83 FR 347 - Certain Softwood Lumber Products From Canada: Amended Final Affirmative Countervailing Duty Determination and Countervailing Duty Order

DEPARTMENT OF COMMERCE
International Trade Administration

Federal Register Volume 83, Issue 2 (January 3, 2018)

Based on affirmative final determinations by the Department of Commerce (Commerce) and the International Trade Commission (ITC), Commerce is issuing a countervailing duty order on Certain Softwood Lumber Products (Softwood Lumber) from Canada. Also, Commerce is amending its final countervailing duty determination with respect to Softwood Lumber from Canada, to correct ministerial errors.

[Federal Register Volume 83, Number 2 (Wednesday, January 3, 2018)]
[Notices]
[Pages 347-349]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-28483]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-122-858]


Certain Softwood Lumber Products From Canada: Amended Final 
Affirmative Countervailing Duty Determination and Countervailing Duty 
Order

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

SUMMARY: Based on affirmative final determinations by the Department of 
Commerce (Commerce) and the International Trade Commission (ITC), 
Commerce is issuing a countervailing duty order on Certain Softwood 
Lumber Products (Softwood Lumber) from Canada. Also, Commerce is 
amending its final countervailing duty determination with respect to 
Softwood Lumber from Canada, to correct ministerial errors.

DATES: January 3, 2018.

FOR FURTHER INFORMATION CONTACT: Nicholas Czajkowski and Kristen 
Johnson, AD/CVD Operations, Offices I and III, Enforcement and 
Compliance, International Trade Administration, U.S. Department of 
Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: 
202-482-1395 and (202) 482-4793, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    In accordance with sections 705(a), 705(d), and 777(i)(1) of the 
Tariff Act of 1930, as amended (the Act), and 19 CFR 351.210(c), on 
November 8, 2017, Commerce published an affirmative final determination 
in the countervailing duty investigation of Softwood Lumber from 
Canada.\1\

[[Page 348]]

Interested parties submitted timely filed allegations that Commerce 
made certain ministerial errors in the final determination of Softwood 
Lumber from Canada. Section 705(e) of the Act and 19 CFR 351.224(f) 
defines ministerial errors as errors in addition, subtraction, or other 
arithmetic function, clerical errors resulting from inaccurate copying, 
duplication, or the like, and any other type of unintentional error 
which the administering authority considers ministerial. We reviewed 
the allegations and determined that we made certain ministerial errors. 
See ``Amendment to the Final Determination'' section below for further 
discussion.
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    \1\ See Certain Softwood Lumber Products From Canada: Final 
Affirmative Countervailing Duty Determination, and Final Negative 
Determination of Critical Circumstances, 82 FR 51814 (November 8, 
2017) (Final Determination).
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    On December 26, 2017, the ITC notified Commerce of its final 
determination pursuant to section 705(b)(1)(A)(i) and section 705(d) of 
the Act, that an industry in the United States is materially injured by 
reason of subsidized imports of Softwood Lumber from Canada.\2\
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    \2\ See Letter from ITC concerning Softwood Lumber from Canada 
USITC Investigation Nos. 701-TA-566 and 731-TA-1342, USITC 
Publication 4749 (December 2017) (ITC Letter).
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Scope of the Order

    The products covered by this order is Softwood Lumber from Canada. 
For a complete description of the scope of this order, see Appendix I.

Amendment to the Final Determination

    On November 9, 2017, West Fraser Mills Ltd. and its cross-owned 
affiliates (collectively, West Fraser) submitted a timely, properly 
filed allegation that Commerce made certain ministerial errors in the 
Final Determination.\3\ On November 13, 2017, Resolute FP Canada Inc. 
and Resolute FP US Inc. (collectively, Resolute) and Conseil de 
l'Industrie Forestiere du Quebec (CIFQ) submitted a timely, properly 
filed allegation that Commerce made certain ministerial errors in the 
Final Determination.\4\ On November 17, 2017, the petitioner \5\ 
submitted rebuttal comments to the Resolute and CIFQ allegation.
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    \3\ See Letter from West Fraser ``Softwood Lumber from Canada: 
Request for Correction of Ministerial Error in
    the Investigation Final Determination Calculations,'' November 
9, 2017 (West Fraser Ministerial Error Allegation).
    \4\ See Letter from Resolute and CIFQ ``Softwood Lumber from 
Canada: Comments Regarding Ministerial
    Error,'' November 13, 2017 (Resolute Ministerial Error 
Allegation).
    \5\ The petitioner is an ad hoc association whose members are: 
U.S. Lumber Coalition, Inc.; 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.
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    Commerce reviewed the record and, on December 4, 2017, agreed that 
the error referenced in West Fraser's allegation constitutes a 
ministerial error within the meaning of 705(e) of the Act and 19 CFR 
351.224(f).\6\ Commerce found that it erroneously calculated West 
Fraser's benefit under the Alberta Tax-Exempt Fuel Program for Marked 
Fuel, and this error was contrary to our methodological intention.\7\ 
Pursuant to 19 CFR 351.224(e), Commerce is amending the Final 
Determination to reflect the correction of the ministerial error 
described above. However, Commerce did not find a ministerial error 
with regard to the Resolute and CIFQ allegation,\8\ and thus Commerce 
is not amending the Final Determination with regard to that allegation. 
Based on our correction of the ministerial error in West Fraser's 
calculation, the subsidy rate for West Fraser decreased from 18.19 
percent ad valorem to 17.99 percent ad valorem.\9\ Because the ``all-
others'' rate is based, in part, on West Fraser's ad valorem subsidy 
rate, the correction noted above also decreases the ``all-others'' rate 
determined in the Final Determination to 14.19 percent ad valorem.\10\ 
All other countervailing duty rates remain unchanged from the Final 
Determination.
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    \6\ See Memorandum ``Ministerial Error Allegations Concerning 
Final Affirmative Countervailing Duty Determination, and Final 
Negative Determination of Critical Circumstances,'' December 4, 
2017.
    \7\ Id.
    \8\ Id.
    \9\ Id.
    \10\ Id.
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Countervailing Duty Order

