Certain Softwood Lumber Products From Canada: Final Results of Antidumping Duty Administrative Review; 2019
The Department of Commerce (Commerce) determines that producers and/or exporters subject to this administrative review made sales of subject merchandise at less than normal valu...
Enforcement and Compliance, International Trade Administration, Department of Commerce.
SUMMARY:
The Department of Commerce (Commerce) determines that producers and/or exporters subject to this administrative review made sales of subject merchandise at less than normal value during the period of review (POR), January 1, 2019, through December 31, 2019.
DATES:
Applicable December 2, 2021.
FOR FURTHER INFORMATION CONTACT:
Jeff Pedersen (Canfor) or Maisha Cryor (West Fraser), AD/CVD Operations, Office IV, Enforcement and Compliance, International Trade Administration,
( printed page 68472)
Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-2769 or (202) 482-5831, respectively.
SUPPLEMENTARY INFORMATION:
Background
Commerce published the
Preliminary Results
on May 27, 2021.[1]
This review covers 273 producers/exporters of subject merchandise, including two mandatory respondents, Canfor,[2]
and West Fraser.[3]
For events subsequent to the
Preliminary Results, see
Commerce's Issues and Decision Memorandum.[4]
The final weighted-average dumping margins are listed below in the “Final Results of Review” section of this notice. Commerce conducted this administrative review in accordance with section 751(a) of the Tariff Act of 1930, as amended (the Act).
Scope of the Order
The product covered by this review is softwood lumber from Canada. For a full description of the scope,
see
the Issues and Decision Memorandum.
Analysis of Comments Received
All issues raised in the case briefs filed in this administrative review are addressed in the Issues and Decision Memorandum. A list of the topics discussed in the Issues and Decision Memorandum is appended to this notice. The Issues and Decision Memorandum is a public document and is available electronically via Enforcement and Compliance's Antidumping and Countervailing Duty Centralized Electronic Services System (ACCESS). ACCESS is available to registered users at
access.trade.gov.
In addition, a complete version of the Issues and Decision Memorandum is also accessible on the internet at
access.trade.gov/​public/​FRNoticesListLayout.aspx.
Changes Since the Preliminary Results
Based on our review of the record and comments received from interested parties regarding our
Preliminary Results,
Commerce has made the following changes to the
Preliminary Results:
For Canfor, we corrected a ministerial error where we should have relied on the consolidated customer code but relied on a non-consolidated customer code.
For Canfor, we updated the market prices for electricity used to value related party transactions involving steam and electricity to be based both on electricity transactions in both Alberta and British Columbia, rather than only in Alberta.
We reduced the total cost of manufacturing for Canfor by the closure costs of its Vavenby sawmill.
In calculating Canfor's interest expense, we included the losses on certain derivative investments.
For West Fraser, we corrected a ministerial error regarding the manner in which we assigned the intended byproduct offset amount to the total cost of manufacturing.
For West Fraser, we corrected an error with how we calculated the byproduct offset.
For West Fraser, we made an adjustment to its total cost of manufacturing to account for seed purchases from a joint venture company.
For West Fraser, we are relying on the alternative grade group product code to ensure a more accurate comparison of comparison market and U.S. market sales.
For West Fraser, we are determining West Fraser's margin using the mixed method comparison method based upon the percentage of sales that passed the Cohen'sd
test.
Final Results of Review
As a result of this administrative review, we are assigning the following weighted-average dumping margins to the manufacturers/exporters listed below for the period of January 1, 2019, through December 31, 2019:
West Fraser Mills Ltd., Blue Ridge Lumber Inc./Manning Forest Products Ltd./and Sundre Forest Products Inc
6.06
Non-Selected Companies
11.59
Assessment Rates
Pursuant to section 751(a)(2)(A) the Act and 19 CFR 351.212(b)(1), Commerce shall determine, and U.S. Customs and Border Protection (CBP) shall assess, antidumping duties on all appropriate entries of subject merchandise in accordance with the final results of this review.
We intend to calculate importer- (or customer-) specific assessment rates on the basis of the ratio of the total amount of antidumping duties calculated for each importer (or customer's) examined sales and the total entered value of the sales in accordance with 19 CFR 351.212(b)(1). Where an importer- (or customer-) specific rate is zero or
de minimis
within the meaning of 19 CFR 351.106(c)(1), we will instruct CBP to liquidate the appropriate entries without regard to antidumping duties.
