81_FR_94138 81 FR 93892 - Certain Softwood Lumber Products from Canada: Initiation of Less-Than-Fair-Value Investigation

81 FR 93892 - Certain Softwood Lumber Products from Canada: Initiation of Less-Than-Fair-Value Investigation

DEPARTMENT OF COMMERCE
International Trade Administration

Federal Register Volume 81, Issue 246 (December 22, 2016)

Page Range93892-93897
FR Document2016-30780

Federal Register, Volume 81 Issue 246 (Thursday, December 22, 2016)
[Federal Register Volume 81, Number 246 (Thursday, December 22, 2016)]
[Notices]
[Pages 93892-93897]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-30780]



[[Page 93892]]

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DEPARTMENT OF COMMERCE

International Trade Administration

[A-122-857]


Certain Softwood Lumber Products from Canada: Initiation of Less-
Than-Fair-Value Investigation

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

DATES: Effective December 15, 2016.

FOR FURTHER INFORMATION CONTACT: Jeffrey Pedersen at (202) 482-2769 or 
Robert Galantucci at (202) 482-2923, AD/CVD Operations, Enforcement and 
Compliance, U.S. Department of Commerce, 1401 Constitution Avenue NW., 
Washington, DC 20230.

SUPPLEMENTARY INFORMATION: 

The Petition

    On November 25, 2016, the Department of Commerce (the Department) 
received an antidumping duty (AD) petition concerning imports of 
certain softwood lumber products (softwood lumber) from Canada, filed 
in proper form, on behalf of the Committee Overseeing Action for Lumber 
International Trade Investigations or Negotiations (COALITION) 
(hereinafter, Petitioner).\1\
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    \1\ See Letter from Petitioner, ``Petition for the Imposition of 
Antidumping and Countervailing Duties on Imports of Certain Softwood 
Lumber Products from Canada,'' November 25, 2016 (the Petition), at 
Volume II. The COALITION is an ad hoc association whose members are: 
Collum's Lumber Products, L.L.C., Hankins, Inc., Potlatch 
Corporation, Rex Lumber Company, Seneca Sawmill Company, Sierra 
Pacific Industries, Stimson Lumber Company, Swanson Group, 
Weyerhaeuser Company, Carpenters Industrial Council, Giustina Land 
and Timber Company, Sullivan Forestry Consultants, Inc., and the 
U.S. Lumber Coalition, Inc. Id., Volume I at 2.
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    On November 30, 2016, the Department requested additional 
information and clarification of certain areas of the Petition.\2\ 
Petitioner filed responses to these requests on December 1, 2016.\3\ On 
December 7, 2016, in consultations the Department held with respect to 
the companion CVD case on imports of softwood lumber from Canada, the 
Government of Canada (GOC) provided comments on, and requested the 
Department poll the industry to determine, industry support.\4\ On 
December 8, 2016, Petitioner provided a response to the GOC comments on 
industry support.\5\
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    \2\ See Letter from the Department to Petitioner concerning 
general issues entitled ``Petition for the Imposition of Antidumping 
Duties on Imports of Certain Softwood Lumber Products from Canada: 
Supplemental Questions,'' dated November 30, 2016 (General Issues 
Supplemental Questionnaire); see also Letter from the Department to 
Petitioner concerning antidumping matters entitled ``Petition for 
the Imposition of Antidumping Duties on Imports of Certain Softwood 
Lumber Products from Canada: Supplemental Questions,'' dated 
November 30, 2016 (Antidumping Supplemental Questionnaire).
    \3\ See Letter from Petitioner to the Department entitled 
``Supplement to the Petition for the Imposition of Antidumping 
Duties on Imports of Certain Softwood Lumber Products from Canada: 
Response to the Department's Supplemental Questions,'' dated 
December 1, 2016 (Petition Supplement).
    \4\ See Memorandum from Robert Galantucci to the file entitled 
``Petition for the Imposition of Antidumping Duties on Imports of 
Certain Softwood Lumber Products from Canada: Consultation 
Documents,'' dated December 13, 2016 (Consultation Document 
Memorandum), at Attachment 1 (Letter from the Government of Canada 
to the Department entitled, ``Certain Softwood Lumber from Canada: 
Submission of Consultations Paper,'' dated December 7, 2016).
    \5\ See Consultation Document Memorandum, at Attachment 2 
(Letter from Petitioner to the Department entitled, ``Comments on 
Government of Canada's Consultations Paper,'' dated December 8, 
2016); see also Consultation Document Memorandum, at Attachment 3 
(Memorandum to the File Re: Consultations with Officials from the 
Government of Canada, dated December 7, 2016, which references the 
GOC comments.).
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    In accordance with section 732(b) of the Tariff Act of 1930, as 
amended (the Act), Petitioner alleges that imports of softwood lumber 
from Canada are being, or are likely to be, sold in the United States 
at less-than-fair value within the meaning of section 731 of the Act, 
and that such imports are materially injuring, or threatening material 
injury to, an industry in the United States. Also, consistent with 
section 732(b)(1) of the Act, Petitioner states that the Petition is 
accompanied by information reasonably available to Petitioner 
supporting its allegations.
    The Department finds that Petitioner filed this Petition on behalf 
of the domestic industry because Petitioner is an interested party as 
defined in section 771(9)(F) of the Act. As discussed in the 
``Determination of Industry Support for the Petition section, below, 
the Department also finds that Petitioner demonstrated sufficient 
industry support with respect to initiation of the requested AD 
investigation.\6\
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    \6\ See the ``Determination of Industry Support for the 
Petition'' section below.
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Period of Investigation

    Because the Petition was filed on November 25, 2016, the period of 
investigation (POI) is, pursuant to 19 CFR 351.204(b)(1), October 1, 
2015, through September 30, 2016.

Scope of the Investigation

    The product covered by this investigation is certain softwood 
lumber products from Canada. For a full description of the scope of 
this investigation, see the Appendix to of this notice.

Comments on Scope of the Investigation

    During our review of the Petition, the Department issued questions 
to, and received responses from, Petitioner pertaining to the proposed 
scope to ensure that the scope language in the Petition would be an 
accurate reflection of the products for which the domestic industry is 
seeking relief.\7\ As a result of these exchanges, the scope of the 
Petition was modified to clarify the description of merchandise covered 
by the Petition. The class or kind of merchandise covered by this 
initiation, as described in the Appendix to this notice, reflects that 
clarification.
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    \7\ See General Issues Supplemental Questionnaire and Petition 
Supplement.
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    As discussed in the preamble to the Department's regulations,\8\ we 
are setting aside a period for interested parties to raise issues 
regarding product coverage (i.e., scope). The Department will consider 
all comments received from parties and, if necessary, will consult with 
parties prior to the issuance of the preliminary determinations in this 
investigation and the companion countervailing duty investigation 
concurrently being initiated. If scope comments include factual 
information,\9\ all such factual information should be limited to 
public information. The Department requests all interested parties to 
submit such comments by 5:00 p.m. Eastern Standard Time (EST) on 
January 4, 2017, which is 20 calendar days from the signature date of 
this notice. Any rebuttal comments, which may include factual 
information (and also should be limited to public information), must be 
filed by 5:00 p.m. EST on Tuesday, January 17, 2017, which is the first 
business day ten calendar days after the initial comments deadline.\10\
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    \8\ See Antidumping Duties; Countervailing Duties, 62 FR 27296, 
27323 (May 19, 2007).
    \9\ See 19 CFR 351.102(b)(21).
    \10\ See 19 CFR 351.303(b)(1) (``For both electronically filed 
and manually filed documents, if the applicable due date falls on a 
non-business day, the Secretary will accept documents that are filed 
on the next business day.'')
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    The Department requests that any factual information the parties 
consider relevant to the scope of the investigation be submitted during 
this time period. However, if a party subsequently finds that 
additional factual information pertaining to the scope of the 
investigation may be relevant, the party may contact the Department and 
request permission to submit the additional information. All such 
comments and information must be filed on the records of the AD 
investigation and the concurrent CVD investigation.

[[Page 93893]]

Filing Requirements

    All submissions to the Department must be filed electronically 
using Enforcement and Compliance's Antidumping and Countervailing Duty 
Centralized Electronic Service System (ACCESS).\11\ An electronically 
filed document must be received successfully in its entirety by the 
time and date when it is due. Documents excepted from the electronic 
submission requirements must be filed manually (i.e., in paper form) 
with Enforcement and Compliance's APO/Dockets Unit, Room 18022, U.S. 
Department of Commerce, 1401 Constitution Avenue NW., Washington, DC 
20230, and stamped with the date and time of receipt by the applicable 
deadlines.
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    \11\ See Antidumping and Countervailing Duty Proceedings: 
Electronic Filing Procedures; Administrative Protective Order 
Procedures, 76 FR 39263 (July 6, 2011) for details of the 
Department's electronic filing requirements, which went into effect 
on August 5, 2011. Information on help using ACCESS can be found at 
https://access.trade.gov/help.aspx and a handbook can be found at 
https://access.trade.gov/help/Handbook%20on%20Electronic%20Filling%20Procedures.pdf.
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Comments on Product Characteristics for AD Questionnaires

    The Department is giving interested parties an opportunity to 
provide comments on the appropriate physical characteristics of 
softwood lumber to be reported in response to the Department's AD 
questionnaires. This information will be used to identify the key 
physical characteristics of the merchandise under consideration in 
order to report the relevant costs of production accurately as well as 
to develop appropriate product-comparison criteria.
    Interested parties may provide any information or comments that 
they feel are relevant to the development of an accurate list of 
physical characteristics. Specifically, they may provide comments as to 
which characteristics are appropriate to use as: (1) General product 
characteristics and (2) product-comparison criteria. We note that it is 
not always appropriate to use all product characteristics as product-
comparison criteria. We base product-comparison criteria on meaningful 
commercial differences among products. In other words, although there 
may be some physical product characteristics utilized by manufacturers 
to describe softwood lumber, it may be that only a select few product 
characteristics take into account commercially meaningful physical 
characteristics. In addition, interested parties may comment on the 
order in which the physical characteristics should be used in matching 
products. Generally, the Department attempts to list the most important 
physical characteristics first and the least important characteristics 
last.
    In order to consider the suggestions of interested parties in 
developing and issuing the AD questionnaires, all product 
characteristics comments must be filed by 5:00 p.m. EST on January 18, 
2017. Any rebuttal comments, which may include factual information (and 
should be limited to public information), must be filed by 5:00 p.m. 
EST on January 30, 2017, which is the first business day 10 calendar 
days after the initial comments deadline.\12\ All comments and 
submissions to the Department must be filed electronically using 
ACCESS, as explained above.
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    \12\ See 19 CFR 351.303(b)(1) (``For both electronically filed 
and manually filed documents, if the applicable due date falls on a 
non-business day, the Secretary will accept documents that are filed 
on the next business day.'').
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Determination of Industry Support for the Petition

