[Federal Register Volume 69, Number 91 (Tuesday, May 11, 2004)]
[Notices]
[Pages 26072-26074]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E4-1073]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-122-838]


Initiation of Antidumping Duty Changed Circumstances Review: 
Certain Softwood Lumber Products From Canada

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

EFFECTIVE DATE: May 11, 2004.

ACTION: Notice of initiation of changed circumstances review.

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SUMMARY: In accordance with 19 CFR 351.216(b) (2003), the Coalition for 
Fair Lumber Imports Executive Committee, the petitioner in this case, 
filed a request for a changed circumstances review of the antidumping 
duty order on certain softwood lumber products from Canada, as 
described below. In response to this request, the Department of 
Commerce (the Department) is initiating a changed circumstances review 
of the antidumping order on certain softwood lumber from Canada.

FOR FURTHER INFORMATION CONTACT: Amber Musser or Constance Handley, at 
(202) 482-1777 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: 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 Canfor Corporation (Canfor) and Slocan Forest 
Products (Slocan), which were both respondents, received company-
specific cash-deposit rates (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)). Both 
companies are participating as separate companies in the ongoing first 
administrative review of this order, which covers the period May 22, 
2002, through April 30, 2003. The petitioner has provided the 
Department of Commerce (the Department) with information indicating 
that as of April 1, 2004, Canfor and Slocan completed the merger of 
their lumber operations.\1\ As a result, the petitioner is requesting 
that the Department initiate a changed circumstances review to 
establish a new cash-deposit rate for the merged entity. Id.
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    \1\ See letter from the petitioner to the Department, dated 
April 22, 2004.
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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

[[Page 26073]]

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:
     Trusses and truss kits, properly classified under HTSUS 
4418.90.
     I-joist beams.
     Assembled box spring frames.
     Pallets and pallet kits, properly classified under HTSUS 
4415.20.
     Garage doors.
     Edge-glued wood, properly classified under HTSUS 
4421.90.97.40 (formerly HTSUS 4421.90.98.40).
     Properly classified complete door frames.
     Properly classified complete window frames.
     Properly classified furniture.
    Softwood lumber products excluded from the scope only if they meet 
certain requirements:
     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 4421.90.97.40 (formerly HTSUS 4421.90.98.40).
     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.
     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. $ 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.
     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. Customs 
and Border Protection's (CBP) satisfaction that the lumber is of U.S. 
origin.
     Softwood lumber products contained in single family home 
packages or kits,\2\ regardless of tariff classification, are excluded 
from the scope of the orders if the following criteria are met:
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    \2\ 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.
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    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 CBP, 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:
     A copy of the appropriate home design, plan, or blueprint 
matching the entry;
     A purchase contract from a retailer of home kits or 
packages signed by a customer not affiliated with the importer;
     A listing of inventory of all parts of the package or kit 
being entered that conforms to the home design package being entered;
     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 CBP 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.
    In addition, this scope language has been further clarified to now 
specify that all softwood lumber products entered from Canada claiming 
non-subject status based on U.S. country of origin will be treated as 
non-subject U.S.-origin merchandise under the countervailing duty 
order, provided that these softwood lumber products meet the following 
condition: upon entry, the importer, exporter, Canadian processor and/
or original U.S. producer establish to CBP's satisfaction that the 
softwood lumber entered and documented as U.S.-origin softwood lumber 
was first produced in the United States as a lumber product satisfying 
the physical parameters of the softwood lumber

[[Page 26074]]

scope.\3\ The presumption of non-subject status can, however, be 
rebutted by evidence demonstrating that the merchandise was 
substantially transformed in Canada.
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    \3\ See the scope clarification message (3034202), dated 
February 3, 2003, to CBP, regarding treatment of U.S.-origin lumber 
on file in the Central Records Unit, Room B-099 of the main Commerce 
Building.
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Initiation 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 for a review of, an antidumping duty order which shows changed 
circumstances sufficient to warrant a review of the order. The 
petitioner contends that, now that Slocan and Canfor are no longer 
separate companies, they should have a combined cash-deposit rate. In 
accordance with 19 CFR 351.216(d), the Department finds there is 
sufficient information to warrant initiating a changed circumstances 
review. Therefore, pursuant to section 751(b)(1) of the Act and 19 CFR 
351.216(d), we are initiating a changed circumstances administrative 
review to determine the facts surrounding the merger and what cash-
deposit rate should be applied to entries produced and exported by the 
merged entity.
    The Department will publish in the Federal Register a notice of 
preliminary results of changed circumstances antidumping duty 
administrative review in accordance with 19 CFR 351.221(b)(4) and 
351.221(c)(3)(i), which will set forth the Department's preliminary 
factual and legal conclusions. Pursuant to 19 CFR 351.221(b)(4)(ii) 
interested parties will have an opportunity to comment on the 
preliminary results. The Department will issue its final results of 
review in accordance with the time limits set forth in 19 CFR 
351.216(e).
    This notice is in accordance with section 751(b)(1) of the Act.

     Dated: May 4, 2004.
James J. Jochum,
Assistant Secretary for Import Administration.
 [FR Doc. E4-1073 Filed 5-10-04; 8:45 am]
BILLING CODE 3510-DS-P