[Federal Register Volume 81, Number 246 (Thursday, December 22, 2016)]
[Notices]
[Pages 93897-93902]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-30774]


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

DEPARTMENT OF COMMERCE

International Trade Administration

[C-122-858]


Certain Softwood Lumber Products From Canada: Initiation of 
Countervailing Duty Investigation

AGENCY: Enforcement and Compliance, International Trade Administration, 
U.S. Department of Commerce.

DATES: Effective December 15, 2016.

FOR FURTHER INFORMATION CONTACT: Nicholas Czajkowski at (202) 482-1395, 
or Lana Nigro at (202)-482-0698, AD/CVD Operations, Enforcement and 
Compliance, International Trade Administration, U.S. Department of 
Commerce, 1401 Constitution Avenue NW., Washington, DC 20230.

SUPPLEMENTARY INFORMATION: 

The Petition

    On November 25, 2016, the Department of Commerce (the Department) 
received a countervailing duty (CVD) petition concerning imports of 
certain softwood lumber products (softwood lumber) from Canada,\1\ 
filed in proper form, on behalf of the Committee Overseeing Action for 
Lumber International Trade Investigations or Negotiations (COALITION) 
(hereinafter, Petitioner).\2\
---------------------------------------------------------------------------

    \1\ See Letter from Petitioner, ``Petition for the Imposition of 
Antidumping and Countervailing Duties on Imports of Certain Softwood 
Lumber Products from Canada,'' November 25, 2016 (Petition), at 
Volume III.
    \2\ The COALITION is an ad hoc association whose members include 
U.S. Lumber Coalition, Inc.; Collum's Lumber Products, L.L.C.; 
Hankins, Inc.; Potlatch Corporation; Rex Lumber Company; Seneca 
Sawmill Company; Sierra Pacific Industries; Stimson Lumber Company; 
Swanson Group; Weyerhaeuser Company; Carpenters Industrial Council; 
Giustina Land and Timber Company; and Sullivan Forestry Consultants, 
Inc. Id., Volume I at 2.
---------------------------------------------------------------------------

    On November 30 and December 2, 2016, the Department requested 
additional information and clarification of certain aspects of the 
Petition.\3\ Petitioner filed responses to these requests on December 1 
and 5, 2016.\4\ Further, Petitioner submitted revised versions of two 
exhibits originally provided in Volume III of the Petition.\5\ On 
December 7, 2016, in consultations the Department held with respect to 
the CVD petition, the Government of Canada (GOC) provided comments on, 
and requested the Department poll the

[[Page 93898]]

industry to determine, industry support.\6\ On December 8, 2016, 
Petitioner provided a response to the GOC comments on industry 
support.\7\
---------------------------------------------------------------------------

    \3\ See Letter from the Department, ``Petition for the 
Imposition of Antidumping and Countervailing Duties on Imports of 
Certain Softwood Lumber Products from Canada: Supplemental 
Questions,'' November 30, 2016 (General Issues Supplemental 
Questionnaire); see also Letter from the Department, ``Petition for 
the Imposition of Countervailing Duties on Imports of Certain 
Softwood Lumber Products from Canada: Supplemental Questions,'' 
December 2, 2016 (Countervailing Duty Petition Supplemental 
Questionnaire).
    \4\ See Letter from Petitioner, ``Supplement to the Petitions 
for the Imposition of Countervailing Duties on Imports of Certain 
Softwood Lumber Products from Canada: Response to the Department's 
Supplemental Questions'' December 1, 2016 (Petition Supplement); see 
also Letter from Petitioner, ``Petition for the Imposition of 
Countervailing Duties on Imports of Certain Softwood Lumber Products 
from Canada: Response to Supplemental Questions,'' December 5, 2016 
(Countervailing Duty Petition Supplemental Questionnaire Response).
    \5\ See Letter from Petitioner, ``Supplement to the Petition for 
the Imposition of Countervailing Duties on Imports of Certain 
Softwood Lumber Products from Canada: Correction of Production 
Errors'' December 2, 2016.
    \6\ See Letter from the Government of Canada, ``Certain Softwood 
Lumber from Canada: Submission of Consultations Paper,'' December 7, 
2016 (GOC Comments).
    \7\ See Letter from Petitioner, ``Comments on Government of 
Canada's Consultations Paper,'' December 8, 2016 (Petitioner's 
Response to GOC Comments); see also Memorandum to the File Re: 
Consultations with Officials from the Government of Canada, December 
7, 2016 (CVD Consultations Memo), which references the GOC comments.
---------------------------------------------------------------------------

