Notice2024-14312
Certain Softwood Lumber From Canada: Notice of Initiation of Changed Circumstances Review
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
June 28, 2024
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
Based on a request from the Committee Overseeing Action for Lumber International Trade Investigations or Negotiations (the petitioner), the U.S. Department of Commerce (Commerce) is initiating a changed circumstances review (CCR) of the countervailing duty (CVD) order on certain softwood lumber from Canada.
Full Text
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<title>Federal Register, Volume 89 Issue 125 (Friday, June 28, 2024)</title>
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[Federal Register Volume 89, Number 125 (Friday, June 28, 2024)]
[Notices]
[Pages 53955-53957]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-14312]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-122-858]
Certain Softwood Lumber From Canada: Notice of Initiation of
Changed Circumstances Review
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: Based on a request from the Committee Overseeing Action for
Lumber International Trade Investigations or Negotiations (the
petitioner), the U.S. Department of Commerce (Commerce) is initiating a
changed circumstances review (CCR) of the countervailing duty (CVD)
order on certain softwood lumber from Canada.
DATES: Applicable June 28, 2024.
FOR FURTHER INFORMATION CONTACT: Elizabeth Talbot Russ, AD/CVD
Operations, Office III, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-5516.
SUPPLEMENTARY INFORMATION:
Background
On January 3, 2018, Commerce published the CVD order on certain
softwood lumber from Canada.\1\ On May 10, 2024, the petitioner
requested that Commerce initiate a CCR of the Order, pursuant to
section 751(b)(1) of the Tariff Act of 1930, as amended (the Act), 19
CFR 351.216, and 19 CFR 251.221(c)(3).\2\ Specifically, the petitioner
requests that Commerce determine that Interfor Sales & Marketing Ltd.
(ISM) is cross-owned with EACOM Timber Corporation (EACOM), Chaleur
Forest Products Inc., and Chaleur Forest Products LP.\3\
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\1\ See Certain Softwood Lumber Products from Canada: Amended
Final Affirmative Countervailing Duty Determination and
Countervailing Duty Order, 83 FR 347 (January 3, 2018) (Order).
\2\ See Petitioner's Letter, ``Certain Softwood Lumber Products
from Canada: Request for Changed Circumstances Review,'' dated May
10, 2024 (Petitioner's Request for CCR).
\3\ Id.
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Scope of the Order
The merchandise covered by this Order is softwood lumber, siding,
flooring and certain other coniferous wood (softwood lumber products).
The scope includes:
<bullet> 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.
<bullet> 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.
<bullet> Coniferous drilled and notched lumber and angle cut
lumber.
<bullet> Coniferous lumber stacked on edge and fastened together
with nails, whether or not with plywood sheathing.
<bullet> Components or parts of semi-finished or unassembled
finished products made from subject merchandise that would otherwise
meet the definition of the scope above.
Finished products are not covered by the scope of this Order. For
the purposes of this scope, finished products contain, or are comprised
of, subject merchandise and have undergone sufficient processing such
that they can no longer be considered intermediate products, and such
products can be readily differentiated from merchandise subject to this
Order at the time of importation. Such differentiation may, for
example, be shown through marks of special adaptation as a particular
product. The following products are illustrative of the type of
merchandise that is considered ``finished,'' for the purpose of this
scope: I-joists; assembled pallets; cutting boards; assembled picture
frames; garage doors.
The following items are excluded from the scope of this Order:
<bullet> Softwood lumber products certified by the Atlantic Lumber
Board as being first produced in the Provinces of Newfoundland and
Labrador, Nova Scotia, or Prince Edward Island from logs harvested in
Newfoundland and Labrador, Nova Scotia, or Prince Edward Island.
<bullet> U.S.-origin lumber shipped to Canada for processing and
imported into the United States if the processing occurring in Canada
is limited to one or more of the following: (1) Kiln drying; (2)
planing to create smooth-to-size board; or (3) sanding.
<bullet> 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 must be radius-cut at both
ends. The kits must be individually packaged and must 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.
<bullet> 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 substantially cut so as to completely round one
corner.
