[Federal Register Volume 70, Number 60 (Wednesday, March 30, 2005)]
[Notices]
[Pages 16219-16220]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-1402]


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

DEPARTMENT OF COMMERCE

International Trade Administration

[A-122-838]


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

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: On September 2, 2004, the Department of Commerce published a 
notice of initiation of changed circumstances review of the antidumping 
duty order on certain softwood lumber products from Canada. The review 
was initiated to determine the appropriate cash deposit rate for 
Produits Forestiers Saguenay Inc., a previously inactive holding 
company which began producing softwood lumber and exporting it to the 
United States as of June 1, 2004, and is currently owned by Abitibi 
Consolidated Company of Canada. We have preliminarily concluded that 
Produits Forestiers Saguenay Inc. should be assigned the same cash 
deposit rate as the Abitibi Group.

DATES: Effective Dates: March 30, 2005.

FOR FURTHER INFORMATION CONTACT: Constance Handley or Saliha Loucif, 
AD/CVD Enforcement, Office 1, Import Administration, International 
Trade Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW., Washington, DC 20230; telephone: (202) 482-
0631 or (202) 482-1779, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On July 29, 2004, in accordance with section 751(b)(1) of the Act 
and 19 CFR 351.216(b) (2004), the Abitibi Group and Produits Forestiers 
Saguenay (PFS), both Canadian producers of softwood lumber products and 
interested parties in this proceeding, filed a request for a changed 
circumstances review. The Abitibi Group is composed of Abitibi-
Consolidated Inc. (ACI), Abitibi Consolidated Company of Canada (ACCC), 
Produits Forestiers Petit Paris Inc. (PFPP), and Societe en Commandite 
Scierie Opitciwan (Opitciwan).
    In response to this request, the Department of Commerce (the 
Department) initiated a changed circumstances review of the antidumping 
duty order on certain softwood lumber from Canada. See Initiation of 
Antidumping Duty Changed Circumstances Review: Certain Softwood 
Products from Canada, 69 FR 53681 (September 2, 2004) (Initiation 
Notice). On October 18, 2004, the Department issued to the Abitibi 
Group a questionnaire requesting further details on PFS' affiliation 
with the Abitibi Group. The Abitibi Group's response was received by 
the Department on November 18, 2004. The petitioner, the Coalition of 
Fair Lumber Imports Executive Commission, did not file comments with 
respect to the request.

Scope of the Order

    For purposes of the order, the products covered are certain 
softwood lumber products from Canada. For a complete description of the 
scope of the order, see Initiation Notice.

Preliminary Results of the Review

    In submissions to the Department dated July 29, 2004, and November 
18,

[[Page 16220]]

2004, the Abitibi Group contends that PFS should be subject to the 
Abitibi Group cash deposit rate, because it is controlled by ACCC, 
which owns the majority 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.
    On June 1, 2004, ACCC entered into a three-way agreement with 
Cooperative Forestiere Laterriere (CFL) and Les Placements H.N.M.A. 
Inc. (HNMA), its existing partner in Scierie Saguenay Ltee (SSL), to 
form PFS. ACCC is the main shareholder in PFS. PFS owns and operates 
four sawmills located in the Saguenay region of Quebec, of which two 
\1\ were previously wholly-owned by ACCC and consequently shared the 
Abitibi Group's rate, one \2\ was 50 percent owned by the ACCC and 50 
percent by HNMA, and one \3\ was owned by CFL.
---------------------------------------------------------------------------

    \1\ On May 31, 2004, PFS purchased St. Fulgence and Petit 
Saguenay sawmills from ACCC, via an asset purchase agreement.
    \2\ Scierie Saguenay Ltee.
    \3\ On May 17, 2004, through an asset purchase agreement, PFS 
purchased the Laterriere sawmill and related assets from Cooperative 
Forestiere Laterriere (CFL), which had been insolvent.
---------------------------------------------------------------------------

