[Federal Register Volume 70, Number 124 (Wednesday, June 29, 2005)]
[Notices]
[Pages 37327-37330]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-3394]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-122-838]


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

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: Western Forest Products Inc. (WFP) has requested a changed 
circumstances review of the antidumping duty order on certain

[[Page 37328]]

softwood lumber products from Canada pursuant to section 751(b)(1) of 
the Tariff Act of 1930, as amended (the Act) and 19 CFR 351.216(b). The 
Department of Commerce (the Department) is initiating this changed 
circumstances review and issuing this notice of preliminary results 
pursuant to 19 CFR 351.221(c)(3)(ii). We have preliminarily determined 
that WFP and its subsidiaries, WFP Products Limited, WFP Western Lumber 
Ltd., and WFP Lumber Sales Limited (collectively, ``the WFP 
Entities''), are the successor-in-interest to Doman Industries Limited, 
Doman Forest Products Limited, and Doman Western Lumber Ltd. 
(collectively, ``the Doman Entities'').

EFFECTIVE DATE: June 29, 2005.

FOR FURTHER INFORMATION CONTACT: Constance Handley or David Neubacher, 
AD/CVD Operations, 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) 482-5823, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On January 24, 2005, the Department issued the amended final 
results of the antidumping duty administrative review on certain 
softwood lumber products from Canada. See Notice of Amended Final 
Results Antidumping Duty Administrative Review: Certain Softwood Lumber 
Products From Canada, 70 FR 3358 (January 24, 2005). On May 27, 2005, 
WFP requested that the Department initiate and conduct an expedited 
changed circumstances review, in accordance with section 351.216 of the 
Department's regulations, to confirm that WFP and its subsidiaries are 
the successor-in-interest to the Doman Entities. In its request, WFP 
stated that the Doman Entities reorganized and transferred all of their 
assets to a new operating group known as WFP on July 27, 2004, and 
provided supporting documentation.

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 smooth-to-size 
board, and sanding, and 2) the importer establishes to U.S. Customs and 
Border Protection's (CBP) satisfaction that the lumber is of U.S. 
origin.\1\
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    \1\ For further clarification pertaining to this exclusion, see 
the additional language concluding the scope description below.
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     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

[[Page 37329]]

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.\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 and Preliminary Results

    Pursuant to section 751(b)(1) of 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. As indicated in the Background section, 
we have received information indicating that the Doman Entities 
transferred all of their assets to a new operating group of companies 
known as WFP. This constitutes changed circumstances warranting a 
review of the order. Therefore, in accordance with section 751(b)(1) of 
the Act, we are initiating a changed circumstances review based upon 
the information contained in WFP's submission.
    Section 351.221(c)(3)(ii) of the regulations permits the Department 
to combine the notice of initiation of a changed circumstances review 
and the notice of preliminary results if the Department concludes that 
expedited action is warranted. In this instance, because we have on the 
record the information necessary to make a preliminary finding, we find 
that expedited action is warranted and have combined the notice of 
initiation and the notice of preliminary results.
    In making successor-in-interest determinations, the Department 
examines several factors including, but not limited to, changes in: (1) 
management; (2) production facilities; (3) supplier relationships; and 
(4) customer base. See, e.g., Polychloroprene Rubber from Japan: Final 
Results of Changed Circumstances Review, 67 FR 58 (January 2, 2002) 
citing, Brass Sheet and Strip from Canada: Notice of Final Results of 
Antidumping Duty Administrative Review, 57 FR 20460 (May 13, 1992). 
While no single factor, or combination of factors, will necessarily 
prove dispositive, the Department will generally consider the new 
company to be the successor to its predecessor company if the resulting 
operations are essentially the same as the predecessor company. Id. 
citing, Industrial Phosphoric Acid from Israel; Final Results of 
Antidumping Duty Changed Circumstances Review, 59 FR 6944, 6945 
(February 14, 1994). Thus, if the evidence demonstrates that, with 
respect to the production and sale of the subject merchandise, the new 
company operates as the same business entity as its predecessor, the 
Department will assign the new company the cash-deposit rate of its 
predecessor.
    In its May 27, 2005, submission, WFP states that the Doman Entities 
reorganized and transferred all of their assets to the WFP Entities, 
and that WFP and its subsidiaries are the identical companies to the 
Doman Entities. As such, WFP states that the companies' management, 
production facilities and customer/supplier relationships have not 
changed. To support its claims, WFP submitted numerous documents, 
including: (1) the Doman Entities' Plan of Compromise and Arrangement; 
(2) the Doman Entities' Asset Transfer Agreement; (3) copies of 
Certificate of Amendment documents amending the names of the Doman 
Entities to WFP Entities; (4) copies of share certificates showing 
Doman Entities shares transferred to WFP; (5) corporate structure chart 
of Doman before the pre-plan implementation and current structure chart 
of WFP; (6) WFP's overview presentation on its current business 
structure and operations given at the 2005 CIBC World Markets 
Conference and; (7) customer lists for the pre- and post-plan 
implementation period.
    Based on the information submitted by WFP, we preliminarily find 
that WFP and its subsidiaries are the successor-in-interest to the 
Doman Entities. Based on the evidence reviewed, we find that WFP and 
its subsidiaries operate as the same business entities as the Doman 
Entities and that the companies' senior management, production 
facilities, supplier relationships, and customers have not changed. 
Thus, we preliminarily find that WFP and its subsidiaries should 
receive the same antidumping duty cash-deposit rate (i.e., 3.78 
percent) with respect to the subject merchandise as the Doman Entities, 
its predecessor companies.

[[Page 37330]]

    However, because cash deposits are only estimates of the amount of 
antidumping duties that will be due, changes in cash deposit rates are 
not made retroactive. If WFP believes that the deposits paid exceed the 
actual amount of dumping, it is entitled to request an administrative 
review during the anniversary month of the publication of the order of 
those entries to determine the proper assessment rate and receive a 
refund of any excess deposits. 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). As a result, 
if these preliminary results are adopted in our final results of this 
changed circumstances review, we will instruct CBP to suspend shipments 
of subject merchandise made by the WFP Entities at the Doman Entities' 
cash deposit rate (i.e., 3.78 percent). Until that time, the cash 
deposit rate assigned to WFP's entries is the rate in effect at the 
time of entry (i.e., the ``all others'' rate).

Public Comment

    Any interested party may request a hearing within 30 days of 
publication of this notice. See 19 CFR 351.310(c). A hearing, if 
requested, will be held 44 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 and rebuttals 
to written comments, 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.
    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, 
or within 45 days if all parties agree to our preliminary finding. We 
are issuing and publishing this finding and notice in accordance with 
sections 751(b)(1) and 777(i)(1) of the Act and section 351.216 of the 
Department's regulations.

    Dated: June 23, 2005.
Joseph A. Spetrini,
Acting Assistant Secretary for Import Administration.
[FR Doc. E5-3394 Filed 6-28-05; 8:45 am]
BILLING CODE 3510-DS-S