DEPARTMENT OF COMMERCE
International Trade Administration
[C-122-839]
  
  Preliminary Results and Partial Rescission of Countervailing Duty 
  Expedited Reviews: Certain Softwood Lumber Products From Canada
AGENCY: Import Administration, International Trade Administration, 
  Department of Commerce.
ACTION: Notice of preliminary results and partial recission of 
  countervailing duty expedited reviews.
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SUMMARY: The Department of Commerce (the Department) is conducting 
  expedited reviews of the countervailing duty order on certain softwood 
  lumber products from Canada for the period April 1, 2000, through March 
  31, 2001. This notice includes the preliminary results for 28 
  companies. These preliminary results include 14 companies in Round 1 of 
  the proceeding. See Notice of Initiation of Expedited Reviews of the 
  Countervailing Duty Order: Certain Softwood Lumber Products From Canada 
  (67 FR 46955; July 17, 2002) (Notice of Initiation/Round 1). In 
  addition, these preliminary results of expedited review include 14 
  companies in Round 2 of the proceeding. See Notice of Initiation of 
  Expedited Reviews of the Countervailing Duty Order: Certain Softwood 
  Lumber Products from Canada (67 FR 59252; September 20, 2002) (Notice 
  of Initiation/Round 2). For all 28 companies we applied the Group 1 
  methodology. For information on estimated net subsidies, see the 
  ``Preliminary Results of Reviews'' section of this notice. If the final 
  results remain the same as these preliminary results of reviews, we 
  will instruct the Bureau of Customs and Border Protection (BCBP) to 
  amend the cash deposit for each reviewed company as detailed in the 
  ``Preliminary Results of Reviews'' section of this notice. Interested 
  parties are invited to comment on these preliminary results. In 
  addition, the Department is rescinding expedited reviews of five 
  companies in Round 1 and seven companies in Round 2.
EFFECTIVE DATE: May 8, 2003.
FOR FURTHER INFORMATION CONTACT: Gayle Longest or Tipten Troidl, Office 
  of AD/CVD Enforcement VI, Import Administration, International Trade 
  Administration, U.S. Department of Commerce, 14th Street and 
  Constitution Avenue, NW., Washington, DC 20230; telephone: (202) 482-
  3338 or (202) 482-1767.
SUPPLEMENTARY INFORMATION:
Background
  On May 22, 2002, the Department published in the Federal Register 
  its amended final affirmative countervailing duty determination and 
  countervailing duty order on certain softwood lumber products (subject 
  merchandise) from Canada (67 FR 36070), as corrected (67 FR 37775; May 
  30, 2002) (Amended Final Determination). On July 17, 2002, the 
  Department published the Notice of Initiation/Round 1 which covered 73 
  companies that filed complete and timely review applications. See 67 FR 
  46955. On September 20, 2002, the Department published the Notice of 
  Initiation/Round 2, which covered 31 additional companies. See 67 FR 
  59252. This notice included 23 companies that had corrected incomplete 
  applications
[[Page 24718]]
as well as eight companies whose requests were received beyond the 
  initial application deadline for reasons outside the requesters' 
  control.
  As explained in the Notice of Initiation/Round 1, we segregated 
  applicants into two groups. Group 1 consists of companies that obtain 
  the majority of their wood (over 50 percent of their inputs) from the 
  United States, the Maritime Provinces, Canadian private lands, and 
  Canadian companies excluded from the order, and companies that source 
  less than a majority of their wood from these sources and do not have 
  tenure. Group 2 includes companies that source less than a majority of 
  their wood from these sources and have acquired Crown timber through 
  their own tenure contracts. In Round 1, we found that 45 companies 
  satisfied the requirements of Group 1 and 28 companies satisfied the 
  requirements of Group 2. In Round 2, we found that 22 companies 
  satisfied the requirements of Group 1 and nine companies satisfied the 
  requirement of Group 2.
  In our review of the applications in Group 1 in Round 1, we noted 
  that, in order to conduct our analysis, we required only minimal 
  supplemental data for 24 of the 45 companies. The other Group 1 
  companies required additional information and more extensive analysis. 
  We issued questionnaires to the 24 companies requiring only minimal 
  information and set a short deadline for the response. Of the 24 
  companies, 18 were able to supply the supplemental information by the 
  deadline. We completed our preliminary analysis of those 18 companies, 
  using the Group 1 methodology (see ``Methodology'' section below). See 
  Preliminary Results of Countervailing Duty Expedited Reviews: Certain 
  Softwood Lumber Products from Canada (67 FR 52945; August 14, 2002) 
  (August Preliminary Results). On November 5, 2002, we published the 
  final results for 13 of the 18 companies covered by the August 
  Preliminary Results. See Final Results and Partial Recission of 
  Countervailing Duty Expedited Reviews: Certain Softwood Lumber Products 
  From Canada (November Final Results) (67 FR 67388; November 5, 2002). 
  Concurrent with this notice, we are publishing the final results on 
  three additional companies.
  Subsequent to the August Preliminary Results, nine Group 1 
  companies in Round 1 requested an analysis of whether they benefitted 
  from subsidies bestowed on their inputs: American Bayridge Corporation, 
  Blanchette and Blanchette Inc., Goodfellow Inc., Les Bois d'Oeuvre 
  Beaudoin & Gauthier, Meunier Lumber Company Ltd., Mid-America Lumber, 
  Olav Haavaldsrud Timber Company Limited, Treeline Wood Products 
  Limited, and Usine Sartigan Inc. Subsequent to the Notice of 
  Initiation/Round 2, three Group 1 companies in Round 2 requested an 
  analysis of whether they benefitted from subsidies bestowed on their 
  inputs: Carson Lake Lumber Limited, Winnipeg Forest Products, Inc., and 
  W.I. Woodtone Industries. We are not including in this notice any of 
  the companies that requested an analysis of whether they benefitted 
  from subsidies bestowed on their inputs.
  This notice includes the preliminary results for 28 Group 1 
  companies (14 in Round 1 and 14 in Round 2).
  We received comments and rebuttal comments on the August 
  Preliminary Results, on September 6, 2002, and September 18, 2002, 
  respectively, from petitioners and several respondents. We addressed 
  the issues raised in the case and rebuttal briefs in the ``Issues and 
  Decision Memorandum'' (Decision Memorandum), dated concurrently with 
  the November Final Results notice. However, we only addressed those 
  issues that were of a general nature or that specifically affected 
  those 13 reviews. We also received comments from petitioners on 
  November 4, 2002, and December 12, 2002. On January 23, 2003, West Bay 
  Forest Products & Manufacturing Ltd. (West Bay), a company covered by 
  these preliminary results, submitted rebuttal comments to petitioners 
  December 12, 2002, comments. In these preliminary results, we are 
  addressing petitioners' November 4, 2002, and December 12, 2002, 
  comments concerning the companies in these preliminary results, West 
  Bay's rebuttal comments, as well as outstanding methodological issues 
  related to Group 1 companies.
