Canada Softwood Lumber: CV Cash Deposit Rate Lowered Slightly Due to ITA's Section 129 WTO Determination
The International Trade Administration (ITA) has issued a Notice of Implementation under Section 129 of the Uruguay Rounds Agreement Act (URAA), regarding the countervailing (CV) duty measures on softwood lumber from Canada.
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As a result, the ITA is revising its final affirmative countervailing duty determination, effective December 10, 2004, on certain softwood lumber from Canada to reflect the results of the ITA's analysis on whether there were "arm's-length" transactions involing Crown timber in which some or all of the stumpage subsidy benefit did not "pass through" to the purchasing sawmills. (See http://ia.ita.doc.gov/ia-highlights-and-news.html for the ITA's Issues and Decision Memorandum detailing the ITA's Secton 129 determination.)
CV Cash Deposit Rate Lowered Slightly to 18.62%
The ITA states it will instruct U.S. Customs and Border Protection (CBP) to collect cash deposits of estimated CV duties of 18.62% on all shipments of subject merchandise (other than those with a company-specific rate) with a time of entry on or after December 10, 2004. (the prior CV cash deposit rate was 18.79%.)
CV Cash Deposit Rate of 18.62% to be Superceded Soon
According to ITA sources and CBP, these instructions will be in effect very briefly, as the rate of 18.62% will soon be superceded by the final results of the first CV administrative review of softwood lumber from Canada, which will be implemented shortly. (The first antidumping (AD) administrative review will be issued at the same time, and as a result some or all the AD rates currently in effect will also change shortly.)
(The ITA notes that Section 129 of the URAA is the provision governing administrative action following WTO panel and Appellate Body reports.)
(On November 24, 2004, the International Trade Commission (ITC) issued an affirmative "threat of Injury" determination in its Section 129 Consistency Proceeding. See ITT's Online Archives or 12/06/04 news, 04120640 for BP summary.)
ITA's Notice of Implementation under Section 129 (FR Pub 12/16/04) available at http://a257.g.akamaitech.net/7/257/2422/06jun20041800/edocket.access.gpo.gov/2004/pdf/E4-3683.pdf.
CBP's instructions on ITA's Notice of Implementation (Adm: 04-2534) available at
http://www.brokerpower.com/cgi-bin/adminsearch/admmsg.view.pl?article=2004/2004-2534.ADM.
ITA's press release on upcoming final results of the first AD and CV administrative reviews available at http://www.ita.doc.gov/media/FactSheet/1204/lumber_121404.html.