    Section 732(b)(1) of the Act requires that a petition be filed on 
behalf of the domestic industry. Section 732(c)(4)(A) of the Act 
provides that a petition meets this requirement if the domestic 
producers or workers who support the petition account for: (i) At least 
25 percent of the total production of the domestic like product; and 
(ii) more than 50 percent of the production of the domestic like 
product produced by that portion of the industry expressing support 
for, or opposition to, the petition. Moreover, section 732(c)(4)(D) of 
the Act provides that, if the petition does not establish support of 
domestic producers or workers accounting for more than 50 percent of 
the total production of the domestic like product, the Department 
shall: (i) Poll the industry or rely on other information in order to 
determine if there is support for the petition, as required by 
subparagraph (A); or (ii) determine industry support using a 
statistically valid sampling method to poll the ``industry.''
    Section 771(4)(A) of the Act defines the ``industry'' as the 
producers as a whole of a domestic like product. Thus, to determine 
whether a petition has the requisite industry support, the statute 
directs the Department to look to producers and workers who produce the 
domestic like product. The International Trade Commission (ITC), which 
is responsible for determining whether ``the domestic industry'' has 
been injured, must also determine what constitutes a domestic like 
product in order to define the industry. While both the Department and 
the ITC must apply the same statutory definition regarding the domestic 
like product,\13\ they do so for different purposes and pursuant to a 
separate and distinct authority. In addition, the Department's 
determination is subject to limitations of time and information. 
Although this may result in different definitions of the like product, 
such differences do not render the decision of either agency contrary 
to law.\14\
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    \13\ See section 771(10) of the Act.
    \14\ See USEC, Inc. v. United States, 132 F. Supp. 2d 1, 8 (CIT 
2001) (citing Algoma Steel Corp., Ltd. v. United States, 688 F. 
Supp. 639, 644 (CIT 1988), aff'd 865 F.2d 240 (Fed. Cir. 1989)).
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    Section 771(10) of the Act defines the domestic like product as ``a 
product which is like, or in the absence of like, most similar in 
characteristics and uses with, the article subject to an investigation 
under this title.'' Thus, the reference point from which the domestic 
like product analysis begins is ``the article subject to an 
investigation'' (i.e., the class or kind of merchandise to be 
investigated, which normally will be the scope as defined in the 
petition).
    With regard to the domestic like product, Petitioner does not offer 
a definition of the domestic like product distinct from the scope of 
this investigation. Based on our analysis of the information submitted 
on the record, we have determined that softwood lumber constitutes a 
single domestic like product and we analyzed industry support in terms 
of that domestic like product.\15\
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    \15\ For a discussion of the domestic like product analysis in 
this investigation, see Antidumping Duty Investigation Initiation 
Checklist: Certain Softwood Lumber Products from Canada (Canada AD 
Initiation Checklist) at Attachment II, Analysis of Industry Support 
for the Antidumping and Countervailing Duty Petitions Covering 
Certain Softwood Lumber Products (Attachment II). This checklist is 
dated concurrently with this notice and on file electronically via 
ACCESS. Access to documents filed via ACCESS is also available in 
the Central Records Unit (CRU), Room B8024 of the main Department of 
Commerce building.
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    In determining whether Petitioner has standing under section 
732(c)(4)(A) of the Act, we considered the industry support data 
contained in the Petition with reference to the domestic like product 
as defined in the ``Scope of the Investigation,'' in the Appendix to 
this notice. To establish industry support, Petitioner provided actual 
2015 production data of the domestic like product for all U.S. softwood 
lumber producers that support the Petition.\16\ Petitioner also 
estimated the 2015 softwood lumber production of those U.S. softwood 
lumber producers/sawmills whose workers are represented

[[Page 93894]]

by the Carpenters Industrial Council, a recognized union and a member 
of the COALITION.\17\ Petitioner estimated total 2015 production of the 
domestic like product for the entire domestic industry based on 
production data published by Lumber Track, adjusted to account for any 
flooring and siding produced outside sawmills that may have not been 
included in the published production data.\18\ Petitioner compared the 
total production of the supporters of the Petition to the estimated 
total production of the domestic like product for the entire domestic 
industry.\19\ We relied upon data Petitioner provided for purposes of 
measuring industry support.\20\
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    \16\ See Petition, Volume I, at 6-7 and Exhibit 10; see also 
Petition Supplement, at 8-9 and Exhibit 10.
    \17\ See id. at 6-9 and Exhibits 10 and 14.
    \18\ Id., at 4-6 and Exhibits 2 and 56.
    \19\ See id. at 4-10 and Exhibit 10; see also Petition 
Supplement, at 8-9 and Exhibit 10.
    \20\ See Canada AD Initiation Checklist, at Attachment II.
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    On December 7, 2016, we received comments on industry support from 
the GOC.\21\ Petitioner responded to the GOC's Comments on December 8, 
2016.\22\ For further discussion of these comments, see the Canada AD 
Initiation Checklist, at Attachment II.
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    \21\ See Consultation Document Memorandum, at Attachment 1; see 
also Consultation Document Memorandum, at Attachment 3.
    \22\ See Consultation Document Memorandum, at Attachment 1.
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    Our review of the data provided in the Petition, Petition 
Supplement, letters from the GOC and Petitioner, and other information 
readily available to the Department indicates that Petitioner has 
established industry support.\23\ First, the Petition established 
support from domestic producers and workers accounting for more than 50 
percent of the total production of the domestic like product and, as 
such, the Department is not required to take further action in order to 
evaluate industry support (e.g., polling).\24\ Second, the domestic 
producers and workers have met the statutory criteria for industry 
support under section 732(c)(4)(A)(i) of the Act because the domestic 
producers and workers who support the Petition account for at least 25 
percent of the total production of the domestic like product.\25\ 
Finally, the domestic producers and workers have met the statutory 
criteria for industry support under section 732(c)(4)(A)(ii) of the Act 
because the domestic producers and workers who support the Petition 
account for more than 50 percent of the production of the domestic like 
product produced by that portion of the industry expressing support 
for, or opposition to, the Petition.\26\ Accordingly, the Department 
determines that the Petition was filed on behalf of the domestic 
industry within the meaning of section 732(b)(1) of the Act.
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    \23\ See Canada AD Initiation Checklist, at Attachment II.
    \24\ See section 732(c)(4)(D) of the Act; see also Canada AD 
Initiation Checklist, at Attachment II.
    \25\ See Canada AD Initiation Checklist, at Attachment II.
    \26\ Id.
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    The Department finds that Petitioner filed the Petition on behalf 
of the domestic industry because it is an interested party as defined 
in section 771(9)(F) of the Act and it has demonstrated sufficient 
industry support with respect to the AD investigation that it is 
requesting the Department initiate.\27\
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    \27\ Id.
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Allegations and Evidence of Material Injury and Causation

    Petitioner alleges that the U.S. industry producing the domestic 
like product is being materially injured, or is threatened with 
material injury, by reason of the imports of the subject merchandise 
sold at less than normal value (NV). In addition, Petitioner alleges 
that subject imports exceed the negligibility threshold provided for 
under section 771(24)(A) of the Act.\28\
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    \28\ See Petition, Volume I, at 34 and Exhibit 27.
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    Petitioner contends that the industry's injured condition is 
illustrated by reduced market share; underselling and price suppression 
or depression; lost sales and revenues; mill closures and layoffs; and 
adverse impact on the domestic industry's key trade and financial 
indicators, including financial performance, production, and capacity 
utilization.\29\ We have assessed the allegations and supporting 
evidence regarding material injury, threat of material injury, and 
causation, and we have determined that these allegations are properly 
supported by adequate evidence, and meet the statutory requirements for 
initiation.\30\
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    \29\ Id., at 28-30, 34-67 and Exhibits 2, 3, 19, 24, 26-27, 29, 
32, 34, 36-53, and 59-60; see also Petition Supplement, at 9 and 
Exhibit 59.
    \30\ See Canada AD Initiation Checklist, at Attachment III, 
Analysis of Allegations and Evidence of Material Injury and 
Causation for the Antidumping and Countervailing Duty Petitions 
Covering Certain Softwood Lumber Products from Canada (Attachment 
III).
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Allegations of Sales at Less-Than-Fair Value

    The following is a description of the allegations of sales at less-
than-fair value upon which the Department based its decision to 
initiate an investigation of imports of softwood lumber from Canada. 
The sources of data for the deductions and adjustments relating to U.S. 
price and NV are discussed in greater detail in the initiation 
checklist, issued concurrently with this notice.\31\
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    \31\ See generally Canada AD Initiation Checklist.
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Export Price

    Petitioner based U.S. price on five quoted sales offers to 
customers in the United States for Spruce Pine Fir (SPF) softwood 
lumber and kiln-dried Douglas Fir (DF) softwood lumber produced in, and 
exported from, Canada.\32\ Petitioner made deductions from U.S. price 
for movement expenses consistent with the delivery terms.\33\ 
Petitioner also deducted from U.S. price domestic brokerage and 
handling expenses and early payment discount expenses.\34\
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    \32\ See Canada AD Initiation Checklist; see also Petition, 
Volume II, at 2-12 and Exhibit 72.
    \33\ See Canada AD Initiation Checklist; see also Petition, 
Volume II, at 6-12 and Exhibits 72, 73, and 75.
    \34\ See Canada AD Initiation Checklist; see also Petition, 
Volume II, at 6-7, 10-12 and Exhibits 72, 73, and 76.
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NV Based on Home Market Sales

    Petitioner provided home market price information based on a price 
quote for SPF lumber produced in, and offered for sale in, Canada.\35\ 
Petitioner stated that the home market price quote was for SPF lumber 
identical to the SPF lumber in U.S. Offers 1 and 2.\36\ Petitioner made 
deductions from the home market price for inland freight charges and 
payment discounts.\37\
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    \35\ See Canada AD Initiation Checklist at 9; see also Petition, 
Volume II, at 12 and Exhibit 77; General Issues Supplement, at 
Exhibit 77.
    \36\ See Canada AD Initiation Checklist; see also Petition, 
Volume II, at 12-13.
    \37\ See Canada AD Initiation Checklist at 9; see also Petition, 
Volume II, at 13-14 and Exhibits 73 and 77; General Issues 
Supplement, at Exhibit 77.
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NV Based on Constructed Value

    For U.S. price Offers 3, 4, and 5, Petitioner was unable to obtain 
information regarding home market prices and, therefore, calculated NV 
based on constructed value (CV).\38\ Pursuant to section 773(e) of the 
Act, CV consists of the cost of manufacturing (COM), selling, general 
and administrative (SG&A) expenses, financial expenses, packing 
expenses, and profit. Petitioner calculated COM based on publicly 
available sources containing detailed region or province-