    In accordance with section 702(b)(1) of the Tariff Act of 1930, as 
amended (the Act), Petitioner alleges that the GOC and the governments 
of certain Canadian provinces are providing countervailable subsidies 
within the meaning of sections 701 and 771(5) of the Act, to 
manufacturers, producers, or exporters of softwood lumber from Canada, 
and that imports of such softwood lumber products are materially 
injuring, or threatening material injury to, an industry in the United 
States. Additionally, consistent with section 702(b)(1) of the Act, the 
Petition is accompanied by information reasonably available to 
Petitioner supporting its allegations of subsidy programs in Canada on 
which we are initiating a CVD investigation.
    The Department finds that Petitioner filed the Petition on behalf 
of the domestic industry because Petitioner is an interested party, as 
defined by section 771(9)(F) of the Act. As discussed in the 
``Determination of Industry Support for the Petition'' section, below, 
the Department also finds that Petitioner demonstrated sufficient 
industry support with respect to initiation of the requested CVD 
investigation.

Period of Investigation

    As discussed below in the section ``Respondent Selection,'' in the 
event the Department determines that the number of companies involved 
in the investigation is large and it cannot individually examine each 
company based upon the Department's resources, we intend to select 
company respondents using data from U.S. Customs and Border Protection 
(CBP). Should we conduct this investigation on a company-specific 
basis, the period of investigation would be January 1, 2015, through 
December 31, 2015.\8\
---------------------------------------------------------------------------

    \8\ See 19 CFR 351.204(b)(2).
---------------------------------------------------------------------------

Scope of the Investigation

    The product covered by this investigation is certain softwood 
lumber products from Canada. For a full description of the scope of 
this investigation, see the Appendix to this notice.

Comments on the Scope of the Investigation

    During our review of the Petition, the Department issued questions 
to, and received responses from, Petitioner pertaining to the proposed 
scope to ensure that the scope language in the Petition accurately 
reflected the products for which the domestic industry is seeking 
relief.\9\ As a result of those exchanges, the scope of the Petition 
was modified to clarify the description of merchandise covered by the 
Petition. The class or kind of merchandise covered by this initiation, 
as described in the Appendix to this notice, reflects that 
clarification.
---------------------------------------------------------------------------

    \9\ See General Issues Supplemental Questionnaire; see also 
General Issues Supplemental Questionnaire Response.
---------------------------------------------------------------------------

    As discussed in the preamble to the Department's regulations,\10\ 
we are setting aside a period of time for interested parties to raise 
issues regarding product coverage (i.e., scope). The Department will 
consider all comments received and, if necessary, consult with parties 
prior to the issuance of the preliminary determinations in this 
investigation and the companion antidumping duty investigation 
concurrently being initiated. If scope comments include factual 
information,\11\ all such factual information should be limited to 
public information. The Department requests that all interested parties 
submit scope comments by 5:00 p.m. Eastern Standard Time (EST) on 
Wednesday, January 4, 2017, which is 20 calendar days from the 
signature date of this notice. Any rebuttal comments, which may include 
factual information (and also should be limited to public information), 
must be filed by 5:00 p.m. EST on Tuesday, January 17, 2017, which is 
the first business day ten calendar days after the initial comments 
deadline.\12\
---------------------------------------------------------------------------

    \10\ See Antidumping Duties; Countervailing Duties, 62 FR 27296, 
27323 (May 19, 2007).
    \11\ See 19 CFR 351.102(b)(21).
    \12\ See 19 CFR 351.303(b)(1) (``For both electronically filed 
and manually filed documents, if the applicable due date falls on a 
non-business day, the Secretary will accept documents that are filed 
on the next business day.'')
---------------------------------------------------------------------------

    The Department requests that any factual information parties 
consider relevant to the scope of the investigations be submitted 
during this time period. However, if a party subsequently finds that 
additional factual information pertaining to the scope may be relevant, 
the party may contact the Department and request permission to submit 
the additional information. All such comments and information must be 
filed on the records of the CVD investigation and the concurrent AD 
investigation.

Filing Requirements

    All submissions to the Department must be filed electronically 
using Enforcement and Compliance's Antidumping and Countervailing Duty 
Centralized Electronic Service System (ACCESS).\13\ An electronically-
filed document must be successfully received, in its entirety, by the 
time and date when it is due. Documents excepted from the electronic 
submission requirements must be filed manually (i.e., in paper form) 
with Enforcement and Compliance's APO/Dockets Unit, Room 18022, U.S. 
Department of Commerce, 1401 Constitution Avenue NW., Washington, DC 
20230, and stamped with the date and time of receipt by the applicable 
deadlines.
---------------------------------------------------------------------------

    \13\ See 19 CFR 351.303 (describing general filing 
requirements); see also Antidumping and Countervailing Duty 
Proceedings: Electronic Filing Procedures; Administrative Protective 
Order Procedures, 76 FR 39263 (July 6, 2011) (detailing the 
Department's electronic filing requirements, which went into effect 
on August 5, 2011). Helpful information on using ACCESS can be found 
at https://access.trade.gov/help.aspx, and the ACCESS handbook is 
available at https://access.trade.gov/help/Handbook%20on%20Electronic%20Filing%20Procedures.pdf.
---------------------------------------------------------------------------

