Certain Softwood Lumber Products From Canada: Preliminary Results and Partial Rescission of Countervailing Duty Administrative Review; 2023
The U.S. Department of Commerce (Commerce) preliminarily determines that countervailable subsidies were being provided to producers and exporters of certain softwood lumber prod...
Enforcement and Compliance, International Trade Administration, Department of Commerce.
SUMMARY:
The U.S. Department of Commerce (Commerce) preliminarily determines that countervailable subsidies were being provided to producers and exporters of certain softwood lumber products (softwood lumber) from Canada during the period of review (POR), January 1, 2023, through December 31, 2023. Commerce is also rescinding this review with respect to 46 companies. Interested parties are invited to comment on these preliminary results.
DATES:
Applicable April 9, 2025.
FOR FURTHER INFORMATION CONTACT:
Samuel Brummitt, Kristen Johnson, and T.J. Worthington, AD/CVD Operations, Office III, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-7851, (202) 482-4793, and (202) 482-4567, respectively.
SUPPLEMENTARY INFORMATION:
Background
On January 3, 2018, Commerce published the countervailing duty (CVD) order on softwood lumber from Canada in the
Federal Register
.[1]
Several interested parties requested that Commerce conduct an administrative review of the
Order
and, on March 5, 2024, Commerce published in the
Federal Register
a notice of initiation of the fifth administrative review.[2]
On April 19, 2024, Commerce selected Canfor Corporation (Canfor) and West Fraser Mills Ltd. (West Fraser) as the mandatory respondents in the administrative review.[3]
( printed page 15225)
On July 22, 2024, Commerce tolled certain deadlines in this administrative proceeding by seven days.[4]
On September 17, 2024, Commerce extended the deadline for the preliminary results of this administrative review from October 9, 2024,[5]
to February 6, 2025, in accordance with 19 CFR 351.213(h)(2).[6]
Additionally, on December 9, 2024, Commerce tolled the deadline to issue the preliminary results in this administrative review by 90 days.[7]
Accordingly, the deadline for these preliminary results is now May 7, 2025.
For a complete description of the events that followed the initiation of this review,
see
the Preliminary Decision Memorandum.[8]
A list of topics discussed in the Preliminary Decision Memorandum is included in Appendix I to this notice. The Preliminary Decision Memorandum is a public document and is on file electronically via Enforcement and Compliance's Antidumping and Countervailing Duty Centralized Electronic Service System (ACCESS). ACCESS is available to registered users at
https://access.trade.gov.
In addition, a complete version of the Preliminary Decision Memorandum can be accessed directly at
https://access.trade.gov/public/FRNoticesListLayout.aspx.
Scope of the Order
The products covered by this order are certain softwood lumber products from Canada. For a complete description of the scope of the
Order, see
the Preliminary Decision Memorandum.
Rescission of Administrative Review, in Part
Pursuant to 19 CFR 351.213(d)(3), it is Commerce's practice to rescind an administrative review of a CVD order where it concludes that there were no reviewable entries of subject merchandise during the POR for an exporter or producer. Normally, upon completion of an administrative review, the suspended entries are liquidated at the CVD assessment rate for the review period.[9]
Therefore, for an administrative review to be conducted, there must be a reviewable, suspended entry that Commerce can instruct U.S. Customs and Border Protection (CBP) to liquidate at the calculated CVD assessment rate for the review period.[10]
Based on our analysis of CBP data and comments received from interested parties, we determine that 46 producers/exporters, for which a review had been requested, had no reviewable shipments, sales, or entries of subject merchandise during the POR. Accordingly, absent evidence of a shipment on the record, Commerce is rescinding the administrative review of the following companies, pursuant to 19 CFR 351.213(d)(3):
For further information,
see
“Partial Rescission of Administrative Review” in the Preliminary Decision Memorandum.
Methodology
Commerce is conducting this CVD administrative review in accordance with section 751(a)(1)(A) of the Tariff Act of 1930, as amended (the Act). For each of the subsidy programs found countervailable, Commerce preliminarily determines that there is a subsidy,
i.e.,
a financial contribution by an “authority” that confers a benefit to the recipient, and that the subsidy is specific.[11]
For a full description of the methodology underlying our preliminary conclusions,
see
the Preliminary Decision Memorandum.
