[Federal Register Volume 68, Number 143 (Friday, July 25, 2003)]
[Notices]
[Pages 44048-44050]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-19023]



[[Page 44048]]

-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration

[A-122-838]


Certain Softwood Lumber Products from Canada: Notice of 
Preliminary Results of Antidumping Duty Changed Circumstances Review

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.

ACTION: Notice of preliminary results of antidumping duty changed 
circumstances review.

-----------------------------------------------------------------------

SUMMARY: On March 27, 2003, the Department of Commerce (the Department) 
published a notice of initiation of a changed circumstances review to 
determine whether entries naming Monterra Lumber Mills Limited 
(Monterra), a Canadian producer of softwood lumber products and an 
interested party in this proceeding, as manufacturer and exporter 
should receive the ``All Others'' cash deposit rate of 8.43 percent. 
See Initiation of Antidumping Duty Changed Circumstances Review: 
Certain Softwood Lumber Products From Canada, 68 FR 14947 (March 27, 
2003) (Initiation Notice). We have preliminarily determined that 
entries naming Monterra as manufacturer and exporter should receive the 
``All Others'' cash deposit rate of 8.43 percent.

EFFECTIVE DATE: July 25, 2003.

FOR FURTHER INFORMATION CONTACT: Keith Nickerson or Constance Handley, 
at (202) 482-3813 or (202) 482-0631, respectively; Import 
Administration, International Trade Administration, U.S. Department of 
Commerce, 14th Street and Constitution Avenue NW, Washington, DC 20230.

SUPPLEMENTARY INFORMATION:

Background

    As a result of the antidumping duty order issued following the 
completion of the less-than-fair-value investigation of certain 
softwood lumber products from Canada, imports of softwood lumber from 
Monterra, a subsidiary of respondent company Weyerhaeuser Company 
Limited (Weyerhaeuser), became subject to a cash deposit rate of 12.39 
percent (See Notice of Amended Final Determination of Sales at Less 
Than Fair Value and Antidumping Order: Certain Softwood Lumber Products 
from Canada, 67 FR 36068 (May 22, 2002)). On February 4, 2003, Monterra 
notified the Department that effective December 23, 2002, Weyerhaeuser 
sold its interest in Monterra to 1554545 Ontario, Inc. (1554545 
Ontario), a wholly owned subsidiary of Tercamm Corp., a privately owned 
Canadian investment company. As a result, Monterra requested that the 
Department conduct a changed circumstances review in order to conclude 
that, effective December 23, 2002, it be subject to the ``All Others'' 
cash deposit rate of 8.43 percent, rather than Weyerhaeuser's 12.39 
percent rate. On March 27, 2003, the Department published a notice of 
initiation of a changed circumstances review to determine whether 
entries naming Monterra as manufacturer and exporter should receive the 
``All Others'' cash deposit rate of 8.43 percent.
    On April 29, 2003, Monterra, at the request of the Department, 
submitted additional information and documentation regarding its sale 
by Weyerhaeuser to 1554545 Ontario. On May 8, 2003, the petitioner\1\ 
submitted comments on the information provided by Monterra and 
requested that the Department issue a supplemental questionnaire. On 
May 21, 2003, the Department issued a supplemental questionnaire 
requesting further details and documentation surrounding the sale and 
purchase, which was provided by Monterra in its subsequent submission 
of June 4, 2003. The petitioner did not comment on Monterra's June 4, 
2003, submission.
---------------------------------------------------------------------------

    \1\ The petitioner in this proceeding is the Coalition for Fair 
Lumber Imports Executive Committee.
---------------------------------------------------------------------------