Consultations

    Pursuant to section 702(b)(4)(A) of the Act, the Department 
notified representatives of the GOC of its receipt of the Petition and 
provided them with the opportunity for consultations regarding the CVD 
allegations.\14\ On December 7, 2016, the Department held consultations 
with the GOC.\15\ All letters and memoranda pertaining to these 
consultations are available via ACCESS.
---------------------------------------------------------------------------

    \14\ See Letter from the Department, ``Certain Softwood Lumber 
Products from Canada: Invitation for Consultations to Discuss the 
Countervailing Duty Petition,'' November 28, 2016.
    \15\ See Department Memorandum, ``Countervailing Duty Petition 
on Certain Softwood Lumber Products from Canada,'' December 7, 2016.
---------------------------------------------------------------------------

Determination of Industry Support for the Petition

    Section 702(b)(1) of the Act requires that a petition be filed on 
behalf of the domestic industry. Section 702(c)(4)(A) of the Act 
provides that a petition meets this requirement if the domestic 
producers or workers who support the petition account for: (i) At least 
25 percent of the total production of the domestic like product; and 
(ii) more than 50 percent of the production of the domestic like 
product produced by that portion of the industry expressing support 
for, or opposition to, the

[[Page 93899]]

petition. Moreover, section 702(c)(4)(D) of the Act provides that, if 
the petition does not establish support of domestic producers or 
workers accounting for more than 50 percent of the total production of 
the domestic like product, the Department shall: (i) Poll the industry 
or rely on other information in order to determine if there is support 
for the petition, as required by subparagraph (A); or (ii) determine 
industry support using a statistically valid sampling method to poll 
the ``industry.''
    Section 771(4)(A) of the Act defines the ``industry'' as the 
producers as a whole of a domestic like product. Thus, to determine 
whether a petition has the requisite industry support, the statute 
directs the Department to look to producers and workers who produce the 
domestic like product. The International Trade Commission (ITC), which 
is responsible for determining whether ``the domestic industry'' has 
been injured, must also determine what constitutes a domestic like 
product in order to define the industry. While both the Department and 
the ITC must apply the same statutory definition regarding the domestic 
like product,\16\ they do so for different purposes and pursuant to a 
separate and distinct authority. In addition, the Department's 
determination is subject to limitations of time and information. 
Although this may result in different definitions of the like product, 
such differences do not render the decision of either agency contrary 
to law.\17\
---------------------------------------------------------------------------

    \16\ See section 771(10) of the Act.
    \17\ See USEC, Inc. v. United States, 132 F. Supp. 2d 1, 8 (CIT 
2001) (citing Algoma Steel Corp., Ltd. v. United States, 688 F. 
Supp. 639, 644 (CIT 1988), aff'd 865 F.2d 240 (Fed. Cir. 1989).
---------------------------------------------------------------------------

    Section 771(10) of the Act defines the domestic like product as ``a 
product which is like, or in the absence of like, most similar in 
characteristics and uses with, the article subject to an investigation 
under this title.'' Thus, the reference point from which the domestic 
like product analysis begins is ``the article subject to an 
investigation'' (i.e., the class or kind of merchandise to be 
investigated, which normally will be the scope as defined in the 
petition).
    With regard to the domestic like product, Petitioner does not offer 
a definition of the domestic like product distinct from the scope of 
this investigation. Based on our analysis of the information submitted 
on the record, we have determined that softwood lumber constitutes a 
single domestic like product and we have analyzed industry support in 
terms of that domestic like product.\18\
---------------------------------------------------------------------------

    \18\ For a discussion of the domestic like product analysis in 
this case, see Countervailing Duty Investigation Initiation 
Checklist: Certain Softwood Lumber Products from Canada (Canada CVD 
Initiation Checklist), at Attachment II, Analysis of Industry 
Support for the Antidumping and Countervailing Duty Petitions 
Covering Certain Softwood Lumber Products from Canada (Attachment 
II). This checklist is dated concurrently with this notice and on 
file electronically via ACCESS. Access to documents filed via ACCESS 
is also available in the Central Records Unit, Room B8024 of the 
main Department of Commerce building.
---------------------------------------------------------------------------