Preliminary Rate for Non-Selected Companies Under Review
There are 245 companies for which a review was requested and not rescinded but were not selected as mandatory respondents. The statute and Commerce's regulations do not directly address the establishment of rates to be applied to companies not selected for individual examination where Commerce limits its examination in an administrative review pursuant to section 777A(e)(2) of the Act. However, Commerce normally determines the rates for non-selected companies in reviews in a manner that is consistent with section 705(c)(5) of the Act, which provides instructions for calculating the all-others rate in an investigation.
Section 705(c)(5)(A)(i) of the Act instructs Commerce, as a general rule, to calculate an all-others rate equal to the weighted average of the countervailable subsidy rates established for producers and/or exporters individually examined, excluding any zero,
de minimis,
or rates based entirely on facts available. In this review, Commerce calculated individual estimated countervailable subsidy rates for Canfor and West Fraser, the mandatory respondents, that are not zero,
de minimis,
or based entirely on facts available. Therefore, we calculated a subsidy rate for the non-selected companies by weight-averaging the preliminary subsidy rates calculated for Canfor and West Fraser using each company's publicly-ranged U.S. sales value for the subject merchandise during the POR. For further information on the calculation of the non-selected rate,
see
“Preliminary
Ad Valorem
Rate for Non-Selected Companies under Review” in the Preliminary Decision Memorandum. For a list of the non-
( printed page 15226)
selected companies,
see
Appendix II to this notice.
Preliminary Results of Review
For the period January 1, 2023, through December 31, 2023, we preliminarily determine the following estimated countervailable subsidy rates:
Companies
Subsidy rate
(percent
ad valorem)
Canfor Corporation and its cross-owned affiliates 12
11.87
West Fraser Mills Ltd. and its cross-owned affiliates 13
16.57
Non-Selected Companies
14.38
Disclosure
Commerce intends to disclose its calculations performed to interested parties for these preliminary results within five days of the date of any public announcement or, if there is no public announcement, within five days of the date of publication of this notice in accordance with 19 CFR 351.224(b).
Public Comment
Case briefs or other written comments may be submitted to the Assistant Secretary for Enforcement and Compliance. Pursuant to 19 CFR 351.309(c)(1)(ii), we have modified the deadline for interested parties to submit case briefs to Commerce to no later than 21 days after the date of the publication of this notice.[14]
Rebuttal briefs, limited to issues raised in the case briefs, may be filed not later than five days after the date for filing case briefs.[15]
Interested parties who submit case briefs or rebuttal briefs in this proceeding must submit: (1) a table of contents listing each issue; and (2) a table of authorities.[16]
As provided under 19 CFR 351.309(c)(2) and (d)(2), in prior proceedings we have encouraged interested parties to provide an executive summary of their brief that should be limited to five pages total, including footnotes. In this review, we instead request that interested parties provide at the beginning of their briefs a public, executive summary for each issue raised in their briefs.[17]
Further, we request that interested parties limit their executive summary of each issue to no more than 450 words, not including citations. We intend to use the executive summaries as the basis of the comment summaries included in the issues and decision memorandum that will accompany the final results in this administrative review. We request that interested parties include footnotes for relevant citations in the executive summary of each issue. Note that Commerce has amended certain of its requirements pertaining to the service of documents in 19 CFR 351.303(f).[18]
Pursuant to 19 CFR 351.310(c)(2), interested parties who wish to request a hearing, limited to issues raised in the case and rebuttal briefs, must do so within 21 days of publication of these preliminary results by submitting a written request to the Assistant Secretary for Enforcement and Compliance using ACCESS.[19]
Requests should contain: (1) the party's name, address, and telephone number; (2) the number of participants and whether any participant is a foreign national; and (3) a list of the issues to be discussed. If a request for a hearing is made, Commerce will inform parties of the scheduled date for the hearing.[20]
Parties should confirm the date and time of the hearing two days before the scheduled date. Parties are reminded that all briefs and hearing requests must be filed electronically using ACCESS and received successfully, in their entirety, by 5:00 p.m. Eastern Time on the due date.
Assessment Rates
In accordance with 19 CFR 351.221(b)(4)(i), Commerce has preliminarily assigned the subsidy rates as indicated above. Pursuant to section 751(a)(2)(C) of the Act, upon issuance of the final results, Commerce shall determine, and CBP shall assess, countervailing duties on all appropriate entries covered by this review. 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). 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 statutory injunction has expired (
i.e.,
within 90 days of publication).