    In accordance with sections 705(b)(1)(A)(i) and 705(d) of the Act, 
the ITC notified Commerce of its final determinations that an industry 
in the United States is materially injured by reason of of subsidized 
imports of Softwood Lumber from Canada.\11\ Therefore, in accordance 
with section 705(c)(2) of the Act, we are issuing this countervailing 
duty order. Because the ITC determined that imports of Softwood Lumber 
from Canada are materially injuring a U.S. industry, unliquidated 
entries of such merchandise from Canada, entered or withdrawn from 
warehouse for consumption, are subject to the assessment of 
countervailing duties.
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    \11\ See ITC Letter.
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    As a result of the ITC's final determination, in accordance with 
section 706(a) of the Act, Commerce will direct U.S. Customs and Border 
Protection (CBP) to assess, upon further instruction by Commerce, 
countervailing duties equal to the net countervailable subsidy rates, 
for all relevant entries of Softwood Lumber from Canada. Countervailing 
duties will be assessed on unliquidated entries of Softwood Lumber from 
Canada entered, or withdrawn from warehouse, for consumption on or 
after April 28, 2017, the date of publication of the Preliminary 
Determination,\12\ but will not include entries occurring after the 
expiration of the provisional measures period and before publication of 
the ITC's final injury determination as further described below.
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    \12\ See Certain Softwood Lumber Products From Canada: 
Preliminary Affirmative Countervailing Duty Determination, and 
Alignment of Final Determination With Final Antidumping Duty 
Determination, 82 FR 19657 (April 28, 2017) (Preliminary 
Determination).
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Amended Cash Deposits and Suspension of Liquidation

    In accordance with section 706 of the Act, Commerce will instruct 
CBP to reinstitutue suspension of liquidation on all relevant entries 
of Softwood Lumber from Canada. These instructions suspending 
liquidation will remain in effect until further notice. Commerce will 
also instruct CBP to require cash deposits equal to the amounts as 
indicated below. Accordingly, effective on the date of publication of 
the ITC's final affirmative injury determination, CBP will require, at 
the same time as importers would normally deposit estimated duties on 
this subject merchandise, a cash deposit equal to the subsidy rates 
listed below.\13\ The all-others rate applies to all producers or 
exporters not specifically listed, as appropriate.
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    \13\ See section 706(a)(3) of the Act.

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                                                           Subsidy rate
                         Company                                (%)
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Canfor Corporation and its cross-owned affiliates \14\..           13.24
J.D. Irving Limited and its cross-owned affiliates \15\.            3.34

[[Page 349]]

 
Resolute FP Canada Inc. and its cross-owned affiliates             14.70
 \16\...................................................
Tolko Marketing and Sales Ltd. and its cross-owned                 14.85
 affiliates \17\........................................
West Fraser Mills Ltd. and its cross-owned affiliates              17.99
 \18\...................................................
All-Others..............................................          14.19
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\14\ Commerce has found the following companies to be cross-owned with
  Canfor Corporation: Canadian Forest Products, Ltd., and Canfor Wood
  Products Marketing, Ltd.
\15\ Commerce has found the following companies to be cross-owned with
  JDIL: Miramichi Timber Holdings Limited, The New Brunswick Railway
  Company, Rothesay Paper Holdings Ltd., St. George Pulp & Paper
  Limited, and Irving Paper Limited.
\16\ Commerce has found the following companies to be cross-owned with
  Resolute: Resolute Growth Canada Inc., Resolute Sales Inc., Abitibi-
  Bowater Canada Inc., Bowater Canadian Ltd., Resolute Forest Products
  Inc., Produits Forestiers Maurice SEC., and 9192-8515 Quebec Inc.
\17\ Commerce has found the following companies to be cross-owned with
  Tolko: Tolko Industries Ltd., and Meadow Lake OSB Limited Partnership.
\18\ Commerce has found the following companies to be cross-owned with
  West Fraser: West Fraser Timber Co. Ltd., West Fraser Alberta
  Holdings, Ltd., Blue Ridge Lumber Inc., Manning Forest Products, Ltd.,
  Sunpine Inc., and Sundre Forest Products Inc.