    In determining whether Petitioner has standing under section 
702(c)(4)(A) of the Act, we considered the industry support data 
contained in the Petition with reference to the domestic like product 
as defined in the ``Scope of the Investigation,'' in the Appendix to 
this notice. To establish industry support, Petitioner provided actual 
2015 production data of the domestic like product for all U.S. softwood 
lumber producers that support the Petition.\19\ Petitioner also 
estimated the 2015 softwood lumber production of those U.S. softwood 
lumber producers/sawmills whose workers are represented by the 
Carpenters Industrial Council, a recognized union and a member of the 
COALITION.\20\ Petitioner estimated total 2015 production of the 
domestic like product for the entire domestic industry based on 
production data published by Lumber Track, adjusted to account for any 
flooring and siding produced outside sawmills that may have not been 
included in the published production data.\21\ Petitioner compared the 
total production of the supporters of the Petition to the estimated 
total production of the domestic like product for the entire domestic 
industry.\22\ We relied upon data Petitioner provided for purposes of 
measuring industry support.\23\
---------------------------------------------------------------------------

    \19\ See Petition, Volume I, at 6-7 and Exhibit 10; see also 
Petition Supplement, at 8-9 and Exhibit 10.
    \20\ See Id. at 6-9 and Exhibits 10 and 14.
    \21\ Id., at 4-6 and Exhibits 2 and 56.
    \22\ See Id. at 4-10 and Exhibit 10; see also Petition 
Supplement, at 8-9 and Exhibit 10.
    \23\ Id. For further discussion, see Canada CVD Initiation 
Checklist, at Attachment II.
---------------------------------------------------------------------------

    On December 7, 2016, we received comments on industry support from 
the GOC.\24\ Petitioner responded to the GOC's Comments on December 8, 
2016.\25\ For further discussion of these comments, see the Canada CVD 
Initiation Checklist, at Attachment II.
---------------------------------------------------------------------------

    \24\ See GOC Comments, at 5-9.
    \25\ See Petitioner's Response to GOC Comments, at 4-7.
---------------------------------------------------------------------------

    Our review of the data provided in the Petition, the Petition 
Supplement, letters from the GOC and Petitioner, and other information 
readily available to the Department indicates that Petitioner has 
established industry support.\26\ First, the Petition established 
support from domestic producers and workers accounting for more than 50 
percent of the total production of the domestic like product and, as 
such, the Department is not required to take further action in order to 
evaluate industry support (e.g., polling).\27\ Second, the domestic 
producers and workers have met the statutory criteria for industry 
support under section 702(c)(4)(A)(i) of the Act because the domestic 
producers and workers who support the Petition account for at least 25 
percent of the total production of the domestic like product.\28\ 
Finally, the domestic producers and workers have met the statutory 
criteria for industry support under section 702(c)(4)(A)(ii) of the Act 
because the domestic producers and workers who support the Petition 
account for more than 50 percent of the production of the domestic like 
product produced by that portion of the industry expressing support 
for, or opposition to, the Petition.\29\ Accordingly, the Department 
determines that the Petition was filed on behalf of the domestic 
industry within the meaning of section 702(b)(1) of the Act.
---------------------------------------------------------------------------

    \26\ See Canada CVD Initiation Checklist, at Attachment II.
    \27\ See section 702(c)(4)(D) of the Act; see also Canada CVD 
Initiation Checklist, at Attachment II.
    \28\ See Canada CVD Initiation Checklist, at Attachment II.
    \29\ Id.
---------------------------------------------------------------------------

    The Department finds that Petitioner filed the Petition on behalf 
of the domestic industry because it is an interested party as defined 
in section 771(9)(F) of the Act and it has demonstrated sufficient 
industry support with respect to the CVD investigation that it is 
requesting the Department initiate.\30\
---------------------------------------------------------------------------

    \30\ See Canada CVD Initiation Checklist, at Attachment II.
---------------------------------------------------------------------------

Injury Test

    Because Canada is a ``Subsidies Agreement Country'' within the 
meaning of section 701(b) of the Act, section 701(a)(2) of the Act 
applies to this investigation. Accordingly, the ITC must determine 
whether imports of the subject merchandise from Canada materially 
injure, or threaten material injury to, a U.S. industry.

Allegations and Evidence of Material Injury and Causation

    Petitioner alleges that imports of the subject merchandise are 
benefitting from countervailable subsidies and that such imports are 
causing, or threaten to cause, material injury to the U.S.

