[Federal Register Volume 69, Number 170 (Thursday, September 2, 2004)]
[Notices]
[Pages 53681-53682]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E4-2042]


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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: September 2, 2004.

ACTION:  Notice of initiation of changed circumstances review.

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SUMMARY:  In accordance with 19 CFR 351.216(b) (2002), Abitibi-
Consolidated Inc. (ACI), Abitibi Consolidated Company of Canada (ACCC), 
Produits Forestiers Petit Paris Inc. (PFPP), Societe en Commandite 
Scierie Opitciwan (Opiticwan) (collectively, the Abitibi Group) and 
Produits Forestiers Saguenay Inc. (PFS), Canadian producers of softwood 
lumber products and interested parties in this proceeding, 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 duty order on certain softwood lumber from Canada.

FOR FURTHER INFORMATION CONTACT: Constance Handley or Saliha Loucif, at 
(202) 482-0631 or (202) 482-1779, 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 
the Abitibi Group became subject to a cash deposit rate of 12.44 
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 July 29, 2004, the Abitibi 
Group notified the Department that effective June 1, 2004, PFS, a 
previously inactive holding company owned by ACCC, began producing 
softwood lumber and exporting it to the United States. As a result, the 
Abitibi Group is requesting that PFS be subject to the Abitibi Group's 
cash deposit rate of 12.44 percent.

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:
     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

[[Page 53682]]

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,\1\ regardless of tariff classification, are excluded 
from the scope of the orders if the following criteria are met:
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    \1\ 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 antidumping and 
countervailing duty orders, 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 scope.\2\ 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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    \2\ 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 of, an antidumping duty order which shows changed circumstances 
sufficient to warrant a review of the order. The Abitibi Group contends 
that PFS, because it is controlled by ACCC, which owns 50 percent or 
more of PFS' shares, and because it has production facilities similar 
or identical to other members of the Abitibi Group as well as 
intertwined sales processes, should be subject to the Abitibi Group 
cash deposit rate. Based on these circumstances and in accordance with 
19 CFR 351.216(b), the Department finds good cause to initiate a 
changed circumstances review. Therefore, we are initiating a changed 
circumstances administrative review pursuant to section 751(b)(1) of 
the Act and 19 CFR 351.216(b) to determine whether entries naming PFS 
as manufacturer and exporter should receive the Abitibi Group cash 
deposit rate of 12.44 percent.
    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. 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: August 26, 2004.
James J. Jochum,
Assistant Secretary for Import Administration.
 [FR Doc. E4-2042 Filed 9-1-04; 8:45 am]
BILLING CODE 3510-DS-P