[Federal Register Volume 69, Number 241 (Thursday, December 16, 2004)]
[Notices]
[Pages 75305-75306]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E4-3683]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-122-839]


Notice of Implementation Under Section 129 of the Uruguay Round 
Agreements Act; Countervailing Measures Concerning Certain Softwood 
Lumber Products From Canada

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

EFFECTIVE DATE: December 10, 2004.

FOR FURTHER INFORMATION CONTACT: James Terpstra or Stephanie Moore, 
Import Administration, International Trade Administration, U.S. 
Department of Commerce, 14th Street and Constitution Avenue, NW., 
Washington, DC 20230; telephone: (202) 482-3965 or (202) 482-3692, 
respectively.

Background

    On February 17, 2004, the Dispute Settlement Body (DSB) of the 
World Trade Organization (WTO) adopted the reports of the panel and 
Appellate Body in United States--Final Countervailing Duty 
Determination with Respect to Softwood Lumber from Canada, WT/DS257 
(``Softwood Lumber''). The Appellate Body concluded that Commerce's 
Softwood Lumber determination was inconsistent with the WTO Agreement 
on Subsidies and Countervailing Measures because the Department of 
Commerce (the Department) failed to conduct an analysis of certain 
sales of subsidized Crown logs, which Canadian parties claimed were 
sold at arm's length, to determine if the subsidy benefit ``passes 
through'' to the purchasing sawmill. On March 5, 2004, the United 
States notified the DSB of its intention to implement the findings of 
the Appellate Body. The Government of Canada and the United States 
agreed that 10 months was a reasonable period of time for 
implementation.

[[Page 75306]]

    Pursuant to section 129(b)(2) of the Uruguay Round Agreements Act 
(URAA),\1\ on November 9, 2004, the U.S. Trade Representative requested 
the Department to issue a revised determination not inconsistent with 
the findings of the Appellate Body. On November 19, 2004, the 
Department issued a draft Section 129 Determination and provided an 
opportunity for the parties to comment. On December 6, 2004, the 
Department issued its final Section 129 Determination. See ``Issues and 
Decision Memorandum for the Section 129 Determination: Final 
Affirmative Countervailing Duty Determination, Certain Softwood Lumber 
from Canada'' from Barbara E. Tillman, Acting Deputy Assistant 
Secretary, Import Administration, to James J. Jochum, Assistant 
Secretary for Import Administration, signed December 6, 2004 (``Issues 
and Decision Memorandum'').
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    \1\ Section 129 of the URAA is the provision governing 
administrative action following WTO panel and Appellate Body 
reports.
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    Pursuant to section 129(b)(4) of the URAA, following consultations 
with the Department and congressional committees concerning the revised 
determination, on December 10, 2004, the U.S. Trade Representative 
directed the Department to implement the Section 129 Determination.

Implementation

    Accordingly, the Department is publishing this notice of its 
revised final affirmative countervailing duty determination with 
respect to Certain Softwood Lumber from Canada. Consistent with the 
recommendations and findings of the Appellate Body in Softwood Lumber, 
the revised final determination reflects the results of the 
Department's analysis of whether there were ``arm's-length'' 
transactions involving Crown timber in which some or all of the 
stumpage subsidy benefit did not ``pass through'' to the purchasing 
sawmills. Copies of the Issues and Decision Memorandum detailing our 
Section 129 determination are available online at http://ia.ita.doc.gov/ia-highlights-and-news.html as well as in the Central 
Records Unit in room B-099 of the main Department building.\2\
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    \2\ All issues raised in the comments submitted by the parties 
concerning this Section 129 Determination are addressed in the 
Issues and Decision Memorandum.
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    In accordance with section 129(c)(1)(B), we will instruct U.S. 
Customs and Border Protection to collect cash deposits of estimated 
countervailing duties of 18.62 percent ad valorem on all shipments of 
the subject merchandise entered, or withdrawn from warehouse, for 
consumption on or after December 10, 2004, i.e., the date on which the 
U.S. Trade Representative directed the Department to implement the 
Section 129 Determination. These instructions will remain in effect 
until further notice.
    This notice of implementation is issued and published in accordance 
with section 129(c)(2)(A) of the URAA.

    Dated: December 10, 2004.
James J. Jochum,
Assistant Secretary for Import Administration.
[FR Doc. E4-3683 Filed 12-15-04; 8:45 am]
BILLING CODE 3510-DS-P