West Fraser ‘‘Softwood Lumber
from Canada: Request for Correction of Ministerial
Error in
the Investigation Final Determination
Calculations,’’ November 9, 2017 (West Fraser
Ministerial Error Allegation).
4 See Letter from Resolute and CIFQ ‘‘Softwood
Lumber from Canada: Comments Regarding
Ministerial
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16:13 Jan 02, 2018
Jkt 244001
Error,’’ November 13, 2017 (Resolute Ministerial
Error Allegation).
5 The petitioner is an ad hoc association whose
members are: U.S. Lumber Coalition, Inc.; Collum’s
Lumber Products, L.L.C.; Hankins, Inc.; Potlatch
Corporation; Rex Lumber Company; Seneca
Sawmill Company; Sierra Pacific Industries;
Stimson Lumber Company; Swanson Group;
Weyerhaeuser Company; Carpenters Industrial
Council; Giustina Land and Timber Company;
Sullivan Forestry Consultants, Inc.
6 See Memorandum ‘‘Ministerial Error Allegations
Concerning Final Affirmative Countervailing Duty
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13.24
3.34
Determination, and Final Negative Determination of
Critical Circumstances,’’ December 4, 2017.
7 Id.
8 Id.
9 Id.
10 Id.
11 See ITC Letter.
12 See Certain Softwood Lumber Products From
Canada: Preliminary Affirmative Countervailing
Duty Determination, and Alignment of Final
Determination With Final Antidumping Duty
Determination, 82 FR 19657 (April 28, 2017)
(Preliminary Determination).
13 See section 706(a)(3) of the Act.
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Subsidy rate
(%)
Company
Resolute FP Canada Inc. and its cross-owned affiliates 16 ................................................................................................................
Tolko Marketing and Sales Ltd. and its cross-owned affiliates 17 .......................................................................................................
West Fraser Mills Ltd. and its cross-owned affiliates 18 ......................................................................................................................
All-Others .............................................................................................................................................................................................
14.70
14.85
17.99
14.19
14 Commerce has found the following companies to be cross-owned with Canfor Corporation: Canadian Forest Products, Ltd., and Canfor
Wood Products Marketing, Ltd.
15 Commerce has found the following companies to be cross-owned with JDIL: Miramichi Timber Holdings Limited, The New Brunswick Railway Company, Rothesay Paper Holdings Ltd., St. George Pulp & Paper Limited, and Irving Paper Limited.
16 Commerce has found the following companies to be cross-owned with Resolute: Resolute Growth Canada Inc., Resolute Sales Inc., AbitibiBowater Canada Inc., Bowater Canadian Ltd., Resolute Forest Products Inc., Produits Forestiers Maurice SEC., and 9192–8515 Quebec Inc.
17 Commerce has found the following companies to be cross-owned with Tolko: Tolko Industries Ltd., and Meadow Lake OSB Limited Partnership.
18 Commerce has found the following companies to be cross-owned with West Fraser: West Fraser Timber Co. Ltd., West Fraser Alberta Holdings, Ltd., Blue Ridge Lumber Inc., Manning Forest Products, Ltd., Sunpine Inc., and Sundre Forest Products Inc.
Provisional Measures
Section 703(d) of the Act states that
the suspension of liquidation pursuant
to an affirmative preliminary
countervailing duty determination may
not remain in effect for more than four
months. In the underlying investigation,
Commerce published the Preliminary
Determination on April 28, 2017.
Therefore, the four-month period
beginning on the date of the publication
of the Preliminary Determination ended
on August 26, 2017. Furthermore,
section 707(b) of the Act states that
definitive duties are to begin on the date
of publication of the ITC’s final injury
determination. Therefore, in accordance
with section 703(d) of the Act and our
practice, we instructed CBP to terminate
the suspension of liquidation and to
liquidate, without regard to duties,
unliquidated entries of Softwood
Lumber from Canada made on or after
August 26, 2017. Suspension of
liquidation will resume on the date of
publication of the ITC’s final
determination in the Federal Register.
sradovich on DSK3GMQ082PROD with NOTICES
Notification to Interested Parties
This notice constitutes the
countervailing duty order with respect
to Softwood Lumber from Canada,
pursuant to section 706(a) of the Act.
Interested parties may find an updated
list of CVD orders currently in effect at
https://enforcement.trade.gov/stats/
iastats1.html.
