[Federal Register Volume 82, Number 81 (Friday, April 28, 2017)]
[Notices]
[Pages 19657-19659]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-08673]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[C-122-858]
Certain Softwood Lumber Products From Canada: Preliminary
Affirmative Countervailing Duty Determination, and Alignment of Final
Determination With Final Antidumping Duty Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (the Department) preliminarily
determines that countervailable subsidies are being provided to
producers and exporters of certain softwood lumber products (softwood
lumber) from Canada. The period of investigation is January 1, 2015,
through December 31, 2015.
DATES: Effective April 28, 2017.
FOR FURTHER INFORMATION CONTACT: Lana Nigro (Tolko), Toby Vandall
(Canfor), Justin Neuman (JDIL), Patricia Tran (West Fraser), and
Kristen Johnson (Resolute), AD/CVD Operations, Offices I and III,
Enforcement and Compliance, International Trade Administration, U.S.
Department of Commerce, 1401 Constitution Avenue NW., Washington, DC
20230; telephone: (202) 482-1779, (202) 482-1664, (202) 482-0486, (202)
482-1503, and (202) 482-4793, respectively.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is made in accordance with section
703(b) of the Tariff Act of 1930, as amended (the Act). The Department
published the notice of initiation of this investigation on December
22, 2017.\1\ On February 2, 2017, the Department postponed the
preliminary determination of this investigation and the revised
deadline is now April 24, 2017.\2\
---------------------------------------------------------------------------
\1\ See Certain Softwood Lumber Products from Canada: Initiation
of Countervailing Duty Investigation, 81 FR 93897 (December 22,
2016) (Initiation Notice).
\2\ See Certain Softwood Lumber Products from Canada:
Postponement of Preliminary Determination in the Countervailing Duty
Investigation, 82 FR 9055 (February 2, 2017).
---------------------------------------------------------------------------
On April 13, 2017, the Department preliminarily determined that
critical circumstances exist with respect to certain companies.\3\ For
a complete description of the events that followed the initiation of
this investigation, see the Preliminary Decision Memorandum.\4\ A list
of topics discussed in the Preliminary Decision Memorandum is included
as Appendix II to this notice. The Preliminary Decision Memorandum is a
public document and is on file electronically via Enforcement and
Compliance's Antidumping and Countervailing Duty Centralized Electronic
Service System (ACCESS). ACCESS is available to registered users at
http://access.trade.gov, and is available to all parties in the Central
Records Unit, room B8024 of the main Department of Commerce building.
In addition, a complete version of the Preliminary Decision Memorandum
can be accessed directly at http://enforcement.trade.gov/frn/. The
signed and electronic versions of the Preliminary Decision Memorandum
are identical in content.
---------------------------------------------------------------------------
\3\ See Antidumping and Countervailing Duty Investigations of
Certain Softwood Lumber Products from Canada: Preliminary
Determinations of Critical Circumstances, signed April 13, 2017
(Preliminary CC Determination).
\4\ See Memorandum, ``Decision Memorandum for the Preliminary
Determination in the Countervailing Duty Investigation of Certain
Softwood Lumber Products from Canada,'' dated concurrently with, and
hereby adopted by, this notice (Preliminary Decision Memorandum).
---------------------------------------------------------------------------
Scope of the Investigation
The product covered by this investigation is softwood lumber from
Canada. For a complete description of the scope of this investigation,
see Appendix I.
Scope Comments
In accordance with the preamble to the Department's regulations,\5\
the Initiation Notice set aside a period of time for parties to raise
issues regarding product coverage, (i.e., scope).\6\ Certain interested
parties commented on the scope of the investigation as it appeared in
the Initiation Notice as well as on additional language proposed by the
Department. On March 29, 2017, a letter presenting a proposal for
company exclusions was filed on behalf of the Government of Canada
(GOC), Canadian provincial and territorial governments, as well as the
Canadian industry associations.\7\ The Department finds that it lacks
the authority to conduct the requested company exclusion process in the
context of this countervailing duty investigation (CVD) on softwood
lumber from Canada.\8\
---------------------------------------------------------------------------
\5\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997).
\6\ See Initiation Notice.
\7\ See letter from the Government of Canada, ``Proposal for
Company Exclusions,'' dated March 29, 2017; see also letter from the
Government of New Brunswick, ``Softwood Lumber from Canada:
Proposals for Product- or Company-Based Exclusions from the CVD
Investigation,'' dated March 31, 2017; letter from Government of
British Columbia, ``Certain Softwood Lumber Products from Canada:
Comments in Support of Clarifying and Exclusionary Language Proposed
by Canada Regarding the Scope of these Investigations,'' dated April
3, 2017.
\8\ See Memorandum from Gary Taverman, Associate Deputy
Assistant Secretary for Antidumping and Countervailing Duty
Operations, to Ronald K. Lorentzen, Acting Assistant Secretary for
Enforcement and Compliance, dated April 24, 2017.
