[Federal Register Volume 88, Number 143 (Thursday, July 27, 2023)]
[Notices]
[Pages 48440-48442]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-15951]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-122-858]


Certain Softwood Lumber From Canada: Notice of Initiation of 
Changed Circumstances Review

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

SUMMARY: Based on a request from the Committee Overseeing Action for 
Lumber International Trade Investigations or Negotiations (the 
petitioner), the U.S. Department of Commerce (Commerce) is initiating a 
changed circumstances review (CCR) of the countervailing duty (CVD) 
order on certain softwood lumber from Canada.

DATES: Applicable July 27, 2023.

FOR FURTHER INFORMATION CONTACT: Samuel Brummitt, AD/CVD Operations, 
Office III, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-7851.

SUPPLEMENTARY INFORMATION:

Background

    On January 3, 2018, Commerce published the CVD order on certain 
softwood lumber from Canada.\1\ On May 11, 2023, the petitioner 
requested that Commerce initiate a CCR of the Order, pursuant to 
section 751(b)(1) of the Tariff Act of 1930, as amended (the Act), 19 
CFR 351.216, and 19 CFR 251.221(c)(3).\2\ Specifically, the petitioner 
requests that Commerce determine that Interfor Corporation, EACOM 
Timber Corporation, Chaleur Forest Products Inc., and Chaleur Forest 
Products LP are cross-owned entities.\3\
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    \1\ See Certain Softwood Lumber Products from Canada: Amended 
Final Affirmative Countervailing Duty Determination and 
Countervailing Duty Order, 83 FR 347 (January 3, 2018) (Order).
    \2\ See the Petitioner's Letter, ``Certain Softwood Lumber 
Products from Canada: Request for Changed Circumstances Review,'' 
dated May 11, 2023 (Petitioner's Request for CCR).
    \3\ Id.
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Scope of the Order

    The merchandise covered by this Order 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.
    Finished products are not covered by the scope of this Order. For 
the purposes of this scope, finished products contain, or are comprised 
of, subject merchandise and have undergone sufficient processing such 
that they can no longer be considered intermediate products, and such 
products can be readily differentiated from merchandise subject to this 
Order at the time of importation. Such differentiation may, for 
example, be shown through marks of special adaptation as a particular 
product. The following products are illustrative of the type of 
merchandise that is considered ``finished,'' for the purpose of this 
scope: I-joists; assembled pallets; cutting boards; assembled picture 
frames; garage doors.
    The following items are excluded from the scope of this Order:
     Softwood lumber products certified by the Atlantic Lumber 
Board as being first produced in the Provinces of Newfoundland and 
Labrador, Nova Scotia, or Prince Edward Island from logs harvested in 
Newfoundland and Labrador, Nova Scotia, or Prince Edward Island.
     U.S.-origin lumber shipped to Canada for processing and 
imported into the United States if the processing occurring in Canada 
is limited to one or more of the following: (1) Kiln drying; (2) 
planing to create smooth-to-size board; or (3) sanding.
     Box-spring frame kits if they contain the following wooden 
pieces--two side rails, two end (or top) rails and varying numbers of 
slats. The side rails and the end rails must be radius-cut at both 
ends. The kits must be individually packaged and must contain the exact 
number of wooden components needed to make a particular box-spring 
frame, with no further processing required. None of the components 
exceeds 1'' in actual thickness or 83'' in length.
     Radius-cut box-spring-frame components, not exceeding 1'' 
in actual thickness or 83'' in length, ready for assembly without 
further processing. The radius cuts must be present on both ends of the 
boards and must be substantially cut so as to completely round one 
corner.
    Softwood lumber product imports are generally entered under Chapter 
44 of the HTSUS. This chapter of the HTSUS covers ``Wood and articles 
of wood.'' Softwood lumber products that are subject to this Order are 
currently classifiable under the following ten-digit HTSUS subheadings 
in Chapter 44: 4406.11.00.00; 4406.91.00.00; 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; 4407.11.00.01; 4407.11.00.02;

[[Page 48441]]

