[Federal Register Volume 81, Number 246 (Thursday, December 22, 2016)]
[Notices]
[Pages 93892-93897]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-30780]



[[Page 93892]]

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

DEPARTMENT OF COMMERCE

International Trade Administration

[A-122-857]


Certain Softwood Lumber Products from Canada: Initiation of Less-
Than-Fair-Value Investigation

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

DATES: Effective December 15, 2016.

FOR FURTHER INFORMATION CONTACT: Jeffrey Pedersen at (202) 482-2769 or 
Robert Galantucci at (202) 482-2923, AD/CVD Operations, Enforcement and 
Compliance, 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 an antidumping duty (AD) petition concerning imports of 
certain softwood lumber products (softwood lumber) from Canada, filed 
in proper form, on behalf of the Committee Overseeing Action for Lumber 
International Trade Investigations or Negotiations (COALITION) 
(hereinafter, Petitioner).\1\
---------------------------------------------------------------------------

    \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 (the Petition), at 
Volume II. The COALITION is an ad hoc association whose members are: 
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, Sullivan Forestry Consultants, Inc., and the 
U.S. Lumber Coalition, Inc. Id., Volume I at 2.
---------------------------------------------------------------------------

    On November 30, 2016, the Department requested additional 
information and clarification of certain areas of the Petition.\2\ 
Petitioner filed responses to these requests on December 1, 2016.\3\ On 
December 7, 2016, in consultations the Department held with respect to 
the companion CVD case on imports of softwood lumber from Canada, the 
Government of Canada (GOC) provided comments on, and requested the 
Department poll the industry to determine, industry support.\4\ On 
December 8, 2016, Petitioner provided a response to the GOC comments on 
industry support.\5\
---------------------------------------------------------------------------

    \2\ See Letter from the Department to Petitioner concerning 
general issues entitled ``Petition for the Imposition of Antidumping 
Duties on Imports of Certain Softwood Lumber Products from Canada: 
Supplemental Questions,'' dated November 30, 2016 (General Issues 
Supplemental Questionnaire); see also Letter from the Department to 
Petitioner concerning antidumping matters entitled ``Petition for 
the Imposition of Antidumping Duties on Imports of Certain Softwood 
Lumber Products from Canada: Supplemental Questions,'' dated 
November 30, 2016 (Antidumping Supplemental Questionnaire).
    \3\ See Letter from Petitioner to the Department entitled 
``Supplement to the Petition for the Imposition of Antidumping 
Duties on Imports of Certain Softwood Lumber Products from Canada: 
Response to the Department's Supplemental Questions,'' dated 
December 1, 2016 (Petition Supplement).
    \4\ See Memorandum from Robert Galantucci to the file entitled 
``Petition for the Imposition of Antidumping Duties on Imports of 
Certain Softwood Lumber Products from Canada: Consultation 
Documents,'' dated December 13, 2016 (Consultation Document 
Memorandum), at Attachment 1 (Letter from the Government of Canada 
to the Department entitled, ``Certain Softwood Lumber from Canada: 
Submission of Consultations Paper,'' dated December 7, 2016).
    \5\ See Consultation Document Memorandum, at Attachment 2 
(Letter from Petitioner to the Department entitled, ``Comments on 
Government of Canada's Consultations Paper,'' dated December 8, 
2016); see also Consultation Document Memorandum, at Attachment 3 
(Memorandum to the File Re: Consultations with Officials from the 
Government of Canada, dated December 7, 2016, which references the 
GOC comments.).
---------------------------------------------------------------------------

    In accordance with section 732(b) of the Tariff Act of 1930, as 
amended (the Act), Petitioner alleges that imports of softwood lumber 
from Canada are being, or are likely to be, sold in the United States 
at less-than-fair value within the meaning of section 731 of the Act, 
and that such imports are materially injuring, or threatening material 
injury to, an industry in the United States. Also, consistent with 
section 732(b)(1) of the Act, Petitioner states that the Petition is 
accompanied by information reasonably available to Petitioner 
supporting its allegations.
    The Department finds that Petitioner filed this Petition on behalf 
of the domestic industry because Petitioner is an interested party as 
defined in 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 AD 
investigation.\6\
---------------------------------------------------------------------------

    \6\ See the ``Determination of Industry Support for the 
Petition'' section below.
---------------------------------------------------------------------------

Period of Investigation

    Because the Petition was filed on November 25, 2016, the period of 
investigation (POI) is, pursuant to 19 CFR 351.204(b)(1), October 1, 
2015, through September 30, 2016.