---------------------------------------------------------------------------
With respect to other proposed scope exclusions, including the
request to exclude merchandise from certain provinces, the Department
is inviting comments on those proposed exclusions and will incorporate
the decisions into the final CVD and AD determinations after
considering any relevant comments submitted in case and rebuttal
briefs. Comments on any proposed scope exclusions are due no later than
seven days of publication of this notice in the Federal Register.
Please note that the Department will not accept any new factual
information in these submissions. The Department intends to set the
same deadline on the record of the companion AD investigation. For
further information regarding proposed scope excusions, see the
Preliminary Decision Memorandum accompanying this notice.
Methodology
The Department is conducting this investigation in accordance with
section 701 of the Act. For each of the subsidy programs found
countervailable, the Department preliminarily determines that there is
a subsidy, i.e., a financial contribution by an ``authority'' that
gives rise to a benefit to the recipient, and that the subsidy is
specific.\9\
---------------------------------------------------------------------------
\9\ See sections 771(5)(B) and (D) of the Act regarding
financial contribution; section 771(5)(E) of the Act regarding
benefit; and section 771(5A) of the Act regarding specificity.
---------------------------------------------------------------------------
Alignment
As noted in the Preliminary Decision Memorandum, in accordance with
section 705(a)(1) of the Act and 19 CFR 351.210(b)(4), the Department
is aligning the final CVD determination in this investigation with the
final determination in the companion AD
[[Page 19658]]
investigation of softwood lumber from Canada based on a request made by
the petitioner.\10\ Consequently, the final CVD determination will be
issued on the same date as the final AD determination, which is
currently scheduled to be issued no later than September 6, 2017,
unless postponed.
---------------------------------------------------------------------------
\10\ See Letter from the petitioner, ``Certain Softwood Lumber
Products from Canada: Request for Alignment of the Countervailing
Duty Final Determination with the Companion Antidumping Duty Final
Determination'' dated April 13, 2017.
---------------------------------------------------------------------------
All-Others Rate
Sections 703(d) and 705(c)(5)(A) of the Act provide that in the
preliminary determination, the Department shall determine an estimated
all-others rate for companies not individually examined. This rate
shall be an amount equal to the weighted average of the estimated
subsidy rates established for those companies individually examined,
excluding any zero and de minimis rates and any rates based entirely
under section 776 of the Act.
In this investigation, the Department calculated individually
estimated countervailable subsidy rates for Canfor Corporation
(Canfor), J.D. Irving, Limited (JDIL),\11\ Resolute FP Canada Inc.
(Resolute), Tolko Marketing and Sales Ltd. (Tolko), and West Fraser
Timber Co. Ltd. (West Fraser), that are not zero, de minimis, or based
entirely on facts otherwise available. The Department calculated the
all-others rate using a weighted-average of the individually estimated
subsidy rates calculated for the examined respondents using each
company's business proprietary data for the merchandise under
consideration.\12\
---------------------------------------------------------------------------
\11\ See MacLean-Fogg Co. v. United States, 753 F.3d 1237 (Fed.
Cir. 2014) (holding that voluntary respondents are considered
``individually investigated'' for purposes of calculating the all-
others rate). The Department accepted JDIL as a voluntary respondent
in this investigation.
\12\ See Memorandum to the File, ``Calculation of the ``All-
Others'' Rate in the Preliminary Determination of the Countervailing
Duty Investigation of Softwood Lumber Products from Canada'' (April
24, 2017).
---------------------------------------------------------------------------
Preliminary Determination
The Department preliminarily determines that the following
estimated countervailable subsidy rates exist:
------------------------------------------------------------------------
Subsidy rate
Company (%)
------------------------------------------------------------------------
Canfor Corporation and its cross-owned affiliates \13\.. 20.26
J.D. Irving, Limited and its cross-owned affiliates \14\ 3.02
Resolute FP Canada Inc. and its cross-owned affiliates 12.82
\15\...................................................
Tolko Marketing and Sales Ltd. and its cross-owned 19.50
affiliates \16\........................................
West Fraser Mills Ltd. and its cross-owned affiliates 24.12
\17\...................................................
All-Others:............................................. 19.88
------------------------------------------------------------------------
Suspension of Liquidation
In accordance with section 703(d)(1)(B) and (d)(2) of the Act, the
Department will direct U.S. Customs and Border Protection (CBP) to
suspend liquidation of entries of subject merchandise as described in
the scope of the investigation section entered, or withdrawn from
warehouse, for consumption on or after the date of publication of this
notice in the Federal Register. Further, pursuant to 19 CFR 351.205(d),
the Department will instruct CBP to require a cash deposit equal to the
rates indicated above.
---------------------------------------------------------------------------
\13\ The Department preliminarily has found the following
companies to be cross-owned with Canfor Corporation: Canadian Forest
Products, Ltd., and Canfor Wood Products Marketing, Ltd.