Partial Rescission
 On October 18, 2002, Doman Industries Limited, a respondent company 
  in Round 2, withdrew its request for review. On October 29, 2002, 
  Jackpine Engineered Wood Products Inc. and Jackpine Forest Products 
  Limited, respondent companies in Round 1, withdrew their requests for 
  review. On February 5, 2002, Domtar Inc., another respondent company in 
  Round 1, withdrew its request for review.
  In addition, after examining information submitted by the companies 
  in these expedited reviews proceedings, we find that one company, 
  Francois Giguere Inc., a company in Round 1 did not ship the subject 
  merchandise to the United States during the period of review (April 1, 
  2000, through March 31, 2001) (POR). In accordance with the 
  Department's practice, companies that did not ship subject merchandise 
  during the period covered by the investigation or review are not 
  eligible to participate in that segment of the proceeding. See, e.g., 
  Final Results and Partial Rescission of Countervailing Duty 
  Administrative Review: Stainless Steel Sheet and Strip from the 
  Republic of Korea (68 FR 13267; March 19, 2002). Moreover, the 
  application to request an expedited review specifically listed exports 
  of subject merchandise to the United States during the POR as one of 
  the eligibility requirements. Therefore, we are rescinding the 
  expedited review for Francois Giguere Inc.
  Similarly, two companies in Round 2, 2859-8936 Quebec Inc. Les 
  Cedre Basques and 9027-7971 Quebec Inc., stated in their applications 
  that they did not have any sales of the subject merchandise to the 
  United States during the POR. Instead, they claim that a wholesaler 
  sold their subject merchandise to the United States during the POR; 
  however, they did not provide a completed application for this 
  wholesaler who exported their subject merchandise, as specifically 
  requested in the application form. Because they did not provide the 
  necessary information with regard to this wholesaler, we are not able 
  to proceed with their expedited reviews. See Letter from Melissa 
  Skinner, Director, Office VI, to 2859-8936 Quebec Inc. Les Cedre 
  Basques and Letter from Melissa Skinner to 9027-7971 Quebec Inc., both 
  dated April 11, 2003, on file in the Central Records Unit, Room B-099 
  of the main Commerce Building. Therefore, we are rescinding the 
  expedited reviews for 2859-8936 Quebec Inc. Les Cedre Basques and 9027-
  7971 Quebec Inc.
  Further, one of the Round 2 companies, Hollcan Millworks Ltd. 
  (Hollcan) did not respond to our January 15, 2003, questionnaire which 
  was due on January 29, 2003. We attempted to contact the company to 
  follow up on the questionnaire and found that the phone line was 
  disconnected and email messages were returned as undeliverable. See the 
  Department's March 17, 2003 memorandum to the file regarding Expedited 
  Reviews in the Countervailing Duty Order on Softwood Lumber from Canada 
  (C-122-839), which is on file in room B-099 of the Central Records Unit 
  of the Main Commerce Building. Because Hollcan did not provide the 
  necessary information, we are not able to proceed.
[[Page 24719]]
Therefore, we are rescinding the expedited review for Hollcan.
  Our analysis of the information submitted by Group 1 companies in 
  Round 1 and Round 2 also indicates that there are several companies 
  that performed no processing or manufacturing with respect to the 
  subject merchandise they sold to the United States during the POR, but 
  rather these companies resold softwood lumber processed/manufactured by 
  other companies. As we clearly indicated in our May 24, 2002, Expedited 
  Review Application, in instances involving resales activity, we require 
  information from all of the reseller's suppliers in order to calculate 
  a net subsidy rate for the reseller. The pure resellers (i.e., 
  companies with no lumber production or manufacturing of their own) 
  identified below did not provide the information originally requested 
  in the Expedited Review Application. In fact, contrary to the 
  Department's instructions in the Expedited Review Application, several 
  of the companies listed below did not fully disclose their resale 
  activities in the application. Moreover, with respect to some 
  companies, it was not until we had analyzed sales information contained 
  in several supplemental questionnaire responses that we realized that 
  they were, in fact, pure resellers. Therefore, we are rescinding the 
  expedited review for the following Round 1 company: Cando Contracting 
  Ltd. In addition, we are rescinding the expedited reviews for the 
  following Round 2 companies: Antrim Cedar Corporation, Goldwood 
  Industries Ltd., and Westwood Wholesale Lumber Ltd.
  Finally, we note that one Group 1 company, Kootenay Innovate Wood 
  Inc., is cross-owned with a Group 2 company. As explained below in 
  Comment 1 of the ``Analysis of Comments Received'' section of these 
  preliminary results, Group 1 companies that are cross-owned with Group 
  2 companies will be processed with the Group 2 companies. Thus, 
  Kootenay has not received a company-specific rate in these preliminary 
  results.
Companies Addressed in These Preliminary Results
 This notice includes the preliminary results of review for the 
  following 14 Group 1 companies in Round 1:
Alexandre Cote Ltee.
  Boccam Inc.
  Byrnexco Inc.
  Davron Forest Products Ltd.
  Fraser Pacific Forest Products Inc.
  Frontier Mills Inc.
  Haida Forest Products Ltd.
  Landmark Truss & Lumber Inc.
  Les Bois S&P Grondin Inc.
  Les Industries P.F. Inc.
  Sechoirs de Beauce Inc.
  Tyee Timber Products Ltd.
  West Bay Forest Products and Manufacturing Ltd.
  West Can Rail Ltd.
 These preliminary results also include the preliminary results of 
  review for the following 14 Group 1 companies in Round 2:
Central Cedar Ltd.
  Forstex Industries Inc.
  Hudson Mitchell & Sons Lumber Inc.
  Indian River Lumber
  Les Scieries Jocelyn Lavoie Inc.
  Leslie Forest Products Ltd.
  Lyle Forest Products Ltd.
  Power Wood Corp.
  Precision Moulding Products
  Ram Co. Lumber Ltd.
  Rielly Industrial Lumber Inc.
  Sylvanex Lumber Products Inc.
  United Wood Frames Inc.
  Williamsburg Woods & Garden
 Further we are rescinding on the following five companies in Round 
  1:
Cando Contracting Ltd.
  Domtar Inc.
  Francois Giguere Inc.
  Jackpine Engineered Wood Products Inc.
  Jackpine Forest Products Limited
We are also rescinding on the following seven companies in Round 2:
2859-8936 Quebec Inc. Les Cedre Basques 9027-7971 Quebec Inc.
  Antrim Cedar Corporation
  Doman Industries Limited
  Goldwood Industries Ltd.
  Hollcan Millworks Ltd.
  Westwood Wholesale Lumber Ltd.