For the companies for which this review is rescinded, Commerce will instruct CBP to assess countervailing duties on all appropriate entries at a rate equal to the cash deposit of estimated countervailing duties required at the time of entry, or withdrawal from warehouse, for consumption, during the period January 1, 2023, through December 31, 2023, in accordance with 19 CFR 351.212(c)(1)(i). Commerce intends to issue rescission instructions to CBP no earlier than 41 days after the date of publication of the notice of rescission in the
Federal Register
.
Cash Deposit Requirements
Pursuant to section 751(a)(1) of the Act, Commerce intends, upon publication of the final results, to instruct CBP to collect cash deposits of estimated countervailing duties in the amounts indicated above for each of the respective companies listed above and in Appendix II with regard to shipments of subject merchandise entered, or withdrawn from warehouse, for consumption on or after the date of publication of the final results of this review. For all non-reviewed companies, we will instruct CBP to collect cash deposits of estimated countervailing duties at the most recent company-specific or all-others rate applicable to the company, as appropriate. These cash deposit requirements, when imposed, shall remain in effect until further notice.
Final Results of Review
Unless the deadline is extended, Commerce intends to issue the final results of this administrative review,
( printed page 15227)
including the results of its analysis of the issues raised by parties in their comments, within 120 days of publication of these preliminary results in the
Federal Register
, pursuant to section 751(a)(3)(A) of the Act.
Notification to Interested Parties
We are issuing and publishing these preliminary results in accordance with sections 751(a)(1) and 777(i)(1) of the Act, and 19 CFR 351.221(b)(4).
Dated: April 3, 2025.
Christopher Abbott,
Deputy Assistant Secretary for Policy and Negotiations, performing the non-exclusive functions and duties of the Assistant Secretary for Enforcement and Compliance.
Appendix I
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Period of Review
IV. Partial Rescission of Administrative Review
V. Scope of the
Order
VI. Subsidies Valuation
VII. Analysis of Programs
VIII. Preliminary
Ad Valorem
Rate for Non-Selected Companies Under Review
105. Hampton Tree Farms, LLC, dba Hampton Lumber Sales Canada
106. Hornepayne Lumber LP
107. Hudson Mitchell & Sons Lumber Inc.
108. Independent Building Materials Distribution Inc.
109. Interfor Corporation
110. Interfor Sales & Marketing Ltd.
111. Ivor Forest Products Ltd.
112. J&G Log Works Ltd.
113. J.D. Irving, Limited; Irving Paper Limited; Miramichi Timber Holdings Limited; Rothesay Paper Holdings Ltd.; St. George Pulp & Paper Limited; The New Brunswick Railway Company