This order is issued and published in
accordance with section 706(a) of the
Act and 19 CFR 351.211(b).
Dated: December 28, 2017.
P. Lee Smith,
Deputy Assistant Secretary for Policy and
Negotiations.
Appendix I—Scope of the Order
The merchandise covered by this order 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
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Jkt 244001
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, Vjointed, 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.
Finished products are not covered by the
scope of this order. For the purposes of this
scope, finished products contain, or are
comprised of, subject merchandise and have
undergone sufficient processing such that
they can no longer be considered
intermediate products, and such products
can be readily differentiated from
merchandise subject to this order at the time
of importation. Such differentiation may, for
example, be shown through marks of special
adaptation as a particular product. The
following products are illustrative of the type
of merchandise that is considered ‘‘finished,’’
for the purpose of this scope: I-joists;
assembled pallets; cutting boards; assembled
picture frames; garage doors.
The following items are excluded from the
scope of this order:
• Softwood lumber products certified by
the Atlantic Lumber Board as being first
produced in the Provinces of Newfoundland
and Labrador, Nova Scotia, or Prince Edward
Island from logs harvested in Newfoundland
and Labrador, Nova Scotia, or Prince Edward
Island.
• U.S.-origin lumber shipped to Canada for
processing and imported into the United
States if the processing occurring in Canada
is limited to one or more of the following: (1)
Kiln drying; (2) planing to create smooth-tosize board; or (3) sanding.
• Box-spring frame kits if they contain the
following wooden pieces—two side rails, two
end (or top) rails and varying numbers of
slats. The side rails and the end rails must
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Fmt 4703
Sfmt 9990
be radius-cut at both ends. The kits must be
individually packaged and must contain the
exact number of wooden components needed
to make a particular box-spring frame, with
no further processing required. None of the
components exceeds 1″ in actual thickness or
83″ in length.
• Radius-cut box-spring-frame
components, not exceeding 1″ in actual
thickness or 83″ in length, ready for assembly
without further processing. The radius cuts
must be present on both ends of the boards
and must be substantially cut so as to
completely round one corner.
Softwood lumber product imports are
generally entered under Chapter 44 of the
Harmonized Tariff Schedule of the United
States (HTSUS). This chapter of the HTSUS
covers ‘‘Wood and articles of wood.’’
Softwood lumber products that are subject to
this order are currently classifiable under the
following ten-digit HTSUS subheadings in
Chapter 44: 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; and
4418.99.10.00.
Subject merchandise as described above
might be identified on entry documentation
as stringers, square cut box-spring-frame
components, fence pickets, truss
components, pallet components, flooring,
and door and window frame parts. Items so
identified might be entered under the
following ten-digit HTSUS subheadings in
Chapter 44: 4415.20.40.00; 4415.20.80.00;
4418.99.90.05; 4418.99.90.20; 4418.99.90.40;
4418.99.90.95; 4421.99.70.40; and
4421.99.97.80.
Although these HTSUS subheadings are
provided for convenience and customs
purposes, the written description of the
scope of this order is dispositive.
[FR Doc. 2017–28483 Filed 1–2–18; 8:45 am]
BILLING CODE 3510–DS–P
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]]>Agencies
[Federal Register Volume 83, Number 2 (Wednesday, January 3, 2018)]
[Notices]
[Pages 347-349]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-28483]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[C-122-858]
Certain Softwood Lumber Products From Canada: Amended Final
Affirmative Countervailing Duty Determination and Countervailing Duty
Order
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: Based on affirmative final determinations by the Department of
Commerce (Commerce) and the International Trade Commission (ITC),
Commerce is issuing a countervailing duty order on Certain Softwood
Lumber Products (Softwood Lumber) from Canada. Also, Commerce is
amending its final countervailing duty determination with respect to
Softwood Lumber from Canada, to correct ministerial errors.
DATES: January 3, 2018.
FOR FURTHER INFORMATION CONTACT: Nicholas Czajkowski and Kristen
Johnson, AD/CVD Operations, Offices I and III, Enforcement and
Compliance, International Trade Administration, U.S. Department of
Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone:
202-482-1395 and (202) 482-4793, respectively.
