[Federal Register Volume 71, Number 120 (Thursday, June 22, 2006)]
[Notices]
[Pages 35867-35869]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-9879]


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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 April 10, 2006, 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 to determine 
the correct deposit rate for Ivis Partners Ltd. (IVIS). We have 
preliminarily determined that IVIS is the successor-in-interest to Ivis 
Wood Products Ltd. (Ivis Wood) and should, therefore, receive Ivis 
Wood's cash deposit rate.

EFFECTIVE DATE: June 22, 2006.

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

SUPPLEMENTARY INFORMATION:

Background

    On February 16, 2006, in accordance with section 751(b)(1) of the 
Act and 19 CFR 351.216(b) (2004), IVIS, a Canadian producer of softwood 
lumber products and interested party in this proceeding, filed a 
request for a changed circumstances review. 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, 71 FR 
18072 (Arpil 10, 2006) (Initiation Notice). On April 4, 2006, the 
Department issued a questionnaire to IVIS requesting further details on 
its purchase of Ivis Woods. IVIS' response was received by the 
Department on April 13, 2006. On May 10, 2006, the Department issued an 
additional supplemental questionnaire to IVIS. IVIS' response was 
received on May 17, 2006. The petitioner, the Coalition of Fair Lumber 
Imports Executive Commission, did not file comments with respect to the 
request.

[[Page 35868]]

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, 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;

[[Page 35869]]

    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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Preliminary Results of the Review

    In an antidumping duty changed circumstances review involving a 
successor-in-interest determination, the Department typically examines 
several factors including, but not limited to, changes in: (1) 
Management; (2) production facilities; (3) supplier relationships; and 
(4) customer base. See Brass Sheet and Strip from Canada; Preliminary 
Results of Antidumping Duty Administrative Review, 57 FR 5128 (February 
12, 1992) (Canada Brass). Although no single factor or combination of 
factors will necessarily be dispositive, the Department generally will 
consider the new company to be the successor to the predecessor company 
if the resulting operations are essentially the same as those of the 
predecessor company. Thus, if the record evidence demonstrates that, 
with respect to the production and sale of the subject merchandise, the 
new company operates as the same business entity as the predecessor 
company, the Department may assign the new company the cash deposit 
rate of its predecessor. See, e.g., Fresh and Chilled Atlantic Salmon 
from Norway: Final Results of Changed Circumstances Antidumping Duty 
Administrative Review, 64 FR 9979-980 (March 1, 1999).
    In its review request of February 16, 2006, and in its April 13, 
2006\4\ questionnaire response, IVIS reported that on September 30, 
2005, IVIS was incorporated in the Province of British Columbia. On 
September 30, 2005, IVIS purchased the Ivis Wood business, including 
equipment and inventory. As a result of the purchase, all lumber-
related assets held by Ivis Wood were transferred to IVIS. The purchase 
and sale agreement between Ivis Wood and IVIS indicates that the 
business was sold as a going concern. The Board of Directors of Ivis 
Wood was made up of its owners. Therefore, after the sale, IVIS 
installed a completely new Board of Directors, and senior management 
positions were occupied by the new owners. IVIS reported that all of 
its facilities are those it purchased from Ivis Wood and that it does 
not own, in whole or in part, any other company involved in the 
production or sale of subject softwood lumber. IVIS continues to be 
supplied by the same suppliers as Ivis Wood, and continues to sell to 
Ivis Wood's customers.
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    \4\ The dates on IVIS' review request and questionnaire response 
were February 2, 2006, and April 6, 2006, however, they were not 
received by the Department until February 16 and April 13, 
respectively.
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    Based on our review of IVIS' questionnaire responses and initial 
submission, we preliminarily determine that IVIS is the successor-in-
interest to Ivis Wood. Although the board of directors and senior 
management changed significantly, information on the record indicates 
that Ivis Wood was purchased as a going concern and that IVIS continued 
to do business with the same suppliers and customers as Ivis Wood, 
using the same production assets. Therefore, based on the totality of 
the circumstances, we preliminarily determine that IVIS should be 
assigned Ivis Wood's cash deposit rate of 3.78 percent, established in 
the first administrative review.\5\
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    \5\ See Notice of Amended Final Results of Antidumping Duty 
Administrative Review: Certain Softwood Lumber Products from Canada, 
70 FR 3358 (January 24, 2005).
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    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 next administrative review in which IVIS participates.

Public Comment

    Any interested party may request a hearing within 30 days of 
publication of this notice. See 19 CFR 351.310(c). Any 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 not later than 30 days after the date of publication 
of this notice. See 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. In accordance with 19 CFR 
351.216(e), we will issue the final results of this changed 
circumstances review no later than December 28, 2006.
    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: June 15, 2006.
David M. Spooner,
Assistant Secretary for Import Administration.
[FR Doc. E6-9879 Filed 6-21-06; 8:45 am]
BILLING CODE 3510-DS-S