69 FR 10982, March 9, 2004
DEPARTMENT OF COMMERCE
International Trade Administration
[C-122-839]
Final Results, Reinstatement, Partial Rescission of Countervailing Duty
Expedited Reviews, and Company Exclusions: Certain Softwood Lumber
Products From Canada
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
ACTION: Final results, reinstatement, partial rescission of
countervailing duty expedited reviews, and company exclusions: certain
softwood lumber products from Canada.
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SUMMARY: On May 8, 2003, the Department of Commerce (the Department)
published in the Federal Register its preliminary results of 28
expedited reviews of the countervailing duty order on certain softwood
lumber products from Canada for the period April 1, 2000 through March
31, 2001. See Preliminary Results and Partial Rescission of
Countervailing Duty Expedited Reviews: Certain Softwood Lumber Products
from Canada, 68 FR 24717 (May 8, 2003).
Based on our analysis of comments on the Preliminary Results and
verification of the questionnaire responses, we have made changes to
the estimated net subsidy rates determined in the Preliminary Results.
In addition, one company, Goldwood Industries Ltd. (Goldwood), whose
expedited review was rescinded in the Preliminary Results, is being
reinstated and has received a net subsidy rate in these final results.
Further, we are rescinding the expedited review of Westcan Rail Ltd.
(Westcan). For information regarding the reinstatement and rescission
of the expedited review of individual companies in these final results,
refer to the ``Partial Rescission'' and ``Reinstatement'' sections of
this notice.
In addition, we are excluding three companies from the
countervailing duty order. In accordance with these final results of
reviews, we will instruct the U.S. Customs and Border Protection (CBP)
to refund all collected cash deposits and waive future cash deposits
requirements for each of the excluded companies, as detailed in the
``Final Results of Reviews'' section of this notice. We also intend to
instruct the CBP to collect cash deposits for each reviewed company
that was not excluded from the order as detailed in the ``Final Results
of Reviews'' section of this notice.
EFFECTIVE DATE: March 9, 2004.
FOR FURTHER INFORMATION CONTACT: Margaret Ward, Office of AD/CVD
Enforcement VI, Group II, Import Administration, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue, NW., Washington, DC 20230; telephone: (202) 482-
4161.
SUPPLEMENTARY INFORMATION:
Background
On May 8, 2003, the Department of Commerce (the Department)
published in the Federal Register the Preliminary Results and Partial
Rescission of Countervailing Duty Expedited Reviews: Certain Softwood
Lumber Products From Canada, 68 FR 24717 (Preliminary Results) covering
28 respondents. In addition, we rescinded the expedited reviews of 12
respondents. Immediately following the issuance of the Preliminary
Results, Cando Contracting Ltd. (Cando), Goldwood Industries Ltd.
(Goldwood), Williamsburg Wood and Garden (Williamsburg), and Power Wood
Corp. (Power Wood) submitted comments on the Preliminary Results.\1\ On
May 28, 2003, petitioners \2\ responded to Cando's submission.
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\1\ See Cando's May 8, 2003, submission. See Goldwood's May 12,
2003, submission. See Williamsburg's May 21, 2003, submission. See
Power Wood's May 22, 2003, submission.
\2\ Petitioners are the Coalition for Fair Lumber Imports
Executive Committee.
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On June 5 and 6, 2003, petitioners submitted pre-verification
comments regarding certain companies verified during this segment of
the proceeding. From June 9, through June 20, 2003, the Department
verified the information provided by five respondents: Boccam, Inc.
(Boccam), Indian River Lumber (Indian River), Les Sceries Jocelyn
Lavoie Ltd. (Lavoie), Sechoirs de Beauce, Inc. (Sechoirs de Beauce),
and Westcan Rail Ltd. (Westcan). On July 21, 2003, the Department
issued verification reports for Boccam, Indian River, Lavoie, Sechoirs
de Beauce, and Westcan.
On July 23, 2003, the Department extended the due date for the case
briefs for Round 1 and Round 2 companies. On August 14, 2003,
petitioners and the Ontario Forest Association (OFIA) and the Ontario
Lumber Manufacturers Association (OLMA) filed case briefs. On August
18, 2003, the Department extended the due date for the submission of
rebuttal briefs. On August 20, 2003, Westcan and Hudson Mitchell & Sons
(HMS) submitted rebuttal briefs. On August 25, 2003, Sechoirs de
Beauce, the Government of Canada (GOC), and the OFIA/OLMA filed
rebuttal briefs. In addition, American Bayridge Corporation, Aspen
Planers Ltd., Downie Timber Ltd., Federated Co-operatives Limited,
Gorman Bros. Lumber Ltd., Haida Forest Products Ltd., Kenora Forest
Products Ltd., Liskeard Lumber Limited, Mid America Lumber, Mill &
Timber Products Ltd., North Enderby Timber Ltd., R. Fryer Forest
Products Limited, Selkirk Specialty Wood Ltd., and Tembec Inc.
(collectively, the Lumber Companies Group) filed rebuttal briefs on
August 25, 2003.
Reinstatement of Expedited Review
In the Preliminary Results, we rescinded the expedited review of
Goldwood. See the ``Partial Rescission'' section of the Preliminary
Results. However, our examination of the comments submitted by Goldwood
has resulted in reinstatement of this firm in these final results due
to a ministerial error made in the Preliminary Results. For information
regarding the ministerial error and the reinstatement of the review of
the company, see Comment 8 of the ``Issues and Decisions Memorandum:
Final Results of Expedited Review of Companies Covered by the May 8,
2003 Notice of Preliminary Results and Partial Rescission of
Countervailing Duty Expedited Reviews'' (Decision Memorandum), which is
dated concurrently with and hereby adopted by this notice.
