[Federal Register Volume 71, Number 68 (Monday, April 10, 2006)]
[Notices]
[Pages 18072-18074]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-5201]


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DEPARTMENT OF COMMERCE

International Trade Administration

A-122-838


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

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: In response to a request from Ivis Partners Ltd. (IVIS), the 
Department of Commerce is initiating a changed circumstances review of 
the antidumping duty order on certain softwood lumber products from 
Canada.

EFFECTIVE DATE: April 10, 2006.

FOR FURTHER INFORMATION CONTACT: Constance Handley or David Layton, 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-
0631or (202) 482-0371, respectively.

SUPPLEMENTARY INFORMATION:

Background:

    On May 22, 2002, the Department of Commerce (Department) issued the 
antidumping duty order on certain softwood lumber products from Canada. 
See Notice of Amended Final Determination of Sales at Less Than Fair 
Value and Antidumping Duty Order: Certain Softwood Lumber Products From 
Canada, 67 FR 36067 (May 22, 2002). On February 16, 2006, IVIS 
requested that the Department initiate a changed circumstances review, 
in accordance with section 351.216 of the Department's regulations, to 
confirm that IVIS is the successor-in-interest to Ivis Wood. In its 
request, IVIS stated that it purchased Ivis Wood, including equipment 
and inventory, 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 subheadings 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 mouldings 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 purposes, the written description of the merchandise 
subject to this order is dispositive.
    As specifically stated in the Issues and Decision Memorandum 
accompanying the Notice of Final Determination of Sales at Less Than 
Fair Value: Certain Softwood Lumber Products from Canada, 67 FR 15539 
(April 2, 2002) (see comment 53, item D and comment 57, item B-7) 
available at www.ia.ita.doc.gov/frn, drilled and notched lumber and 
angle cut lumber are covered by the scope of this order.
    The following softwood lumber products are excluded from the scope 
of this order provided they meet the specified requirements detailed 
below:
    (1) 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 4421.90.98.40.
    (2) 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.
    (3) 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.
    (4) 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.
    (5) 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) if the importer establishes to the 
satisfaction of U.S. Customs and Border Protection (CBP) that the 
lumber is of U.S. origin.
    (6) Softwood lumber products contained in single family home 
packages or kits\1\, regardless of tariff classification, are excluded 
from the scope of this order if the importer certifies to items 6 A, B, 
C, D, and requirement 6 E is met:
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    \1\ To ensure administrability, we clarified the language of 
exclusion number 6 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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    A. 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;
    B. The package or kit must contain all necessary internal and 
external doors and windows, nails, screws, glue, sub floor, sheathing, 
beams,

[[Page 18073]]

posts, connectors, and if included in the purchase contract, decking, 
trim, drywall and roof shingles specified in the plan, design or 
blueprint;
    C. 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;
    D. Softwood lumber products entered as part of a single family home 
package or kit, whether in a single entry or multiple entries on 
multiple days, will be used solely for the construction of the single 
family home specified by the home design matching the entry.
    E. For each entry, the following documentation must be retained by 
the importer and made available to CBP upon request:
    i. A copy of the appropriate home design, plan, or blueprint 
matching the entry;
    ii. A purchase contract from a retailer of home kits or packages 
signed by a customer not affiliated with the importer;
    iii. A listing of inventory of all parts of the package or kit 
being entered that conforms to the home design package being entered;
    iv. In the case of multiple shipments on the same contract, all 
items listed in E(iii) which are included in the present shipment shall 
be identified as well.
    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 4418.90.45.90, 4421.90.70.40, 
and 4421.90.97.40.
    Finally, as clarified throughout the course of the investigation, 
the following products, previously identified as Group A, remain 
outside the scope of this order. They are:
    1. Trusses and truss kits, properly classified under HTSUS 4418.90;
    2. I-joist beams;
    3. Assembled box spring frames;
    4. Pallets and pallet kits, properly classified under HTSUS 
4415.20;
    5. Garage doors;
    6. Edge-glued wood, properly classified under HTSUS 4421.90.98.40;
    7. Properly classified complete door frames;
    8. Properly classified complete window frames;
    9. Properly classified furniture.
    In addition, this scope language was further clarified to 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 Room B-099 of the Central Records Unit (CRU) of 
the Main Commerce Building.
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    On March 3, 2006 the Department issued a scope ruling that any 
product entering under HTSUS 4409.10.05 which is continually shaped 
along its end and/or side edges which otherwise conforms to the written 
definition of the scope is within the scope of the order.\3\
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    \3\ See memorandum from Constance Handley, Program Manager to 
Stephen J. Claeys, Deputy Assistant Secretary regarding: Scope 
Request by the Petitioner Regarding Entries Made Under HTSUS 
4409.10.05, dated March 3, 2006.
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Initiation

    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 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 
Ivis Wood has been sold to IVIS. 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 IVIS' request.
    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 
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 February 3, 2006, submission (received by the Department on 
February 16, 2006), Ivis states that it was incorporated in British 
Columbia on September 5, 2005, and that on September 30, 2005, it 
purchased Ivis Wood, including its equipment and inventory. According 
to IVIS, in light of the purchase, it is clear that IVIS is the 
successor-in-interest to Ivis Wood. To support its claims, IVIS 
submitted: (1) Copies of Certificate of Incorporation; (2) the Purchase 
and Sale Agreement between IVIS and Ivis Wood and; (3) a list of both 
companies' U.S. customers.
    IVIS has requested that the Department initiate an expedited review 
pursuant to section 751(b) of the Act and 19 CFR Sec.  
351.221(c)(3)(iii). However, because it is the Department's practice to 
examine changes in management, supplier relationships, and customers in 
the home market (as well as the U.S. market), as part of its analysis 
in such a determination, and IVIS has not addressed these factors, it 
is necessary to request further information from IVIS prior to issuing 
preliminary results. Therefore, we are unable to conduct the changed 
circumstances review on an expedited basis.
    After the initiation of the review, the Department will issue a 
questionnaire requesting additional factual information for the review 
in accordance with 19 CFR 351.221(b)(2). The Department will publish in 
the Federal Register a notice of preliminary results of changed 
circumstances review which will set forth the factual and legal 
conclusions upon which our

[[Page 18074]]

preliminary results are based, and a description of any action proposed 
based on those results in accordance with 19 CFR 351.221(b)(4) and 19 
CFR 351.221(c)(3)(i). Pursuant to 19 CFR 351.221(b)(4)(ii), interested 
parties will have an opportunity to comment on the preliminary results 
of the review. The Department will issue its final results of review 
within 270 days after the date on which the changed circumstances 
review is initiated, in accordance with 19 CFR 351.216(e), and will 
publish these results in the Federal Register.
    The current requirement for a cash deposit of estimated antidumping 
duties on all subject merchandise will continue unless and until it is 
modified pursuant to the final results of this changed circumstances 
review.
    This notice is in accordance with section 751(b)(1) of the Act and 
19 CFR 351.216 and 351.221 of the Department's regulations.

    Dated: April 3, 2006.
David M. Spooner,
Assistant Secretary for Import Administration.
[FR Doc. E6-5201 Filed 4-7-06; 8:45 am]
Billing Code: 3510-DS-S