SUPPLEMENTARY INFORMATION:
Background
In accordance with sections 705(a), 705(d), and 777(i)(1) of the
Tariff Act of 1930, as amended (the Act), and 19 CFR 351.210(c), on
November 8, 2017, Commerce published an affirmative final determination
in the countervailing duty investigation of Softwood Lumber from
Canada.\1\
[[Page 348]]
Interested parties submitted timely filed allegations that Commerce
made certain ministerial errors in the final determination of Softwood
Lumber from Canada. Section 705(e) of the Act and 19 CFR 351.224(f)
defines ministerial errors as errors in addition, subtraction, or other
arithmetic function, clerical errors resulting from inaccurate copying,
duplication, or the like, and any other type of unintentional error
which the administering authority considers ministerial. We reviewed
the allegations and determined that we made certain ministerial errors.
See ``Amendment to the Final Determination'' section below for further
discussion.
---------------------------------------------------------------------------
\1\ See Certain Softwood Lumber Products From Canada: Final
Affirmative Countervailing Duty Determination, and Final Negative
Determination of Critical Circumstances, 82 FR 51814 (November 8,
2017) (Final Determination).
---------------------------------------------------------------------------
On December 26, 2017, the ITC notified Commerce of its final
determination pursuant to section 705(b)(1)(A)(i) and section 705(d) of
the Act, that an industry in the United States is materially injured by
reason of subsidized imports of Softwood Lumber from Canada.\2\
---------------------------------------------------------------------------
\2\ See Letter from ITC concerning Softwood Lumber from Canada
USITC Investigation Nos. 701-TA-566 and 731-TA-1342, USITC
Publication 4749 (December 2017) (ITC Letter).
---------------------------------------------------------------------------
Scope of the Order
The products covered by this order is Softwood Lumber from Canada.
For a complete description of the scope of this order, see Appendix I.
Amendment to the Final Determination
On November 9, 2017, West Fraser Mills Ltd. and its cross-owned
affiliates (collectively, West Fraser) submitted a timely, properly
filed allegation that Commerce made certain ministerial errors in the
Final Determination.\3\ On November 13, 2017, Resolute FP Canada Inc.
and Resolute FP US Inc. (collectively, Resolute) and Conseil de
l'Industrie Forestiere du Quebec (CIFQ) submitted a timely, properly
filed allegation that Commerce made certain ministerial errors in the
Final Determination.\4\ On November 17, 2017, the petitioner \5\
submitted rebuttal comments to the Resolute and CIFQ allegation.
---------------------------------------------------------------------------
\3\ See Letter from West Fraser ``Softwood Lumber from Canada:
Request for Correction of Ministerial Error in
the Investigation Final Determination Calculations,'' November
9, 2017 (West Fraser Ministerial Error Allegation).
\4\ See Letter from Resolute and CIFQ ``Softwood Lumber from
Canada: Comments Regarding Ministerial
Error,'' November 13, 2017 (Resolute Ministerial Error
Allegation).
\5\ The petitioner is an ad hoc association whose members are:
U.S. Lumber Coalition, Inc.; Collum's Lumber Products, L.L.C.;
Hankins, Inc.; Potlatch Corporation; Rex Lumber Company; Seneca
Sawmill Company; Sierra Pacific Industries; Stimson Lumber Company;
Swanson Group; Weyerhaeuser Company; Carpenters Industrial Council;
Giustina Land and Timber Company; Sullivan Forestry Consultants,
Inc.
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Commerce reviewed the record and, on December 4, 2017, agreed that
the error referenced in West Fraser's allegation constitutes a
ministerial error within the meaning of 705(e) of the Act and 19 CFR
351.224(f).\6\ Commerce found that it erroneously calculated West
Fraser's benefit under the Alberta Tax-Exempt Fuel Program for Marked
Fuel, and this error was contrary to our methodological intention.\7\
Pursuant to 19 CFR 351.224(e), Commerce is amending the Final
Determination to reflect the correction of the ministerial error
described above. However, Commerce did not find a ministerial error
with regard to the Resolute and CIFQ allegation,\8\ and thus Commerce
is not amending the Final Determination with regard to that allegation.