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 of this notice.

Comments on 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 would be an 
accurate reflection of the products for which the domestic industry is 
seeking relief.\7\ As a result of these 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.
---------------------------------------------------------------------------

    \7\ See General Issues Supplemental Questionnaire and Petition 
Supplement.
---------------------------------------------------------------------------

    As discussed in the preamble to the Department's regulations,\8\ we 
are setting aside a period for interested parties to raise issues 
regarding product coverage (i.e., scope). The Department will consider 
all comments received from parties and, if necessary, will consult with 
parties prior to the issuance of the preliminary determinations in this 
investigation and the companion countervailing duty investigation 
concurrently being initiated. If scope comments include factual 
information,\9\ all such factual information should be limited to 
public information. The Department requests all interested parties to 
submit such comments by 5:00 p.m. Eastern Standard Time (EST) on 
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.\10\
---------------------------------------------------------------------------

    \8\ See Antidumping Duties; Countervailing Duties, 62 FR 27296, 
27323 (May 19, 2007).
    \9\ See 19 CFR 351.102(b)(21).
    \10\ 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 the parties 
consider relevant to the scope of the investigation be submitted during 
this time period. However, if a party subsequently finds that 
additional factual information pertaining to the scope of the 
investigation 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 AD 
investigation and the concurrent CVD investigation.

[[Page 93893]]

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).\11\ An electronically 
filed document must be received successfully 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.
---------------------------------------------------------------------------

    \11\ See Antidumping and Countervailing Duty Proceedings: 
Electronic Filing Procedures; Administrative Protective Order 
Procedures, 76 FR 39263 (July 6, 2011) for details of the 
Department's electronic filing requirements, which went into effect 
on August 5, 2011. Information on help using ACCESS can be found at 
https://access.trade.gov/help.aspx and a handbook can be found at 
https://access.trade.gov/help/Handbook%20on%20Electronic%20Filling%20Procedures.pdf.
---------------------------------------------------------------------------

Comments on Product Characteristics for AD Questionnaires

    The Department is giving interested parties an opportunity to 
provide comments on the appropriate physical characteristics of 
softwood lumber to be reported in response to the Department's AD 
questionnaires. This information will be used to identify the key 
physical characteristics of the merchandise under consideration in 
order to report the relevant costs of production accurately as well as 
to develop appropriate product-comparison criteria.
    Interested parties may provide any information or comments that 
they feel are relevant to the development of an accurate list of 
physical characteristics. Specifically, they may provide comments as to 
which characteristics are appropriate to use as: (1) General product 
characteristics and (2) product-comparison criteria. We note that it is 
not always appropriate to use all product characteristics as product-
comparison criteria. We base product-comparison criteria on meaningful 
commercial differences among products. In other words, although there 
may be some physical product characteristics utilized by manufacturers 
to describe softwood lumber, it may be that only a select few product 
characteristics take into account commercially meaningful physical 
characteristics. In addition, interested parties may comment on the 
order in which the physical characteristics should be used in matching 
products. Generally, the Department attempts to list the most important 
physical characteristics first and the least important characteristics 
last.
    In order to consider the suggestions of interested parties in 
developing and issuing the AD questionnaires, all product 
characteristics comments must be filed by 5:00 p.m. EST on January 18, 
2017. Any rebuttal comments, which may include factual information (and 
should be limited to public information), must be filed by 5:00 p.m. 
EST on January 30, 2017, which is the first business day 10 calendar 
days after the initial comments deadline.\12\ All comments and 
submissions to the Department must be filed electronically using 
ACCESS, as explained above.
---------------------------------------------------------------------------

    \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.'').
---------------------------------------------------------------------------