    In antidumping duty changed circumstances reviews involving a 
change in ownership, the Department typically examines several factors 
including, but not limited to, changes in: (1) Management; (2) 
production facilities; (3) customer base; and (4) supplier 
relationships. See Brass Sheet and Strip from Canada: Notice of Final 
Results of Antidumping Administrative Review, 57 FR 20460, 20462 (May 
13, 1992).
    While we recognize that this is not a typical successor-in-interest 
situation, since the Abitibi Group has not ceased to exist or been 
substantially changed, we believe that the factors analyzed as part of 
a successor-in-interest finding are relevant to our determination of 
the proper cash deposit rate for Abitibi's new affiliate, PFS.
    Based on our review of the questionnaire response, we preliminarily 
find that PFS functions as part of the Abitibi Group. Indeed, as a 
result of the agreement that formed PFS, significant components of the 
Abitibi Group's management, production facilities, supplier 
relationships, and customer base have been incorporated into PFS. PFS's 
Board of Directors is predominantly composed of directors appointed by 
the Abitibi Group (three appointed by ACCC, one appointed by CFL, and 
one appointed by HNMA). The Abitibi Group appointed board members also 
serve as President, Secretary and Treasurer of PFS. Furthermore, PFS 
employs former ACCC employees of St. Fulgence and Petit Saguenay 
sawmills who continue working from the same Abitibi Group facilities.
    With regard to production facilities, as noted above, two of the 
mills as well as 50 percent of the SSL mill already belonged to the 
Abitibi Group. Production from the Abitibi mills, which accounts for 
the bulk of PFS's production, was included in determining the Abitibi 
Group's current cash deposit rate.
    In terms of customer base, PFS's price setting, channel of 
distributions and sales functions have been assigned to ACI, the sales 
arm of the Abitibi Group. ACI sells the majority of the softwood lumber 
produced by all four of PFS's sawmills, including all sales of PFS 
softwood lumber to the United States. Therefore, PFS's customer base is 
largely that of ACI. Finally, no information on the record indicates 
any substantial change in supplier relationships of the mills, whose 
production as stated earlier, is largely from mills already owned by 
the Abitibi Group.
    When PFS purchased two sawmills previously owned by the Abitibi 
Group, it began to function as a member of the Abitibi Group. PFS's 
ownership, management, production facilities, supplier relationships, 
customer base, sales practices and facilities combine important 
elements of the Abitibi Group. Therefore, we preliminarily find PFS to 
be a member of the Abitibi Group and entitled to the Abitibi Group cash 
deposit rate.
    If the above preliminary results are affirmed in the Department's 
final results, the cash deposit rate from this changed circumstances 
review will apply to all entries of the subject merchandise entered, or 
withdrawn from warehouse, for consumption on or after the date of 
publication of the final results of this changed circumstances review. 
See Granular Polytetrafluoroethylene Resin from Italy; Final Results of 
Antidumping Duty Changed Circumstances Review, 68 FR 25327 (May 12, 
2003). This deposit rate shall remain in effect until publication of 
the final results of the next administrative review in which Abitibi 
Group participates.

Public Comment

    Any interested party may request a hearing within 20 days of 
publication of this notice. 19 CFR 351.310(c). Any hearing, if 
requested, will be held 34 days after the date of publication of this 
notice, or the first working day thereafter. Interested parties may 
submit case briefs not later than 20 days after the date of publication 
of this notice. 19 CFR 351.309(c)(ii). Rebuttal briefs, which must be 
limited to issues raised in such briefs, must be filed not later than 
37 days after the date of publication of this notice. See 19 CFR 
351.309(d). 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. We will issue the final 
results of this changed circumstances review no later than May 23, 
2005.
    This notice is in accordance with sections 751(b) and 777(i)(1) of 
the Act, and section 351.221(c)(3)(i) of the Department's regulations.

    Dated: March 24, 2005.
Joseph A. Spetrini,
Acting Assistant Secretary for Import Administration.
[FR Doc. E5-1402 Filed 3-29-05; 8:45 am]
BILLING CODE 3510-DS-P