Based on our correction of the ministerial error in West Fraser's
calculation, the subsidy rate for West Fraser decreased from 18.19
percent ad valorem to 17.99 percent ad valorem.\9\ Because the ``all-
others'' rate is based, in part, on West Fraser's ad valorem subsidy
rate, the correction noted above also decreases the ``all-others'' rate
determined in the Final Determination to 14.19 percent ad valorem.\10\
All other countervailing duty rates remain unchanged from the Final
Determination.
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\6\ See Memorandum ``Ministerial Error Allegations Concerning
Final Affirmative Countervailing Duty Determination, and Final
Negative Determination of Critical Circumstances,'' December 4,
2017.
\7\ Id.
\8\ Id.
\9\ Id.
\10\ Id.
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Countervailing Duty Order
In accordance with sections 705(b)(1)(A)(i) and 705(d) of the Act,
the ITC notified Commerce of its final determinations that an industry
in the United States is materially injured by reason of of subsidized
imports of Softwood Lumber from Canada.\11\ Therefore, in accordance
with section 705(c)(2) of the Act, we are issuing this countervailing
duty order. Because the ITC determined that imports of Softwood Lumber
from Canada are materially injuring a U.S. industry, unliquidated
entries of such merchandise from Canada, entered or withdrawn from
warehouse for consumption, are subject to the assessment of
countervailing duties.
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\11\ See ITC Letter.
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As a result of the ITC's final determination, in accordance with
section 706(a) of the Act, Commerce will direct U.S. Customs and Border
Protection (CBP) to assess, upon further instruction by Commerce,
countervailing duties equal to the net countervailable subsidy rates,
for all relevant entries of Softwood Lumber from Canada. Countervailing
duties will be assessed on unliquidated entries of Softwood Lumber from
Canada entered, or withdrawn from warehouse, for consumption on or
after April 28, 2017, the date of publication of the Preliminary
Determination,\12\ but will not include entries occurring after the
expiration of the provisional measures period and before publication of
the ITC's final injury determination as further described below.
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\12\ See Certain Softwood Lumber Products From Canada:
Preliminary Affirmative Countervailing Duty Determination, and
Alignment of Final Determination With Final Antidumping Duty
Determination, 82 FR 19657 (April 28, 2017) (Preliminary
Determination).
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Amended Cash Deposits and Suspension of Liquidation
In accordance with section 706 of the Act, Commerce will instruct
CBP to reinstitutue suspension of liquidation on all relevant entries
of Softwood Lumber from Canada. These instructions suspending
liquidation will remain in effect until further notice. Commerce will
also instruct CBP to require cash deposits equal to the amounts as
indicated below. Accordingly, effective on the date of publication of
the ITC's final affirmative injury determination, CBP will require, at
the same time as importers would normally deposit estimated duties on
this subject merchandise, a cash deposit equal to the subsidy rates
listed below.\13\ The all-others rate applies to all producers or
exporters not specifically listed, as appropriate.
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\13\ See section 706(a)(3) of the Act.
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Subsidy rate
Company (%)
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Canfor Corporation and its cross-owned affiliates \14\.. 13.24
J.D. Irving Limited and its cross-owned affiliates \15\. 3.34
[[Page 349]]
Resolute FP Canada Inc. and its cross-owned affiliates 14.70
\16\...................................................
Tolko Marketing and Sales Ltd. and its cross-owned 14.85
affiliates \17\........................................
West Fraser Mills Ltd. and its cross-owned affiliates 17.99
\18\...................................................
All-Others.............................................. 14.19
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\14\ Commerce has found the following companies to be cross-owned with
Canfor Corporation: Canadian Forest Products, Ltd., and Canfor Wood
Products Marketing, Ltd.
\15\ Commerce has found the following companies to be cross-owned with
JDIL: Miramichi Timber Holdings Limited, The New Brunswick Railway
Company, Rothesay Paper Holdings Ltd., St. George Pulp & Paper
Limited, and Irving Paper Limited.
\16\ Commerce has found the following companies to be cross-owned with
Resolute: Resolute Growth Canada Inc., Resolute Sales Inc., Abitibi-
Bowater Canada Inc., Bowater Canadian Ltd., Resolute Forest Products
Inc., Produits Forestiers Maurice SEC., and 9192-8515 Quebec Inc.
\17\ Commerce has found the following companies to be cross-owned with
Tolko: Tolko Industries Ltd., and Meadow Lake OSB Limited Partnership.