Determination of Industry Support for the Petition

    Section 732(b)(1) of the Act requires that a petition be filed on 
behalf of the domestic industry. Section 732(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 petition. Moreover, section 732(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,\13\ 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.\14\
---------------------------------------------------------------------------

    \13\ See section 771(10) of the Act.
    \14\ 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 analyzed industry support in terms 
of that domestic like product.\15\
---------------------------------------------------------------------------

    \15\ For a discussion of the domestic like product analysis in 
this investigation, see Antidumping Duty Investigation Initiation 
Checklist: Certain Softwood Lumber Products from Canada (Canada AD 
Initiation Checklist) at Attachment II, Analysis of Industry Support 
for the Antidumping and Countervailing Duty Petitions Covering 
Certain Softwood Lumber Products (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 (CRU), Room B8024 of the main Department of 
Commerce building.
---------------------------------------------------------------------------

    In determining whether Petitioner has standing under section 
732(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.\16\ Petitioner also 
estimated the 2015 softwood lumber production of those U.S. softwood 
lumber producers/sawmills whose workers are represented

[[Page 93894]]

by the Carpenters Industrial Council, a recognized union and a member 
of the COALITION.\17\ 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.\18\ 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.\19\ We relied upon data Petitioner provided for purposes of 
measuring industry support.\20\
---------------------------------------------------------------------------

    \16\ See Petition, Volume I, at 6-7 and Exhibit 10; see also 
Petition Supplement, at 8-9 and Exhibit 10.
    \17\ See id. at 6-9 and Exhibits 10 and 14.
    \18\ Id., at 4-6 and Exhibits 2 and 56.
    \19\ See id. at 4-10 and Exhibit 10; see also Petition 
Supplement, at 8-9 and Exhibit 10.
    \20\ See Canada AD Initiation Checklist, at Attachment II.
---------------------------------------------------------------------------

    On December 7, 2016, we received comments on industry support from 
the GOC.\21\ Petitioner responded to the GOC's Comments on December 8, 
2016.\22\ For further discussion of these comments, see the Canada AD 
Initiation Checklist, at Attachment II.
---------------------------------------------------------------------------

    \21\ See Consultation Document Memorandum, at Attachment 1; see 
also Consultation Document Memorandum, at Attachment 3.
    \22\ See Consultation Document Memorandum, at Attachment 1.
---------------------------------------------------------------------------

    Our review of the data provided in the Petition, Petition 
Supplement, letters from the GOC and Petitioner, and other information 
readily available to the Department indicates that Petitioner has 
established industry support.\23\ 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).\24\ Second, the domestic 
producers and workers have met the statutory criteria for industry 
support under section 732(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.\25\ 
Finally, the domestic producers and workers have met the statutory 
criteria for industry support under section 732(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.\26\ Accordingly, the Department 
determines that the Petition was filed on behalf of the domestic 
industry within the meaning of section 732(b)(1) of the Act.
---------------------------------------------------------------------------

    \23\ See Canada AD Initiation Checklist, at Attachment II.
    \24\ See section 732(c)(4)(D) of the Act; see also Canada AD 
Initiation Checklist, at Attachment II.
    \25\ See Canada AD Initiation Checklist, at Attachment II.
    \26\ 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 AD investigation that it is 
requesting the Department initiate.\27\
---------------------------------------------------------------------------

    \27\ Id.
---------------------------------------------------------------------------

Allegations and Evidence of Material Injury and Causation

    Petitioner alleges that the U.S. industry producing the domestic 
like product is being materially injured, or is threatened with 
material injury, by reason of the imports of the subject merchandise 
sold at less than normal value (NV). In addition, Petitioner alleges 
that subject imports exceed the negligibility threshold provided for 
under section 771(24)(A) of the Act.\28\
---------------------------------------------------------------------------

    \28\ 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.\29\ 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.\30\
---------------------------------------------------------------------------

    \29\ 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.
    \30\ See Canada AD 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 (Attachment 
III).
---------------------------------------------------------------------------