[[Page 93900]]

industry producing the domestic like product. In addition, Petitioner 
alleges that subject imports exceed the negligibility threshold 
provided for under section 771(24)(A) of the Act.\31\
---------------------------------------------------------------------------

    \31\ See Petition, Volume I, at 34 and Exhibit 27.
---------------------------------------------------------------------------

    Petitioner contends that the industry's injured condition is 
illustrated by reduced market share; underselling and price suppression 
or depression; lost sales and revenues; mill closures and layoffs; and 
adverse impact on the domestic industry's key trade and financial 
indicators, including financial performance, production, and capacity 
utilization.\32\ We have assessed the allegations and supporting 
evidence regarding material injury, threat of material injury, and 
causation, and we have determined that these allegations are properly 
supported by adequate evidence and meet the statutory requirements for 
initiation.\33\
---------------------------------------------------------------------------

    \32\ Id., at 28-30, 34-67 and Exhibits 2, 3, 19, 24, 26-27, 29, 
32, 34, 36-53, and 59-60; see also Petition Supplement, at 9 and 
Exhibit 59.
    \33\ See Canada CVD Initiation Checklist, at Attachment III, 
Analysis of Allegations and Evidence of Material Injury and 
Causation for the Antidumping and Countervailing Duty Petitions 
Covering Certain Softwood Lumber Products from Canada.
---------------------------------------------------------------------------

Initiation of Countervailing Duty Investigation

    Section 702(b)(1) of the Act requires the Department to initiate a 
CVD investigation whenever an interested party files a CVD petition on 
behalf of an industry that (1) alleges the elements necessary for the 
imposition of a duty under section 701(a) of the Act and (2) is 
accompanied by information reasonably available to the petitioner 
supporting the allegations.
    Petitioner alleges that exporters/producers of softwood lumber in 
Canada benefited from countervailable subsidies bestowed by the GOC and 
the governments of certain Canadian provinces. The Department examined 
the Petition and finds that it complies with the requirements of 
section 702(b)(1) of the Act. Therefore, in accordance with section 
702(b)(1) of the Act, we are initiating a CVD investigation to 
determine whether manufacturers, producers, and/or exporters of 
softwood lumber from Canada receive countervailable subsidies from the 
GOC and/or the governments of certain Canadian provinces, as alleged by 
Petitioner.
    On June 29, 2015, the President of the United States signed into 
law the Trade Preferences Extension Act of 2015 (TPEA), which made 
numerous amendments to the Act.\34\ The TPEA does not specify dates of 
application for those amendments. On August 6, 2015, the Department 
published an interpretative rule, in which it announced the 
applicability dates for each amendment to the Act, except for 
amendments contained in section 771(7) of the Act, which relate to 
determinations of material injury by the ITC.\35\ The amendments to 
sections 776 and 782 of the Act are applicable to all determinations 
made on or after August 6, 2015, and, therefore, apply to this CVD 
investigation.\36\ Based on our review of the Petition, we find that 
there is sufficient information to initiate a CVD investigation on 33 
of 38 alleged programs. For a full discussion of the basis for our 
decision to initiate or not to initiate on each program, see CVD 
Initiation Checklist. A public version of the initiation checklist for 
this investigation is available on ACCESS.
---------------------------------------------------------------------------

    \34\ See Trade Preferences Extension Act of 2015, Public Law 
114-27, 129 Stat. 362 (2015).
    \35\ See Dates of Application of Amendments to the Antidumping 
and Countervailing Duty Laws Made by the Trade Preferences Extension 
Act of 2015, 80 FR 46793 (August 6, 2015) (Applicability Notice).
    \36\ Id., at 46794-95. The 2015 amendments may be found at 
https://www.congress.gov/bill/114th-congress/house-bill/1295/text/pl.
---------------------------------------------------------------------------

    In accordance with section 703(b)(1) of the Act and 19 CFR 
351.205(b)(1), unless postponed, we will make our preliminary 
determination in this investigation no later than 65 days after the 
date of initiation.

Critical Circumstances

    Petitioner alleges, based on trade statistics and documented prior 
knowledge of an impending trade case, that there is a reasonable basis 
to believe or suspect that critical circumstances exist with regard to 
imports of softwood lumber from Canada.\37\
---------------------------------------------------------------------------

    \37\ See Petition, Volume I, at 67-78.
---------------------------------------------------------------------------

    Section 703(e)(1) of the Act provides that if a petitioner alleges 
critical circumstances, the Department will find that such 
circumstances exist, at any time after the date of initiation, when 
there is a reasonable basis to believe or suspect: (A) That ``the 
alleged countervailable subsidy'' is inconsistent with the Agreement on 
Subsidies and Countervailing Measures (SCM Agreement) of the World 
Trade Organization, and (B) that ``there have been massive imports of 
the subject merchandise over a relatively short period.'' Section 
351.206(h)(2) of the Department's regulations provides that, generally, 
imports must increase by at least 15 percent during the ``relatively 
short period'' to be considered ``massive'' and section 351.206(i) 
defines a ``relatively short period'' as normally being the period 
beginning on the date the proceeding begins (i.e., the date the 
petition is filed) \38\ and ending at least three months later.\39\ The 
regulations also provide, however, that, if the Department ``finds that 
importers, or exporters or producers, had reason to believe, at some 
time prior to the beginning of the proceeding, that a proceeding was 
likely,'' the Department ``may consider a period of not less than three 
months from that earlier time.'' \40\
---------------------------------------------------------------------------

