Certain Softwood Lumber Products From Canada: Notice of NAFTA Panel Decision

Issuing agencies

Abstract

On October 19, 2026, the North American Free Trade Agreement (NAFTA) Secretariat issued a Notice of Final Panel Action. The U.S. Department of Commerce (Commerce) is notifying the public that the NAFTA Binational Panel's final judgment is not in harmony with Commerce's final determination in the countervailing duty (CVD) investigation of certain softwood lumber products (lumber) from Canada, and that Commerce is amending the final determination and the resulting CVD order with respect to the countervailable subsidy rate assigned to Canfor Corporation (Canfor); J.D. Irving, Limited (J.D. Irving); Resolute FP Canada Inc. (Resolute); Tolko Marketing and Sales Ltd. (Tolko); West Fraser Mills Ltd. (West Fraser); and all other companies.

Full Text

<html>
<head>
<title>Federal Register, Volume 91 Issue 211 (Tuesday, November 3, 2026)</title>
</head>
<body><pre>
[Federal Register Volume 91, Number 211 (Tuesday, November 3, 2026)]
[Notices]
[Pages 69242-69243]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-22431]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration

[C-122-858]


Certain Softwood Lumber Products From Canada: Notice of NAFTA 
Panel Decision

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.

SUMMARY: On October 19, 2026, the North American Free Trade Agreement 
(NAFTA) Secretariat issued a Notice of Final Panel Action. The U.S. 
Department of Commerce (Commerce) is notifying the public that the 
NAFTA Binational Panel's final judgment is not in harmony with 
Commerce's final determination in the countervailing duty (CVD) 
investigation of certain softwood lumber products (lumber) from Canada, 
and that Commerce is amending the final determination and the resulting 
CVD order with respect to the countervailable subsidy rate assigned to 
Canfor Corporation (Canfor); J.D. Irving, Limited (J.D. Irving); 
Resolute FP Canada Inc. (Resolute); Tolko Marketing and Sales Ltd. 
(Tolko); West Fraser Mills Ltd. (West Fraser); and all other companies.

DATES: Applicable October 29, 2026.

FOR FURTHER INFORMATION CONTACT: Samuel Brummitt, 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) 482-7851.

SUPPLEMENTARY INFORMATION:

Background

    On November 8, 2017, Commerce published its Final Determination in 
the CVD investigation of lumber from Canada.\1\ The Final Determination 
was subsequently amended.\2\ Respondent parties subsequently challenged 
Commerce's final determination before the NAFTA Binational Panel, 
pursuant to Article 1904 of NAFTA. The parties briefed and argued the 
case before the Panel and, on March 6, 2024, the Panel issued its 
decision, affirming in part and remanding in part Commerce's 
determination.\3\ On December 17, 2024, Commerce issued its First 
Remand Determination.\4\ On March 6, 2026, the Panel issued its 
decision on remand, affirming in part and remanding in part Commerce's 
First Remand Determination.\5\ On June 17, 2026, Commerce issued its 
Second Remand Determination.\6\ By decision on October 5, 2026, the 
NAFTA Panel affirmed Commerce's Second Remand Determination.\7\ On 
October 19, 2026, the Panel directed the NAFTA Secretariat to issue a 
Notice of Final Panel Action; the NAFTA Secretariat subsequently issued 
the Notice of Final Panel Action on October 19, 2026.
---------------------------------------------------------------------------

    \1\ See Certain Softwood Lumber Products from Canada: Final 
Affirmative Countervailing Duty Determination and Final Affirmative 
Countervailing Duty Determination, and Final Negative Determination 
of Critical Circumstances, 82 FR 51814 (November 8, 2017) (Final 
Determination).
    \2\ See Certain Softwood Lumber Products from Canada: Amended 
Final Affirmative Countervailing Duty Determination and 
Countervailing Duty Order, 83 FR 347 (January 3, 2018) (Amended 
Final Determination).
    \3\ See Decision of the Panel, In the Matter of Certain Softwood 
Lumber from Canada: Final Affirmative Countervailing Duty 
Determination, Secretariat File No. USA-CDA-2017-1904-02 NAFTA 
Binational Panel Review, dated May 6, 2024.
    \4\ See Certain Softwood Lumber Products from Canada: Final 
Results of Redetermination Pursuant to Binational Panel Order, 
Secretariat File No. USA-CDA-2017-1904-02, dated December 17, 2024 
(First Remand Redetermination).
    \5\ See Decision of the Panel, In the Matter of Certain Softwood 
Lumber from Canada: Final Affirmative Countervailing Duty 
Determination, Secretariat File No. USA-CDA-2017-1904-02 NAFTA 
Binational Panel Review, dated March 6, 2026 (Panel Decision on 
Second Remand).
    \6\ See Final Results of Redetermination Pursuant to Second 
Binational Panel Order In the Matter of Certain Softwood Lumber 
Products from Canada: Final Affirmative Countervailing Duty 
Determination, Secretariat File No. USA-CDA-2017-1904-02 (Second 
Remand Determination).
    \7\ See Decision of the Panel on Second Remand Determination, In 
the Matter of Certain Softwood Lumber from Canada: Final Affirmative 
Countervailing Duty Determination, Secretariat File No. USA-CDA-
2017-1904-02 NAFTA Binational Panel Review.
---------------------------------------------------------------------------

