Certain Softwood Lumber Products From Canada: Final Results of Antidumping Duty Administrative Review and Final Determination of No Shipments; 2021
The U.S. Department of Commerce (Commerce) determines that producers and/or exporters subject to this administrative review made sales of subject merchandise at less than normal...
Enforcement and Compliance, International Trade Administration, Department of Commerce.
SUMMARY:
The U.S. 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, 2021, through December 31, 2021.
DATES:
Applicable August 1, 2023.
FOR FURTHER INFORMATION CONTACT:
Jeff Pedersen (Canfor), Maisha Cryor (West Fraser), Zachary Shaykin (PMS Allegation) AD/CVD Operations, Office IV, Enforcement and Compliance, International Trade Administration,
( printed page 50107)
U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-2769, (202) 482-5831, and (202) 482-2638, respectively.
SUPPLEMENTARY INFORMATION:
Background
Commerce published the
Preliminary Results
on January 27, 2023.[1]
This review covers 291 producers/exporters of subject merchandise, including two mandatory respondents, Canfor [2]
and West Fraser.[3]
For events subsequent to the
Preliminary Results, see
the 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 included in Appendix I of 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
https://access.trade.gov.
In addition, a complete version of the Issues and Decision Memorandum is also accessible on the internet at
https://access.trade.gov/public/FRNoticesListLayout.aspx.
Changes Since the Preliminary Results
Based on our review of the record and comments received from interested parties, we made the following changes to the
Preliminary Results:
Corrected an error with our calculation of West Fraser's byproduct offset;
Adjusted West Fraser's cost of manufacturing to account for inputs obtained from affiliated parties;
Adjusted West Fraser's general and administrative expenses to account for underlying producer ratios of the collapsed entity.
Removed certain freight expenses from the calculation of West Fraser's home market prices.
Adjusted Canfor's purchases of electricity from an affiliate.
Revised the review-specific rate for non-selected respondents.
Use of Adverse Facts Available
Pursuant to sections 776(a) and (b) of the Act, and for the reasons explained in the Issues and Decision Memorandum, we applied certain changes to West Fraser's margin calculation based on the use of partial facts available with an adverse inference.
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 POR, January 1, 2021, through December 31, 2021:
West Fraser Mills Ltd., Blue Ridge Lumber Inc./Manning Forest Products Ltd./and Sundre Forest Products Inc
6.96
Non-Selected Companies 5
6.20
Assessment
Rates
Pursuant to section 751(a)(2)(A) of 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 rate in an investigation. Section 735(c)(5)(A) of the Act provides that when calculating the all-others rate, 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 5.25 percent for Canfor and 6.96 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 to the non-selected companies in these final results, based on their publicly ranged sales data.[6]
Accordingly, we
( printed page 50108)
have applied a rate of 6.20 percent to the non-selected companies.[7]
A list of all non-selected companies is included in Appendix 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 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.[8]
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
, in accordance with 19 CFR 356.8(a).
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.[9]
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: July 26, 2023.
Abdelali Elouaradia,
Deputy Assistant Secretary for Enforcement and Compliance.
Appendix I
List of Topics Discussed in the Issues and Decision Memorandum
Comment 2: The Cohen's
d
Test is Not Contrary to Law
Comment 3: Whether Commerce Failed To Consider Qualitative Factors in Determining Whether Price Differences Were Significant in Differential Pricing Analysis
Comment 4: Whether Commerce Erred in Finding a Pattern of U.S. Prices That Differ Significantly Among Purchasers, Regions, or Periods of Time
Comment 5: Whether the A-to-A Method Accounts for the Identified Price Differences in Applying the “Meaningful Difference” Test
Comment 6: Zeroing
Comment 7: Whether the Cohen's d Test Results in Double Counting
Comment 8: Whether It Was Proper Not To Have Adjusted U.S. Price by Countervailing Duties
Comment 9: Whether Commerce Should Adjust West Fraser's General & Administrative (G&A) Expense Ratio
Comment 10: Whether Commerce Should Make Certain Revisions to West Fraser's Byproduct Offset Calculation
Comment 11: Whether Commerce Should Further Adjust West Fraser's COM to Account for Inputs Obtained From Affiliated Parties
Comment 12: Whether Commerce Should Disallow West Fraser's Claimed Adjustment for “Other Freight Charges” Incurred in Canada
Comment 13: Whether Commerce Used the Proper Market Price for Canfor's Wood Chip Sales
Comment 14: Whether Commerce Should Adjust the Reported Cost of Electricity at Canfor's Prince George (PG) Sawmill
Comment 15: Whether Commerce Properly Determined Canfor's G&A Expense Ratio
Comment 16: Whether Commerce Should Correct the Rate Assigned to Non-Selected Respondents
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 at 5.
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 5-6.
4.
See
Memorandum, “Issues and Decision Memorandum for the Final Results of the 2021 Administrative Review of the Antidumping Duty Order on Certain Softwood Lumber Products from Canada,” dated concurrently with, and hereby adopted by, this notice (Issues and Decision Memorandum).
6.
See
Memorandum, “Calculation of the Rate for Non-Selected Respondents,” dated concurrently with this notice. A list of the non-selected companies under review is included as Appendix II.
8.
For a full discussion of this practice,
see Antidumping and Countervailing Duty Proceedings: Assessment of Antidumping Duties,68 FR 23954 (May 6, 2003).
9.
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).
10.
On August 26, 2021 Commerce published the final results of a changed circumstances review determining that CHAP Alliance, Inc. (CHAP) is the successor-in-interest to L'Atelier de Réadaptation au Travil de Beauce Inc. (L'Atelier).
See Certain Softwood Lumber Products from Canada: Notice of Final Results of Antidumping Duty Changed Circumstances Review,86 FR 47621 (August 26, 2021). We intend to liquidate all entries by L'Atelier based on the final results, but revise the cash deposit rate to apply to CHAP.
11.
In the previous review, in the ACE module Interfor Corporation and Interfor Sales & Marketing Ltd. were set up with different company numbers,
i.e.,
A-122-857-118 and A-122-857-299. In the instant review, Interfor Corporation and Interfor Sales & Marketing Ltd. have stated that both Interfor Corporation and Interfor Sales & Marketing export lumber produced by Interfor Corporation.
See
Interfor Corporation and Interfor Sales & Marketing Ltd.'s Letter, “Comments in Response to Commerce's Request for Clarification of the Review Requests,” dated February 14, 2022. Therefore, for the final results, we will combine both company names under one company number.
12.
See
Scott Lumber Sales Letter, “Requests for Clarifications of Review Requests,” dated February 10, 2022, in which Scott Lumber Sales confirmed that its complete name is Scott Lumber Sales Ltd.
13.
Patrick Lumber submitted information that South Coast Reman Ltd. and Southcoast Millwork Ltd. are the same company.
See
Patrick Lumber's Letter, “Patrick Lumber Company Response to Request for Clarification of Review Request,” dated February 14, 2022;
see also
Patrick Lumber's Letter, “Company Request for Administrative Review (1/1/2021-12/31/2021),” dated January 31, 2022. We have added Southcoast Millwork Ltd. to the ACE module for case number A-122-857-322.
Use this for formal legal and research references to the published document.
88 FR 50106
Web Citation
Suggested Web Citation
Use this when citing the archival web version of the document.
“Certain Softwood Lumber Products From Canada: Final Results of Antidumping Duty Administrative Review and Final Determination of No Shipments; 2021,” thefederalregister.org (August 1, 2023), https://thefederalregister.org/documents/2023-16298/certain-softwood-lumber-products-from-canada-final-results-of-antidumping-duty-administrative-review-and-final-determina.