[[Page 93895]]

specific log and sawmill production costs.\39\ Specifically, Petitioner 
relied on the information reported in the Wood Markets' Cost Benchmark 
Report and Quarterly Update publications, adjusted for contemporaneity 
and to reflect more specific product costs where information was 
publicly available, as well as information published by provincial 
offices in Canada.\40\ To determine the SG&A, and financial expense 
rates, Petitioner relied on the audited financial statements of a 
Canadian lumber producer.\41\ Petitioner also relied on the audited 
financial statements of the same producer that was used for calculating 
the SG&A, and financial expenses to calculate the profit rate.\42\
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    \38\ See Canada AD Initiation Checklist at 10-13; see also 
Petition, Volume II, at 15-16. In accordance with section 505(a) of 
the Trade Preferences Extension Act of 2015, amending section 
773(b)(2) of the Act, for all of the investigations, the Department 
will request information necessary to calculate the cost of 
production (COP) and CV to determine whether there are reasonable 
grounds to believe or suspect that sales of the foreign like product 
have been made at prices that represent less than the COP of the 
product. The Department will no longer require a COP allegation to 
conduct this analysis.
    \39\ See Canada AD Initiation Checklist; see also Petition, 
Volume II, at 17-19.
    \40\ See Petition, Volume II, at 17-34 and Exhibits 69, 78, 82, 
85, 87, 94, and 95.
    \41\ See Canada AD Initiation Checklist at 11.
    \42\ Id.
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Fair Value Comparisons

    Based on the data provided by Petitioner, there is reason to 
believe that imports of softwood lumber from Canada, are being, or are 
likely to be, sold in the United States at less-than-fair value. Based 
on comparisons of EP to NV in accordance with sections 773(a) and (e) 
of the Act, the estimated dumping margins for softwood lumber range 
from 20.12 percent to 53.08 percent.\43\
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    \43\ See Petition Supplement at 10; see also Revised Exhibit 73; 
Canada AD Initiation Checklist at 15.
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Initiation of Less-than-Fair-Value Investigation

    Based upon the examination of the AD Petition on softwood lumber 
from Canada, we find that the Petition meets the requirements of 
section 732 of the Act. Therefore, we are initiating an AD 
investigation to determine whether imports of softwood lumber for 
Canada are being, or are likely to be, sold in the United States at 
less-than-fair value. In accordance with section 733(b)(1)(A) of the 
Act and 19 CFR 351.205(b)(1), unless postponed, we will make our 
preliminary determination no later than 140 days after the date of this 
initiation.
    On June 29, 2015, the President of the United States signed into 
law the Trade Preferences Extension Act of 2015 (TPEA), which made 
numerous amendments to the Act.\44\ The TPEA does not specify dates of 
application for those amendments. On August 6, 2015, the Department 
published an interpretative rule, in which it announced the 
applicability dates for each amendment to the Act, except for 
amendments contained in section 771(7) of the Act, which relate to 
determinations of material injury by the International Trade Commission 
(ITC).\45\ The amendments to sections 771(15), 773, 776, and 782 of the 
Act are applicable to all determinations made on or after August 6, 
2015, and, therefore, apply to this AD investigation.\46\
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    \44\ See Trade Preferences Extension Act of 2015, Pub. L. 114-
27, 129 Stat. 362 (2015).
    \45\ See Dates of Application of Amendments to the Antidumping 
and Countervailing Duty Laws Made by the Trade Preferences Extension 
Act of 2015, 80 FR 46793 (August 6, 2015) (Applicability Notice).
    \46\ Id., at 46794-95. The 2015 amendments may be found at 
https://www.congress.gov/bill/114th-congress/house-bill/1295/text/pl.
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Critical Circumstances

    Petitioner alleges, based on trade statistics and documented prior 
knowledge of an impending trade case, that there is a reasonable basis 
to believe or suspect that critical circumstances exist with regard to 
imports of softwood lumber from Canada.\47\
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    \47\ See Petition, Volume I, at 67-78.
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    Section 733(e)(1) of the Act states that if a petitioner alleges 
critical circumstances, the Department will find that such 
circumstances exist, at any time after the date of initiation, when 
there is a reasonable basis to believe or suspect that under, 
subparagraph (A)(i), there is a history of dumping and there is 
material injury by reason of dumped imports in the United States or 
elsewhere of the subject merchandise, or (ii) the person by whom, or 
for whose account, the merchandise was imported knew or should have 
known that the exporter was selling the subject merchandise at less 
than its fair value and that there was likely to be material injury by 
reason of such sales, and (B) there have been massive imports of the 
subject merchandise over a relatively short period. Section 
351.206(h)(2) of the Department's regulations provides that, generally, 
imports must increase by at least 15 percent during the ``relatively 
short period'' to be considered ``massive'' and section 351.206(i) 
defines a ``relatively short period'' as normally being the period 
beginning on the date the proceeding begins (i.e., the date the 
petition is filed) \48\ and ending at least three months later. The 
regulations also provide, however, that if the Department ``finds that 
importers, or exporters and producers, had reason to believe, at some 
time prior to the beginning of the proceeding, that a proceeding was 
likely,'' the Department ``may consider a period of not less than three 
months from that earlier time.'' \49\
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    \48\ See 19 CFR 351.102(b)(40) (providing that a proceeding 
begins on the date of the filing of a petition).
    \49\ See id.
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    Petitioner alleges that there is a history of dumping and material 
injury by reason of dumped imports of softwood lumber, and that U.S. 
importers knew or should have known that softwood lumber was being sold 
at less-than-fair value and that there was likely to be material injury 
by reason of such sales.\50\ Petitioner notes that, in a previous 
investigation, the Department made a final affirmative antidumping 
determination on softwood lumber imports from Canada.\51\ Additionally, 
in the final results of two administrative reviews of the resulting 
order on softwood lumber, and in the preliminary results of a third 
review, the Department found that softwood lumber from Canada continued 
to be sold for less-than-fair value.\52\
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    \50\ Id. at 67-78.
    \51\ Id. at 76.
    \52\ Id.
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    Petitioner also asserts that there have been massive imports of 
softwood lumber over a relatively short period. Petitioner contends 
that, pursuant to 19 CFR 351.206(i), the Department should evaluate the 
level of imports during a period prior to the filing of the Petition, 
because importers and foreign exporters and producers had reason to 
believe that an antidumping duty petition was likely.\53\ In 
particular, Petitioner provided news articles and industry publications 
to demonstrate that importers and foreign exporters and producers were 
aware that the Softwood Lumber Agreement (SLA) expired on October 12, 
2015, and that after October 12, 2016, the domestic industry in the 
United States would once again be permitted to file an AD petition.\54\ 
Accordingly, Petitioner asserts that importers and foreign exporters 
and producers were aware that they had a one-year period following the 
expiration of the SLA to ship subject merchandise without being subject 
to antidumping duties.\55\ Therefore, to consider whether imports of 
softwood lumber were massive over a relatively short period of time, 
Petitioner contends that the Department should compare import levels 
during January 2015 through October 2015 (base period) with import 
levels during November 2015 through

[[Page 93896]]

August 2016 (comparison period).\56\ Based on Petitioner's calculation, 
the import volume of softwood lumber surged 25.56 percent between the 
base and comparison period, and the value of imports surged 18.11 
percent.\57\ Petitioner asserts that because the surge in imports 
constituted more than a 15 percent change, import volumes of softwood 
lumber are massive, as defined in the Department's regulations.
---------------------------------------------------------------------------

    \53\ Id. at 69-70.
    \54\ Id. at 70-72 and Exhibits 39, 64, 65, 67. Petitioner notes 
that there was a one-year ``standstill'' period during which 
domestic industry was not permitted to file an AD petition. Id. at 
70-72.
    \55\ Id. at 72-73.
    \56\ Id. at 73-74.
    \57\ Id.
---------------------------------------------------------------------------

    Petitioner requests that the Department make a preliminary finding 
of critical circumstances within 45 days of the filing of the 
Petition.\58\ Section 732(e) of the Act states that when there is a 
reasonable basis to believe or suspect (1) there is a history of 
dumping in the United States or elsewhere of the subject merchandise, 
or (2) the person by whom, or for whose account, the merchandise was 
imported knew, or should have known, that the exporter was selling the 
subject merchandise at less-than-fair value, the Department may request 
Customs and Border Protection (CBP) to compile information on an 
expedited basis regarding entries of the subject merchandise.
---------------------------------------------------------------------------

    \58\ Id. at 69.
---------------------------------------------------------------------------

    Taking into consideration the foregoing, we will analyze this 
matter further. We will monitor imports of softwood lumber from Canada 
and may request that CBP compile information on an expedited basis 
regarding entries of subject merchandise.\59\ If, at any time, the 
criteria for a finding of critical circumstances are established, we 
will issue a critical circumstances determination at the earliest 
possible date.\60\
---------------------------------------------------------------------------

    \59\ See Section 732(e) of the Act.
    \60\ See Policy Bulletin 98/4, 63 FR 55364 (October 15, 1998).
---------------------------------------------------------------------------

Respondent Selection

    Based on information reasonably available to it, Petitioner 
identified over 400 companies in Canada as producers/exporters of 
softwood lumber.\61\ Following standard practice in AD investigations 
involving market economy countries, in the event the Department 
determines that the number of companies is large and it cannot 
individually examine each company based upon the Department's 
resources, where appropriate, the Department intends to select 
mandatory respondents based on CBP data for U.S. imports of softwood 
lumber from Canada during the period of investigation under the 
appropriate Harmonized Tariff Schedule of the United States (HTSUS) 
numbers listed in the ``Scope of the Investigation,'' in the Appendix. 
The Department also intends to release the CBP data under 
Administrative Protective Order (APO) to all parties with access to 
information protected by APO on the record within five business days of 
publication of this Federal Register notice. Interested parties wishing 
to comment regarding the CBP data must do so within seven calendar days 
after the placement of the CBP data on the record of this 
investigation. Parties wishing to submit rebuttal comments should 
submit those comments five calendar days after the deadline for the 
initial comments.
---------------------------------------------------------------------------

    \61\ See Petition, Volume I, at 28 and Exhibit 61.
---------------------------------------------------------------------------

    Interested parties must submit applications for disclosure under 
APO in accordance with 19 CFR 351.305(b). Instructions for filing such 
applications may be found on the Department's Web site at http://enforcement.trade.gov/apo.
    Comments for this investigation must be filed electronically using 
ACCESS. An electronically-filed document must be received successfully 
in its entirety by the Department's electronic records system, ACCESS, 
by 5:00 p.m. EST, by the dates noted above. We intend to finalize our 
decision regarding respondent selection within 20 days of publication 
of this notice.

Distribution of Copies of the Petition

    In accordance with section 732(b)(3)(A) of the Act and 19 CFR 
351.202(f), copies of the public version of the Petition have been 
provided to the GOC via ACCESS. Because of the particularly large 
number of producers/exporters identified in the Petition,\62\ the 
Department considers the service of the public version of the Petition 
to the foreign producers/exporters satisfied by delivery of the public 
version to the GOC, consistent with 19 CFR 351.203(c)(2).
---------------------------------------------------------------------------

    \62\ See Petition, Volume I, at Exhibit 61.
---------------------------------------------------------------------------

ITC Notification

    We will notify the ITC of our initiation, as required by section 
732(d) of the Act.

