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expedited review was rescinded in the Preliminary Results, is being 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
------------------------------------------------------------------------
                                                             Net subsidy
              Net subsidies--producer/exporter                  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
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                            Round 2 Companies
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                                                             Net subsidy
              Net subsidies--producer/exporter                  rate %
------------------------------------------------------------------------
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]