Softwood lumber product imports are generally entered under Chapter
44 of the HTSUS. This chapter of the HTSUS covers ``Wood and articles
of wood.'' Softwood lumber products that are subject to this Order are
currently classifiable under the following ten-digit HTSUS subheadings
in Chapter 44: 4406.11.00.00; 4406.91.00.00; 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; 4407.11.00.01; 4407.11.00.02; 4407.11.00.42;
4407.11.00.43; 4407.11.00.44; 4407.11.00.45; 4407.11.00.46;
4407.11.00.47; 4407.11.00.48; 4407.11.00.49; 4407.11.00.52;
4407.11.00.53; 4407.12.00.01; 4407.12.00.02; 4407.12.00.17;
4407.12.00.18; 4407.12.00.19; 4407.12.00.20; 4407.12.00.58;
4407.12.00.59; 4407.13.00.00; 4407.14.00.00; 4407.19.00.01;
4407.19.00.02; 4407.19.00.54; 4407.19.00.55; 4407.19.00.56;
4407.19.00.57;
[[Page 53956]]
4407.19.00.64; 4407.19.00.65; 4407.19.00.66; 4407.19.00.67;
4407.19.00.68; 4407.19.00.69; 4407.19.00.74; 4407.19.00.75;
4407.19.00.76; 4407.19.00.77; 4407.19.00.82; 4407.19.00.83;
4407.19.00.92; 4407.19.00.93; 4407.19.05.00; 4407.19.06.00;
4407.19.10.01; 4407.19.10.02; 4407.19.10.54; 4407.19.10.55;
4407.19.10.56; 4407.19.10.57; 4407.19.10.64; 4407.19.10.65;
4407.19.10.66; 4407.19.10.67; 4407.19.10.68; 4407.19.10.69;
4407.19.10.74; 4407.19.10.75; 4407.19.10.76; 4407.19.10.77;
4407.19.10.82; 4407.19.10.83; 4407.19.10.92; 4407.19.10.93;
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;
4418.30.01.00; 4418.50.00.10; 4418.50.00.30; 4418.50.0050; and
4418.99.10.00; 4418.99.91.05; 4418.99.91.20; 4418.99.91.40;
4418.99.91.95; 4421.99.98.80.\4\
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\4\ The following HTSUS numbers have been deleted, deactivated,
replaced, or are invalid: 4407.10.0101, 4407.10.0102, 4407.10.0115,
4407.10.0116, 4407.10.0117, 4407.10.0118, 4407.10.0119,
4407.10.0120, 4407.10.0142, 4407.10.0143, 4407.10.0144,
4407.10.0145, 4407.10.0146, 4407.10.0147, 4407.10.0148,
4407.10.0149, 4407.10.0152, 4407.10.0153, 4407.10.0154,
4407.10.0155, 4407.10.0156, 4407.10.0157, 4407.10.0158,
4407.10.0159, 4407.10.0164, 4407.10.0165, 4407.10.0166,
4407.10.0167, 4407.10.0168, 4407.10.0169, 4407.10.0174,
4407.10.0175, 4407.10.0176, 4407.10.0177, 4407.10.0182,
4407.10.0183, 4407.10.0192, 4407.10.0193; and 4418.90.2500. These
HTSUS numbers however have not been deactivated in CBP's ACE secure
data portal, as they could be associated with entries of
unliquidated subject merchandise.
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Subject merchandise as described above might be identified on entry
documentation as stringers, square cut box-spring-frame components,
fence pickets, truss components, pallet components, flooring, and door
and window frame parts. Items so identified might be entered under the
following ten-digit HTSUS subheadings in Chapter 44: 4415.20.40.00;
4415.20.80.00; 4418.99.90.05; 4418.99.90.20; 4418.99.90.40;
4418.99.90.95; 4421.99.70.40; and 4421.99.97.80.
Although these HTSUS subheadings are provided for convenience and
customs purposes, the written description of the scope of this Order is
dispositive.\5\
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\5\ See Order, 83 FR at 349.
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Initiation of Changed Circumstances Review
Pursuant to section 751(b) of the Act, Commerce will conduct a CCR
upon receipt of a request from an interested party \6\ that shows
changed circumstances sufficient to warrant a review of an order. In
accordance with 19 CFR 351.216(d), Commerce determines that the
Petitioner's Request for CCR constitutes a sufficient basis to conduct
a CCR of the Order. Therefore, in accordance with section 751(b)(1)(A)
of the Act and 19 CFR 351.216(d), we are initiating a CCR based upon
the information contained in the Petitioner's Request for CCR.
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\6\ The petitioner is an ad hoc association and the majority the
members of the association are composed of interested parties as
described in section 771(9)(C), (D), and (E) of the Act, with
respect to a domestic like product.
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Neither the Act, the Statement of Administrative Action
Accompanying the Uruguay Round Agreements Act, nor Commerce's
regulations offer a definition of the term ``changed circumstances,''
nor do they explain what aspects of a determination may be reconsidered
in light of such changed circumstances. Commerce has in the past
conducted CCRs regarding a variety of issues.\7\
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\7\ See, e.g., Aluminum Extrusions from the People's Republic of
China: Initiation and Preliminary Results of Expedited Changed
Circumstances Review, 83 FR 34548 (July 20, 2018) (finding
sufficient information to initiate a CCR to recalculate certain cash
deposit rates); see also Certain Steel Nails from Malaysia: Final
Results of the Changed Circumstances Review, 82 FR 34476 (July 25,
2017) (finding sufficient information and ``good cause'' to initiate
a CCR to evaluate whether a company was properly utilizing the
correct cash deposit rate).