Allegations of Sales at Less-Than-Fair Value

    The following is a description of the allegations of sales at less-
than-fair value upon which the Department based its decision to 
initiate an investigation of imports of softwood lumber from Canada. 
The sources of data for the deductions and adjustments relating to U.S. 
price and NV are discussed in greater detail in the initiation 
checklist, issued concurrently with this notice.\31\
---------------------------------------------------------------------------

    \31\ See generally Canada AD Initiation Checklist.
---------------------------------------------------------------------------

Export Price

    Petitioner based U.S. price on five quoted sales offers to 
customers in the United States for Spruce Pine Fir (SPF) softwood 
lumber and kiln-dried Douglas Fir (DF) softwood lumber produced in, and 
exported from, Canada.\32\ Petitioner made deductions from U.S. price 
for movement expenses consistent with the delivery terms.\33\ 
Petitioner also deducted from U.S. price domestic brokerage and 
handling expenses and early payment discount expenses.\34\
---------------------------------------------------------------------------

    \32\ See Canada AD Initiation Checklist; see also Petition, 
Volume II, at 2-12 and Exhibit 72.
    \33\ See Canada AD Initiation Checklist; see also Petition, 
Volume II, at 6-12 and Exhibits 72, 73, and 75.
    \34\ See Canada AD Initiation Checklist; see also Petition, 
Volume II, at 6-7, 10-12 and Exhibits 72, 73, and 76.
---------------------------------------------------------------------------

NV Based on Home Market Sales

    Petitioner provided home market price information based on a price 
quote for SPF lumber produced in, and offered for sale in, Canada.\35\ 
Petitioner stated that the home market price quote was for SPF lumber 
identical to the SPF lumber in U.S. Offers 1 and 2.\36\ Petitioner made 
deductions from the home market price for inland freight charges and 
payment discounts.\37\
---------------------------------------------------------------------------

    \35\ See Canada AD Initiation Checklist at 9; see also Petition, 
Volume II, at 12 and Exhibit 77; General Issues Supplement, at 
Exhibit 77.
    \36\ See Canada AD Initiation Checklist; see also Petition, 
Volume II, at 12-13.
    \37\ See Canada AD Initiation Checklist at 9; see also Petition, 
Volume II, at 13-14 and Exhibits 73 and 77; General Issues 
Supplement, at Exhibit 77.
---------------------------------------------------------------------------

NV Based on Constructed Value

    For U.S. price Offers 3, 4, and 5, Petitioner was unable to obtain 
information regarding home market prices and, therefore, calculated NV 
based on constructed value (CV).\38\ Pursuant to section 773(e) of the 
Act, CV consists of the cost of manufacturing (COM), selling, general 
and administrative (SG&A) expenses, financial expenses, packing 
expenses, and profit. Petitioner calculated COM based on publicly 
available sources containing detailed region or province-

[[Page 93895]]

specific log and sawmill production costs.\39\ Specifically, Petitioner 
relied on the information reported in the Wood Markets' Cost Benchmark 
Report and Quarterly Update publications, adjusted for contemporaneity 
and to reflect more specific product costs where information was 
publicly available, as well as information published by provincial 
offices in Canada.\40\ To determine the SG&A, and financial expense 
rates, Petitioner relied on the audited financial statements of a 
Canadian lumber producer.\41\ Petitioner also relied on the audited 
financial statements of the same producer that was used for calculating 
the SG&A, and financial expenses to calculate the profit rate.\42\
---------------------------------------------------------------------------

    \38\ See Canada AD Initiation Checklist at 10-13; see also 
Petition, Volume II, at 15-16. In accordance with section 505(a) of 
the Trade Preferences Extension Act of 2015, amending section 
773(b)(2) of the Act, for all of the investigations, the Department 
will request information necessary to calculate the cost of 
production (COP) and CV to determine whether there are reasonable 
grounds to believe or suspect that sales of the foreign like product 
have been made at prices that represent less than the COP of the 
product. The Department will no longer require a COP allegation to 
conduct this analysis.
    \39\ See Canada AD Initiation Checklist; see also Petition, 
Volume II, at 17-19.
    \40\ See Petition, Volume II, at 17-34 and Exhibits 69, 78, 82, 
85, 87, 94, and 95.
    \41\ See Canada AD Initiation Checklist at 11.
    \42\ Id.
---------------------------------------------------------------------------