Generally, when calculating margins for non-selected respondents, Commerce looks to section 735(c)(5) of the Act for guidance, which provides instructions for calculating the all-others margin in an investigation. Section 735(c)(5)(A) of the Act provides that when calculating the all-others margin, Commerce will exclude any zero and
de minimis
weighted-average dumping margins, as well as any weighted-average dumping margins based on total facts available. Accordingly, Commerce's usual practice has been to average the margins for selected respondents, excluding margins that are zero,
de minimis,
or based entirely on facts available.
In this review, we calculated a weighted-average dumping margin of 17.12 percent for Canfor and 6.06 percent for West Fraser. In accordance with section 735(c)(5)(A) of the Act, Commerce assigned the weighted-average of these two calculated weighted-average dumping margins, 11.59 percent, to the non-selected companies in these final results. The rate calculated for the non-selected companies is calculated based on the simple average of the margins of the two individually examined companies.[5]
Accordingly, we have applied a rate of 11.59 percent to the non-selected companies.[6]
A list of all non-selected companies is included in Attachment II.
Commerce's “reseller policy” will apply to entries of subject merchandise during the POR produced by companies included in these final results of review for which the reviewed companies did
( printed page 68473)
not know that the merchandise they sold to the intermediary (
e.g.,
a reseller, trading company, or exporter) was destined for the United States. In such instances, we will instruct CBP to liquidate unreviewed entries at the all-others rate if there is no rate for the intermediate company(ies) involved in the transaction.[7]
The final results of this administrative review shall be the basis for the assessment of antidumping duties on entries of merchandise under review and for future cash deposits of estimated duties, where applicable. Commerce intends to issue assessment instructions to CBP no earlier than 41 days after the date of publication of the final results of this review in the
Federal Register
. If a timely summons is filed at the U.S. Court of International Trade, the assessment instructions will direct CBP not to liquidate relevant entries until the time for parties to file a request for a statutory injunction has expired (
i.e.,
within 90 days of publication).
Cash Deposit Requirements
The following cash deposit requirements will be effective for all shipments of subject merchandise entered, or withdrawn from warehouse, for consumption on or after the publication date of these final results, as provided by section 751(a)(2)(C) of the Act: (1) The cash deposit rate for the companies under review will be equal to the weighted-average dumping margin listed above in the “Final Results of Review” section; (2) for merchandise exported by producers or exporters not covered in this review but covered in a previously completed segment of this proceeding, the cash deposit rate will continue to be the company-specific rate published in the final results for the most recent period in which that producer or exporter participated; (3) if the exporter is not a firm covered in this review or in any previous segment of this proceeding, but the producer is, then the cash deposit rate will be that established for the producer of the merchandise in these final results of review or in the final results for the most recent period in which that producer participated; and (4) if neither the exporter nor the producer is a firm covered in this review or in any previously completed segment of this proceeding, then the cash deposit rate will be 6.58 percent
ad valorem,
the all-others rate established in the less than fair value investigation.[8]
These cash deposit requirements, when imposed, shall remain in effect until further notice.
Notification to Importers
This notice serves as a final reminder to importers of their responsibility under 19 CFR 351.402(f)(2) to file a certificate regarding the reimbursement of antidumping duties prior to liquidation of the relevant entries during this POR. Failure to comply with this requirement could result in Commerce's presumption that reimbursement of antidumping duties occurred and the subsequent assessment of doubled antidumping duties.
Notification Regarding Administrative Protective Order
This notice is the only reminder to parties subject to the administrative protective order (APO) of their responsibility concerning the return or destruction of proprietary information disclosed under the APO in accordance with 19 CFR 351.305(a)(3), which continues to govern business proprietary information in this segment of the proceeding. Timely written notification of the return or destruction of APO materials, or conversion to judicial protective order, is hereby requested. Failure to comply with the regulations and the terms of an APO is a violation subject to sanction.
Notification to Interested Parties
We are issuing and publishing these final results and this notice in accordance with sections 751(a)(1) and 777(i)(1) of the Act and 19 CFR 351.213(h).
Dated: November 23, 2021.
Ryan Majerus,
Deputy Assistant Secretary for Policy & Negotiations, performing the non-exclusive functions and duties of the Assistant Secretary for Enforcement and Compliance.
