[Federal Register Volume 71, Number 134 (Thursday, July 13, 2006)]
[Notices]
[Pages 39661-39663]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-11059]


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

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 Taiga Building Products Ltd., 
the Department of Commerce is initiating a changed circumstances review 
of the antidumping duty order on Certain Softwood Lumber Products from 
Canada.

EFFECTIVE DATE: July 13, 2006.

FOR FURTHER INFORMATION CONTACT: Saliha Loucif or Constance Handley, 
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-
1779 or (202) 482-0631, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On May 22, 2002, the 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 June 14, 2006, Taiga Building Products Ltd. 
requested that the Department of Commerce (the Department) conduct a 
changed circumstances review, stating that it changed its name to Taiga 
Building Products Ltd. from Taiga Forest Products on January 6, 2006, 
and providing supporting documentation. In accordance with sections 
351.216 and 351.221of the Department's regulations, the Department is 
initiating this review to confirm whether Taiga Building Products Ltd. 
is the successor-in-interest to Taiga Forest Products.

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, page 116, and comment 57, item 
B-7, page 126), 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

[[Page 39662]]

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 4421.90.97.40.
    (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 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:
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

    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;
    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 4421.90.97.40;
    7. Properly classified complete door frames;
    8. Properly classified complete window frames; and
    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 countervailing duty order, 
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.
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

    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\
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

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 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 antidumping order. As indicated in the 
Background section, we have received information indicating that Taiga 
Forest

[[Page 39663]]

Products has changed its name to Taiga Building Products Ltd. 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 Taiga Building Products Ltd.'s submission.
    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. See, 
e.g., 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 June 14, 2006, submission, Taiga Building Products Ltd. 
argues that it changed its name to Taiga Building Products Ltd. from 
Taiga Forest Products, and that the company's ownership, senior 
management, operations, supplier/customer relationships, and facilities 
have not changed. As such, Taiga Building Products Ltd. is, for all 
intents and purposes, operating in the exact same manner as Taiga 
Forest Products. To support its claims, Taiga Building Products Ltd. 
submitted documentation, including: (1) a name change registration 
form; (2) a Certificate of Amalgamation issued by the Government of 
British Columbia; (3) a sample letter from Taiga Building Products Ltd. 
to its customers; and (4) Taiga Building Products Ltd.'s annual report 
to shareholders for the fiscal year ending March 31, 2006.
    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 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: July 7, 2006.
Joseph A. Spetrini,
Acting Assistant Secretary for Import Administration.
[FR Doc. E6-11059 Filed 7-12-03; 8:45 am]
BILLING CODE 3510-DS-S