69 FR 4489, January 30, 2004

DEPARTMENT OF COMMERCE

International Trade Administration

[C-122-839]

Certain Softwood Lumber Products from Canada: Final Results of 
Countervailing Duty New Shipper Review

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.

ACTION: Notice of Final Results of Countervailing Duty New Shipper 
Review.

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SUMMARY: On October 31, 2003, the Department of Commerce (the 
Department) published in the Federal Register the preliminary results 
of the countervailing duty (CVD) new shipper review in Certain Softwood 
Lumber Products from Canada. See Certain Softwood Lumber Products from 
Canada: Preliminary Results of New Shipper Countervailing Duty Review, 
68 FR 62055 (October 31, 2003) (Preliminary Results).
    The net subsidy rate in this Final Results does not differ from 
that indicated in the Preliminary Results. The final net subsidy rate 
for the reviewed company is listed below in the ``Suspension of 
Liquidation'' section of this notice.

EFFECTIVE DATE: January 30, 2004.

FOR FURTHER INFORMATION CONTACT: Jonathan McKernan at (202) 482-5973, 
Office of AD/CVD Enforcement VI, Group II, Import Administration, 
International Trade Administration, U.S. Department of Commerce, Room 
4012, 14th Street and Constitution Avenue NW., Washington, DC 20230.

SUPPLEMENTARY INFORMATION

Background

    On October 31, 2003, the Department published the Preliminary 
Results in the Federal Register. On December 9, 2003, the Department 
conducted verification of the questionnaire responses submitted by La 
Pointe & Roy Ltee. (La Pointe & Roy), the sole respondent subject to 
the new shipper review.
    In accordance with 19 CFR 351.214(a), this new shipper review 
covers only those producers or exporters for which a review was 
specifically requested. Accordingly, this new shipper review covers 
subject merchandise produced and exported by La Pointe & Roy.

Scope of the Review

    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 
customs 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 http://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,

[[Page 4490]]

6' or less in length, and have finials or decorative cuttings that 
clearly identify 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 the Bureau 
of Customs and Border Protection's (CBP) 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:
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    \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.
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    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 CBP 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 CBP 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 CBP'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.
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    \2\ See the scope clarification message ( 3034202), 
dated February 3, 2003, to the CBP, 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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Analysis of Comments Received

    We received no comments from interested parties regarding our 
Preliminary Results.
    A description of our calculation of the net subsidy rate is 
addressed in the ``Issues and Decision Memorandum'' (Decision 
Memorandum) dated January 22, 2004, which is hereby adopted by this 
notice. Attached to this notice is Appendix I, which contains an 
outline of the Decision Memorandum. Parties can find a complete copy of 
the Decision Memorandum, a public document, in room B-099 of the Main 
Commerce Building. In addition, a complete version of the Decision 
Memorandum can be accessed directly on the World Wide Web at 
http://www.enforcement.trade.gov , under the heading "Federal Register Notices."
The paper copy and electronic version of the Decision Memorandum are 
identical in content.

Suspension of Liquidation

    In accordance with 19 CFR 351.214(a), we have calculated an 
individual rate for La Pointe & Roy. We determine the net subsidy rate 
for La Pointe & Roy to be as follows:

------------------------------------------------------------------------
        Producer/Exporter                     Net subsidy rate
------------------------------------------------------------------------
La Pointe & Roy Ltee.............         0.08 percent ad valorem.
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    As provided for in 19 CFR 351.106(c)(1), any rate less than 0.5 
percent ad valorem in a new shipper review is de minimis. Accordingly, 
no countervailing duties will be assessed on La Pointe & Roy. The 
Department will instruct the CBP to liquidate, without regard to 
countervailing duties, shipments of the subject merchandise produced 
and exported by La Pointe & Roy that were entered, or withdrawn from 
warehouse, for consumption on or after May 22, 2002, the date on which 
entries of subject merchandise were suspended under this order, and on 
or before December 31, 2002. In addition, the cash deposit rate for 
this company will be set at zero, prospectively.

Return or Destruction of Proprietary Information

    This notice will serve as the only reminder to parties subject to 
Administrative Protective Order (APO)

[[Page 4491]]

of their responsibility concerning the destruction of proprietary 
information disclosed under APO in accordance with 19 CFR 
351.305(a)(3). Failure to comply is a violation of the APO.
    This determination is published pursuant to section 777(i) of the 
Act.

    Dated: January 22, 2004.
James J. Jochum,
Assistant Secretary for Import Administration.

Appendix I--Issues and Decision Memorandum

Analysis of Programs

I. Programs Determined to Be Countervailable
A. Private Forest Development Program (PFDF)
II. Programs Determined to Be Not Used
    A. Provincial Stumpage Program
    B. Export Assistance under the Societe de Developpement 
Industrial du Quebec (SDI)/Investissement Quebec (IQ)
    C. Assistance under Articles 7 and 28 of the SDI
    D. Assistance from the Societe de Recuperation d'Exploitation et 
de Developpement Forestiers du Quebec (Rexfor)
III. Total Ad Valorem Rate
IV. Recommendation

[FR Doc. 04-1989 Filed 1-29-04; 8:45 am]