Appendix I
List of Topics Discussed in the Issues and Decision Memorandum
I. Summary
II. Background
III. Scope of the Order
IV. Discussion of the Issues
Comment 1. Particular Market Situation Allegation
Comment 2. Whether it was Proper to Accept Proprietary Grades
Comment 3. Whether it was Proper not to Select Resolute as a Respondent
Comment 4. Whether it was Proper not to Select Respondents based on Sampling
Comment 5. Whether it was Proper not to have Adjusted U.S. Price by Countervailing Duties
Comment 6. Zeroing
Comment 7. Differential Pricing
Comment 8. The Cohen's
d
and Ratio Test
Comment 9. Whether Commerce's Simple Average of Variances is Appropriate
Comment 10. Whether to Update J.D. Irving's Cash Deposit Rate
Comment 11. Whether Commerce Used the Proper Market Price for Canfor's Wood Chip Sales
Comment 12. Whether It Is Proper to Value Steam Based on the Market Price for Electricity, and Whether the Market Price of Electricity Should be Based Solely on Electricity Prices in Alberta
Comment 13. Whether Canfor's Prince George Sawmill's Purchases of Electricity Should be Adjusted
Comment 14. Whether Canfor's Restructuring Costs Should be Excluded from Mill Costs
Comment 15. Whether Commerce Should Adjust Canfor's Reported Net Interest Expense
Comment 16. Whether Commerce Committed a Ministerial Error in the Calculation of Canfor's Margin
Comment 17. Whether Commerce Should Include the Total Amount of Restructuring and Impairment Charges in West Fraser's General and Administrative Expense Ratio
Comment 18. Whether Commerce Made Certain Ministerial Errors With Respect to West Fraser's Byproduct Offset
Comment 19. Whether Commerce Made Certain Methodological Errors With Respect to West Fraser's Byproduct Offset
Comment 20. Whether Commerce Should Make an Adjustment to West Fraser's Seed Purchases
Comment 21. Whether Commerce Should Use West Fraser's Alternative Grade Group Information
V. Recommendation
Appendix II
Non-Selected Exporters/Producers
1. 0729670 B.C. Ltd. DBA Anderson Sales
2. 1074712 BC Ltd.
3. 258258 B.C. Ltd., dba Pacific Coast Cedar Products
4. 5214875 Manitoba Ltd.
5. 752615 B.C Ltd
6. 9224-5737 Quebec Inc. (aka A.G. Bois)
7. A.B. Cedar Shingle Inc.
8. Absolute Lumber Products Ltd.
9. AJ Forest Products Ltd.
10. Alberta Spruce Industries Ltd.
11. Aler Forest Products Ltd.
12. Alpa Lumber Mills Inc.
13. American Pacific Wood Products
14. Anbrook Industries Ltd.
15. Andersen Pacific Forest Products Ltd.
16. Anglo American Cedar Products Ltd.; Anglo-American Cedar Products Ltd.
2.
As described in the
Preliminary Results
PDM, we have treated Canfor Corporation, Canadian Forest Products Ltd., and Canfor Wood Products Marketing Ltd. (collectively, Canfor) as a single entity.
See Preliminary Results
PDM.
3.
As described in the
Preliminary Results
PDM, we have treated West Fraser Mills Ltd., Blue Ridge Lumber Inc., Manning Forest Products Ltd., and Sundre Forest Products Inc. (collectively, West Fraser) as a single entity.
See Preliminary Results
PDM at 6-7.
4.
See
Memorandum, “Issues and Decision Memorandum for the Final Results of Certain Softwood Lumber Products from Canada” (Issues and Decision Memorandum), dated concurrently with, and hereby adopted by, this notice.
5.
For more information regarding the calculation of this margin,
see
Memorandum, “Calculation of the Rate for Non-Examined Companies,” dated concurrently with this notice.
7.
For a full discussion of this practice,
see Antidumping and Countervailing Duty Proceedings: Assessment of Antidumping Duties,68 FR 23954 (May 6, 2003).
8.
See Certain Softwood Lumber Products from Canada: Final Affirmative Determination of Sales at Less Than Fair Value and Affirmative Final Determination of Critical Circumstances,82 FR 51806 (November 8, 2017).
access.trade.gov
19 CFR 351.212(b)(1)