[Federal Register Volume 71, Number 188 (Thursday, September 28, 2006)]
[Notices]
[Page 57000]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-15886]


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DEPARTMENT OF HOMELAND SECURITY

Customs and Border Protection


Notice of Withholding of Certain Distributions on Continued 
Dumping and Subsidy Offset to Affected Domestic Producers

AGENCY: Customs and Border Protection, Department of Homeland Security.

ACTION: Notice of the withholding of certain offset distributions for 
Fiscal Year 2006 and subsequent years.

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SUMMARY: This document notifies the public that Customs and Border 
Protection (CBP), consistent with the Court of International Trade's 
recent decision in Canadian Lumber Trade Alliance et al. v. United 
States, will be withholding distributions under the Continued Dumping 
and Subsidy Offset Act of 2000 that derive from antidumping and 
countervailing duties assessed on goods from Canada or Mexico. Fiscal 
year 2006 CDSOA distributions that derive from antidumping or 
countervailing duties on other than Canadian or Mexican goods are not 
affected.

DATES: Effective Date: September 28, 2006.

FOR FURTHER INFORMATION CONTACT: Leigh Redelman, Revenue Division, 
Programs Branch, Office of Finance, (317) 614-4462.

SUPPLEMENTARY INFORMATION:

Background

    The Court of International Trade (CIT) held in Canadian Lumber 
Trade Alliance et al. v. United States, Slip Op. 06-48 (April 7, 2006) 
(CLTA I) and Slip Op. 06-104 (July 14, 2006) (CLTA II), that pursuant 
to Section 408 of the North American Free Trade Agreement 
Implementation Act (codified at 19 U.S.C. 3438), the Continued Dumping 
and Subsidy Offset Act of 2000 (CDSOA) (codified at 19 U.S.C. 1675c) 
does not apply to antidumping and countervailing duties assessed on 
imports of goods from Canada or Mexico.
    Specifically, the CIT held in CLTA I that the Commissioner of 
Customs and Border Protection (CBP) ``has no authority either under an 
Act of Congress or under the Constitution'' to make distributions that 
derive from antidumping and countervailing duties assessed on goods 
from Canada or Mexico, and that the Commissioner's actions in having 
previously distributed such funds were ``ultra vires and therefore 
unlawful.''
    Consequently, pending the outcome of any appeal, CBP will withhold 
fiscal year 2006 and subsequent years' CDSOA distributions to the 
extent they derive from duties assessed pursuant to countervailing duty 
orders, antidumping duty orders, or findings under the Antidumping Act 
of 1921, on imports of goods from Canada or Mexico. Any funds 
inadvertently distributed under these cases for fiscal year 2006 or 
subsequent years will be subject to immediate recovery under applicable 
statutes and regulations, including 19 CFR 159.64.
    Fiscal year 2006 CDSOA distributions that derive from antidumping 
or countervailing duties on other than Canadian or Mexican goods will 
be made in accordance with established procedures in accordance with 
the ``Notice of intent to distribute offset for Fiscal Year 2006,'' as 
published in the Federal Register (71 FR 31336) on June 1, 2006.

    Dated: September 22, 2006.
Deborah J. Spero,
Acting Commissioner, Customs and Border Protection.
[FR Doc. E6-15886 Filed 9-27-06; 8:45 am]
BILLING CODE 9111-14-P