Scope of the Order

    The products covered by this order are softwood lumber, flooring 
and siding (softwood lumber products). Softwood lumber products include 
all products classified under headings 4407.1000, 4409.1010, 4409.1090, 
and 4409.1020, respectively, of the Harmonized Tariff Schedule of the 
United States (HTSUS), and any softwood lumber, flooring and siding 
described below. These softwood lumber products include:
(1) coniferous wood, sawn or chipped lengthwise, sliced or peeled, 
whether or not planed, sanded or finger-jointed, of a thickness 
exceeding six millimeters;
(2) coniferous wood siding (including strips and friezes for parquet 
flooring, not assembled) continuously shaped (tongued, grooved, 
rabbeted, chamfered, v-jointed, beaded, molded, rounded or the like) 
along any of its edges or faces, whether or not planed, sanded or 
finger-jointed;
(3) other coniferous wood (including strips and friezes for parquet 
flooring, not assembled) continuously shaped (tongued, grooved, 
rabbeted, chamfered, v-jointed, beaded, molded, rounded or the like) 
along any of its edges or faces (other than wood moldings and wood 
dowel rods) whether or not planed, sanded or finger-jointed; and
(4) coniferous wood flooring (including strips and friezes for parquet 
flooring, not assembled) continuously shaped (tongued, grooved, 
rabbeted, chamfered, v-jointed, beaded, molded, rounded or the like) 
along any of its edges or faces, whether or not planed, sanded or 
finger-jointed.
    Although the HTSUS subheadings are provided for convenience and 
customs purposes, the written description of the merchandise under 
investigation is dispositive. Preliminary scope exclusions and 
clarifications were published in three separate federal register 
notices.
    Softwood lumber products excluded from the scope:
[sbull] trusses and truss kits, properly classified under HTSUS 4418.90
[sbull] I-joist beams
[sbull] assembled box spring frames
[sbull] pallets and pallet kits, properly classified under HTSUS 
4415.20
[sbull] garage doors
[sbull] edge-glued wood, properly classified under HTSUS item 
4421.90.98.40
[sbull] properly classified complete door frames.
[sbull] properly classified complete window frames
[sbull] properly classified furniture
    Softwood lumber products excluded from the scope only if they meet 
certain requirements:
[sbull] Stringers (pallet components used for runners): if they have at 
least two notches on the side, positioned at equal distance from the 
center, to properly accommodate forklift blades, properly classified 
under HTSUS 4421.90.98.40.
[sbull] 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 should be radius-cut at both 
ends. The kits should be individually packaged, they should 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.
[sbull] 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 substantial cuts so as to completely round one corner.

[[Page 44049]]

[sbull] Fence pickets requiring no further processing and properly 
classified under HTSUS 4421.90.70, 1'' or less in actual thickness, up 
to 8'' wide, 6' or less in length, and have finials or decorative 
cuttings that clearly identify them as fence pickets. In the case of 
dog-eared fence pickets, the corners of the boards should be cut off so 
as to remove pieces of wood in the shape of isosceles right angle 
triangles with sides measuring 3/4 inch or more.
[sbull] U.S. origin lumber shipped to Canada for minor processing and 
imported into the United States, is excluded from the scope of this 
order if the following conditions are met: 1) the processing occurring 
in Canada is limited to kiln-drying, planing to create smooth-to-size 
board, and sanding, and 2) if the importer establishes to U.S. Bureau 
of Customs and Border Protection's (BCBP) satisfaction that the lumber 
is of U.S. origin.\2\
---------------------------------------------------------------------------

    \2\ As clarified in the Memorandum from Dave Layton, Case 
Analyst, through Charles Riggle, Program Manager, and Gary Taverman, 
Office Director, to Bernard Carreau, Deputy Assistant Secretary, 
concerning the Certain Softwood Lumber from Canada Scope re: Final 
Scope Ruling in Response to Request by the Coalition for Fair Lumber 
Imports Executive Committee regarding U.S.-origin Lumber Undergoing 
Additional Processing, dated January 22, 2003.
---------------------------------------------------------------------------

[sbull] Softwood lumber products contained in single family home 
packages or kits,\3\ regardless of tariff classification, are excluded 
from the scope of the orders if the following criteria are met:
---------------------------------------------------------------------------

    \3\ To ensure administrability, we clarified the language of 
this exclusion to require an importer certification and to permit 
single or multiple entries on multiple days as well as instructing 
importers to retain and make available for inspection specific 
documentation in support of each entry.
---------------------------------------------------------------------------

1. The imported home package or kit constitutes a full package of the 
number of wooden pieces specified in the plan, design or blueprint 
necessary to produce a home of at least 700 square feet produced to a 
specified plan, design or blueprint;
2. The package or kit must contain all necessary internal and external 
doors and windows, nails, screws, glue, subfloor, sheathing, beams, 
posts, connectors and if included in purchase contract decking, trim, 
drywall and roof shingles specified in the plan, design or blueprint;
3. Prior to importation, the package or kit must be sold to a retailer 
of complete home packages or kits pursuant to a valid purchase contract 
referencing the particular home design plan or blueprint, and signed by 
a customer not affiliated with the importer;
4. The whole package must be imported under a single consolidated entry 
when permitted by the BCBP, whether or not on a single or multiple 
trucks, rail cars or other vehicles, which shall be on the same day 
except when the home is over 2,000 square feet;
5. The following documentation must be included with the entry 
documents:
[sbull] a copy of the appropriate home design, plan, or blueprint 
matching the entry;
[sbull] a purchase contract from a retailer of home kits or packages 
signed by a customer not affiliated with the importer;
[sbull] a listing of inventory of all parts of the package or kit being 
entered that conforms to the home design package being entered;
[sbull] in the case of multiple shipments on the same contract, all 
items listed immediately above which are included in the present 
shipment shall be identified as well.
    We have determined that the excluded products listed above are 
outside the scope of this order provided the specified conditions are 
met. Lumber products that the BCBP may classify as stringers, radius 
cut box-spring-frame components, and fence pickets, not conforming to 
the above requirements, as well as truss components, pallet components, 
and door and window frame parts, are covered under the scope of this 
order and may be classified under HTSUS subheadings 4418.90.40.90, 
4421.90.70.40, and 4421.90.98.40. Due to changes in the 2002 HTSUS 
whereby subheading 4418.90.40.90 and 4421.90.98.40 were changed to 
4418.90.45.90 and 4421.90.97.40, respectively, we are adding these 
subheadings as well.