Scope of the Reviews
 The products covered by this order are softwood lumber, flooring 
  and siding (softwood lumber products). Softwood lumber products include 
  all products classified under headings 4407.1000, 4409.1010, 4409.1090, 
  and 4409.1020, respectively, of the Harmonized Tariff Schedule of the 
  United States (HTSUS), and any softwood lumber, flooring and siding 
  described below. These softwood lumber products include:
  (1) Coniferous wood, sawn or chipped lengthwise, sliced or peeled, 
  whether or not planed, sanded or finger-jointed, of a thickness 
  exceeding six millimeters;
  (2) Coniferous wood siding (including strips and friezes for 
  parquet flooring, not assembled) continuously shaped (tongued, grooved, 
  rabbeted, chamfered, v-jointed, beaded, molded, rounded or the like) 
  along any of its edges or faces, whether or not planed, sanded or 
  finger-jointed;
  (3) Other coniferous wood (including strips and friezes for parquet 
  flooring, not assembled) continuously shaped (tongued, grooved, 
  rabbeted, chamfered, v-jointed, beaded, molded, rounded or the like) 
  along any of its edges or faces (other than wood moldings and wood 
  dowel rods) whether or not planed, sanded or finger-jointed; and
  (4) Coniferous wood flooring (including strips and friezes for 
  parquet flooring, not assembled) continuously shaped (tongued, grooved, 
  rabbeted, chamfered, v-jointed, beaded, molded, rounded or the like) 
  along any of its edges or faces, whether or not planed, sanded or 
  finger-jointed.
  Although the HTSUS subheadings are provided for convenience and 
  BCBP purposes, the written description of the merchandise subject to 
  this order is dispositive.
  As specifically stated in the Issues and Decision Memorandum 
  accompanying the Notice of Final Determination of Sales at Less Than 
  Fair Value: Certain Softwood Lumber Products from Canada (67 FR 15539; 
  April 2, 2002) (see comment 53, item D, page 116, and comment 57, item 
  B-7, page 126), available at www.enforcement.trade.gov, drilled and notched 
  lumber and angle cut lumber are covered by the scope of this order.
  The following softwood lumber products are excluded from the scope 
  of this order provided they meet the specified requirements detailed 
  below:
  (1) Stringers (pallet components used for runners): if they have at 
  least two notches on the side, positioned at equal distance from the 
  center, to properly accommodate forklift blades, properly classified 
  under HTSUS 4421.90.98.40.
  (2) 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 should be radius-cut at both 
  ends. The kits should be individually packaged, they should 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.
  (3) 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 substantial cuts so as to completely round one corner.
  (4) Fence pickets requiring no further processing and properly 
  classified under HTSUS heading 4421.90.70, 1'' or less in actual 
  thickness, up to 8'' wide, 6' or less in length, and have finials or 
  decorative cuttings that clearly identify
[[Page 24720]]
them as fence pickets. In the case of dog-eared fence pickets, the 
  corners of the boards should be cut off so as to remove pieces of wood 
  in the shape of isosceles right angle triangles with sides measuring 
  \3/4\ inch or more.
  (5) U.S. origin lumber shipped to Canada for minor processing and 
  imported into the United States, is excluded from the scope of this 
  order if the following conditions are met: (1) The processing occurring 
  in Canada is limited to kiln-drying, planing to create smooth-to-size 
  board, and sanding, and (2) if the importer establishes to BCBP' 
  satisfaction that the lumber is of U.S. origin.
  (6) Softwood lumber products contained in single family home 
  packages or kits,\1\ regardless of tariff classification, are excluded 
  from the scope of this order if the importer certifies to items 6 A, B, 
  C, D, and requirement 6 E is met:
  ---------------------------------------------------------------------------
 \1\ To ensure administrability, we clarified the language of 
  exclusion number 6 to require an importer certification and to 
  permit single or multiple entries on multiple days as well as 
  instructing importers to retain and make available for inspection 
  specific documentation in support of each entry.
  ---------------------------------------------------------------------------
 A. The imported home package or kit constitutes a full package of 
  the number of wooden pieces specified in the plan, design or blueprint 
  necessary to produce a home of at least 700 square feet produced to a 
  specified plan, design or blueprint;
  B. The package or kit must contain all necessary internal and 
  external doors and windows, nails, screws, glue, sub floor, sheathing, 
  beams, posts, connectors, and if included in the purchase contract, 
  decking, trim, drywall and roof shingles specified in the plan, design 
  or blueprint.
  C. Prior to importation, the package or kit must be sold to a 
  retailer of complete home packages or kits pursuant to a valid purchase 
  contract referencing the particular home design plan or blueprint, and 
  signed by a customer not affiliated with the importer;
  D. Softwood lumber products entered as part of a single family home 
  package or kit, whether in a single entry or multiple entries on 
  multiple days, will be used solely for the construction of the single 
  family home specified by the home design matching the entry.
  E. For each entry, the following documentation must be retained by 
  the importer and made available to the BCBP upon request:
  i. A copy of the appropriate home design, plan, or blueprint 
  matching the entry;
  ii. A purchase contract from a retailer of home kits or packages 
  signed by a customer not affiliated with the importer;
  iii. A listing of inventory of all parts of the package or kit 
  being entered that conforms to the home design package being entered;
  iv. In the case of multiple shipments on the same contract, all 
  items listed in E(iii) which are included in the present shipment shall 
  be identified as well.
  Lumber products that the BCBP may classify as stringers, radius cut 
  box-spring-frame components, and fence pickets, not conforming to the 
  above requirements, as well as truss components, pallet components, and 
  door and window frame parts, are covered under the scope of this order 
  and may be classified under HTSUS subheadings 4418.90.45.90 , 
  4421.90.70.40, and 4421.90.97.40.
  Finally, as clarified throughout the course of the investigation, 
  the following products, previously identified as Group A, remain 
  outside the scope of this order. They are:
 1. Trusses and truss kits, properly classified under HTSUS 
  4418.90;
  2. I-joist beams;
  3. Assembled box spring frames;
  4. Pallets and pallet kits, properly classified under HTSUS 
  4415.20;
  5. Garage doors;
  6. Edge-glued wood, properly classified under HTSUS item 
  4421.90.98.40;
  7. Properly classified complete door frames;
  8. Properly classified complete window frames;
  9. Properly classified furniture.
 In addition, this scope language has been further clarified to now 
  specify that all softwood lumber products entered from Canada claiming 
  non-subject status based on U.S. country of origin will be treated as 
  non-subject U.S.-origin merchandise under the countervailing duty 
  order, provided that these softwood lumber products meet the following 
  condition: Upon entry, the importer, exporter, Canadian processor and/
  or original U.S. producer establish to BCBP's satisfaction that the 
  softwood lumber entered and documented as U.S.-origin softwood lumber 
  was first produced in the United States as a lumber product satisfying 
  the physical parameters of the softwood lumber scope.\2\ The 
  presumption of non-subject status can, however, be rebutted by evidence 
  demonstrating that the merchandise was substantially transformed in 
  Canada.
  ---------------------------------------------------------------------------
 \2\ See the scope clarification message ( 3034202), 
  dated February 3, 2003, to the BCBP, regarding treatment of U.S. 
  origin lumber on file in the Central Records Unit, Room B-099 of the 
  main Commerce Building.