Preliminary Determinations by the ITC

    The ITC will preliminarily determine, within 45 days after the date 
on which the Petition was filed, whether there is a reasonable 
indication that imports of softwood lumber from Canada are materially 
injuring or threatening material injury to a U.S. industry.\63\ A 
negative ITC determination will result in the investigation being 
terminated; \64\ otherwise, the investigation will proceed according to 
statutory and regulatory time limits.
---------------------------------------------------------------------------

    \63\ See section 733(a) of the Act.
    \64\ Id.
---------------------------------------------------------------------------

Submission of Factual Information

    Factual information is defined in 19 CFR 351.102(b)(21) as: (i) 
Evidence submitted in response to questionnaires; (ii) evidence 
submitted in support of allegations; (iii) publicly available 
information to value factors under 19 CFR 351.408(c) or to measure the 
adequacy of remuneration under 19 CFR 351.511(a)(2); (iv) evidence 
placed on the record by the Department; and (v) evidence other than 
factual information described in (i)-(iv). Any party, when submitting 
factual information, must specify under which subsection of 19 CFR 
351.102(b)(21) the information is being submitted and, if the 
information is submitted to rebut, clarify, or correct factual 
information already on the record, to provide an explanation 
identifying the information already on the record that the factual 
information seeks to rebut, clarify, or correct. Specific time limits 
for the submission of factual information are addressed in 19 CFR 
351.301, which provides specific time limits based on the type of 
factual information being submitted. Parties should review the 
regulations prior to submitting factual information in the 
investigation.

Extensions of Time Limits

    Parties may request an extension of time limits before the 
expiration of a time limit established under Part 351, or as otherwise 
specified by the Secretary. In general, an extension request will be 
considered untimely if it is filed after the expiration of the time 
limit established under Part 351 expires. For submissions that are due 
from multiple parties simultaneously, an extension request will be 
considered untimely if it is filed after 10:00 a.m. ET on the due date. 
Under certain circumstances, we may elect to specify a different time 
limit by which extension requests will be considered untimely for 
submissions which are due from multiple parties simultaneously. In such 
a case, we will inform parties in the letter or memorandum setting 
forth the deadline (including a specified time) by which extension 
requests must be filed to be considered timely. An extension request 
must be made in a separate, stand-alone submission; under limited 
circumstances we will grant untimely-filed requests for the extension 
of time limits. Review Extension of Time Limits; Final Rule, 78 FR 
57790 (September 20, 2013), available at http://www.thefederalregister.org/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm, prior to submitting factual 
information in this investigation.

[[Page 93897]]

Certification Requirements

    Any party submitting factual information in an AD or CVD proceeding 
must certify to the accuracy and completeness of that information.\65\ 
Parties are hereby reminded that revised certification requirements are 
in effect for company/government officials, as well as their 
representatives. Investigations initiated on the basis of petitions 
filed on or after August 16, 2013, and other segments of any AD or CVD 
proceedings initiated on or after August 16, 2013, should use the 
formats for the revised certifications provided at the end of the Final 
Rule.\66\ The Department intends to reject factual submissions if the 
submitting party does not comply with applicable revised certification 
requirements.
---------------------------------------------------------------------------

    \65\ See section 782(b) of the Act.
    \66\ See Certification of Factual Information to Import 
Administration during Antidumping and Countervailing Duty 
Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule); see also 
frequently asked questions regarding the Final Rule, available at 
http://enforcement.trade.gov/tlei/notices/factual_info_final_rule_FAQ_07172013.pdf.
---------------------------------------------------------------------------

Notification to Interested Parties

    Interested parties must submit applications for disclosure under 
APO in accordance with 19 CFR 351.305. On January 22, 2008, the 
Department published Antidumping and Countervailing Duty Proceedings: 
Documents Submission Procedures; APO Procedures, 73 FR 3634 (January 
22, 2008). Parties wishing to participate in this investigation should 
ensure that they meet the requirements of these procedures (e.g., the 
filing of letters of appearance as discussed in 19 CFR 351.103(d)).
    This notice is issued and published pursuant to section 777(i) of 
the Act and 19 CFR 351.203(c).

    Dated: December 15, 2016.
Gary Taverman,
Associate Deputy Assistant Secretary for Antidumping and Countervailing 
Duty Operations.

Appendix

Scope of the Investigation

    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 ten-
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 box-spring-frame components, fence pickets, 
truss components, pallet components, flooring, and door and window 
frame parts under the following ten-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.

[FR Doc. 2016-30780 Filed 12-21-16; 8:45 am]
 BILLING CODE 3510-DS-P



                                                93892                     Federal Register / Vol. 81, No. 246 / Thursday, December 22, 2016 / Notices

                                                DEPARTMENT OF COMMERCE                                  consultations the Department held with                 Comments on Scope of the Investigation
                                                                                                        respect to the companion CVD case on
                                                International Trade Administration                                                                                During our review of the Petition, the
                                                                                                        imports of softwood lumber from
                                                                                                                                                               Department issued questions to, and
                                                [A–122–857]                                             Canada, the Government of Canada
                                                                                                                                                               received responses from, Petitioner
                                                                                                        (GOC) provided comments on, and
                                                                                                                                                               pertaining to the proposed scope to
                                                Certain Softwood Lumber Products                        requested the Department poll the
                                                                                                                                                               ensure that the scope language in the
                                                from Canada: Initiation of Less-Than-                   industry to determine, industry
                                                                                                                                                               Petition would be an accurate reflection
                                                Fair-Value Investigation                                support.4 On December 8, 2016,
                                                                                                                                                               of the products for which the domestic
                                                                                                        Petitioner provided a response to the
                                                AGENCY:  Enforcement and Compliance,                    GOC comments on industry support.5                     industry is seeking relief.7 As a result of
                                                International Trade Administration,                        In accordance with section 732(b) of                these exchanges, the scope of the
                                                Department of Commerce.                                 the Tariff Act of 1930, as amended (the                Petition was modified to clarify the
                                                DATES: Effective December 15, 2016.                     Act), Petitioner alleges that imports of               description of merchandise covered by
                                                FOR FURTHER INFORMATION CONTACT:                        softwood lumber from Canada are being,                 the Petition. The class or kind of
                                                Jeffrey Pedersen at (202) 482–2769 or                   or are likely to be, sold in the United                merchandise covered by this initiation,
                                                Robert Galantucci at (202) 482–2923,                    States at less-than-fair value within the              as described in the Appendix to this
                                                AD/CVD Operations, Enforcement and                      meaning of section 731 of the Act, and                 notice, reflects that clarification.
                                                Compliance, U.S. Department of                          that such imports are materially                          As discussed in the preamble to the
                                                Commerce, 1401 Constitution Avenue                      injuring, or threatening material injury               Department’s regulations,8 we are
                                                NW., Washington, DC 20230.                              to, an industry in the United States.                  setting aside a period for interested
                                                SUPPLEMENTARY INFORMATION:                              Also, consistent with section 732(b)(1)                parties to raise issues regarding product
                                                                                                        of the Act, Petitioner states that the                 coverage (i.e., scope). The Department
                                                The Petition                                            Petition is accompanied by information                 will consider all comments received
                                                   On November 25, 2016, the                            reasonably available to Petitioner                     from parties and, if necessary, will
                                                Department of Commerce (the                             supporting its allegations.                            consult with parties prior to the
                                                Department) received an antidumping                        The Department finds that Petitioner                issuance of the preliminary
                                                duty (AD) petition concerning imports                   filed this Petition on behalf of the                   determinations in this investigation and
                                                of certain softwood lumber products                     domestic industry because Petitioner is                the companion countervailing duty
                                                (softwood lumber) from Canada, filed in                 an interested party as defined in section              investigation concurrently being
                                                proper form, on behalf of the Committee                 771(9)(F) of the Act. As discussed in the              initiated. If scope comments include
                                                Overseeing Action for Lumber                            ‘‘Determination of Industry Support for                factual information,9 all such factual
                                                International Trade Investigations or                   the Petition section, below, the                       information should be limited to public
                                                Negotiations (COALITION) (hereinafter,                  Department also finds that Petitioner                  information. The Department requests
                                                Petitioner).1                                           demonstrated sufficient industry                       all interested parties to submit such
                                                   On November 30, 2016, the                            support with respect to initiation of the              comments by 5:00 p.m. Eastern
                                                Department requested additional                         requested AD investigation.6                           Standard Time (EST) on January 4,
                                                information and clarification of certain                                                                       2017, which is 20 calendar days from
                                                                                                        Period of Investigation
                                                areas of the Petition.2 Petitioner filed                                                                       the signature date of this notice. Any
                                                responses to these requests on December                   Because the Petition was filed on                    rebuttal comments, which may include
                                                1, 2016.3 On December 7, 2016, in                       November 25, 2016, the period of                       factual information (and also should be
                                                                                                        investigation (POI) is, pursuant to 19                 limited to public information), must be
                                                  1 See Letter from Petitioner, ‘‘Petition for the      CFR 351.204(b)(1), October 1, 2015,                    filed by 5:00 p.m. EST on Tuesday,
                                                Imposition of Antidumping and Countervailing            through September 30, 2016.                            January 17, 2017, which is the first
                                                Duties on Imports of Certain Softwood Lumber                                                                   business day ten calendar days after the
                                                Products from Canada,’’ November 25, 2016 (the          Scope of the Investigation
                                                Petition), at Volume II. The COALITION is an ad                                                                initial comments deadline.10
                                                                                                          The product covered by this
                                                hoc association whose members are: Collum’s                                                                       The Department requests that any
                                                Lumber Products, L.L.C., Hankins, Inc., Potlatch        investigation is certain softwood lumber
                                                                                                        products from Canada. For a full                       factual information the parties consider
                                                Corporation, Rex Lumber Company, Seneca
                                                Sawmill Company, Sierra Pacific Industries,             description of the scope of this                       relevant to the scope of the investigation
                                                Stimson Lumber Company, Swanson Group,                  investigation, see the Appendix to of                  be submitted during this time period.
                                                Weyerhaeuser Company, Carpenters Industrial
                                                                                                        this notice.                                           However, if a party subsequently finds
                                                Council, Giustina Land and Timber Company,                                                                     that additional factual information
                                                Sullivan Forestry Consultants, Inc., and the U.S.
                                                Lumber Coalition, Inc. Id., Volume I at 2.                 4 See Memorandum from Robert Galantucci to the      pertaining to the scope of the
                                                  2 See Letter from the Department to Petitioner        file entitled ‘‘Petition for the Imposition of         investigation may be relevant, the party
                                                concerning general issues entitled ‘‘Petition for the   Antidumping Duties on Imports of Certain               may contact the Department and request
                                                Imposition of Antidumping Duties on Imports of          Softwood Lumber Products from Canada:                  permission to submit the additional
                                                Certain Softwood Lumber Products from Canada:           Consultation Documents,’’ dated December 13, 2016
                                                                                                        (Consultation Document Memorandum), at
                                                                                                                                                               information. All such comments and
                                                Supplemental Questions,’’ dated November 30,
                                                2016 (General Issues Supplemental Questionnaire);       Attachment 1 (Letter from the Government of            information must be filed on the records
                                                see also Letter from the Department to Petitioner       Canada to the Department entitled, ‘‘Certain           of the AD investigation and the
                                                concerning antidumping matters entitled ‘‘Petition      Softwood Lumber from Canada: Submission of             concurrent CVD investigation.
                                                for the Imposition of Antidumping Duties on             Consultations Paper,’’ dated December 7, 2016).
                                                Imports of Certain Softwood Lumber Products from           5 See Consultation Document Memorandum, at
                                                                                                                                                                  7 See General Issues Supplemental Questionnaire
                                                Canada: Supplemental Questions,’’ dated November        Attachment 2 (Letter from Petitioner to the
sradovich on DSK3GMQ082PROD with NOTICES




                                                30, 2016 (Antidumping Supplemental                      Department entitled, ‘‘Comments on Government of       and Petition Supplement.
                                                                                                                                                                  8 See Antidumping Duties; Countervailing Duties,
                                                Questionnaire).                                         Canada’s Consultations Paper,’’ dated December 8,
                                                  3 See Letter from Petitioner to the Department        2016); see also Consultation Document                  62 FR 27296, 27323 (May 19, 2007).
                                                entitled ‘‘Supplement to the Petition for the           Memorandum, at Attachment 3 (Memorandum to                9 See 19 CFR 351.102(b)(21).