Fair Value Comparisons

    Based on the data provided by Petitioner, there is reason to 
believe that imports of softwood lumber from Canada, are being, or are 
likely to be, sold in the United States at less-than-fair value. Based 
on comparisons of EP to NV in accordance with sections 773(a) and (e) 
of the Act, the estimated dumping margins for softwood lumber range 
from 20.12 percent to 53.08 percent.\43\
---------------------------------------------------------------------------

    \43\ See Petition Supplement at 10; see also Revised Exhibit 73; 
Canada AD Initiation Checklist at 15.
---------------------------------------------------------------------------

Initiation of Less-than-Fair-Value Investigation

    Based upon the examination of the AD Petition on softwood lumber 
from Canada, we find that the Petition meets the requirements of 
section 732 of the Act. Therefore, we are initiating an AD 
investigation to determine whether imports of softwood lumber for 
Canada are being, or are likely to be, sold in the United States at 
less-than-fair value. In accordance with section 733(b)(1)(A) of the 
Act and 19 CFR 351.205(b)(1), unless postponed, we will make our 
preliminary determination no later than 140 days after the date of this 
initiation.
    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.\44\ 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 International Trade Commission 
(ITC).\45\ The amendments to sections 771(15), 773, 776, and 782 of the 
Act are applicable to all determinations made on or after August 6, 
2015, and, therefore, apply to this AD investigation.\46\
---------------------------------------------------------------------------

    \44\ See Trade Preferences Extension Act of 2015, Pub. L. 114-
27, 129 Stat. 362 (2015).
    \45\ 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).
    \46\ Id., at 46794-95. The 2015 amendments may be found at 
https://www.congress.gov/bill/114th-congress/house-bill/1295/text/pl.
---------------------------------------------------------------------------

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.\47\
---------------------------------------------------------------------------

    \47\ See Petition, Volume I, at 67-78.
---------------------------------------------------------------------------

    Section 733(e)(1) of the Act states 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 that under, 
subparagraph (A)(i), there is a history of dumping and there is 
material injury by reason of dumped imports in the United States or 
elsewhere of the subject merchandise, or (ii) the person by whom, or 
for whose account, the merchandise was imported knew or should have 
known that the exporter was selling the subject merchandise at less 
than its fair value and that there was likely to be material injury by 
reason of such sales, and (B) 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) \48\ and ending at least three months later. The 
regulations also provide, however, that if the Department ``finds that 
importers, or exporters and 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.'' \49\
---------------------------------------------------------------------------

    \48\ See 19 CFR 351.102(b)(40) (providing that a proceeding 
begins on the date of the filing of a petition).
    \49\ See id.
---------------------------------------------------------------------------

    Petitioner alleges that there is a history of dumping and material 
injury by reason of dumped imports of softwood lumber, and that U.S. 
importers knew or should have known that softwood lumber was being sold 
at less-than-fair value and that there was likely to be material injury 
by reason of such sales.\50\ Petitioner notes that, in a previous 
investigation, the Department made a final affirmative antidumping 
determination on softwood lumber imports from Canada.\51\ Additionally, 
in the final results of two administrative reviews of the resulting 
order on softwood lumber, and in the preliminary results of a third 
review, the Department found that softwood lumber from Canada continued 
to be sold for less-than-fair value.\52\
---------------------------------------------------------------------------

    \50\ Id. at 67-78.
    \51\ Id. at 76.
    \52\ Id.
---------------------------------------------------------------------------

    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 an antidumping duty petition was likely.\53\ 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 an AD petition.\54\ 
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 antidumping duties.\55\ 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 93896]]

August 2016 (comparison period).\56\ Based on Petitioner's calculation, 
the import volume of softwood lumber surged 25.56 percent between the 
base and comparison period, and the value of imports surged 18.11 
percent.\57\ 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.
---------------------------------------------------------------------------