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Methodology
Stumpage Programs
 These preliminary results include: (a) Companies that obtain the 
  majority of their wood (over 50 percent of their inputs) from the 
  United States, the Maritime Provinces, Canadian private lands, and/or 
  Canadian companies excluded from the order, and (b) companies that 
  source less than a majority of their wood from these sources and do not 
  have tenure. We calculated company-specific rates based on the 
  methodology described in the November Final Results. To obtain the 
  company-specific stumpage benefit, we multiplied the quantity of Crown 
  logs and the quantity of lumber inputs (except for those specified 
  below) by the province-specific stumpage benefit calculated in the 
  underlying investigation, i.e., the average per-unit differential 
  between the calculated adjusted stumpage fee for the relevant province 
  and the appropriate benchmark for that province. For those provinces, 
  such as British Columbia and Ontario, for which we calculated more than 
  one per-unit benefit in the investigation, we calculated one province-
  wide per-unit benefit by weight-averaging the previously calculated 
  values by the corresponding volumes of harvested softwood (this was 
  done in the November Final Results). As indicated in the Notice of 
  Initiation/Round 1, we have not attributed a benefit to (1) logs or 
  lumber acquired from the Maritime Provinces, (2) logs or lumber of U.S. 
  origin, (3) lumber produced by mills excluded in the investigation, and 
  (4) logs from Canadian private land. See 67 FR 46955, 46957. 
  Furthermore, we are not including in our subsidy rate calculations logs 
  which the companies demonstrate to have acquired and resold without any 
  processing. In addition, we are also not including in the subsidy 
  calculations lumber purchased and resold without any further production 
  or manufacturing because, as explained below, the companies in these 
  preliminary results failed to submit information regarding their 
  suppliers as originally requested in our expedited review application. 
  We divided the stumpage benefit by the appropriate value of the 
  company's sales (scope and non-scope softwood lumber products and 
  softwood lumber by-products, net of resales) to determine the company's 
  estimated subsidy rate from stumpage and then added any benefit from 
  other programs to obtain the cash deposit rate for the company.
  Several companies reported that they are cross-owned with other 
  companies
[[Page 24721]]
that produce and/or manufacture subject merchandise. Specifically, 
  Fraser Pacific Forest Products Inc., Frontier Mills Inc., and Landmark 
  Truss & Lumber Inc. (Landmark Companies) stated that they were cross-
  owned. Similarly, West Bay Forest Products & Manufacturing Ltd. 
  indicated that it is cross-owned with two companies that produce and/or 
  manufacture subject merchandise, Gold Mountain and Cedarshed (West Bay 
  Companies). With respect to the Landmark and the West Bay Companies, in 
  accordance with Sec. 351.525(b)(6) of the Department's Regulations, we 
  first calculated the benefits for each of the cross-owned companies 
  using the approach described in the ``Methodology'' section of these 
  Preliminary Results. We then summed the benefits attributable to the 
  consolidated, cross-owned entity and divided the total by the entity's 
  consolidated sales denominator (scope and non-scope softwood lumber 
  products and softwood lumber by-products, net of resales).
  As discussed above in the ``Partial Rescission'' section of these 
  preliminary results, companies with reselling activities were 
  instructed in the Expedited Review Application to provide information 
  pertaining to their suppliers. However, the Group 1 companies with 
  resale and production activities failed to provide such information. 
  Therefore, the Department is not in a position to calculate the benefit 
  on the portion of their sales attributable to resales. For this reason, 
  lumber that was resold by these companies without any further 
  production or manufacturing will remain subject to the country-wide 
  rate established in the Amended Final Determination. Regarding lumber 
  actually produced or manufactured by these companies, we have 
  calculated a company-specific benefit that is based solely on the 
  lumber that the companies have produced. Accordingly, for each Group 1 
  company included in these preliminary results that produces its own 
  lumber and performs resale activities, we calculated a company-
  specific-rate for all lumber that the company produces. Lumber that is 
  resold by these companies without any further manufacturing will be 
  subject to the ``Country-Wide Rate'' calculated in the Final Amended 
  Determination.
  For the period April 1, 2000, to March 31, 2001, we preliminarily 
  determine the net subsidy rate for this program to be as follows for 
  Group 1 companies in Round 1:
------------------------------------------------------------------------
  Net
  Net subsidies--Producer/exporter subsidy
  rate %
  ------------------------------------------------------------------------
  Alexandre Cote Ltee.......................................... 9.07
  Boccam Inc................................................... 0.41
  Byrnexco Inc................................................. 8.40
  Davron Forest Products Ltd................................... 10.94
  Fraser Pacific Forest Products Inc........................... 8.58
  Frontier Mills Inc........................................... 8.58
  Haida Forest Products Ltd.................................... 2.45
  Landmark Truss & Lumber Inc.................................. 8.58
  Les Bois S&P Grondin Inc..................................... 4.62
  Les Industries P.F. Inc...................................... 8.03
  Sechoirs de Beauce Inc....................................... 0.60
  Tyee Timber Products Ltd..................................... 4.10
  West Bay Forest Products and Manufacturing Ltd............... 5.34
  West Can Rail Ltd............................................ 0.00
  ------------------------------------------------------------------------
 For the period April 1, 2000, to March 31, 2001, we preliminarily 
  determine the net subsidy rate for this program to be as follows for 
  Group 1 companies in Round 2:
------------------------------------------------------------------------
  Net
  Net subsidies--producer/exporter Subsidy
  rate %
  ------------------------------------------------------------------------
  Central Cedar Ltd............................................ 4.91
  Forstex Industries Inc....................................... 4.51
  Hudson Mitchell & Sons Lumber Inc............................ 4.31
  Indian River Lumber.......................................... 0.00
  Les Scieries Jocelyn Lavoie Inc.............................. 0.00
  Leslie Forest Products Ltd................................... 13.62
  Lyle Forest Products Ltd..................................... 3.37
  Power Wood Corp.............................................. 6.73
  Precision Moulding Products.................................. 1.41
  Ram Co. Lumber Ltd........................................... 8.92
  Rielly Industrial Lumber Inc................................. 55.15
  Sylvanex Lumber Products Inc................................. 7.09
  United Wood Frames Inc....................................... 10.69
  Williamsburg Woods & Garden.................................. 11.95
  ------------------------------------------------------------------------
Other Programs
 In the underlying investigation, the Department determined that the 
  provinces of British Columbia and Quebec provided countervailable 
  benefits under certain programs. British Columbia provided 
  countervailable benefits under the Forest Renewal Program and Quebec 
  provided countervailable benefits under the Private Forest Development 
  Program (PFDP), loans issued by Investment Quebec, lending under 
  Article 28 of the Society for the Industrial Development of Quebec 
  (SDI) and loans issues by the Society for the Recuperation and 
  Development of Quebec Forests (Rexfor). Based upon our decision in the 
  underlying investigation, the Department requested information from 
  companies regarding the use of these programs. Four companies from 
  British Columbia reported using the Forest Renewal Program. These were 
  the only companies in these preliminary results that reported using 
  previously investigated non-stumpage programs during the POR. 