                                                Imposition of Antidumping Duties on Imports of          the File Re: Consultations with Officials from the        10 See 19 CFR 351.303(b)(1) (‘‘For both

                                                Certain Softwood Lumber Products from Canada:           Government of Canada, dated December 7, 2016,          electronically filed and manually filed documents,
                                                Response to the Department’s Supplemental               which references the GOC comments.).                   if the applicable due date falls on a non-business
                                                Questions,’’ dated December 1, 2016 (Petition              6 See the ‘‘Determination of Industry Support for   day, the Secretary will accept documents that are
                                                Supplement).                                            the Petition’’ section below.                          filed on the next business day.’’)



                                           VerDate Sep<11>2014   17:40 Dec 21, 2016   Jkt 241001   PO 00000   Frm 00012   Fmt 4703   Sfmt 4703   E:\FR\FM\22DEN1.SGM   22DEN1


                                                                          Federal Register / Vol. 81, No. 246 / Thursday, December 22, 2016 / Notices                                                   93893

                                                Filing Requirements                                     matching products. Generally, the                     the Department and the ITC must apply
                                                   All submissions to the Department                    Department attempts to list the most                  the same statutory definition regarding
                                                must be filed electronically using                      important physical characteristics first              the domestic like product,13 they do so
                                                Enforcement and Compliance’s                            and the least important characteristics               for different purposes and pursuant to a
                                                Antidumping and Countervailing Duty                     last.                                                 separate and distinct authority. In
                                                Centralized Electronic Service System                      In order to consider the suggestions of            addition, the Department’s
                                                                                                        interested parties in developing and                  determination is subject to limitations of
                                                (ACCESS).11 An electronically filed
                                                                                                        issuing the AD questionnaires, all                    time and information. Although this
                                                document must be received successfully
                                                                                                        product characteristics comments must                 may result in different definitions of the
                                                in its entirety by the time and date when
                                                                                                        be filed by 5:00 p.m. EST on January 18,              like product, such differences do not
                                                it is due. Documents excepted from the
                                                                                                        2017. Any rebuttal comments, which                    render the decision of either agency
                                                electronic submission requirements
                                                                                                        may include factual information (and                  contrary to law.14
                                                must be filed manually (i.e., in paper
                                                                                                        should be limited to public                              Section 771(10) of the Act defines the
                                                form) with Enforcement and
                                                                                                        information), must be filed by 5:00 p.m.              domestic like product as ‘‘a product
                                                Compliance’s APO/Dockets Unit, Room
                                                                                                        EST on January 30, 2017, which is the                 which is like, or in the absence of like,
                                                18022, U.S. Department of Commerce,
                                                                                                        first business day 10 calendar days after             most similar in characteristics and uses
                                                1401 Constitution Avenue NW.,                           the initial comments deadline.12 All
                                                Washington, DC 20230, and stamped                                                                             with, the article subject to an
                                                                                                        comments and submissions to the                       investigation under this title.’’ Thus, the
                                                with the date and time of receipt by the                Department must be filed electronically
                                                applicable deadlines.                                                                                         reference point from which the
                                                                                                        using ACCESS, as explained above.                     domestic like product analysis begins is
                                                Comments on Product Characteristics                     Determination of Industry Support for                 ‘‘the article subject to an investigation’’
                                                for AD Questionnaires                                   the Petition                                          (i.e., the class or kind of merchandise to
                                                  The Department is giving interested                                                                         be investigated, which normally will be
                                                                                                           Section 732(b)(1) of the Act requires              the scope as defined in the petition).
                                                parties an opportunity to provide                       that a petition be filed on behalf of the
                                                comments on the appropriate physical                                                                             With regard to the domestic like
                                                                                                        domestic industry. Section 732(c)(4)(A)               product, Petitioner does not offer a
                                                characteristics of softwood lumber to be                of the Act provides that a petition meets
                                                reported in response to the                                                                                   definition of the domestic like product
                                                                                                        this requirement if the domestic                      distinct from the scope of this
                                                Department’s AD questionnaires. This                    producers or workers who support the
                                                information will be used to identify the                                                                      investigation. Based on our analysis of
                                                                                                        petition account for: (i) At least 25                 the information submitted on the
                                                key physical characteristics of the                     percent of the total production of the
                                                merchandise under consideration in                                                                            record, we have determined that
                                                                                                        domestic like product; and (ii) more                  softwood lumber constitutes a single
                                                order to report the relevant costs of                   than 50 percent of the production of the
                                                production accurately as well as to                                                                           domestic like product and we analyzed
                                                                                                        domestic like product produced by that                industry support in terms of that
                                                develop appropriate product-                            portion of the industry expressing
                                                comparison criteria.                                                                                          domestic like product.15
                                                                                                        support for, or opposition to, the                       In determining whether Petitioner has
                                                  Interested parties may provide any                    petition. Moreover, section 732(c)(4)(D)
                                                information or comments that they feel                                                                        standing under section 732(c)(4)(A) of
                                                                                                        of the Act provides that, if the petition             the Act, we considered the industry
                                                are relevant to the development of an                   does not establish support of domestic
                                                accurate list of physical characteristics.                                                                    support data contained in the Petition
                                                                                                        producers or workers accounting for                   with reference to the domestic like
                                                Specifically, they may provide                          more than 50 percent of the total
                                                comments as to which characteristics                                                                          product as defined in the ‘‘Scope of the
                                                                                                        production of the domestic like product,              Investigation,’’ in the Appendix to this
                                                are appropriate to use as: (1) General                  the Department shall: (i) Poll the
                                                product characteristics and (2) product-                                                                      notice. To establish industry support,
                                                                                                        industry or rely on other information in              Petitioner provided actual 2015
                                                comparison criteria. We note that it is                 order to determine if there is support for
                                                not always appropriate to use all                                                                             production data of the domestic like
                                                                                                        the petition, as required by                          product for all U.S. softwood lumber
                                                product characteristics as product-                     subparagraph (A); or (ii) determine
                                                comparison criteria. We base product-                                                                         producers that support the Petition.16
                                                                                                        industry support using a statistically
                                                comparison criteria on meaningful                                                                             Petitioner also estimated the 2015
                                                                                                        valid sampling method to poll the
                                                commercial differences among products.                                                                        softwood lumber production of those
                                                                                                        ‘‘industry.’’
                                                In other words, although there may be                      Section 771(4)(A) of the Act defines               U.S. softwood lumber producers/
                                                some physical product characteristics                   the ‘‘industry’’ as the producers as a                sawmills whose workers are represented
                                                utilized by manufacturers to describe                   whole of a domestic like product. Thus,                 13 See  section 771(10) of the Act.
                                                softwood lumber, it may be that only a                  to determine whether a petition has the                 14 See  USEC, Inc. v. United States, 132 F. Supp.
                                                select few product characteristics take                 requisite industry support, the statute               2d 1, 8 (CIT 2001) (citing Algoma Steel Corp., Ltd.
                                                into account commercially meaningful                    directs the Department to look to                     v. United States, 688 F. Supp. 639, 644 (CIT 1988),
                                                physical characteristics. In addition,                  producers and workers who produce the                 aff’d 865 F.2d 240 (Fed. Cir. 1989)).
                                                                                                                                                                 15 For a discussion of the domestic like product
                                                interested parties may comment on the                   domestic like product. The International
                                                                                                                                                              analysis in this investigation, see Antidumping
                                                order in which the physical                             Trade Commission (ITC), which is                      Duty Investigation Initiation Checklist: Certain
                                                characteristics should be used in                       responsible for determining whether                   Softwood Lumber Products from Canada (Canada
                                                                                                        ‘‘the domestic industry’’ has been                    AD Initiation Checklist) at Attachment II, Analysis
                                                   11 See Antidumping and Countervailing Duty
                                                                                                        injured, must also determine what                     of Industry Support for the Antidumping and
sradovich on DSK3GMQ082PROD with NOTICES




                                                Proceedings: Electronic Filing Procedures;                                                                    Countervailing Duty Petitions Covering Certain
                                                                                                        constitutes a domestic like product in                Softwood Lumber Products (Attachment II). This
                                                Administrative Protective Order Procedures, 76 FR
                                                39263 (July 6, 2011) for details of the Department’s    order to define the industry. While both              checklist is dated concurrently with this notice and
                                                electronic filing requirements, which went into                                                               on file electronically via ACCESS. Access to
                                                effect on August 5, 2011. Information on help using        12 See 19 CFR 351.303(b)(1) (‘‘For both            documents filed via ACCESS is also available in the
                                                ACCESS can be found at https://access.trade.gov/        electronically filed and manually filed documents,    Central Records Unit (CRU), Room B8024 of the
                                                help.aspx and a handbook can be found at https://       if the applicable due date falls on a non-business    main Department of Commerce building.
                                                access.trade.gov/help/Handbook%20on                     day, the Secretary will accept documents that are        16 See Petition, Volume I, at 6–7 and Exhibit 10;

                                                %20Electronic%20Filling%20Procedures.pdf.               filed on the next business day.’’).                   see also Petition Supplement, at 8–9 and Exhibit 10.



