[Federal Register Volume 71, Number 17 (Thursday, January 26, 2006)]
[Notices]
[Pages 4350-4352]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-988]


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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: January 26, 2006.
SUMMARY: In accordance with 19 CFR 351.216(b), Weyerhaeuser Company 
Limited and Weyerhaeuser Saskatchewan Limited (collectively, 
Weyerhaeuser), Canadian producers of softwood lumber products, 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: Salim Bhabhrawala or Constance Handley 
at (202) 482-1784 or (202) 482-0631, respectively; Office 1, AD/CVD 
Operations, 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 second administrative review of the antidumping 
duty order, imports of softwood lumber from Weyerhaeuser became subject 
to a cash deposit rate of 4.43 percent (see Notice of Final Results of 
Antidumping Duty Administrative Review: Certain Softwood Lumber 
Products from Canada, 70 FR 73437 (December 12, 2005)). On December 5, 
2005, Weyerhaeuser notified the Department that on May 30, 2005, 
Weyerhaeuser sold its entire former B.C. Coastal (BCC) business unit. 
As a result, Weyerhaeuser is requesting that the Department amend its 
cash deposit rate to reflect this change.

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 
U.S. Customs and Border Patrol (CBP) 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

[[Page 4351]]

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 CBP's 
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 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 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. Weyerhaeuser contends 
that, because it underwent fundamental structural changes as a result 
of the sale of BCC, the Department should modify Weyerhaeuser's cash 
deposit rate to reflect the company's new structure. 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 review pursuant to section 
751(b)(1) of the Act and 19 CFR 351.216(b) to determine whether 
Weyerhaeuser should be assigned a different cash deposit rate.

[[Page 4352]]

    The Department will publish in the Federal Register a notice of 
preliminary results of changed circumstances 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 and 
19 CFR 351.221(b)(1).

    Dated: January 19, 2006.
David M. Spooner,
Assistant Secretary for Import Administration.
[FR Doc. E6-988 Filed 1-25-06; 8:45 am]
BILLING CODE 3510-DS-S