Preliminary Results of Changed Circumstances Review

    Pursuant to section 751(b)(1) of the Tariff Act of 1930, as amended 
(the Act), the Department will conduct a changed circumstances review 
upon receipt of information concerning, or a request from an interested 
party of, an antidumping duty order which shows changed circumstances 
sufficient to warrant a review of the order. Monterra contends that, 
because it is no longer owned by Weyerhaeuser, it should be subject to 
the ``All Others'' cash deposit rate. In accordance with 19 CFR 351.216 
(c), due to the change in ownership, the Department found good cause to 
initiate a changed circumstances review despite the final determination 
being in existence for fewer than 24 months. Therefore, we initiated a 
changed circumstances administrative review pursuant to section 
751(b)(1) of the Act and 19 CFR 351.216(c) to determine whether entries 
naming Monterra as manufacturer and exporter should receive the ``All 
Others'' cash deposit rate of 8.43 percent.
    In reviewing the information provided by Monterra, the Department 
has preliminarily found that Monterra, as a result of the sale by 
Weyerhaeuser and purchase by 1554545 Ontario on December 23, 2002, is 
no longer owned by or in any way affiliated with Weyerhauser and, as a 
result, should not be subject to Weyerhaeuser's cash deposit rate of 
12.39 percent. In addition, we note that during the antidumping duty 
investigation of certain softwood lumber from Canada, the Department 
granted an exemption to Weyerhaeuser allowing it to exclude reporting 
the U.S. sales by Monterra since these sales represented such a small 
amount of Weyerhaeuser's total U.S. sales.\4\ As a result, Monterra's 
sales had no effect on the calculation of Weyerhaeuser's cash deposit 
rate of 12.39 percent. Therefore, for the above-stated reasons, we have 
preliminarily determined that entries naming Monterra as manufacturer 
and exporter should receive the ``All Others'' cash deposit rate of 
8.43 percent.
---------------------------------------------------------------------------

    \4\ See Memorandum from Constance Handley, Senior Import 
Compliance Specialist, to Gary Taverman, Office Director, concerning 
the Antidumping Duty Investigation of Certain Softwood Lumber from 
Canada, dated July 16, 2001.
---------------------------------------------------------------------------

    We are denying Monterra's request to have the cash deposit rate of 
8.43 percent made effective as of December 23, 2002. Because cash 
deposits are only estimates of the amount of antidumping duties that 
will be due, changes in cash deposit rates are not made retroactively. 
See Certain Hot-Rolled Lead and Bismuth Carbon Steel Products From the 
United Kingdom: Final Results of Changed-Circumstances Antidumping and 
Countervailing Duty Administrative Reviews, 64 FR 66880 (November 30, 
1999). However, on May 30, 2003, Monterra requested, during the 
anniversary month of the publication of the order, an administrative 
review of those entries to determine the proper assessment rate and 
receive a refund of any excess deposits. Accordingly, on July 1, 2003, 
the Department published a notice of initiation of an administrative 
review of the antidumping duty order on certain softwood lumber 
products from Canada for 421 companies, including Monterra. (See 
Initiation of Antidumping Duty Administrative Review, 68 FR 39059 (July 
1, 2003).)

Public Comment

    Any interested party may request a hearing within 30 days of 
publication of this notice. See 19 CFR 351.310(c). Any hearing, if 
requested, will be held 45

[[Page 44050]]

days after the date of publication of this notice, or the first working 
day thereafter. Interested parties may submit case briefs and/or 
written comments not later than 30 days after the date of publication 
of this notice. Rebuttal briefs, which must be limited to issues raised 
in such briefs or comments, may be filed not later than 37 days after 
the date of publication of this notice. Parties who submit arguments 
are requested to submit with the argument (1) a statement of the issue, 
(2) a brief summary of the argument, and (3) a table of authorities.
    Due to the fact that the petitioner has not agreed to the outcome 
of this proceeding, the Department will conduct this review in 
accordance with section 351.216(e) of its regulations. Thus, consistent 
with section 351.216(e) of the Department's regulations, we will issue 
the final results of this changed circumstances review no later than 
270 days after the date on which this review was initiated.
    This notice is in accordance with sections 751(b)(1) and 777(I)(1) 
of the Act and 19 CFR 351.216, 351.221(b), and 351.222(g)(3)(I).

    Dated: July 21, 2003.
Joseph A. Spetrini,
Acting Assistant Secretary.
[FR Doc. 03-19023 Filed 7-24-03; 8:45 am]
BILLING CODE 3510-DS-S