  Consistent with our approach in the underlying investigation, we are 
  treating benefits received under the Forest Renewal Program as 
  countervailable grants. In accordance with Sec. 351.524(2), we have 
  allocated all of the benefits provided under this program to the year 
  of receipt because the total amount approved under the subsidy program 
  is less than 0.5 percent of the relevant sales denominator (i.e., total 
  sales of softwood lumber products, net of resales). To calculate the 
  net subsidy rate received under this program, we divided the benefit by 
  the companies' total sales of softwood lumber products, net of resales.
  For the period April 1, 2000, to March 31, 2001, we preliminarily 
  determine the net subsidy rate to be as follows for Group 1 companies 
  in Round 1:
------------------------------------------------------------------------
  Net
  Net subsidies--producer/exporter subsidy
  rate %
  ------------------------------------------------------------------------
  Fraser Pacific Forest Products Inc........................... 0.03
  Frontier Mills Inc........................................... 0.03
  Landmark Truss and Lumber Inc................................ 0.03
  West Bay Forest Products and Manufacturing................... 0.16
  ------------------------------------------------------------------------
 For the period April 1, 2000, to March 31, 2001, we preliminarily 
  determine the net subsidy rate to be as follows for Group 1 companies 
  in Round 2:
------------------------------------------------------------------------
  Net
  Net subsidies--producer/exporter subsidy
  rate %
  ------------------------------------------------------------------------
  Central Cedar Ltd............................................ 0.05
  Leslie Forest Products Ltd................................... 0.10
  ------------------------------------------------------------------------
Analysis of Comments Received
I. Methodological Comments
 The following comments address methodological issues related to 
  Group 1 companies as well as issues concerning the general 
  methodologies the Department is applying in these expedited reviews.
  Comment 1: Whether the Same Methodology Should Be Applied to Cross-
  owned Companies When One Is Assigned to Group 1 and the Other to Group 
  2. Tembec Inc., Dowie Timber Ltd., Selkirk Specialty Wood Ltd., Mill & 
  Timber Products Ltd., R. Fryer Forest Products Limited, and Liskeard 
  Lumber Ltd. (the Tembec Group) argue that treatment of Group 2 
  companies becomes more complicated in instances in which a Group 2 
  company is cross-owned with a Group 1 company. The Tembec Group 
  contends that there is no
[[Page 24722]]
indication as to which methodology will be employed for each company in 
  these types of cases. The Tembec Group maintains that if the Department 
  uses the simplified methodology for the Group 1 company and the cost 
  methodology for the Group 2 company, the Department would be in 
  conflict with its own policy to treat cross-owned companies as one 
  entity.
  With respect to the treatment of cross-owned companies when one 
  company is in Group 1 and one company is in Group 2, petitioners assert 
  that all cross-owned companies in this situation should be examined 
  using the Group 2 methodology. Petitioners argue that the Group 2 
  methodology is the most accurate of the two methods and should apply in 
  such cases.
  Department's position: We disagree with both respondents and 
petitioners. The Group 1 and Group 2 benefit calculation methodologies 
  are, more or less, the same, the only difference being that the Group 2 
  methodology involves the calculation of a benefit attributable to 
  timber harvested from Crown lands based on the company's actual 
  experience. Thus, for Group 1 companies cross-owned with Group 2 
  companies, the Department will apply the Group 1 benefit calculation 
  methodology to the Group 1 company and apply the Group 2 benefit 
  calculation methodology to the cross-owned company in Group 2. To 
  derive the net subsidy rate applicable to both the Group 1 and Group 2 
  company that are cross-owned, the Department will sum the two benefit 
  amounts and divide the total by the two companies' consolidated sales 
  denominator (scope and non-scope softwood lumber products and softwood 
  lumber by-products, net of resales). Therefore, with respect to the 
  methodology to be applied to companies whose cross-owned companies may 
  be assigned to a different group, the Department, when calculating the 
  benefit, will apply to each Group 1 or Group 2 company the methodology, 
  regardless of cross-ownership, of the group to which the company is 
  assigned. The rate for the cross-owned companies will be calculated 
  taking into account the results of the two separate calculations. Given 
  this approach, we are unable in these preliminary results to calculate 
  a consolidated net subsidy rate for Group 1 companies that are cross-
  owned with Group 2 companies because we are still processing and 
  receiving data from Group 2 companies.
  Comment 2: Whether Subsidy Amounts Attributed to Logs on the Basis 
  of Volume Should be Equal to Subsidies Amounts Attributed to Lumber and 
  Sawdust. Petitioners argue that the Department was in error in the 
  Issues and Decision Memorandum issued in conjunction with the November 
  Final Results in saying ``the Department made no distinction between 
  the amount of subsidy attributed to one cubic meter of lumber and the 
  amount of subsidy attributed to one cubic meter of sawdust.'' See page 
  15 of the Issues and Decision Memorandum: Final Results of Expedited 
  Reviews of 13 Companies Covered by the August 14, 2002 Notice of 
  Preliminary Results Under the Countervailing Duty Order on Certain 
  Softwood Lumber from Canada (November Issues and Decision Memorandum). 
  Petitioners contend that this is not supported by the facts and is 
  inconsistent with the countervailing duty methodology and economics. 
  Petitioners contend that the allocation of subsidies is based upon the 
  value of products of the subsidized mills. High-value products are 
  recognized as being more highly subsidized and the majority of the 
  subsidy is allocated to these products. In contrast, the allocation of 
  the subsidy to low-value products is much less.
  Petitioners contend that in the lumber investigation, the subsidy 
  was attributed to the value of the lumber products produced from 
  preferentially provided inputs. Moreover, they state that the subsidy 
  calculation is always performed on a value, not a volume basis. They 
  cite to 19 CFR 351.525(a) which states ``the Secretary will calculate 
  the ad valorem subsidy rate by dividing the amount of the benefit 
  allocated to the period of investigation or review by the sales value * 
  * *'' Therefore, they argue that the subsidy calculation should be 
  based on the value of the entire input and the value of the entire 
  output since the whole log is required to produce softwood lumber. 
  Petitioners maintain that the Department should clarify that the 
  correct methodology of allocating the subsidy between lumber and by-
  products, consistent with the underlying investigation, is based on 
  value and not volume.
  Moreover, petitioners assert that in the expedited reviews the 
  Department correctly calculated the subsidy by multiplying the per 
  cubic meter benefit on sawtimber by the volume of sawlogs used by the 
  sawmills. However, petitioners contend that the Department also 
  multiplied the province-wide per-cubic-meter benefit on sawtimber by 
  the volume of lumber used as an input by the reviewed lumber company. 
  Petitioners argue that the per-unit benefit on logs is not the same as 
  the per-unit benefit on lumber because it may take as much as two cubic 
  meters of sawtimber to make a cubic meter of lumber.