Timken Notice

    In its decision in Timken,\8\ as clarified by Diamond Sawblades,\9\ 
the U.S. Court of Appeals for the Federal Circuit held that, pursuant 
to sections 516A(c) and (e) of the Tariff Act of 1930, as amended (the 
Act), Commerce must publish a notice of court decision that is not ``in 
harmony'' with a Commerce determination and must suspend liquidation of 
entries pending a ``conclusive'' court decision. Because NAFTA panels 
step into the shoes of the courts they are replacing, they must apply 
the law of the national court that would otherwise review the 
administrative determination. Therefore, we are publishing notice that 
the NAFTA Panel's Panel Decision on Second Remand, as memorialized by 
the NAFTA Secretariat's October 19, 2026, Notice of Final Panel Action, 
is ``not in harmony'' with the Final Determination.\10\ Publication of 
this notice fulfills the obligation imposed upon Commerce by the 
decision in Timken.
---------------------------------------------------------------------------

    \8\ See Timken Co. v. United States, 893 F.2d 337 (Fed. Cir. 
1990) (Timken).
    \9\ See Diamond Sawblades Manufacturers Coalition v. United 
States, 626 F.3d 1374 (Fed. Cir. 2010) (Diamond Sawblades).
    \10\ See Notice of Final Panel Action, dated October 19, 2026.
---------------------------------------------------------------------------

Amended Final Determination

    Having received a Notice of Final Panel Action from the NAFTA 
Secretariat, Commerce is amending its Final Determination with respect 
to Canfor, J.D. Irving, Resolute, Tolko, West Fraser, and all other 
producers and exporters as follows:

------------------------------------------------------------------------
                                      Original final
                                      determination    Subsidy rate post-
              Company                  subsidy rate      notice of final
                                        (percent)      action  (percent)
------------------------------------------------------------------------
Canfor Corporation and its cross-               13.24              12.49
 owned affiliates\11\.............
J.D. Irving Limited and its cross-               3.34               2.96
 owned affiliates\12\.............
Resolute FP Canada Inc. and its                 14.70              13.90
 cross-owned affiliates\13\.......
Tolko Marketing and Sales Ltd. and              14.85              11.01
 its cross-owned affiliates\14\...
West Fraser Mills Ltd. and its                  17.99              16.73
 cross-owned affiliates\15\.......
All Others........................              14.19              12.80
------------------------------------------------------------------------


[[Page 69243]]

Cash Deposit Requirements
---------------------------------------------------------------------------

    \11\ Commerce has found the following companies to be cross-
owned with Canfor: Canadian Forest Products, Ltd., and Canfor Wood 
Products Marketing, Ltd.
    \12\ Commerce has found the following companies to be cross-
owned with J.D. Irving: Miramichi Timber Holdings Limited, The New 
Brunswick Railway Company, Rothesay Paper Holdings Ltd., St. George 
Pulp & Paper Limited, and Irving Paper Limited.
    \13\ Commerce has found the following companies to be cross-
owned with Resolute: Resolute Growth Canada Inc., Resolute Sales 
Inc., Abitibi-Bowater Canada Inc., Bowater Canadian Ltd., Resolute 
Forest Products Inc., Produits Forestiers Maurice SEC., and 9192-
8515 Quebec Inc.
    \14\ Commerce has found the following companies to be cross-
owned with Tolko: Tolko Industries Ltd., and Meadow Lake OSB Limited 
Partnership.
    \15\ Commerce has found the following companies to be cross-
owned with West Fraser: West Fraser Timber Co. Ltd., West Fraser 
Alberta Holdings, Ltd., Blue Ridge Lumber Inc., Manning Forest 
Products, Ltd., Sunpine Inc., and Sundre Forest Products Inc.
---------------------------------------------------------------------------

    Commerce will issue revised cash deposit instructions to U.S. 
Customs and Border Protection (CBP). Because Canfor J.D. Irving, 
Resolute, Tolko, and West Fraser have superseding cash deposit rates, 
i.e., there have been final results published in a subsequent 
administrative review, this notice will not affect the current cash 
deposit rate for Canfor J.D. Irving, Resolute, Tolko, and West Fraser. 
For all other companies that do not have a superseding cash deposit 
rate, Commerce will issue revised cash deposit instructions to CBP.

Notification to Interested Parties

    This notice is issued and published in accordance with sections 
516A(c) and (e) and 777(i)(1) of the Act.

    Dated: October 28, 2026.
Scot Fullerton,
Acting Deputy Assistant Secretary for Antidumping and Countervailing 
Duty Operations.
[FR Doc. 2026-22431 Filed 11-2-26; 8:45 am]
BILLING CODE 3510-DS-P


</pre></body>
</html>