    \38\ See 19 CFR 351.102(b)(40) (providing that a proceeding 
begins on the date of the filing of a petition).
    \39\ See 19 CFR 351.206(i).
    \40\ See id.
---------------------------------------------------------------------------

    Petitioner alleges that Canadian softwood lumber producers benefit 
from numerous Canadian government subsidies, which include subsidies 
that are contingent upon export performance. Specifically, Petitioner 
alleges that under the Export Development Canada: Export Guarantee 
Program, the GOC provides loan guarantees in support of working capital 
requirements in order to promote the export of subject merchandise.\41\
---------------------------------------------------------------------------

    \41\ See Petition, Volume III, at 231-236.
---------------------------------------------------------------------------

    Petitioner also asserts that there have been massive imports of 
softwood lumber over a relatively short period. Petitioner contends 
that, pursuant to 19 CFR 351.206(i), the Department should evaluate the 
level of imports during a period prior to the filing of the Petition, 
because importers and foreign exporters and producers had reason to 
believe that a countervailing duty petition was likely.\42\ In 
particular, Petitioner provided news articles and industry publications 
to demonstrate that importers and foreign exporters and producers were 
aware that the Softwood Lumber Agreement (SLA) expired on October 12, 
2015, and that after October 12, 2016, the domestic industry in the 
United States would once again be permitted to file a CVD petition.\43\ 
Accordingly, Petitioner asserts that importers and foreign exporters 
and producers were aware that they had a one-year period following the 
expiration of the SLA to ship subject merchandise without being subject 
to countervailing duties.\44\ Therefore, to consider whether imports of 
softwood lumber were massive over a relatively short period of time, 
Petitioner contends that the Department should compare import levels 
during January 2015 through October 2015 (base period) with import 
levels during November 2015 through

[[Page 93901]]

August 2016 (comparison period).\45\ Based on Petitioner's calculation, 
the import volume of softwood lumber surged 25.56 percent between the 
base and comparison periods, and the value of imports surged 18.11 
percent.\46\ Petitioner asserts that because the surge in imports 
constituted more than a 15 percent change, import volumes of softwood 
lumber are massive, as defined in the Department's regulations.
---------------------------------------------------------------------------

    \42\ See id. at 69-70.
    \43\ See id. at 70-72 and Exhibits 39, 64, 65, 67. Petitioner 
notes that there was a one-year ``standstill'' period during which 
domestic industry was not permitted to file a CVD petition. Id. at 
70-72.
    \44\ See id. at 72-73.
    \45\ See id. at 73-74.
    \46\ See id.
---------------------------------------------------------------------------

    Petitioner requests that the Department make a preliminary finding 
of critical circumstances within 45 days of the filing of the 
Petition.\47\ Section 702(e) of the Act states that if ``at any time 
after the initiation of an investigation under this subtitle, the 
administering authority finds a reasonable basis to suspect that the 
alleged countervailable subsidy is inconsistent with the {SCM{time}  
Agreement, the administering authority may request the Commissioner of 
Customs to compile information on an expedited basis regarding entries 
of the subject merchandise.''
---------------------------------------------------------------------------

    \47\ See id. at 69.
---------------------------------------------------------------------------

    Taking into consideration the foregoing, we will analyze this 
matter further. We will monitor imports of softwood lumber products 
from Canada and may request that CBP compile information on an 
expedited basis regarding entries of subject merchandise.\48\ If, at 
any time, the criteria for a finding of critical circumstances are 
established, we will issue a critical circumstances determination at 
the earliest possible date.\49\
---------------------------------------------------------------------------

    \48\ See Section 702(e) of the Act.
    \49\ See Policy Bulletin 98/4, 63 FR 55364 (October 15, 1998).
---------------------------------------------------------------------------

Respondent Selection

    Petitioner named hundreds of companies as producers/exporters of 
softwood lumber from Canada.\50\ The Department intends to follow its 
standard practice in CVD investigations and calculate company-specific 
subsidy rates in this investigation. In the event the Department 
determines that the number of companies is large and it cannot 
individually examine each company based upon the Department's 
resources, where appropriate, the Department intends to select 
mandatory respondents based on CBP data for U.S. imports of softwood 
lumber from Canada during the period of investigation under the 
appropriate Harmonized Tariff Schedule of the United States (HTSUS) 
numbers listed in the ``Scope of the Investigation,'' in the Appendix. 
The Department also intends to release CBP data under Administrative 
Protective Order (APO) to all parties with access to information 
protected by APO within five business days of publication of this 
Federal Register notice. Interested parties wishing to comment 
regarding the CBP data must do so within seven calendar days after the 
placement of the CBP data on the record of this investigation. Because 
a ``company-specific'' methodology is a departure from the 
``aggregate'' methodology used in previous investigations of certain 
softwood lumber products from Canada,\51\ the Department invites 
comments regarding the appropriate subsidy rate methodology to use in 
this investigation. These comments are due within seven calendar days 
of publication of this Federal Register notice.
---------------------------------------------------------------------------