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                                                93894                      Federal Register / Vol. 81, No. 246 / Thursday, December 22, 2016 / Notices

                                                by the Carpenters Industrial Council, a                  production of the domestic like product               greater detail in the initiation checklist,
                                                recognized union and a member of the                     produced by that portion of the industry              issued concurrently with this notice.31
                                                COALITION.17 Petitioner estimated                        expressing support for, or opposition to,
                                                                                                                                                               Export Price
                                                total 2015 production of the domestic                    the Petition.26 Accordingly, the
                                                like product for the entire domestic                     Department determines that the Petition                 Petitioner based U.S. price on five
                                                industry based on production data                        was filed on behalf of the domestic                   quoted sales offers to customers in the
                                                published by Lumber Track, adjusted to                   industry within the meaning of section                United States for Spruce Pine Fir (SPF)
                                                account for any flooring and siding                      732(b)(1) of the Act.                                 softwood lumber and kiln-dried Douglas
                                                produced outside sawmills that may                          The Department finds that Petitioner               Fir (DF) softwood lumber produced in,
                                                have not been included in the published                  filed the Petition on behalf of the                   and exported from, Canada.32 Petitioner
                                                production data.18 Petitioner compared                   domestic industry because it is an                    made deductions from U.S. price for
                                                the total production of the supporters of                interested party as defined in section                movement expenses consistent with the
                                                the Petition to the estimated total                      771(9)(F) of the Act and it has                       delivery terms.33 Petitioner also
                                                production of the domestic like product                  demonstrated sufficient industry                      deducted from U.S. price domestic
                                                for the entire domestic industry.19 We                   support with respect to the AD                        brokerage and handling expenses and
                                                relied upon data Petitioner provided for                 investigation that it is requesting the               early payment discount expenses.34
                                                purposes of measuring industry                           Department initiate.27
                                                                                                                                                               NV Based on Home Market Sales
                                                support.20                                               Allegations and Evidence of Material
                                                   On December 7, 2016, we received                                                                              Petitioner provided home market
                                                                                                         Injury and Causation                                  price information based on a price quote
                                                comments on industry support from the
                                                GOC.21 Petitioner responded to the                          Petitioner alleges that the U.S.                   for SPF lumber produced in, and offered
                                                GOC’s Comments on December 8,                            industry producing the domestic like                  for sale in, Canada.35 Petitioner stated
                                                2016.22 For further discussion of these                  product is being materially injured, or is            that the home market price quote was
                                                comments, see the Canada AD Initiation                   threatened with material injury, by                   for SPF lumber identical to the SPF
                                                Checklist, at Attachment II.                             reason of the imports of the subject                  lumber in U.S. Offers 1 and 2.36
                                                   Our review of the data provided in the                merchandise sold at less than normal                  Petitioner made deductions from the
                                                Petition, Petition Supplement, letters                   value (NV). In addition, Petitioner                   home market price for inland freight
                                                from the GOC and Petitioner, and other                   alleges that subject imports exceed the               charges and payment discounts.37
                                                information readily available to the                     negligibility threshold provided for
                                                                                                         under section 771(24)(A) of the Act.28                NV Based on Constructed Value
                                                Department indicates that Petitioner has
                                                established industry support.23 First,                      Petitioner contends that the industry’s               For U.S. price Offers 3, 4, and 5,
                                                the Petition established support from                    injured condition is illustrated by                   Petitioner was unable to obtain
                                                domestic producers and workers                           reduced market share; underselling and                information regarding home market
                                                accounting for more than 50 percent of                   price suppression or depression; lost                 prices and, therefore, calculated NV
                                                the total production of the domestic like                sales and revenues; mill closures and                 based on constructed value (CV).38
                                                product and, as such, the Department is                  layoffs; and adverse impact on the                    Pursuant to section 773(e) of the Act, CV
                                                not required to take further action in                   domestic industry’s key trade and                     consists of the cost of manufacturing
                                                order to evaluate industry support (e.g.,                financial indicators, including financial             (COM), selling, general and
                                                polling).24 Second, the domestic                         performance, production, and capacity                 administrative (SG&A) expenses,
                                                producers and workers have met the                       utilization.29 We have assessed the                   financial expenses, packing expenses,
                                                statutory criteria for industry support                  allegations and supporting evidence                   and profit. Petitioner calculated COM
                                                under section 732(c)(4)(A)(i) of the Act                 regarding material injury, threat of                  based on publicly available sources
                                                because the domestic producers and                       material injury, and causation, and we                containing detailed region or province-
                                                workers who support the Petition                         have determined that these allegations
                                                account for at least 25 percent of the                   are properly supported by adequate                      31 See generally Canada AD Initiation Checklist.
                                                total production of the domestic like                    evidence, and meet the statutory                        32 See Canada AD Initiation Checklist; see also
                                                                                                         requirements for initiation.30                        Petition, Volume II, at 2–12 and Exhibit 72.
                                                product.25 Finally, the domestic                                                                                 33 See Canada AD Initiation Checklist; see also

                                                producers and workers have met the                       Allegations of Sales at Less-Than-Fair                Petition, Volume II, at 6–12 and Exhibits 72, 73, and
                                                statutory criteria for industry support                  Value                                                 75.
                                                                                                                                                                 34 See Canada AD Initiation Checklist; see also
                                                under section 732(c)(4)(A)(ii) of the Act                   The following is a description of the              Petition, Volume II, at 6–7, 10–12 and Exhibits 72,
                                                because the domestic producers and                       allegations of sales at less-than-fair                73, and 76.
                                                workers who support the Petition                         value upon which the Department based                   35 See Canada AD Initiation Checklist at 9; see

                                                account for more than 50 percent of the                  its decision to initiate an investigation             also Petition, Volume II, at 12 and Exhibit 77;
                                                                                                                                                               General Issues Supplement, at Exhibit 77.
                                                  17 See
                                                                                                         of imports of softwood lumber from                      36 See Canada AD Initiation Checklist; see also
                                                         id. at 6–9 and Exhibits 10 and 14.
                                                  18 Id.,at 4–6 and Exhibits 2 and 56.
                                                                                                         Canada. The sources of data for the                   Petition, Volume II, at 12–13.
                                                  19 See id. at 4–10 and Exhibit 10; see also Petition   deductions and adjustments relating to                  37 See Canada AD Initiation Checklist at 9; see

                                                Supplement, at 8–9 and Exhibit 10.                       U.S. price and NV are discussed in                    also Petition, Volume II, at 13–14 and Exhibits 73
                                                  20 See Canada AD Initiation Checklist, at                                                                    and 77; General Issues Supplement, at Exhibit 77.
                                                                                                                                                                 38 See Canada AD Initiation Checklist at 10–13;
                                                Attachment II.                                             26 Id.
                                                  21 See Consultation Document Memorandum, at              27 Id.
                                                                                                                                                               see also Petition, Volume II, at 15–16. In accordance
                                                                                                                                                               with section 505(a) of the Trade Preferences
                                                Attachment 1; see also Consultation Document               28 See Petition, Volume I, at 34 and Exhibit 27.    Extension Act of 2015, amending section 773(b)(2)
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                                                Memorandum, at Attachment 3.                               29 Id.,at 28–30, 34–67 and Exhibits 2, 3, 19, 24,
                                                  22 See Consultation Document Memorandum, at
                                                                                                                                                               of the Act, for all of the investigations, the
                                                                                                         26–27, 29, 32, 34, 36–53, and 59–60; see also         Department will request information necessary to
                                                Attachment 1.                                            Petition Supplement, at 9 and Exhibit 59.             calculate the cost of production (COP) and CV to
                                                  23 See Canada AD Initiation Checklist, at                30 See Canada AD Initiation Checklist, at           determine whether there are reasonable grounds to
                                                Attachment II.                                           Attachment III, Analysis of Allegations and           believe or suspect that sales of the foreign like
                                                  24 See section 732(c)(4)(D) of the Act; see also
                                                                                                         Evidence of Material Injury and Causation for the     product have been made at prices that represent
                                                Canada AD Initiation Checklist, at Attachment II.        Antidumping and Countervailing Duty Petitions         less than the COP of the product. The Department
                                                  25 See Canada AD Initiation Checklist, at              Covering Certain Softwood Lumber Products from        will no longer require a COP allegation to conduct
                                                Attachment II.                                           Canada (Attachment III).                              this analysis.



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                                                                          Federal Register / Vol. 81, No. 246 / Thursday, December 22, 2016 / Notices                                                   93895

