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Certain Softwood Lumber Products from Canada: Final Results of Antidumping Duty Administrative Review; 2017-2018

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...

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Department of Commerce
International Trade Administration
  1. [A-122-857]

AGENCY:

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), June 30, 2017 through December 31, 2018.

DATES:

Effective November 30, 2020.

FOR FURTHER INFORMATION CONTACT:

Jeff Pedersen (Canfor), Stephen Bailey (Resolute), Thomas Martin (West Fraser), or Maisha Cryor, AD/CVD Operations, Office IV, Enforcement and Compliance, International Trade Administration, Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-2769, (202) 482-0193, (202) 482-3936, or (202) 482-5831, respectively.

SUPPLEMENTARY INFORMATION:

Background

Commerce published the Preliminary Results of this administrative review on February 7, 2020.[1] This review covers 253 producers/exporters of subject merchandise, including three mandatory respondents: Canfor,[2] Resolute,[3] and West Fraser.[4] For events subsequent to the Preliminary Results, see Commerce's Issues and Decision Memorandum.[5] 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 IDM.

Analysis of Comments Received

All issues raised in the case briefs filed in this administrative review are addressed in the Issues and Decision Memorandum (IDM). A list of the topics discussed in the Issues and Decision Memorandum is appended to this notice. The IDM 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 IDM is also accessible at enforcement.trade.gov/​frn/​index.html. The signed IDM and the electronic versions of the IDM are identical in content.

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:

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 June 30, 2017 through December 31, 2018:

Exporter/producer Weighted- average margin (percent)
Canfor Corporation/Canadian Forest Products Ltd./Canfor Wood Products Marketing Ltd 1.99
Resolute Growth Canada Inc./Forest Products Mauricie LP, Société en commandite Scierie Opitciwan/Resolute-LP Engineered Wood Larouche Inc./Resolute-LP Engineered Wood St-Prime Limited Partnership/Resolute FP Canada Inc 1.15
West Fraser Mills Ltd., Blue Ridge Lumber Inc./Manning Forest Products Ltd./and Sundre Forest Products Inc 1.40
Non-selected Companies 1.57

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's (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 1.99 percent for Canfor, 1.15 percent for Resolute, and 1.40 percent for West Fraser. In accordance with section 735(c)(5)(A) of the Act, Commerce assigned the weighted-average of these three calculated weighted-average dumping margins, 1.57 percent, to the non-selected companies in these final results. The rate calculated for the non-selected companies is a weighted-average percentage margin which is calculated based on the U.S. values of the three reviewed companies with an affirmative antidumping duty margin.[10] Accordingly, we have applied a rate of 1.57 percent to the non-selected companies.[11] A list of all non-selected companies is included in Attachment II.

For entries of subject merchandise during the POR produced by each respondent for which it did not know its merchandise was destined for the United States, we will instruct CBP to liquidate such entries at the all-others rate if there is no rate for the intermediate company or companies involved in the transaction.

We intend to issue liquidation instructions to CBP 15 days after publication of the final results of this administrative review.

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 6.04 percent ad valorem, the all-others rate established in the less than fair value investigation.[12] 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 ( printed page 76521) 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, 2020.

Joseph A. Laroski Jr.,

Deputy Assistant Secretary for Policy and Negotiations.

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. Canfor's Reported Grades

Comment 3. Canfor's Reported Costs

Comment 4. Valuing Affiliated Transactions Involving Canfor's Grande Prairie Mill

Comment 5. Valuing Canfor's Seed Purchases

Comment 6. Canfor's Price George Sawmill's Purchases of Electricity

Comment 7. Ministerial Error Regarding Canfor's Inventory Carrying Costs Incurred in the United States

Comment 8. Whether to Adjust Resolute's Grade Groups and Grade Equivalents

Comment 9. Whether to Adjust for DINVCARU and INVCARU

Comment 10. Whether to Adjust Resolute's Costs for Other Direct Charges

Comment 11. Zeroing

Comment 12. The Differential Pricing Analysis is Inconsistent with the AD Agreement

Comment 13. The Cohen's d and Ratio Tests are Irrational

Comment 14. Time Periods for the Cohen's d Test

Comment 15. Simple Average of Variances in the Cohen's d Coefficient

Comment 16. External Factors Which Explain the Price Differences

Comment 17. Cohen's d Test is Subject to Rule-Making Procedures

Comment 18. Whether Commerce Should Modify West Fraser's Reporting of Alternate Grades

Comment 19. Whether Commerce Should Apply Facts Available Due to Discrepancies in West Fraser's Reported Tally Sales

Comment 20. Whether to Apply Offsets to West Fraser's General and Administrative (G&A) Expense Ratio

Comment 21. Whether Commerce Should Allocate Certain Affiliate Expenses to West Fraser G&A Expenses

Comment 22. Whether Commerce Should Offset West Fraser's G&A Expenses for Greenhouse Gas Credits

Comment 23. Whether Commerce Should Include Equity-Based Compensation in G&A Expenses

Comment 24. Whether Commerce Should Exclude Foreign Exchange Gain in West Fraser's Financial Expense Ratio

Comment 25. Iterations of Olympic's Name

Comment 26. Listing of Tolko's Name in the Final Results

V. Recommendation

Appendix II

Non-Selected Exporters/Producers

Footnotes

1.   See Certain Softwood Lumber Products from Canada: Preliminary Results of Antidumping Duty Administrative Review and Rescission of Review, in Part; 2017-2018,85 FR 7282 (February 7, 2020) ( Preliminary Results) and accompanying Preliminary Decision Memorandum (PDM).

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2.  We continue to treat Canfor Corporation; Canadian Forest Products Ltd.; and Canfor Wood Products Marketing Ltd. (collectively, Canfor) as a single entity. See Preliminary Results PDM at 5.

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3.  We continue to treat Resolute Growth Canada Inc.; Forest Products Mauricie LP; Société en commandite Scierie Opitciwan; Resolute-LP Engineered Wood Larouche Inc.; Resolute-LP Engineered Wood St-Prime Limited Partnership; and Resolute FP Canada Inc. (collectively, Resolute) as a single entity. See Preliminary Results PDM at 6.

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4.  We continue to treat 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.

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5.   See IDM.

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6.   See Certain Softwood Lumber Products from Canada: Antidumping Duty Order and Partial Amended Final Determination,83 FR 350 (January 3, 2018) ( Softwood Lumber Order).

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7.   See IDM at Comment 4.

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8.   See IDM at Comment 7.

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9.   See IDM at Comment 9.

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10.   See Ball Bearings and Parts Thereof from France, Germany, Italy, Japan, and the United Kingdom: Final Results of Antidumping Duty Administrative Reviews, Final Results of Changed-Circumstances Review, and Revocation of an Order in Part,75 FR 53661, 53663 (September 1, 2010).

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11.   See Memorandum, “Calculation of the Rate for Non-Selected Respondents,” dated concurrently with this notice.

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12.   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).

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[FR Doc. 2020-26333 Filed 11-27-20; 8:45 am]

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“Certain Softwood Lumber Products from Canada: Final Results of Antidumping Duty Administrative Review; 2017-2018,” thefederalregister.org (November 30, 2020), https://thefederalregister.org/documents/2020-26333/certain-softwood-lumber-products-from-canada-final-results-of-antidumping-duty-administrative-review-2017-2018.