\14\ The Department preliminarily has found the following
companies to be cross-owned with JDIL: Miramichi Timber Holdings
Limited, The New Brunswick Railway Company, Rothesay Paper Holdings
Ltd., St. George Pulp & Paper Limited, and Irving Paper Limted.
\15\ The Department preliminarily has found the following
companies to be cross-owned with Resolute: Resolute Growth Canada
Inc., Resolute Sales Inc., Abitibi-Bowater Canada Inc., Bowater
Canadian Ltd., Resolute Forest Products Inc., Produits Forestiers
Maurice S.E.C., and 9192-8515 Quebec Inc.
\16\ The Department preliminarily has found the following
companies to be cross-owned with Tolko: Tolko Industries Ltd., and
Meadow Lake OSB Limited Partnership.
\17\ The Department preliminarily has found the following
companies to be cross-owned with West Fraser: West Fraser Timber Co.
Ltd., West Fraser Alberta Holdings, Ltd., Blue Ridge Lumber Inc.,
Manning Forest Products, Ltd., Sunpine Inc., and Sundre Forest
Products Inc.
---------------------------------------------------------------------------
Section 703(e)(2) of the Act provides that, given an affirmative
determination of critical circumstances, any suspension of liquidation
shall apply to unliquidated entries of merchandise entered, or
withdrawn from warehouse, for consumption on or after the later of (a)
the date which is 90 days before the date on which the suspension of
liquidation was first ordered, or (b) the date on which notice of
initiation of the investigation was published. As discussed in
Preliminary CC Determination, the Department preliminarily found that
critical circumstances exist for imports of subject merchandise
produced and/or exported by JDIL and the companies subject to the All-
Others rate.\18\ Accordingly, in accordance with section 703(e)(2)(A)
of the Act, the suspension of liquidation shall apply to unliquidated
entries of merchandise from the exporters/producers identified in this
paragraph that were entered, or withdrawn from warehouse, for
consumption on or after the date which is 90 days before the
publication of this notice.
---------------------------------------------------------------------------
\18\ See Antidumping and Countervailing Duty Investigations of
Certain Softwood Lumber Products from Canada: Preliminary
Determinations of Critical Circumstances, signed April 12, 2017
(Preliminary CC Determination).
---------------------------------------------------------------------------
Disclosure
The Department intends to disclose its calculations and analysis
performed to interested parties in this preliminary determination
within five days of its public announcement or within five days of the
date of this notice in accordance with 19 CFR 351.224(b).
Verification
As provided in section 782(i)(1) of the Act, the Department intends
to verify the information relied upon in making its final
determination.
Public Comment
Case briefs or other written comments may be submitted to the
Assistant Secretary for Enforcement and Compliance no later than seven
days after the date on which the last verification report is issued in
this investigation. Rebuttal briefs, limited to issues raised in case
briefs, may be submitted no later than five days after the deadline
date for case briefs.\19\ Pursuant to 19 CFR 351.309(c)(2) and (d)(2),
parties who submit case briefs or rebuttal briefs in this investigation
are encouraged to submit with each argument: (1) A statement of the
issue; (2) a brief summary of the argument; and (3) a table of
authorities.
---------------------------------------------------------------------------
\19\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general
filing requirements).
---------------------------------------------------------------------------
Pursuant to 19 CFR 351.310(c), interested parties who wish to
request a hearing, limited to issues raised in the
[[Page 19659]]
case and rebuttal briefs, must submit a written request to the
Assistant Secretary for Enforcement and Compliance, U.S. Department of
Commerce within 30 days after the date of publication of this notice.
Requests should contain the party's name, address, and telephone
number, the number of participants, whether any participant is a
foreign national, and a list of the issues to be discussed. If a
request for a hearing is made, the Department intends to hold the
hearing at the U.S. Department of Commerce, 1401 Constitution Avenue
NW., Washington, DC 20230, at a time and date to be determined and
interested parties will be notified by the Department, via letter.
Parties should confirm by telephone the date, time, and location of the
hearing two days before the scheduled date.
International Trade Commission Notification
In accordance with section 703(f) of the Act, the Department will
notify the International Trade Commission (ITC) of its determination.
If the final determination is affirmative, the ITC will determine
before the later of 120 days after the date of this preliminary
determination or 45 days after the final determination.
Notification to Interested Parties
This determination is issued and published pursuant to sections
703(f) and 777(i) of the Act and 19 CFR 351.205(c).
Dated: April 24, 2017.
Ronald K. Lorentzen,
Acting Assistant Secretary for Enforcement and Compliance.
Appendix I
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.
Appendix II
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Scope Comments and Requests for Exclusion
IV. Scope of the Investigation
V. Subsidies Valuation
VI. Analysis of Programs
VII. Calculation of the All-Others Rate
VIII. ITC Notification
IX. Disclosure and Public Comment
X. Verification
XI. Conclusion
[FR Doc. 2017-08673 Filed 4-27-17; 8:45 am]
BILLING CODE 3510-DS-P