                                                specific log and sawmill production                     each amendment to the Act, except for                 ‘‘may consider a period of not less than
                                                costs.39 Specifically, Petitioner relied on             amendments contained in section 771(7)                three months from that earlier time.’’ 49
                                                the information reported in the Wood                    of the Act, which relate to                              Petitioner alleges that there is a
                                                Markets’ Cost Benchmark Report and                      determinations of material injury by the              history of dumping and material injury
                                                Quarterly Update publications, adjusted                 International Trade Commission (ITC).45               by reason of dumped imports of
                                                for contemporaneity and to reflect more                 The amendments to sections 771(15),                   softwood lumber, and that U.S.
                                                specific product costs where                            773, 776, and 782 of the Act are                      importers knew or should have known
                                                information was publicly available, as                  applicable to all determinations made                 that softwood lumber was being sold at
                                                well as information published by                        on or after August 6, 2015, and,                      less-than-fair value and that there was
                                                provincial offices in Canada.40 To                      therefore, apply to this AD                           likely to be material injury by reason of
                                                determine the SG&A, and financial                       investigation.46                                      such sales.50 Petitioner notes that, in a
                                                expense rates, Petitioner relied on the
                                                                                                        Critical Circumstances                                previous investigation, the Department
                                                audited financial statements of a
                                                                                                                                                              made a final affirmative antidumping
                                                Canadian lumber producer.41 Petitioner                     Petitioner alleges, based on trade
                                                also relied on the audited financial                                                                          determination on softwood lumber
                                                                                                        statistics and documented prior                       imports from Canada.51 Additionally, in
                                                statements of the same producer that                    knowledge of an impending trade case,
                                                was used for calculating the SG&A, and                                                                        the final results of two administrative
                                                                                                        that there is a reasonable basis to believe           reviews of the resulting order on
                                                financial expenses to calculate the profit              or suspect that critical circumstances
                                                rate.42                                                                                                       softwood lumber, and in the
                                                                                                        exist with regard to imports of softwood              preliminary results of a third review, the
                                                Fair Value Comparisons                                  lumber from Canada.47                                 Department found that softwood lumber
                                                   Based on the data provided by                           Section 733(e)(1) of the Act states that           from Canada continued to be sold for
                                                Petitioner, there is reason to believe that             if a petitioner alleges critical                      less-than-fair value.52
                                                imports of softwood lumber from                         circumstances, the Department will find                  Petitioner also asserts that there have
                                                Canada, are being, or are likely to be,                 that such circumstances exist, at any                 been massive imports of softwood
                                                sold in the United States at less-than-                 time after the date of initiation, when               lumber over a relatively short period.
                                                fair value. Based on comparisons of EP                  there is a reasonable basis to believe or             Petitioner contends that, pursuant to 19
                                                to NV in accordance with sections                       suspect that under, subparagraph (A)(i),              CFR 351.206(i), the Department should
                                                773(a) and (e) of the Act, the estimated                there is a history of dumping and there               evaluate the level of imports during a
                                                dumping margins for softwood lumber                     is material injury by reason of dumped                period prior to the filing of the Petition,
                                                range from 20.12 percent to 53.08                       imports in the United States or                       because importers and foreign exporters
                                                percent.43                                              elsewhere of the subject merchandise, or              and producers had reason to believe that
                                                                                                        (ii) the person by whom, or for whose                 an antidumping duty petition was
                                                Initiation of Less-than-Fair-Value
                                                                                                        account, the merchandise was imported                 likely.53 In particular, Petitioner
                                                Investigation
                                                                                                        knew or should have known that the
                                                  Based upon the examination of the                                                                           provided news articles and industry
                                                                                                        exporter was selling the subject
                                                AD Petition on softwood lumber from                                                                           publications to demonstrate that
                                                                                                        merchandise at less than its fair value
                                                Canada, we find that the Petition meets                                                                       importers and foreign exporters and
                                                                                                        and that there was likely to be material
                                                the requirements of section 732 of the                                                                        producers were aware that the Softwood
                                                                                                        injury by reason of such sales, and (B)
                                                Act. Therefore, we are initiating an AD                                                                       Lumber Agreement (SLA) expired on
                                                                                                        there have been massive imports of the
                                                investigation to determine whether                                                                            October 12, 2015, and that after October
                                                                                                        subject merchandise over a relatively
                                                imports of softwood lumber for Canada                                                                         12, 2016, the domestic industry in the
                                                                                                        short period. Section 351.206(h)(2) of
                                                are being, or are likely to be, sold in the             the Department’s regulations provides                 United States would once again be
                                                United States at less-than-fair value. In               that, generally, imports must increase by             permitted to file an AD petition.54
                                                accordance with section 733(b)(1)(A) of                 at least 15 percent during the ‘‘relatively           Accordingly, Petitioner asserts that
                                                the Act and 19 CFR 351.205(b)(1),                       short period’’ to be considered                       importers and foreign exporters and
                                                unless postponed, we will make our                      ‘‘massive’’ and section 351.206(i)                    producers were aware that they had a
                                                preliminary determination no later than                 defines a ‘‘relatively short period’’ as              one-year period following the expiration
                                                140 days after the date of this initiation.             normally being the period beginning on                of the SLA to ship subject merchandise
                                                  On June 29, 2015, the President of the                the date the proceeding begins (i.e., the             without being subject to antidumping
                                                United States signed into law the Trade                 date the petition is filed) 48 and ending             duties.55 Therefore, to consider whether
                                                Preferences Extension Act of 2015                       at least three months later. The                      imports of softwood lumber were
                                                (TPEA), which made numerous                             regulations also provide, however, that               massive over a relatively short period of
                                                amendments to the Act.44 The TPEA                       if the Department ‘‘finds that importers,             time, Petitioner contends that the
                                                does not specify dates of application for               or exporters and producers, had reason                Department should compare import
                                                those amendments. On August 6, 2015,                    to believe, at some time prior to the                 levels during January 2015 through
                                                the Department published an                             beginning of the proceeding, that a                   October 2015 (base period) with import
                                                interpretative rule, in which it                        proceeding was likely,’’ the Department               levels during November 2015 through
                                                announced the applicability dates for
                                                                                                                                                                49 See   id.
                                                                                                          45 See Dates of Application of Amendments to the
                                                  39 See Canada AD Initiation Checklist; see also                                                               50 Id.  at 67–78.
                                                                                                        Antidumping and Countervailing Duty Laws Made
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                                                Petition, Volume II, at 17–19.                          by the Trade Preferences Extension Act of 2015, 80       51 Id. at 76.
                                                  40 See Petition, Volume II, at 17–34 and Exhibits
                                                                                                        FR 46793 (August 6, 2015) (Applicability Notice).        52 Id.
                                                69, 78, 82, 85, 87, 94, and 95.                           46 Id., at 46794–95. The 2015 amendments may be        53 Id. at 69–70.
                                                  41 See Canada AD Initiation Checklist at 11.
                                                                                                        found at https://www.congress.gov/bill/114th-            54 Id. at 70–72 and Exhibits 39, 64, 65, 67.
                                                  42 Id.                                                congress/house-bill/1295/text/pl.                     Petitioner notes that there was a one-year
                                                  43 See Petition Supplement at 10; see also Revised      47 See Petition, Volume I, at 67–78.                ‘‘standstill’’ period during which domestic industry
                                                Exhibit 73; Canada AD Initiation Checklist at 15.         48 See 19 CFR 351.102(b)(40) (providing that a      was not permitted to file an AD petition. Id. at 70–
                                                  44 See Trade Preferences Extension Act of 2015,       proceeding begins on the date of the filing of a      72.
                                                Pub. L. 114–27, 129 Stat. 362 (2015).                   petition).                                               55 Id. at 72–73.




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                                                93896                           Federal Register / Vol. 81, No. 246 / Thursday, December 22, 2016 / Notices

                                                August 2016 (comparison period).56                            Investigation,’’ in the Appendix. The                   proceed according to statutory and
                                                Based on Petitioner’s calculation, the                        Department also intends to release the                  regulatory time limits.
                                                import volume of softwood lumber                              CBP data under Administrative
                                                                                                                                                                      Submission of Factual Information
                                                surged 25.56 percent between the base                         Protective Order (APO) to all parties
                                                and comparison period, and the value of                       with access to information protected by                    Factual information is defined in 19
                                                imports surged 18.11 percent.57                               APO on the record within five business                  CFR 351.102(b)(21) as: (i) Evidence
                                                Petitioner asserts that because the surge                     days of publication of this Federal                     submitted in response to questionnaires;
                                                in imports constituted more than a 15                         Register notice. Interested parties                     (ii) evidence submitted in support of
                                                percent change, import volumes of                             wishing to comment regarding the CBP                    allegations; (iii) publicly available
                                                softwood lumber are massive, as defined                       data must do so within seven calendar                   information to value factors under 19
                                                in the Department’s regulations.                              days after the placement of the CBP data                CFR 351.408(c) or to measure the
                                                   Petitioner requests that the                               on the record of this investigation.                    adequacy of remuneration under 19 CFR
                                                Department make a preliminary finding                         Parties wishing to submit rebuttal                      351.511(a)(2); (iv) evidence placed on
                                                of critical circumstances within 45 days                      comments should submit those                            the record by the Department; and (v)
                                                of the filing of the Petition.58 Section                      comments five calendar days after the                   evidence other than factual information
                                                732(e) of the Act states that when there                      deadline for the initial comments.                      described in (i)–(iv). Any party, when
                                                is a reasonable basis to believe or                              Interested parties must submit                       submitting factual information, must
                                                suspect (1) there is a history of dumping                                                                             specify under which subsection of 19
                                                                                                              applications for disclosure under APO
                                                in the United States or elsewhere of the                                                                              CFR 351.102(b)(21) the information is
                                                                                                              in accordance with 19 CFR 351.305(b).
                                                subject merchandise, or (2) the person                                                                                being submitted and, if the information
                                                                                                              Instructions for filing such applications
                                                by whom, or for whose account, the                                                                                    is submitted to rebut, clarify, or correct
                                                                                                              may be found on the Department’s Web
                                                merchandise was imported knew, or                                                                                     factual information already on the
                                                                                                              site at http://enforcement.trade.gov/apo.
                                                should have known, that the exporter                                                                                  record, to provide an explanation
                                                                                                                 Comments for this investigation must                 identifying the information already on
                                                was selling the subject merchandise at
                                                                                                              be filed electronically using ACCESS.                   the record that the factual information
                                                less-than-fair value, the Department may
                                                request Customs and Border Protection                         An electronically-filed document must                   seeks to rebut, clarify, or correct.
                                                (CBP) to compile information on an                            be received successfully in its entirety                Specific time limits for the submission
                                                expedited basis regarding entries of the                      by the Department’s electronic records                  of factual information are addressed in
                                                subject merchandise.                                          system, ACCESS, by 5:00 p.m. EST, by                    19 CFR 351.301, which provides
                                                   Taking into consideration the                              the dates noted above. We intend to                     specific time limits based on the type of
                                                foregoing, we will analyze this matter                        finalize our decision regarding                         factual information being submitted.
                                                further. We will monitor imports of                           respondent selection within 20 days of                  Parties should review the regulations
                                                softwood lumber from Canada and may                           publication of this notice.                             prior to submitting factual information
                                                request that CBP compile information                          Distribution of Copies of the Petition                  in the investigation.
                                                on an expedited basis regarding entries
                                                                                                                In accordance with section                            Extensions of Time Limits
                                                of subject merchandise.59 If, at any time,
                                                the criteria for a finding of critical                        732(b)(3)(A) of the Act and 19 CFR                         Parties may request an extension of
                                                circumstances are established, we will                        351.202(f), copies of the public version                time limits before the expiration of a
                                                issue a critical circumstances                                of the Petition have been provided to                   time limit established under Part 351, or
                                                determination at the earliest possible                        the GOC via ACCESS. Because of the                      as otherwise specified by the Secretary.
                                                date.60                                                       particularly large number of producers/                 In general, an extension request will be
                                                                                                              exporters identified in the Petition,62                 considered untimely if it is filed after
                                                Respondent Selection                                          the Department considers the service of                 the expiration of the time limit
                                                   Based on information reasonably                            the public version of the Petition to the               established under Part 351 expires. For
                                                available to it, Petitioner identified over                   foreign producers/exporters satisfied by                submissions that are due from multiple
                                                400 companies in Canada as producers/                         delivery of the public version to the                   parties simultaneously, an extension
                                                exporters of softwood lumber.61                               GOC, consistent with 19 CFR                             request will be considered untimely if it
                                                Following standard practice in AD                             351.203(c)(2).                                          is filed after 10:00 a.m. ET on the due
                                                investigations involving market                                                                                       date. Under certain circumstances, we
                                                economy countries, in the event the                           ITC Notification                                        may elect to specify a different time
                                                Department determines that the number                           We will notify the ITC of our                         limit by which extension requests will
                                                of companies is large and it cannot                           initiation, as required by section 732(d)               be considered untimely for submissions
                                                individually examine each company                             of the Act.                                             which are due from multiple parties
                                                based upon the Department’s resources,                                                                                simultaneously. In such a case, we will
                                                where appropriate, the Department                             Preliminary Determinations by the ITC                   inform parties in the letter or
                                                intends to select mandatory respondents                          The ITC will preliminarily determine,                memorandum setting forth the deadline
                                                based on CBP data for U.S. imports of                         within 45 days after the date on which                  (including a specified time) by which
                                                softwood lumber from Canada during                            the Petition was filed, whether there is                extension requests must be filed to be
                                                the period of investigation under the                         a reasonable indication that imports of                 considered timely. An extension request
                                                appropriate Harmonized Tariff Schedule                        softwood lumber from Canada are                         must be made in a separate, stand-alone
                                                of the United States (HTSUS) numbers                          materially injuring or threatening                      submission; under limited
                                                listed in the ‘‘Scope of the                                                                                          circumstances we will grant untimely-
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                                                                                                              material injury to a U.S. industry.63 A
                                                                                                              negative ITC determination will result                  filed requests for the extension of time
                                                  56 Id.   at 73–74.                                          in the investigation being terminated; 64               limits. Review Extension of Time Limits;
                                                  57 Id.
                                                  58 Id.
                                                                                                              otherwise, the investigation will                       Final Rule, 78 FR 57790 (September 20,
                                                        at 69.
                                                  59 See
                                                                                                                                                                      2013), available at http://www.gpo.gov/
                                                         Section 732(e) of the Act.
                                                  60 See Policy Bulletin 98/4, 63 FR 55364 (October             62 See   Petition, Volume I, at Exhibit 61.           fdsys/pkg/FR-2013-09-20/html/2013-
                                                15, 1998).                                                      63 See   section 733(a) of the Act.                   22853.htm, prior to submitting factual
                                                  61 See Petition, Volume I, at 28 and Exhibit 61.              64 Id.                                                information in this investigation.


