Canada Softwood Lumber: New AD/CVD Investigations Deadlines & Scope
The Commerce Department issued Federal Register notices on its recently initiated antidumping and countervailing duty investigations on softwood lumber products from Canada (A-122-857/C-122-858). The agency will determine whether imports of Canadian softwood lumber are being sold in the U.S. at less than fair value or are illegally subsidized. The CV duty investigation covers entries Jan. 1, 2015, through Dec. 31, 2015. The AD duty investigation covers entries Oct. 1, 2015, through Sept. 30, 2016.
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The Committee Overseeing Action for Lumber International Trade Investigations or Negotiations, made up of lumber producers, woodland owners and a labor union, requested the investigations in a petition filed Nov. 25 (see 1611250036), following the expiration of the 2006 Softwood Lumber Agreement last year. A moratorium on new AD/CVD petitions ended in October, one year after the agreement's expiration (see 1610120020).
The International Trade Commission will conduct a concurrent investigation to determine whether imports of dumped and illegally subsidized softwood lumber are injuring U.S. industry. If the ITC finds no injury in its preliminary injury determination, due Jan. 9, the investigations will immediately end. If Commerce finds dumping or illegal subsidization in the preliminary determinations of these investigations, currently due in February for CV duties and May for AD duties, it will set AD and/or CV duty cash deposit requirements for imports of merchandise subject to the investigation. If both Commerce and the ITC reach affirmative final determinations, Commerce will issue orders making duties permanent and beginning a process of annual administrative reviews to set final assessments of AD/CV duties on importers and potentially change AD/CV duty cash deposit rates.
AD/CVD Respondent Selection
Commerce will select companies that will receive individual rates in the AD and CV duty investigations based on CBP import data. The agency intends to finalize respondent selection by Jan. 11.
Scope of the AD/CVD Investigations
The merchandise covered by this investigation is softwood lumber, siding, flooring and certain other coniferous wood (“softwood lumber products”). The scope includes:
- Coniferous wood, sawn, or chipped lengthwise, sliced or peeled, whether or not planed, whether or not sanded, or whether or not finger-jointed, of an actual thickness exceeding six millimeters.
- Coniferous wood siding, flooring, and other coniferous wood (other than moldings and dowel rods), including strips and friezes for parquet flooring, that is continuously shaped (including, but not limited to, tongued, grooved, rebated, chamfered, V-jointed, beaded, molded, rounded) along any of its edges, ends, or faces, whether or not planed, whether or not sanded, or whether or not end-jointed.
- Coniferous drilled and notched lumber and angle cut lumber.
- Coniferous lumber stacked on edge and fastened together with nails, whether or not with plywood sheathing.
- Components or parts of semi-finished or unassembled finished products made from subject merchandise that would otherwise meet the definition of the scope above.
Softwood lumber product imports are generally entered under Chapter 44 of the Harmonized Tariff Schedule of the United States (“HTSUS”). This chapter of the HTSUS covers “Wood and articles of wood.” Softwood lumber products that are subject to this investigation are currently classifiable under the following 10-digit HTSUS subheadings in Chapter 44:
4407.10.01.01; 4407.10.01.02; 4407.10.01.15; 4407.10.01.16; 4407.10.01.17; 4407.10.01.18; 4407.10.01.19; 4407.10.01.20; 4407.10.01.42; 4407.10.01.43; 4407.10.01.44; 4407.10.01.45; 4407.10.01.46; 4407.10.01.47; 4407.10.01.48; 4407.10.01.49; 4407.10.01.52; 4407.10.01.53; 4407.10.01.54; 4407.10.01.55; 4407.10.01.56; 4407.10.01.57; 4407.10.01.58; 4407.10.01.59; 4407.10.01.64; 4407.10.01.65; 4407.10.01.66; 4407.10.01.67; 4407.10.01.68; 4407.10.01.69; 4407.10.01.74; 4407.10.01.75; 4407.10.01.76; 4407.10.01.77; 4407.10.01.82; 4407.10.01.83; 4407.10.01.92; 4407.10.01.93; 4409.10.05.00; 4409.10.10.20; 4409.10.10.40; 4409.10.10.60; 4409.10.10.80; 4409.10.20.00; 4409.10.90.20; 4409.10.90.40; and 4418.90.25.00.
Subject merchandise as described above may also be classified as stringers, square cut boxspring-frame components, fence pickets, truss components, pallet components, flooring, and door and window frame parts under the following 10-digit HTSUS subheadings in Chapter 44:
4415.20.40.00; 4415.20.80.00; 4418.90.46.05; 4418.90.46.20; 4418.90.46.40; 4418.90.46.95; 4421.90.70.40; 4421.90.94.00; and 4421.90.97.80.
Although these HTSUS subheadings are provided for convenience and customs purposes, the written description of the scope of the investigation is dispositive.
Comments on Scope Due by Jan. 4
Comments on the scope of these investigations are due by Jan. 4.
Investigations Timetable
| Event | AD Duty | CV Duty |
|---|---|---|
| Petitions filed | 11/25/16 | 11/25/16 |
| DOC initiation date | 12/15/16 | 12/15/16 |
| ITC prelim determinations* | 01/09/17 | 01/09/17 |
| DOC prelim determinations† | 05/04/17 | 02/21/17 |
| DOC final determinations† | 07/18/17 | 05/04/16 |
| ITC final determinations‡ | 09/01/17 | 06/19/16 |
| Issuance of orders+ | 09/08/17 | 06/26/16 |
*If the ITC makes a negative determination of injury, the investigations are terminated.
†These deadlines may be extended under the governing statute.
‡This will take place only in the event of Commerce Department final affirmative determinations.
+This will take place only in the event of Commerce and ITC final affirmative determinations.
(See 1611280035 for summary of the Commerce Department's receipt of the petition underlying the initiation of this investigation.)
The AD duty initiation notice is (here).
The CV duty initiation notice is (here).
The Commerce Department fact sheet on the initiation of these investigations is (here).