    \50\ See Petition, Volume I, at 28 and Exhibit 61.
    \51\ See e.g., Notice of Final Affirmative Countervailing Duty 
Determination and Final Negative Critical Circumstances 
Determination: Certain Softwood Lumber Products from Canada, 67 FR 
15545 (April 2, 2002) and Accompanying Issues and Decision 
Memorandum. See also section 777A(e)(2)(B) of the Act
---------------------------------------------------------------------------

    Interested parties must submit applications for disclosure under 
APO in accordance with 19 CFR 351.305(b). Instructions for filing such 
applications may be found on the Department's Web site at http://enforcement.trade.gov/apo.
    Comments for this investigation must be filed electronically using 
ACCESS. An electronically-filed document must be received successfully 
in its entirety by the Department's electronic records system, ACCESS, 
by 5:00 p.m. EST, by the dates noted above. We intend to finalize our 
decision regarding respondent selection within 20 days of publication 
of this notice.

Distribution of Copies of the Petition

    In accordance with section 702(b)(4)(A)(i) of the Act and 19 CFR 
351.202(f), a copy of the public version of the Petition has been 
provided to the GOC via ACCESS. Because of the particularly large 
number of producers/exporters identified in the Petition,\52\ the 
Department considers the service of the public version of the Petition 
to the foreign producers/exporters satisfied by delivery of the public 
version to the GOC consistent with 19 CFR 351.203(c)(2).
---------------------------------------------------------------------------

    \52\ See Petition, Volume I at Exhibit 61.
---------------------------------------------------------------------------

ITC Notification

    We will notify the ITC of our initiation, as required by section 
702(d) of the Act.

Preliminary Determination by the ITC

    The ITC will preliminarily determine, within 45 days of the date on 
which the Petition was filed, whether there is a reasonable indication 
that imports of softwood lumber in Canada are materially injuring, or 
threatening material injury to, a U.S. industry.\53\ A negative ITC 
determination will result in the investigation being terminated; \54\ 
otherwise, the investigation will proceed according to statutory and 
regulatory time limits.
---------------------------------------------------------------------------

    \53\ See section 703(a)(2) of the Act.
    \54\ See section 703(a)(1) of the Act.
---------------------------------------------------------------------------

Submission of Factual Information

    Factual information is defined in 19 CFR 351.102(b)(21) as: (i) 
Evidence submitted in response to questionnaires; (ii) evidence 
submitted in support of allegations; (iii) publicly available 
information to value factors under 19 CFR 351.408(c) or to measure the 
adequacy of remuneration under 19 CFR 351.511(a)(2); (iv) evidence 
placed on the record by the Department; and (v) evidence other than 
factual information described in (i) through (iv). The regulation 
requires any party, when submitting factual information, to specify 
under which subsection of 19 CFR 351.102(b)(21) the information is 
being submitted and, if the information is submitted to rebut, clarify, 
or correct factual information already on the record, to provide an 
explanation identifying the information already on the record that the 
factual information seeks to rebut, clarify, or correct. Specific time 
limits for submission of factual information, based on the type of 
factual information being submitted, are provided at 19 CFR 351.301. 
Parties should review the regulations prior to submitting factual 
information in this investigation.

Extensions of Time Limits

    Parties may request an extension of time limits before the 
expiration of a time limit established under Part 351, or as otherwise 
specified by the Secretary. In general, an extension request will be 
considered untimely if it is filed after the expiration of the time 
limit. For submissions that are due from multiple parties 
simultaneously, an extension request will be considered untimely if it 
is filed after 10:00 a.m. ET on the due date. Under certain 
circumstances, we may elect to specify a different deadline after which 
extension requests will be considered untimely for submissions that are 
due from multiple parties simultaneously. In such a case, we will 
inform parties in the letter or memorandum setting forth the deadline

[[Page 93902]]

(including a specified time) by which extension requests must be filed 
to be considered timely. An extension request must be made in a 
separate, stand-alone submission; under limited circumstances we will 
grant untimely-filed requests for the extension of time limits. Review 
Extension of Time Limits; Final Rule, 78 FR 57790 (September 20, 2013), 
available at http://www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm, prior to submitting factual information in this 
investigation.