\18\ Commerce has found the following companies to be cross-owned with
West Fraser: West Fraser Timber Co. Ltd., West Fraser Alberta
Holdings, Ltd., Blue Ridge Lumber Inc., Manning Forest Products, Ltd.,
Sunpine Inc., and Sundre Forest Products Inc.
Provisional Measures
Section 703(d) of the Act states that the suspension of liquidation
pursuant to an affirmative preliminary countervailing duty
determination may not remain in effect for more than four months. In
the underlying investigation, Commerce published the Preliminary
Determination on April 28, 2017. Therefore, the four-month period
beginning on the date of the publication of the Preliminary
Determination ended on August 26, 2017. Furthermore, section 707(b) of
the Act states that definitive duties are to begin on the date of
publication of the ITC's final injury determination. Therefore, in
accordance with section 703(d) of the Act and our practice, we
instructed CBP to terminate the suspension of liquidation and to
liquidate, without regard to duties, unliquidated entries of Softwood
Lumber from Canada made on or after August 26, 2017. Suspension of
liquidation will resume on the date of publication of the ITC's final
determination in the Federal Register.
Notification to Interested Parties
This notice constitutes the countervailing duty order with respect
to Softwood Lumber from Canada, pursuant to section 706(a) of the Act.
Interested parties may find an updated list of CVD orders currently in
effect at https://enforcement.trade.gov/stats/iastats1.html.
This order is issued and published in accordance with section
706(a) of the Act and 19 CFR 351.211(b).
Dated: December 28, 2017.
P. Lee Smith,
Deputy Assistant Secretary for Policy and Negotiations.
Appendix I--Scope of the Order
The merchandise covered by this order 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.
Finished products are not covered by the scope of this order.
For the purposes of this scope, finished products contain, or are
comprised of, subject merchandise and have undergone sufficient
processing such that they can no longer be considered intermediate
products, and such products can be readily differentiated from
merchandise subject to this order at the time of importation. Such
differentiation may, for example, be shown through marks of special
adaptation as a particular product. The following products are
illustrative of the type of merchandise that is considered
``finished,'' for the purpose of this scope: I-joists; assembled
pallets; cutting boards; assembled picture frames; garage doors.
The following items are excluded from the scope of this order:
Softwood lumber products certified by the Atlantic
Lumber Board as being first produced in the Provinces of
Newfoundland and Labrador, Nova Scotia, or Prince Edward Island from
logs harvested in Newfoundland and Labrador, Nova Scotia, or Prince
Edward Island.
U.S.-origin lumber shipped to Canada for processing and
imported into the United States if the processing occurring in
Canada is limited to one or more of the following: (1) Kiln drying;
(2) planing to create smooth-to-size board; or (3) sanding.
Box-spring frame kits if they contain the following
wooden pieces--two side rails, two end (or top) rails and varying
numbers of slats. The side rails and the end rails must be radius-
cut at both ends. The kits must be individually packaged and must
contain the exact number of wooden components needed to make a
particular box-spring frame, with no further processing required.
None of the components exceeds 1'' in actual thickness or 83'' in
length.
Radius-cut box-spring-frame components, not exceeding
1'' in actual thickness or 83'' in length, ready for assembly
without further processing. The radius cuts must be present on both
ends of the boards and must be substantially cut so as to completely
round one corner.
Softwood lumber product imports are generally entered under
Chapter 44 of the Harmonized Tariff Schedule of the United States
(HTSUS). This chapter of the HTSUS covers ``Wood and articles of
wood.'' Softwood lumber products that are subject to this order are
currently classifiable under the following ten-digit HTSUS
subheadings in Chapter 44: 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; and
4418.99.10.00.
Subject merchandise as described above might be identified on
entry documentation as stringers, square cut box-spring-frame
components, fence pickets, truss components, pallet components,
flooring, and door and window frame parts. Items so identified might
be entered under the following ten-digit HTSUS subheadings in
Chapter 44: 4415.20.40.00; 4415.20.80.00; 4418.99.90.05;
4418.99.90.20; 4418.99.90.40; 4418.99.90.95; 4421.99.70.40; and
4421.99.97.80.
Although these HTSUS subheadings are provided for convenience
and customs purposes, the written description of the scope of this
order is dispositive.
[FR Doc. 2017-28483 Filed 1-2-18; 8:45 am]
BILLING CODE 3510-DS-P