Provisional Measures

    Section 703(d) of the Act states that the suspension of liquidation 
pursuant to an affirmative preliminary countervailing duty 
determination may not remain in effect for more than four months. In 
the underlying investigation, Commerce published the Preliminary 
Determination on April 28, 2017. Therefore, the four-month period 
beginning on the date of the publication of the Preliminary 
Determination ended on August 26, 2017. Furthermore, section 707(b) of 
the Act states that definitive duties are to begin on the date of 
publication of the ITC's final injury determination. Therefore, in 
accordance with section 703(d) of the Act and our practice, we 
instructed CBP to terminate the suspension of liquidation and to 
liquidate, without regard to duties, unliquidated entries of Softwood 
Lumber from Canada made on or after August 26, 2017. Suspension of 
liquidation will resume on the date of publication of the ITC's final 
determination in the Federal Register.

Notification to Interested Parties

    This notice constitutes the countervailing duty order with respect 
to Softwood Lumber from Canada, pursuant to section 706(a) of the Act. 
Interested parties may find an updated list of CVD orders currently in 
effect at http://enforcement.trade.gov/stats/iastats1.html.
    This order is issued and published in accordance with section 
706(a) of the Act and 19 CFR 351.211(b).

    Dated: December 28, 2017.
P. Lee Smith,
Deputy Assistant Secretary for Policy and Negotiations.

Appendix I--Scope of the Order

    The merchandise covered by this order is softwood lumber, 
siding, flooring and certain other coniferous wood (softwood lumber 
products). The scope includes:
     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.
    Finished products are not covered by the scope of this order. 
For the purposes of this scope, finished products contain, or are 
comprised of, subject merchandise and have undergone sufficient 
processing such that they can no longer be considered intermediate 
products, and such products can be readily differentiated from 
merchandise subject to this order at the time of importation. Such 
differentiation may, for example, be shown through marks of special 
adaptation as a particular product. The following products are 
illustrative of the type of merchandise that is considered 
``finished,'' for the purpose of this scope: I-joists; assembled 
pallets; cutting boards; assembled picture frames; garage doors.
    The following items are excluded from the scope of this order:
     Softwood lumber products certified by the Atlantic 
Lumber Board as being first produced in the Provinces of 
Newfoundland and Labrador, Nova Scotia, or Prince Edward Island from 
logs harvested in Newfoundland and Labrador, Nova Scotia, or Prince 
Edward Island.
     U.S.-origin lumber shipped to Canada for processing and 
imported into the United States if the processing occurring in 
Canada is limited to one or more of the following: (1) Kiln drying; 
(2) planing to create smooth-to-size board; or (3) sanding.
     Box-spring frame kits if they contain the following 
wooden pieces--two side rails, two end (or top) rails and varying 
numbers of slats. The side rails and the end rails must be radius-
cut at both ends. The kits must be individually packaged and must 
contain the exact number of wooden components needed to make a 
particular box-spring frame, with no further processing required. 
None of the components exceeds 1'' in actual thickness or 83'' in 
length.
     Radius-cut box-spring-frame components, not exceeding 
1'' in actual thickness or 83'' in length, ready for assembly 
without further processing. The radius cuts must be present on both 
ends of the boards and must be substantially cut so as to completely 
round one corner.
    Softwood lumber product imports are generally entered under 
Chapter 44 of the 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 order 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 
4418.99.10.00.
    Subject merchandise as described above might be identified on 
entry documentation as stringers, square cut box-spring-frame 
components, fence pickets, truss components, pallet components, 
flooring, and door and window frame parts. Items so identified might 
be entered under the following ten-digit HTSUS subheadings in 
Chapter 44: 4415.20.40.00; 4415.20.80.00; 4418.99.90.05; 
4418.99.90.20; 4418.99.90.40; 4418.99.90.95; 4421.99.70.40; and 
4421.99.97.80.
    Although these HTSUS subheadings are provided for convenience 
and customs purposes, the written description of the scope of this 
order is dispositive.

[FR Doc. 2017-28483 Filed 1-2-18; 8:45 am]
 BILLING CODE 3510-DS-P