    \53\ Id. at 69-70.
    \54\ 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 an AD petition. Id. at 
70-72.
    \55\ Id. at 72-73.
    \56\ Id. at 73-74.
    \57\ Id.
---------------------------------------------------------------------------

    Petitioner requests that the Department make a preliminary finding 
of critical circumstances within 45 days of the filing of the 
Petition.\58\ Section 732(e) of the Act states that when there is a 
reasonable basis to believe or suspect (1) there is a history of 
dumping in the United States or elsewhere of the subject merchandise, 
or (2) the person by whom, or for whose account, the merchandise was 
imported knew, or should have known, that the exporter was selling the 
subject merchandise at less-than-fair value, the Department may request 
Customs and Border Protection (CBP) to compile information on an 
expedited basis regarding entries of the subject merchandise.
---------------------------------------------------------------------------

    \58\ Id. at 69.
---------------------------------------------------------------------------

    Taking into consideration the foregoing, we will analyze this 
matter further. We will monitor imports of softwood lumber from Canada 
and may request that CBP compile information on an expedited basis 
regarding entries of subject merchandise.\59\ 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.\60\
---------------------------------------------------------------------------

    \59\ See Section 732(e) of the Act.
    \60\ See Policy Bulletin 98/4, 63 FR 55364 (October 15, 1998).
---------------------------------------------------------------------------

Respondent Selection

    Based on information reasonably available to it, Petitioner 
identified over 400 companies in Canada as producers/exporters of 
softwood lumber.\61\ Following standard practice in AD investigations 
involving market economy countries, 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 the CBP data under 
Administrative Protective Order (APO) to all parties with access to 
information protected by APO on the record 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. Parties wishing to submit rebuttal comments should 
submit those comments five calendar days after the deadline for the 
initial comments.
---------------------------------------------------------------------------

    \61\ See Petition, Volume I, at 28 and Exhibit 61.
---------------------------------------------------------------------------

    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 732(b)(3)(A) of the Act and 19 CFR 
351.202(f), copies of the public version of the Petition have been 
provided to the GOC via ACCESS. Because of the particularly large 
number of producers/exporters identified in the Petition,\62\ 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).
---------------------------------------------------------------------------

    \62\ See Petition, Volume I, at Exhibit 61.
---------------------------------------------------------------------------

ITC Notification

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

Preliminary Determinations by the ITC

    The ITC will preliminarily determine, within 45 days after the date 
on which the Petition was filed, whether there is a reasonable 
indication that imports of softwood lumber from Canada are materially 
injuring or threatening material injury to a U.S. industry.\63\ A 
negative ITC determination will result in the investigation being 
terminated; \64\ otherwise, the investigation will proceed according to 
statutory and regulatory time limits.
---------------------------------------------------------------------------

    \63\ See section 733(a) of the Act.
    \64\ Id.
---------------------------------------------------------------------------

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)-(iv). Any party, when submitting 
factual information, must 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 the submission of factual information are addressed in 19 CFR 
351.301, which provides specific time limits based on the type of 
factual information being submitted. Parties should review the 
regulations prior to submitting factual information in the 
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 established under Part 351 expires. 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 time 
limit by which extension requests will be considered untimely for 
submissions which are due from multiple parties simultaneously. In such 
a case, we will inform parties in the letter or memorandum setting 
forth the deadline (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.

[[Page 93897]]

Certification Requirements

    Any party submitting factual information in an AD or CVD proceeding 
must certify to the accuracy and completeness of that information.\65\ 
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 
formats for the revised certifications provided at the end of the Final 
Rule.\66\ The Department intends to reject factual submissions if the 
submitting party does not comply with applicable revised certification 
requirements.
---------------------------------------------------------------------------

    \65\ See section 782(b) of the Act.
    \66\ See Certification of Factual Information to Import 
Administration during Antidumping and Countervailing Duty 
Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule); see also 
frequently asked questions regarding the Final Rule, 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 of letters of appearance as discussed in 19 CFR 351.103(d)).
    This notice is issued and published pursuant to section 777(i) of 
the Act and 19 CFR 351.203(c).

    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. 2016-30780 Filed 12-21-16; 8:45 am]
 BILLING CODE 3510-DS-P