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The petitioner has requested that Commerce initiate this CCR to
investigate potential cross-ownership among four exporter/producers
subject to the Order that have never been selected for individual
examination: ISM, EACOM, Chaleur Forest Products Inc., and Chaleur
Forest Products LP.\8\
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\8\ We note that the nature of this CCR request is distinct from
that of a CVD ``successor-in-interest'' (SII) CCR request that
Commerce more commonly receives, which clarifies the appropriate
cash deposit rate for an entity and which is governed by the
practice laid out in Certain Pasta from Turkey: Preliminary Results
of Countervailing Duty Changed Circumstances Review, 74 FR 47225
(September 15, 2009), unchanged in Certain Pasta from Turkey: Final
Results of Countervailing Duty Changed Circumstances Review, 74 FR
54022 (October 21, 2009).
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On March 12, 2024, Commerce issued the final results of a CCR in
which it found that Interfor Corporation, EACOM, Chaleur Forest
Products Inc., and Chaleur Forest Products LP are cross-owned entities
in the context of the CVD Order on certain softwood lumber from
Canada.\9\
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\9\ See Certain Softwood Lumber from Canada: Final Results of
Countervailing Duty Changed Circumstances Review, March 12, 2024 (89
FR 17811) (CCR--Interfor).
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As we explained in the initiation notice of CCR--Interfor, while
Commerce does not generally initiate CCR requests in proceedings simply
because there may be some indication of cross-ownership between two or
more exporters, we find the circumstances of the instant CCR to be
relatively unique. Specifically, similar to the circumstances noted in
CCR--Interfor, a potential affirmative finding of cross-ownership
regarding ISM, EACOM, Chaleur Forest Products Inc., and Chaleur Forest
Products LP could result in a cross-owned entity that is large enough
to be selected as a respondent in a future administrative review.\10\
Furthermore, this request arises in the context of a longstanding
proceeding that is generally characterized by the relatively dominant
position of a handful of large Canadian producers/exporters that
routinely get selected as mandatory respondents within a broader field
of dozens of much smaller producers/exporters. In addition, the
petitioner has provided a sufficient factual basis to support
initiation of this CCR.
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\10\ See Certain Softwood Lumber from Canada: Notice of
Initiation of Changed Circumstances Review, 88 FR 48440 (July 27,
2023).
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For the reasons outlined above, Commerce determines that the issue
raised by the petitioner of whether ISM, EACOM, Chaleur Forest Products
Inc., and Chaleur Forest Products LP are cross-owned constitutes a
sufficient basis to conduct a CCR of the Order. Accordingly, in
accordance with section 751(b)(1)(A) of the Act and 19 CFR 351.216(d),
we are initiating a CCR based upon the information contained in the
petitioner's submission.
In the event that Commerce determines an expedited action is
warranted, 19 CFR 351.221(c)(3)(ii) permits Commerce to combine the
notice of initiation of the review and the preliminary results of
review into a single notice. However, we are not combining this notice
of initiation with the preliminary results, pursuant to 19 CFR
351.221(c)(3)(ii), because Commerce has determined that it is necessary
to issue a questionnaire to ISM and gather additional information
regarding the company's corporate structure and ownership. After
examining any properly filed comments and following up with any
additional questionnaires as needed, we intend to issue the preliminary
results of this CCR.
Preliminary and Final Results of the CCR
Commerce intends to publish in the Federal Register a notice of the
preliminary results of this CCR in
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accordance with 19 CFR 351.221(b)(4) and (c)(3)(i). Commerce will set
forth its preliminary factual and legal conclusions in that notice
regarding the factual question of whether ISM, EACOM, Chaleur Forest
Products Inc., and Chaleur Forest Products LP are cross-owned.\11\
Unless extended, Commerce will issue the final results of this CCR in
accordance with the time limits set forth in 19 CFR 351.216(e).
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\11\ Commerce does not intend to identify in this CCR the
appropriate cash deposit rate in the event these parties are
determined to be cross-owned, as that is the purpose of a SII CCR
review.
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Notification to Interested Parties
This initiation notice is published in accordance with section
751(b)(1) of the Act, 19 CFR 351.216(d), and 19 CFR 351.221(b)(1).
Dated: June 24, 2024.
James Maeder,
Deputy Assistant Secretary for Antidumping and Countervailing Duty
Operations.
[FR Doc. 2024-14312 Filed 6-27-24; 8:45 am]
BILLING CODE 3510-DS-P
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</html>Indexed from Federal Register on June 28, 2024.
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