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                                                                          Federal Register / Vol. 81, No. 246 / Thursday, December 22, 2016 / Notices                                                      93897

                                                Certification Requirements                              tongued, grooved, rebated, chamfered, V-              Compliance, International Trade
                                                                                                        jointed, beaded, molded, rounded) along any           Administration, U.S. Department of
                                                  Any party submitting factual                          of its edges, ends, or faces, whether or not
                                                information in an AD or CVD                                                                                   Commerce, 1401 Constitution Avenue
                                                                                                        planed, whether or not sanded, or whether or
                                                proceeding must certify to the accuracy                                                                       NW., Washington, DC 20230.
                                                                                                        not end-jointed.
                                                and completeness of that information.65                    • Coniferous drilled and notched lumber            SUPPLEMENTARY INFORMATION:
                                                Parties are hereby reminded that revised                and angle cut lumber.                                 The Petition
                                                certification requirements are in effect                   • Coniferous lumber stacked on edge and
                                                for company/government officials, as                    fastened together with nails, whether or not            On November 25, 2016, the
                                                well as their representatives.                          with plywood sheathing.                               Department of Commerce (the
                                                                                                           • Components or parts of semi-finished or          Department) received a countervailing
                                                Investigations initiated on the basis of                unassembled finished products made from
                                                petitions filed on or after August 16,                                                                        duty (CVD) petition concerning imports
                                                                                                        subject merchandise that would otherwise              of certain softwood lumber products
                                                2013, and other segments of any AD or                   meet the definition of the scope above.
                                                CVD proceedings initiated on or after                                                                         (softwood lumber) from Canada,1 filed
                                                                                                           Softwood lumber product imports are
                                                August 16, 2013, should use the formats                 generally entered under Chapter 44 of the
                                                                                                                                                              in proper form, on behalf of the
                                                for the revised certifications provided at              Harmonized Tariff Schedule of the United              Committee Overseeing Action for
                                                the end of the Final Rule.66 The                        States (‘‘HTSUS’’). This chapter of the               Lumber International Trade
                                                Department intends to reject factual                    HTSUS covers ‘‘Wood and articles of wood.’’           Investigations or Negotiations
                                                submissions if the submitting party does                Softwood lumber products that are subject to          (COALITION) (hereinafter, Petitioner).2
                                                                                                        this investigation are currently classifiable           On November 30 and December 2,
                                                not comply with applicable revised                      under the following ten-digit HTSUS                   2016, the Department requested
                                                certification requirements.                             subheadings in Chapter 44: 4407.10.01.01;             additional information and clarification
                                                Notification to Interested Parties                      4407.10.01.02; 4407.10.01.15; 4407.10.01.16;          of certain aspects of the Petition.3
                                                                                                        4407.10.01.17; 4407.10.01.18; 4407.10.01.19;
                                                  Interested parties must submit                                                                              Petitioner filed responses to these
                                                                                                        4407.10.01.20; 4407.10.01.42; 4407.10.01.43;
                                                applications for disclosure under APO                   4407.10.01.44; 4407.10.01.45; 4407.10.01.46;          requests on December 1 and 5, 2016.4
                                                in accordance with 19 CFR 351.305. On                   4407.10.01.47; 4407.10.01.48; 4407.10.01.49;          Further, Petitioner submitted revised
                                                January 22, 2008, the Department                        4407.10.01.52; 4407.10.01.53; 4407.10.01.54;          versions of two exhibits originally
                                                published Antidumping and                               4407.10.01.55; 4407.10.01.56; 4407.10.01.57;          provided in Volume III of the Petition.5
                                                Countervailing Duty Proceedings:                        4407.10.01.58; 4407.10.01.59; 4407.10.01.64;          On December 7, 2016, in consultations
                                                                                                        4407.10.01.65; 4407.10.01.66; 4407.10.01.67;          the Department held with respect to the
                                                Documents Submission Procedures;                        4407.10.01.68; 4407.10.01.69; 4407.10.01.74;
                                                APO Procedures, 73 FR 3634 (January                                                                           CVD petition, the Government of
                                                                                                        4407.10.01.75; 4407.10.01.76; 4407.10.01.77;          Canada (GOC) provided comments on,
                                                22, 2008). Parties wishing to participate               4407.10.01.82; 4407.10.01.83; 4407.10.01.92;
                                                in this investigation should ensure that                                                                      and requested the Department poll the
                                                                                                        4407.10.01.93; 4409.10.05.00; 4409.10.10.20;
                                                they meet the requirements of these                     4409.10.10.40; 4409.10.10.60; 4409.10.10.80;
                                                                                                                                                                 1 See Letter from Petitioner, ‘‘Petition for the
                                                procedures (e.g., the filing of letters of              4409.10.20.00; 4409.10.90.20; 4409.10.90.40;
                                                                                                                                                              Imposition of Antidumping and Countervailing
                                                appearance as discussed in 19 CFR                       and 4418.90.25.00.                                    Duties on Imports of Certain Softwood Lumber
                                                                                                           Subject merchandise as described above
                                                351.103(d)).                                                                                                  Products from Canada,’’ November 25, 2016
                                                                                                        may also be classified as stringers, square cut       (Petition), at Volume III.
                                                  This notice is issued and published                   box-spring-frame components, fence pickets,              2 The COALITION is an ad hoc association whose
                                                pursuant to section 777(i) of the Act and               truss components, pallet components,                  members include U.S. Lumber Coalition, Inc.;
                                                19 CFR 351.203(c).                                      flooring, and door and window frame parts             Collum’s Lumber Products, L.L.C.; Hankins, Inc.;
                                                  Dated: December 15, 2016.                             under the following ten-digit HTSUS                   Potlatch Corporation; Rex Lumber Company;
                                                                                                        subheadings in Chapter 44: 4415.20.40.00;             Seneca Sawmill Company; Sierra Pacific Industries;
                                                Gary Taverman,                                                                                                Stimson Lumber Company; Swanson Group;
                                                                                                        4415.20.80.00; 4418.90.46.05; 4418.90.46.20;
                                                Associate Deputy Assistant Secretary for                                                                      Weyerhaeuser Company; Carpenters Industrial
                                                                                                        4418.90.46.40; 4418.90.46.95; 4421.90.70.40;          Council; Giustina Land and Timber Company; and
                                                Antidumping and Countervailing Duty                     4421.90.94.00; and 4421.90.97.80.
                                                Operations.                                                                                                   Sullivan Forestry Consultants, Inc. Id., Volume I at
                                                                                                           Although these HTSUS subheadings are               2.
                                                Appendix                                                provided for convenience and customs                     3 See Letter from the Department, ‘‘Petition for the

                                                                                                        purposes, the written description of the              Imposition of Antidumping and Countervailing
                                                Scope of the Investigation                              scope of the investigation is dispositive.            Duties on Imports of Certain Softwood Lumber
                                                   The merchandise covered by this                                                                            Products from Canada: Supplemental Questions,’’
                                                                                                        [FR Doc. 2016–30780 Filed 12–21–16; 8:45 am]          November 30, 2016 (General Issues Supplemental
                                                investigation is softwood lumber, siding,
                                                                                                        BILLING CODE 3510–DS–P                                Questionnaire); see also Letter from the
                                                flooring and certain other coniferous wood
                                                                                                                                                              Department, ‘‘Petition for the Imposition of
                                                (‘‘softwood lumber products’’). The scope                                                                     Countervailing Duties on Imports of Certain
                                                includes:                                                                                                     Softwood Lumber Products from Canada:
                                                   • Coniferous wood, sawn, or chipped                  DEPARTMENT OF COMMERCE                                Supplemental Questions,’’ December 2, 2016
                                                lengthwise, sliced or peeled, whether or not                                                                  (Countervailing Duty Petition Supplemental
                                                planed, whether or not sanded, or whether or            International Trade Administration                    Questionnaire).
                                                not finger-jointed, of an actual thickness              [C–122–858]
                                                                                                                                                                 4 See Letter from Petitioner, ‘‘Supplement to the

                                                exceeding six millimeters.                                                                                    Petitions for the Imposition of Countervailing
                                                   • Coniferous wood siding, flooring, and                                                                    Duties on Imports of Certain Softwood Lumber
                                                                                                        Certain Softwood Lumber Products                      Products from Canada: Response to the
                                                other coniferous wood (other than moldings
                                                and dowel rods), including strips and friezes           From Canada: Initiation of                            Department’s Supplemental Questions’’ December
                                                                                                        Countervailing Duty Investigation                     1, 2016 (Petition Supplement); see also Letter from
                                                for parquet flooring, that is continuously
                                                                                                                                                              Petitioner, ‘‘Petition for the Imposition of
                                                shaped (including, but not limited to,
                                                                                                        AGENCY:  Enforcement and Compliance,                  Countervailing Duties on Imports of Certain
sradovich on DSK3GMQ082PROD with NOTICES




                                                                                                        International Trade Administration,                   Softwood Lumber Products from Canada: Response
                                                  65 See section 782(b) of the Act.                                                                           to Supplemental Questions,’’ December 5, 2016
                                                  66 See Certification of Factual Information to
                                                                                                        U.S. Department of Commerce.                          (Countervailing Duty Petition Supplemental
                                                Import Administration during Antidumping and            DATES: Effective December 15, 2016.                   Questionnaire Response).
                                                Countervailing Duty Proceedings, 78 FR 42678 (July      FOR FURTHER INFORMATION CONTACT:
                                                                                                                                                                 5 See Letter from Petitioner, ‘‘Supplement to the

                                                17, 2013) (Final Rule); see also frequently asked                                                             Petition for the Imposition of Countervailing Duties
                                                questions regarding the Final Rule, available at
                                                                                                        Nicholas Czajkowski at (202) 482–1395,                on Imports of Certain Softwood Lumber Products
                                                http://enforcement.trade.gov/tlei/notices/factual_      or Lana Nigro at (202)-482–0698, AD/                  from Canada: Correction of Production Errors’’
                                                info_final_rule_FAQ_07172013.pdf.                       CVD Operations, Enforcement and                       December 2, 2016.



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Document Created: 2016-12-21 23:52:39
Document Modified: 2016-12-21 23:52:39
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
DatesEffective December 15, 2016.
ContactJeffrey Pedersen at (202) 482-2769 or Robert Galantucci at (202) 482-2923, AD/CVD Operations, Enforcement and Compliance, U.S. Department of Commerce, 1401 Constitution Avenue NW., Washington, DC 20230.
FR Citation81 FR 93892 

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