114. J.H. Huscroft Ltd.
115. Jan Woodlands (2001) Inc.
116. Jasco Forest Products Ltd.
117. Jazz Forest Products Ltd.
118. Jhajj Lumber Corporation
119. Kalesnikoff Lumber Co. Ltd.
120. Kan Wood, Ltd.
121. Kebois Ltee/Ltd
122. Kelfor Industries Ltd.
123. Kermode Forest Products Ltd.
124. Keystone Timber Ltd.
125. Kings Wood Products Inc.
126. Kirkland Lake Forest Products Inc.
127. La Crete Sawmills Ltd.
128. Lafontaine Lumber Inc.
129. Langevin Forest Products Inc.
130. Lecours Lumber Co. Limited
131. Leisure Lumber Ltd.
132. Les Bardeaux Lajoie Inc.
133. Les Bois d'oeuvre Beaudoin Gauthier Inc.
134. Les Bois Martek Lumber
135. Les Chantiers de Chibougamau Ltd./Ltee
136. Les Industries P.F. Inc.
137. Les Produits Forestiers Sitka Inc. (aka Sitka Forest Products Inc.)
138. Leslie Forest Products Ltd.
139. Lignum Forest Products LLP
140. Linwood Homes Ltd.
141. Lonestar Lumber Inc.
142. Lulumco Inc.
143. Magnum Forest Products, Ltd.
144. Maibec Inc.
145. Mainland Sawmill, a division of Terminal Forest Products Ltd.
220. Tolko Industries Ltd.; Tolko Marketing and Sales Ltd.; Meadow Lake OSB Limited Partnership
221. Top Quality Lumber Ltd.
222. Trans-Pacific Trading Ltd.
223. Triad Forest Products Ltd.
224. Twin Rivers Paper Co. Inc.
225. Tyee Timber Products Ltd.
226. Universal Lumber Sales Ltd.
227. Usine Sartigan Inc.
228. Vaagen Fibre Canada, ULC
229. Vancouver Specialty Cedar Products Ltd.
230. Vancouver Urban Timberworks Ltd. (aka Van Urban)
231. Vanderhoof Specialty Wood Products Ltd.
232. Vanderwell Contractors (1971) Ltd.
233. Visscher Lumber Inc.
234. W.I. Woodtone Industries Inc.
235. West Bay Forest Products Ltd.
236. Western Forest Products Inc.
237. Western Lumber Sales Limited
238. Westminster Industries Ltd.
239. Weston Forest Products Inc.
240. Westrend Exteriors Inc.
241. Weyerhaeuser Co.
242. White River Forest Products L.P.
243. Woodline Forest Products Ltd.
244. Woodstock Forest Products
245. Woodtone Specialties Inc.
Footnotes
1.
See Certain Softwood Lumber Products from Canada: Amended Final Affirmative Countervailing Duty Determination and Countervailing Duty Order,83 FR 347 (January 3, 2018) (
Order).
2.
See Initiation of Antidumping and Countervailing Duty Administrative Reviews,89 FR 15827 (March 5, 2024) (
Initiation Notice);
see also Initiation of Antidumping and Countervailing Duty Administrative Reviews,89 FR 24780, 24797, 24802 (April 9, 2024), where Commerce corrected the
Initiation Notice
to remove Portbec Forest Products Ltd (aka Les Produits Forestiers Portbec Ltee) from the administrative review.
8.
See
Memorandum, “Decision Memorandum for the Preliminary Results of Administrative Review of the Countervailing Duty Order on Certain Softwood Lumber Products from Canada; 2023,” dated concurrently with, and hereby adopted by, this notice (Preliminary Decision Memorandum).
11.
See
sections 771(5)(B) and (D) of the Act regarding financial contribution; section 771(5)(E) of the Act regarding benefit; and section 771(5A) of the Act regarding specificity.
12.
Commerce finds the following companies to be cross-owned with Canfor Corporation: Canadian Forest Products, Ltd. and Canfor Wood Products Marketing, Ltd.
13.
Commerce finds the following companies to be cross-owned with West Fraser Mills Ltd.: Blue Ridge Lumber Inc., Manning Forest Products, Ltd., Spray Lake Sawmills (1980) Ltd., Sundre Forest Products Inc., West Fraser Alberta Holdings, Ltd., and West Fraser Timber Co., Ltd.
15.
See 19 CFR 351.309(d);
see also Administrative Protective Order, Service, and Other Procedures in Antidumping and Countervailing Duty Proceedings,88 FR 67069, 67077 (September 29, 2023) (
APO and Final Service Rule).
21.
In the
Initiation Notice,
Commerce inadvertently listed separately NorSask Forest Products Inc. and NorSask Forest Products Limited Partnership.
See Initiation Notice,
89 at 15838. In the final results of the 2022 administrative review, Commerce listed the companies together.
See Certain Softwood Lumber Products from Canada: Final Results of the Countervailing Duty Administrative Review; 2022,89 FR 67062, 67065 (August 19, 2024) (
Lumber V AR5 Final Results). To be consistent with the
Lumber V AR5 Final Results,
Commerce is listing the companies together in this notice.
22.
In the
Initiation Notice,
Commerce listed the following companies: Olympic Industries, Inc.; Olympic Industries Inc-Reman Code; Olympic Industries ULC; Olympic Industries ULC Reman; and Olympic Industries ULC-Reman Code.
See Initiation Notice,
89 at 15838. However, in the final results of the 2022 administrative review, we noted that, on March 21, 2023, Olympic Industries, Inc. and Olympic Industries ULC (collectively, Olympic) notified Commerce that Olympic Industries Inc-Reman Code, Olympic Industries ULC-Reman, and Olympic Industries ULC-Reman Code are no longer used by Olympic to export softwood lumber to the United States. We, thus, listed the company names as “Olympic Industries, Inc.; Olympic Industries ULC.” in the notice.
See Lumber V AR5 Final Results,
89 FR at 67065. Therefore, the companies subject to this review are Olympic Industries, Inc. and Olympic Industries ULC.