  Petitioners contend that this methodology is inconsistent with the 
  Notice of Final Affirmative Countervailing Duty Determination and Final 
  Negative Critical Circumstances Determination: Certain Softwood Lumber 
  Products From Canada, 67 FR 15545 (April 2, 2002) (Final 
  Determination). They claim that the Department's methodology 
  understates the subsidy amount on lumber. Petitioners argue that the 
  application of a per-unit benefit based on logs to lumber inputs 
  acquired by, for example, a Canadian lumber remanufacturer, would not 
  reflect the full value of the subsidy received when the lumber in 
  question was resold. Petitioners maintain that this methodology is not 
  supported mathematically. Moreover, the fact that this calculation 
  methodology was used in the exclusion process in the underlying 
  investigation provides no basis to continue this error. Although, 
  assert petitioners, they did not have time to address this erroneous 
  methodology in calculating the company-specific exclusions in their 
  briefs, they claim this methodology should be subject to correction in 
  these expedited reviews.
  Department's position: We have carefully considered petitioners' 
  comments on the amount of subsidies attributable to lumber acquired as 
  an input. We remain, however, of the view that the methodology that has 
  been followed by the Department is reasonable and in accordance with 
  our practice.
  In these expedited reviews, just as in the exclusion process in the 
  investigation, one of the tasks before the Department is to estimate 
  the amount of subsidy attributable to lumber as an input into the 
  manufacturing process. No such value was derived in determining the 
  country-wide rate in the investigation. In that context, we simply 
  calculated the amount of subsidy attributed to timber; we did not--
  because we did not need to--derive a value for the subsidy attributable 
  to lumber produced from subsidized timber.
  In the exclusion process, we estimated the amount of benefit on 
  lumber as an input into the manufacturing process based on the only 
  value available from the investigation, i.e. the benefit on timber 
  expressed as a specific dollar amount per cubic meter. Because the 
  amount of the benefit calculated in the investigation was based on 
  volume, we attributed the benefit to lumber on a volume (not value) 
  basis. We applied
[[Page 24723]]
this benefit to all lumber, not only to lumber of Crown origin, 
  because, as we stated in the February 20, 2002, Decision Memorandum 
  (Memorandum from Bernard Carreau, Deputy Assistant Secretary, to Faryar 
  Shirzad, Assistant Secretary, regarding Countervailing Duty 
  Investigation on Softwood Lumber Products from Canada), ``as a 
  practical matter it is impossible to distinguish lumber produced from 
  private logs and lumber produced from Crown timber, once it is 
  processed in potentially subsidized mills.'' We used this methodology 
  in the exclusion process and clearly described it in the first 
  initiation notice of the expedited reviews (Notice of Initiation/Round 
  1).
  As previously stated in Comment 4 of the November Issues and 
  Decision Memorandum, we believe that petitioners had ample opportunity 
  to comment on the accuracy of this methodology during the investigation 
  and in earlier stages of these expedited reviews, particularly when we 
  requested comments on our proposed methodology in the first initiation 
  notice. We received no comments on this issue; therefore, we proceeded 
  with issuing the preliminary results for 18 companies. Petitioners 
  commented after the publication of the August Preliminary Results; 
  however, we disagreed with petitioners' position and applied the same 
  methodology in the final results for 13 of those companies.
  We find no compelling reason in petitioners' arguments to modify 
  the methodology applied so far. In particular, petitioners have not 
  demonstrated that--given the information that is reasonably available 
  to the Department within the time constraints applicable to these 
  reviews--their approach to attributing subsidies to lumber used as an 
  input is more accurate than the approach used by the Department. 
  Moreover, the Department finds that a change in methodology at this 
  time could be detrimental to the companies under review, who have 
  relied on the current methodology to make a number of decisions, such 
  as whether or not to withdraw from the expedited reviews and whether or 
  not to apply for an upstream analysis. For all these reasons, we are 
  continuing to apply the province-wide stumpage benefit to a unit of 
  lumber in these preliminary results, as we did in the August 
  Preliminary Results and the investigation.
  Comment 3: Whether Group 1 Companies That Did Not Request an 
  Analysis of Whether They Benefitted From Subsidies Bestowed on Their 
  Inputs Should Be Able To Reassess This Decision. Landmark Truss & 
  Lumber Inc. (Landmark) and its subsidiaries Frontier Mills Inc. and 
  Fraser Pacific Forest Products Inc. maintain that they did not request 
  an analysis of whether they benefitted from subsidies bestowed on their 
  inputs based on their understanding that the final results for Group 1 
  companies would be issued within the time frames previously announced 
  by the Department. Furthermore, Landmark understood that any results 
  based on an analysis of whether they benefitted from subsidies bestowed 
  on their inputs would not be issued until after the final results of 
  Group 2 companies.
  Landmark notes that petitioners have argued in their case brief 
  that the final results of expedited reviews for all companies should be 
  issued simultaneously. Landmark asserts that if the Department decides 
  not to follow its schedule for Group 1 companies and instead issues all 
  expedited reviews simultaneously, then Group 1 companies with the same 
  circumstances as Landmark should be allowed to reassess their decision 
  with respect to requesting an analysis of whether subsidies bestowed on 
  their inputs benefitted them.
  Landmark also notes that the Government of Canada (GOC) has argued 
  in case briefs submitted during the course of this proceeding that an 
  analysis of whether the companies benefitted from subsidies bestowed on 
  their inputs should not extend the existing timelines for the expedited 
  reviews and that the Department should issue a proposed methodology for 
  the conduct of this type of analysis. If the Department agrees to 
  complete the analysis on the established schedule or if the Department 
  issues a proposed methodology for the conduct of this type of analysis, 
  Landmark submits that companies similarly situated should be given the 
  opportunity to reassess their decision and to request such an analysis.
  Department's Position: In their September 6, 2002, case brief at 
  page 16, the GOC maintained that the Department should allow companies 
  purchasing inputs through arm's length transactions to request 
  expedited reviews subsequent to initiation of the expedited reviews. In 
  the November Final Results, we emphasized that allowing other companies 
  to request expedited reviews at that time would complicate and delay an 
  already elaborate and cumbersome process. Similarly, giving companies 
  the opportunity to reassess and request an analysis of whether 
  subsidies bestowed on their inputs benefitted them at this stage in the 
  expedited review process, as Landmark suggests, would further 
  complicate and delay the expedited review process. Therefore, we are 
  not adopting these suggestions.
II. Individual Company Comments
 Comment 1: Antrim Cedar Corporation. Petitioners assert that Antrim 
  Cedar's exclusion request in the underlying investigation indicated 
  that it was a reseller of lumber during the POR, however, in these 
  expedited reviews, Antrim reported that it had no resales of logs or 
  lumber.
  Department's Position: Antrim's application and subsequent 
  questionnaire responses indicate resales of subject merchandise. 
  However, as indicated above, we are rescinding Antrim's expedited 
  review. The basis of our determination with respect to Antrim's 
  expedited review is explained in the ``Partial Recission'' section of 
  this notice.
  Comment 2: Central Cedar Ltd. Petitioners contend that the total 
  value of all sales of subject merchandise reported in Central Cedar's 
  exclusion request differs from the amount reported in its expedited 
  review application.