Partial Rescission of Expedited Review
Our examination of the information submitted by Westcan at
verification indicates that this company performed
[[Page 10983]]
no processing or manufacturing with respect to the subject merchandise
it exported to the United States during the period of review (POR), but
rather the company resold softwood lumber processed/manufactured by
other companies. Moreover, Westcan did not provide the required
information from the producers of subject merchandise for the
Department to determine that the purchased softwood lumber is non-
subsidized. Therefore, we are rescinding the expedited review of
Westcan. For more information, see Comment 6 of the Decision
Memorandum.
Exclusion From Countervailing Duty Order
As discussed above, based on these final results, we have excluded
three companies from the countervailing duty order. These companies
are: Boccam Inc., Indian River Lumber, and Sechoirs de Beauce Inc. For
more information, see the ``Final Results of Reviews'' section of this
notice.
Companies Addressed in These Final Results
This notice includes the final results of review for the following
13 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.
This notice also includes the final results of review for the
following 15 Group 1 companies in Round 2:
Central Cedar Ltd.;
Forstex Industries Inc.;
Goldwood Industries Ltd.;
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 the review on the following company
in Round 1: Westcan Rail 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
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, 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 CBP's
satisfaction that the lumber is of U.S. origin.
(6) Softwood lumber products contained in single family home
packages or kits,\3\ 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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\3\ 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,
[[Page 10984]]
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.\4\ 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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\4\ See the scope clarification message (3034202),
dated February 3, 2003, to the CBP, regarding treatment of U.S.
orgin lumber on file in the Central Records Unit, room B-099 of the
main Commerce Building.
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Analysis of Comments Received
Issues raised by interested parties in comments submitted in
response to the Preliminary Results are addressed in the Decision
Memorandum. As noted in the Decision Memorandum, we are addressing in
these final results those issues that are related to the 28 companies
included in this notice. A list of the issues which interested parties
have raised, and to which we have responded, all of which are included
in the Decision Memorandum, is attached to this notice as Appendix I.
The Decision Memorandum is on file in the Central Records Unit 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.
Final Results of Review
In accordance with 19 CFR 351.221(b)(4)(i), we calculated an
individual subsidy rate for each producer subject to these expedited
reviews. For the period April 1, 2000, to March 31, 2001, we determine
the net subsidy to be as follows:
Round 1 Companies
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Net subsidy
Net subsidies--producer/exporter rate %
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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
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Round 2 Companies
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Net subsidy
Net subsidies--producer/exporter rate %
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Central Cedar Ltd.......................................... 4.96
Forstex Industries Inc..................................... 4.51
Goldwood Industries Ltd.................................... 3.22
Hudson Mitchell & Sons Lumber Inc.......................... 4.31
Indian River Lumber........................................ 0.00
Les Scieries Jocelyn Lavoie Inc............................ 1.52
Leslie Forest Products Ltd................................. 13.72
Lyle Forest Products Ltd................................... 3.37
Power Wood Corp............................................ 4.47
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
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The Department will instruct the CBP 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 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.
Because the rates for Boccam Inc., Indian River Lumber, and
Sechoirs de Beauce Inc. are less than one percent ad valorem, which is
de minimis, we determine that these companies are excluded from the
countervailing duty order. We will instruct the CBP to refund all cash
deposits of estimated countervailing duties collected on all shipments
of the subject merchandise produced and exported by these companies. In
addition, we will instruct the CBP to waive cash deposit requirements
of estimated countervailing duties on all shipments of the subject
merchandise produced and exported by these three companies, entered, or
withdrawn from warehouse, for consumption on or after the date of
publication of the final results of these reviews.
[[Page 10985]]
These results of expedited reviews cover only those companies that
we have specifically identified. We will address in the final results
of the expedited reviews the issue of the adjustment of the cash
deposit rate for all other non-reviewed companies subject to the
country-wide rate, to account for the benefit and the sales values of
the companies that have received company-specific rates.
These expedited reviews and notice are issued and published in
accordance with sections 751(a)(1) and 777(i)(1) of the Act (19 U.S.C.
1675(a)(1) and 19 U.S.C. 1677(i)(1)).
Dated: March 2, 2004.
James J. Jochum,
Assistant Secretary for Import Administration.
n
Appendix II. Summary and Background
II. Methodology
A. Stumpage Programs
B. Other Programs
III. Analysis of Comments
Comment 1: Adjustment of Country-Wide Rate to Account for Individual
Cash Deposit Rates
Comment 2: Whether the Same Stumpage Benefit Should Apply to
Logs and Lumber
Comment 3: The Number of Companies Verified During the Expedited
Review Process
Comment 4: Inclusion of Certain Non-Scope Items in the
Denominator of the Subsidy Calculations
Comment 5: Decision to Rescind the Expedited Review of Cando
Comment 6: Whether to Rescind the Expedited Review of Westcan on
the Grounds That it Is a Pure Reseller of Railroad Ties
Comment 7: Power Wood's Benefit Calculation
Comment 8: Goldwood's Benefit Calculation
Comment 9: Williamsburg's Benefit Calculation
Comment 10: Derivation of Boccam's Sales Denominator
Comment 11: Derivation of Sechoirs de Beauce's Sales Denominator
Comment 12: Lavoie's Cord to Cubic Meter Conversion Factor
IV. Total Ad Valorem Rates
V. Recommendation
[FR Doc. 04-5280 Filed 3-8-04; 8:45 am]