Certification Requirements

    Any party submitting factual information in an AD or CVD proceeding 
must certify the accuracy and completeness of that information.\55\ 
Parties are hereby reminded that revised certification requirements are 
in effect for company/government officials, as well as their 
representatives. Investigations initiated on the basis of petitions 
filed on or after August 16, 2013, and other segments of any AD or CVD 
proceedings initiated on or after August 16, 2013, should use the 
revised certification formats provided at the end of the Final 
Rule.\56\ The Department intends to reject factual submissions if the 
submitting party does not comply with the applicable revised 
certification requirements.
---------------------------------------------------------------------------

    \55\ See section 782(b) of the Act.
    \56\ See Certification of Factual Information to Import 
Administration During Antidumping and Countervailing Duty 
Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule). Answers to 
frequently asked questions regarding the Final Rule are available at 
http://enforcement.trade.gov/tlei/notices/factual_info_final_rule_FAQ_07172013.pdf.
---------------------------------------------------------------------------

Notification to Interested Parties

    Interested parties must submit applications for disclosure under 
APO in accordance with 19 CFR 351.305. On January 22, 2008, the 
Department published Antidumping and Countervailing Duty Proceedings: 
Documents Submission Procedures; APO Procedures, 73 FR 3634 (January 
22, 2008). Parties wishing to participate in this investigation should 
ensure that they meet the requirements of these procedures (e.g., the 
filing letters of appearance, as discussed at 19 CFR 351.103(d)).
    This notice is issued and published pursuant to sections 702 and 
777(i) of the Act.

    Dated: December 15, 2016.
Gary Taverman,
Associate Deputy Assistant Secretary for Antidumping and Countervailing 
Duty Operations.

Appendix

Scope of the Investigation

    The merchandise covered by this investigation is softwood 
lumber, siding, flooring and certain other coniferous wood 
(``softwood lumber products''). The scope includes:
     Coniferous wood, sawn, or chipped lengthwise, sliced or 
peeled, whether or not planed, whether or not sanded, or whether or 
not finger-jointed, of an actual thickness exceeding six 
millimeters.
     Coniferous wood siding, flooring, and other coniferous 
wood (other than moldings and dowel rods), including strips and 
friezes for parquet flooring, that is continuously shaped 
(including, but not limited to, tongued, grooved, rebated, 
chamfered, V-jointed, beaded, molded, rounded) along any of its 
edges, ends, or faces, whether or not planed, whether or not sanded, 
or whether or not end-jointed.
     Coniferous drilled and notched lumber and angle cut 
lumber.
     Coniferous lumber stacked on edge and fastened together 
with nails, whether or not with plywood sheathing.
     Components or parts of semi-finished or unassembled 
finished products made from subject merchandise that would otherwise 
meet the definition of the scope above.
    Softwood lumber product imports are generally entered under 
Chapter 44 of the Harmonized Tariff Schedule of the United States 
(``HTSUS''). This chapter of the HTSUS covers ``Wood and articles of 
wood.'' Softwood lumber products that are subject to this 
investigation are currently classifiable under the following ten-
digit HTSUS subheadings in Chapter 44: 4407.10.01.01; 4407.10.01.02; 
4407.10.01.15; 4407.10.01.16; 4407.10.01.17; 4407.10.01.18; 
4407.10.01.19; 4407.10.01.20; 4407.10.01.42; 4407.10.01.43; 
4407.10.01.44; 4407.10.01.45; 4407.10.01.46; 4407.10.01.47; 
4407.10.01.48; 4407.10.01.49; 4407.10.01.52; 4407.10.01.53; 
4407.10.01.54; 4407.10.01.55; 4407.10.01.56; 4407.10.01.57; 
4407.10.01.58; 4407.10.01.59; 4407.10.01.64; 4407.10.01.65; 
4407.10.01.66; 4407.10.01.67; 4407.10.01.68; 4407.10.01.69; 
4407.10.01.74; 4407.10.01.75; 4407.10.01.76; 4407.10.01.77; 
4407.10.01.82; 4407.10.01.83; 4407.10.01.92; 4407.10.01.93; 
4409.10.05.00; 4409.10.10.20; 4409.10.10.40; 4409.10.10.60; 
4409.10.10.80; 4409.10.20.00; 4409.10.90.20; 4409.10.90.40; and 
4418.90.25.00.
    Subject merchandise as described above may also be classified as 
stringers, square cut box-spring-frame components, fence pickets, 
truss components, pallet components, flooring, and door and window 
frame parts under the following ten-digit HTSUS subheadings in 
Chapter 44: 4415.20.40.00; 4415.20.80.00; 4418.90.46.05; 
4418.90.46.20; 4418.90.46.40; 4418.90.46.95; 4421.90.70.40; 
4421.90.94.00; and 4421.90.97.80.
    Although these HTSUS subheadings are provided for convenience 
and customs purposes, the written description of the scope of the 
investigation is dispositive.

[FR Doc. 2016-30774 Filed 12-21-16; 8:45 am]
 BILLING CODE 3510-DS-P