  Department's Position: The exclusion request was in a different 
  segment of the proceeding from these expedited reviews. Therefore, the 
  figures provided in the two segments of the proceeding are not directly 
  comparable. The numbers reported for purposes of these expedited 
  reviews are F.O.B. values and we have sent several questionnaires to 
  the companies clarifying exactly how the sales data should be derived 
  for purposes of these expedited reviews. Companies have provided the 
  clarified data to the Department and we have used it in these 
  preliminary results.
  Comment 3: Fraser Pacific Forest Products. Petitioners contend that 
  in the exclusion process, Fraser reported that it was a wholly-owned 
  subsidiary of Landmark Truss and reported total sales of subject 
  merchandise for itself and its affiliated companies. However, 
  petitioners point out that in these expedited reviews, Landmark Truss 
  by itself claimed total sales of subject merchandise without mention of 
  any affiliates. Petitioners assert that the sum of total sales of 
  subject merchandise for these three companies' expedited review 
  applications is a substantial increase over the amount reported for 
  total sales of subject merchandise in the exclusion process.
  Department's Position: Fraser Pacific Forest Products has reported 
  in these expedited reviews that it is a wholly-owned subsidiary of 
  Landmark and also cross-owned with Frontier Mills. In
[[Page 24724]]
these expedited review proceedings, we have sent several questionnaires 
  to Fraser Pacific, Frontier Mills, and Landmark to clarify the data 
  that was submitted. We have calculated the rate for this company using 
  our cross-owned methodology as described above in the methodology 
  section of this notice. Thus, we have accounted for not only its cross-
  ownership with Landmark, but also its cross-ownership with Frontier 
  Mills.
  Comment 4: Power Wood Corporation (Power Wood) and Rielly 
  Industrial Lumber Inc. (Rielly). Petitioners assert that the total 
  sales of subject merchandise reported in Power Wood's and Rielly's 
  exclusion request differs from the amount reported in the expedited 
  review process. Moreover, petitioners contend that in the company 
  exclusion process these two companies certified that they received no 
  benefit from provincial Crown stumpage in British Columbia. Yet, 
  petitioners point out that in the Power Wood's and Rielly's expedited 
  review application, they reported that they acquired Crown-origin logs 
  from British Columbia during the POR.
  Department's Position: As noted in Comment 2 above concerning 
  Central Cedar, these expedited review proceedings are different from 
  the exclusion process. We have provided in these expedited reviews 
  specific instructions how to derive the data for sales. In addition, we 
  have taken into account Power Wood's and Rielly's Crown-origin logs 
  reported in the company's questionnaire response in our calculation for 
  this company's individual cash deposit rate.
  Comment 5: Sylvanex Lumber Products Inc. Petitioners argue that in 
  the company exclusion proceeding, Sylvanex Lumber Products Inc. 
  (Sylvanex) reported that they had received government assistance while 
  in these expedited reviews, Sylvanex indicates that they received no 
  government assistance.
  Department's Position: As noted in numerous company-specific 
  comments above, the company exclusion segment of the proceeding was 
  different from the expedited review segment of the proceeding. Contrary 
  to petitioners' assertion, during the exclusion process and by letter 
  dated August 21, 2001, Sylvanex reported that it ``did not benefit from 
  other programs subject to this investigation.'' See the GOC's October 
  29, 2001, submission, of which a public version is on file in room B-
  099 of the Central Records Unit in the main Commerce Building. In 
  addition, the October 10, 2001 certification supplied by Forest Renewal 
  BC indicated that Sylvanex received zero benefits from Forest Renewal 
  BC. The benefit that petitioner states that Sylvanex reported during 
  the exclusion process resulted from the reporting, by Forest Renewal BC 
  of sums provided to various associations within British Columbia. These 
  amounts were allocated to members of the associations for purposes of 
  the exclusion applications alone. In these expedited reviews, the 
  participating companies have submitted program usage information based 
  on their own financial records and experience. Under this approach, 
  Sylvanex again has reported that it did not use the Forest Renewal 
  Program during the POR. Given the difference in reporting methodologies 
  between the two proceedings and the fact that Sylvanex based its 
  questionnaire response on its own financial data, we find the 
  discrepancy raised by petitioners is adequately explained and, thus, 
  does not call into question the veracity of the information submitted 
  by Sylvanex in these expedited reviews.
  Comment 6: Tyee Timber Products Ltd. According to petitioners, Tyee 
  Timber Products (Tyee) indicated in the exclusion process that they 
  were affiliated with another company. However, petitioners point out 
  that in these expedited reviews, Tyee does not indicate that they are 
  affiliated with any company. Moreover, the total sales of subject 
  merchandise reported in the exclusion proceeding differs from the total 
  sales of subject merchandise reported in their expedited review 
  application. Lastly, petitioners argue that in Tyee's expedited review 
  application the company indicated that no logs were used or purchased, 
  however, they report in another section of the application that the 
  company used British Columbian timber as inputs.
  Department's Position: As explained above, the exclusion process 
  was a different segment of the proceeding from these expedited reviews, 
  and we have clarified in our questionnaires how the sales data should 
  be derived for purposes of our analysis as well as how to report data 
  related to logs harvested and purchased. With respect to whether Tyee 
  reported affiliates in its expedited review application, as explained 
  above, the reporting methodologies used by participating companies 
  differed between the exclusion process and the expedited review 
  process. In the exclusion process, companies signed certifications 
  regarding their affiliation and cross-ownership status that were based 
  on questionnaires and guidelines compiled and issued by the GOC. See 
  the GOC's October 29, 2001, submission. In contrast, in the expedited 
  reviews, the Department has sent questionnaires directly to the 
  participating companies that contain specific definitions and 
  instructions regarding the issue of affiliation and cross-ownership. 
  Therefore, it is entirely reasonable, since different authorities 
  issued separate and different questionnaires, that some discrepancies 
  would exist between the two proceedings. However, what is germane to 
  the instant proceeding is what Tyee has stated regarding its 
  affiliation and cross-ownership with other companies based on the 
  definitions and instructions that were directly provided to it by the 
  Department. On this point, Tyee has made clear in its application and 
  questionnaire responses that it was not affiliated or cross-owned with 
  any companies.
  Comment 7: West Bay Forest Products and Manufacturing Ltd. 
  Petitioners contend that West Bay Forest Products reported in the 
  exclusion process different values for total sales of subject 
  merchandise from the value they reported in their application for 
  expedited review.
  In response, West Bay Forest Products asserts that the financial 
  information reported in their exclusion application reported total 
  sales of all remanufactured softwood lumber. With respect to the 
  expedited reviews, the company reported the combined total of 
  remanufactured and resale sales amounts. Moreover, the company found an 
  additional error in the total value of remanufactured sales reported in 
  their original expedited review filing. In addition, the company 
  provided a reconciliation of the difference between the figures in the 
  two segments of the proceeding.
  Department's Position: As explained above, we provided specific 
  instructions on how to calculate sales figures in these expedited 
  reviews. Therefore, the figures provided in the two segments of the 
  proceeding are not directly comparable. Further, we find that the 
  information submitted by West Bay Forest Products accounts for the 
  differences in total sales values between the two segments of the 
  proceeding.
