CBP Issues Guidance on Which Company's AD/CV Rates, Exemptions to Use for Softwood Lumber from Canada
U.S. Customs and Border Protection (CBP) has issued an ABI administrative message containing its current guidance for determining the applicable antidumping (AD) or countervailing (CV) duty rate for Canada Softwood Lumber cases, A-122-838 and C-122-839, for entries on/after December 20, 2004.
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According to CBP, this guidance constitutes its current application of Commerce Department instructions, and is based upon the December 20, 2004 final results of the administrative reviews of these cases. See ITT's Online Archives or 12/22/04 news, 04122230, for BP summary of the final results of these AD/CV administrative reviews.)
AD Duty Cash Deposit Rate - Determining Which to Use
Use the exporter's rate: If the exporter of the subject merchandise has its own rate, use the exporter's rate for determining the AD duty cash deposit rate.
Use the manufacturer's rate: If the exporter of the subject merchandise does not have its own rate but the manufacturer has its own rate, the AD duty cash deposit rate will be the manufacturer's rate.
Use the "all others" rate: Where neither the exporter nor the manufacturer currently as its own rate or where the exporter does not have its own rate and the manufacturer is unknown, use the "all others" rate for establishing the AD duty cash deposit rate.
CV Duty Cash Deposit Rate - Determining Which to Use
Exemption: (1) If the shipment is accompanied by an original valid Maritime Lumber Board (MLB) certificate demonstrating that the lumber was produced in the Maritime Provinces (Maritimes), it is exempt for the CV duty cash deposit requirement.
(2) If the shipment is produced and exported by an excluded company, it is exempt from the CV duty cash deposit requirement.
Zero rate: A zero CV duty rate applies to merchandise produced or exported by companies subject to a zero rate.
Not exempt, not zero: If none of the above apply, then:
If the producer has its own specific suffix/rate, use their individual CV duty rate.
If the producer is unknown, use the exporter's individual suffix/rate.
If neither the producer nor exporter has their own individual rate, use the country-wide (i.e., "all others") rate.
Scenarios for AD Cases:
| Mill A transforms logs into lumber and exports the lumber to the U.S. |
| Mill A transforms logs into lumber that are further manufactured by Mill B (therefore, Mill B is the manufacturer/producer). Mill B exports the product to the U.S. |
| Mill A transforms logs into lumber that are further manufactured by Mill B. Mill B sells their product to Company C. Company C exports these goods to the U.S. without any additional processing. |
| Mill A transforms logs into lumber that are further manufactured by an unknown Mill B. Mill B sells their product to Company C. Company C exports these goods to the U.S. without any additional processing. |
Scenarios for CV Cases:
| Mill A, which is in the Maritimes, transforms logs into lumber and exports the lumber to the U.S. accompanied by an original valid MLB certificate. |
| Mill A, which is on the excluded list, transforms logs into lumber and exports the lumber to the U.S. |
| Mill A, which is in the Maritimes, transforms logs into lumber. Mill A sells the lumber to Mill B (a non-Maritime mill that is on the excluded list). Mill B further manufactures the lumber and exports the lumber to the U.S. |
| Mill A, which is in the Maritimes, transforms logs into lumber. Mill A sells the lumber to Mill B (a non-Maritime mill that is on the excluded list). Mill B further manufactures the lumber and resells it to Company C, who exports the lumber to the U.S. Company C has a zero CV duty rate. |
| Mill A, which is in the Maritimes, transforms logs into lumber. Mill A sells the lumber to Mill B (a non-Maritime mill that is on the excluded list). Mill B further manufactures the lumber and resells the lumber to Company D (who is not eligible for a zero CV duty rate). Company D exports the lumber to the U.S. |
CBP Notes on Manufacturer, Producer, and Exporter
CBP states that for entries of softwood lumber, the importer must identify the manufacturer and exporter in all circumstances where such parties are known.
CBP also states that for all cases, the producer and/or manufacturer is defined as the entity that processes the good into its condition as imported into the U.S.
Guidance Does Not Apply to Certain U.S. Origin Products & Entries Filed Prior to Dec. 20, 2004
CBP states that this guidance does not apply to U.S. origin products defined by Adm: 03-0429 (dated 02/05/03). (See ITT's Online Archives or 02/20/03 news, 03022070 3, for BP listing of Adm: 03-0429.)
CBP also states that it must wait for liquidation instructions from the Commerce Department for entries filed prior to December 20, 2004 before providing guidance to the field on the applicability of rates for such imports.
(See ITT's Online Archives or 01/10/05 news, 05011020, for BP summary of CBP's notice clarifying certain scope guidelines for these softwood lumber cases.)
CBP contact - Christine Furgason (202) 344-2293
CBP Adm: 05-0458 (dated 04/26/05) available at http://www.brokerpower.com/cgi-bin/adminsearch/admmsg.view.pl?article=2004/2005-0458.ADM