Verification
 In accordance with 782(I)(3) of the Act, we may verify information 
  submitted by respondents who preliminarily received a de minimis 
  subsidy rate, prior to making our final determination.
[[Page 24725]]
Preliminary Results of Reviews
 In accordance with 19 CFR 351.221(b)(4)(I), we calculated an 
  individual subsidy rate for each producer/exporter subject to these 
  expedited reviews. For the period April 1, 2000, to March 31, 2001, we 
  preliminarily determine the net subsidy to be as follows for Group 1 
  companies in Round 1:
------------------------------------------------------------------------
  Net
  Net subsidies--producer/exporter subsidy
  rate %
  ------------------------------------------------------------------------
  Alexandre Cote Ltee.......................................... 9.07
  Boccam Inc................................................... 0.41
  Byrnexco Inc................................................. 8.40
  Davron Forest Products Ltd................................... 10.94
  Fraser Pacific Forest Products Inc........................... 8.61
  Frontier Mills Inc........................................... 8.61
  Haida Forest Products Ltd.................................... 2.45
  Landmark Truss & Lumber Inc.................................. 8.61
  Les Bois S&P Grondin Inc..................................... 4.62
  Les Industries P.F. Inc...................................... 8.03
  Sechoirs de Beauce Inc....................................... 0.60
  Tyee Timber Products Ltd..................................... 4.10
  West Bay Forest Products and Manufacturing Ltd............... 5.50
  West Can Rail Ltd............................................ 0.00
  ------------------------------------------------------------------------
 For the period April 1, 2000, to March 31, 2001, we preliminarily 
  determine the net subsidy to be as follows for Group 1 companies in 
  Round 2:
------------------------------------------------------------------------
  Net
  Net subsidies--producer/exporter subsidy
  rate %
  ------------------------------------------------------------------------
  Central Cedar Ltd............................................ 4.96
  Forstex Industries Inc....................................... 4.51
  Hudson Mitchell & Sons Lumber Inc............................ 4.31
  Indian River Lumber.......................................... 0.00
  Les Scieries Jocelyn Lavoie Inc.............................. 0.00
  Leslie Forest Products Ltd................................... 13.72
  Lyle Forest Products Ltd..................................... 3.37
  Power Wood Corp.............................................. 6.73
  Precision Moulding Products.................................. 1.41
  Ram Co. Lumber Ltd........................................... 8.92
  Rielly Industrial Lumber Inc................................. 5.15
  Sylvanex Lumber Products Inc................................. 7.09
  United Wood Frames Inc....................................... 10.69
  Williamsburg Woods & Garden.................................. 11.95
  ------------------------------------------------------------------------
 If the final results of these reviews remain the same as these 
  preliminary results, the Department intends to instruct the BCBP to 
  collect cash deposits of estimated countervailing duties in the amounts 
  indicated above of the f.o.b. invoice price on all shipments of the 
  subject merchandise produced and exported by the reviewed companies, 
  entered, or withdrawn from warehouse, for consumption on or after the 
  date of publication of the final results of these reviews. These rates 
  will not apply to merchandise produced by the reviewed companies but 
  exported by other entities.
  Those producers/exporters whose final estimated net subsidy rate, 
  based on verified information, is zero or de minimis will be excluded 
  from the order. Because, in the Department's view, there is no relevant 
  difference for purposes of the de minimis rule between expedited 
  reviews of orders resulting from investigations conducted on an 
  aggregate basis and expedited reviews of orders resulting from 
  investigations conducted on a company-specific basis, we believe it is 
  appropriate in these reviews to treat de minimis rates, one percent ad 
  valorem in this case, in accordance with section 19 CFR 
  351.214(k)(3)(iv). Therefore, after the issuance of its final results, 
  the Department intends to instruct BCBP to liquidate, without regard to 
  countervailing duties, all outstanding shipments of the subject 
  merchandise produced and exported by excluded companies.
  These expedited reviews cover only those companies that we have 
  specifically identified as qualifying for expedited reviews. The cash 
  deposit rate for all other non-reviewed companies subject to the 
  country-wide rate will be adjusted in the final results of the 
  expedited reviews to account for the benefit and the sales values of 
  the companies that have received company-specific rates. We will 
  instruct the BCBP to collect cash deposits for all non-reviewed 
  companies at the new cash deposit rates established in the final 
  results of these reviews.
Public Comment
 Pursuant to 19 CFR 351.224(b), the Department will disclose to 
  parties to the proceeding any calculations performed in connection with 
  these preliminary results within five days after the date of 
  publication of this notice. Pursuant to 19 CFR 351.309, interested 
  parties may submit written comments in response to these preliminary 
  results. Parties who submit argument in this proceeding are requested 
  to submit with the argument: (1) a statement of the issue, and (2) a 
  brief summary of the argument. Case and rebuttal briefs must be served 
  on interested parties in accordance with 19 CFR 351.303(f). The due 
  dates for the case briefs will be announced at a later date.
  Individuals who wish to request a hearing must submit a written 
  request within 14 days of the publication of this notice in the Federal 
  Register to the Assistant Secretary for Import Administration, U.S. 
  Department of Commerce, Room 1870, 14th Street and Constitution Avenue, 
  NW., Washington, DC 20230. The time, date, and place of the hearing 
  will be announced after the Department has released the dates of the 
  briefing schedule. However, any party that wants to participate in a 
  hearing must submit a written request within the time period specified 
  above.
  Requests for a public hearing should contain: (1) The party's name, 
  address, and telephone number; (2) the number of participants; and, (3) 
  to the extent practicable, an identification of the arguments to be 
  raised at the hearing. In addition, ten copies of the business 
  proprietary version and six copies of the non-proprietary version of 
  the case briefs must be submitted to the Assistant Secretary.
  Representatives of parties to the proceeding may request disclosure 
  of proprietary information under administrative protective order no 
  later than 10 days after the representative's client or employer 
  becomes a party to the proceeding, but in no event later than the date 
  the case briefs, under 19 CFR 351.309(c)(ii), are due. The Department 
  will include the results of its analysis of issues raised in any case 
  or rebuttal briefs in the final results of these expedited reviews. The 
  Department will ensure that interested parties are informed of the 
  briefing schedule.
  In the interests of giving each respondent an informed opportunity 
  to request rescission of their expedited review, we have amended the 
  timeline announced in the application form to request rescission of an 
  expedited review. Requests of rescission must be received by the 
  Department no later than 30 days after the date of publication of the 
  preliminary results of the relevant expedited review.
  These expedited reviews and notice are issued and published in 
  accordance with section 751(a)(1) and 777(I)(1) of the Act (19 U.S.C. 
  1675(a)(1) and 19 U.S.C. 1677(f)(I)).
 Dated: April 29, 2003.
  Joseph A. Spetrini,
  Acting Assistant Secretary for Import Administration.
  [FR Doc. 03-11353 Filed 5-7-03; 8:45 am]