4407.11.00.42; 4407.11.00.43; 4407.11.00.44; 4407.11.00.45; 
4407.11.00.46; 4407.11.00.47; 4407.11.00.48; 4407.11.00.49; 
4407.11.00.52; 4407.11.00.53; 4407.12.00.01; 4407.12.00.02; 
4407.12.00.17; 4407.12.00.18; 4407.12.00.19; 4407.12.00.20; 
4407.12.00.58; 4407.12.00.59; 4407.13.00.00; 4407.14.00.00; 
4407.19.00.01; 4407.19.00.02; 4407.19.00.54; 4407.19.00.55; 
4407.19.00.56; 4407.19.00.57; 4407.19.00.64; 4407.19.00.65; 
4407.19.00.66; 4407.19.00.67; 4407.19.00.68; 4407.19.00.69; 
4407.19.00.74; 4407.19.00.75; 4407.19.00.76; 4407.19.00.77; 
4407.19.00.82; 4407.19.00.83; 4407.19.00.92; 4407.19.00.93; 
4407.19.05.00; 4407.19.06.00; 4407.19.10.01; 4407.19.10.02; 
4407.19.10.54; 4407.19.10.55; 4407.19.10.56; 4407.19.10.57; 
4407.19.10.64; 4407.19.10.65; 4407.19.10.66; 4407.19.10.67; 
4407.19.10.68; 4407.19.10.69; 4407.19.10.74; 4407.19.10.75; 
4407.19.10.76; 4407.19.10.77; 4407.19.10.82; 4407.19.10.83; 
4407.19.10.92; 4407.19.10.93; 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; 4418.30.01.00; 4418.50.00.10; 
4418.50.00.30; 4418.50.0050; and 4418.99.10.00; 4418.99.91.05; 
4418.99.91.20; 4418.99.91.40; 4418.99.91.95; 4421.99.98.80.\4\
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    \4\ The following HTSUS numbers have been deleted, deactivated, 
replaced, or are invalid: 4407.10.0101, 4407.10.0102, 4407.10.0115, 
4407.10.0116, 4407.10.0117, 4407.10.0118, 4407.10.0119, 
4407.10.0120, 4407.10.0142, 4407.10.0143, 4407.10.0144, 
4407.10.0145, 4407.10.0146, 4407.10.0147, 4407.10.0148, 
4407.10.0149, 4407.10.0152, 4407.10.0153, 4407.10.0154, 
4407.10.0155, 4407.10.0156, 4407.10.0157, 4407.10.0158, 
4407.10.0159, 4407.10.0164, 4407.10.0165, 4407.10.0166, 
4407.10.0167, 4407.10.0168, 4407.10.0169, 4407.10.0174, 
4407.10.0175, 4407.10.0176, 4407.10.0177, 4407.10.0182, 
4407.10.0183, 4407.10.0192, 4407.10.0193; and 4418.90.2500. These 
HTSUS numbers however have not been deactivated in CBP's ACE secure 
data portal, as they could be associated with entries of 
unliquidated subject merchandise.
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    Subject merchandise as described above might be identified on entry 
documentation as stringers, square cut box-spring-frame components, 
fence pickets, truss components, pallet components, flooring, and door 
and window frame parts. Items so identified might be entered under the 
following ten-digit HTSUS subheadings in Chapter 44: 4415.20.40.00; 
4415.20.80.00; 4418.99.90.05; 4418.99.90.20; 4418.99.90.40; 
4418.99.90.95; 4421.99.70.40; and 4421.99.97.80.
    Although these HTSUS subheadings are provided for convenience and 
customs purposes, the written description of the scope of this Order is 
dispositive.\5\
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    \5\ See Order, 83 FR at 349.
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Initiation of Changed Circumstances Review

    Pursuant to section 751(b) of the Act, Commerce will conduct a CCR 
upon receipt of a request from an interested party \6\ that shows 
changed circumstances sufficient to warrant a review of an order. In 
accordance with 19 CFR 351.216(d), Commerce determines that the 
Petitioner's Request for CCR constitutes a sufficient basis to conduct 
a CCR of the Order. Therefore, in accordance with section 751(b)(1)(A) 
of the Act and 19 CFR 351.216(d), we are initiating a CCR based upon 
the information contained in the Petitioner's Request for CCR.
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    \6\ The petitioner is an ad hoc association and the majority the 
members of the association are composed of interested parties as 
described in section 771(9)(C), (D), and (E) of the Act, with 
respect to a domestic like product.
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    Neither the Act, the Statement of Administrative Action 
Accompanying the Uruguay Round Agreements Act, or Commerce's 
regulations offer a definition of the term ``changed circumstances,'' 
nor do they explain what aspects of a determination may be reconsidered 
in light of such changed circumstances. Commerce has in the past 
conducted CCRs regarding a variety of issues.\7\
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    \7\ See, e.g., Aluminum Extrusions from the People's Republic of 
China: Initiation and Preliminary Results of Expedited Changed 
Circumstances Review, 83 FR 34548 (July 20, 2018) (finding 
sufficient information to initiate a CCR to recalculate certain cash 
deposit rates); see also Certain Steel Nails from Malaysia: Final 
Results of the Changed Circumstances Review, 82 FR 34476 (July 25, 
2017) (finding sufficient information and ``good cause'' to initiate 
a CCR to evaluate whether a company was properly utilizing the 
correct cash deposit rate).
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    This CCR is a request to investigate potential cross-ownership 
among four exporter/producers subject to the Order that have never been 
selected for individual examination: Interfor Corporation, EACOM Timber 
Corporation, Chaleur Forest Products Inc., and Chaleur Forest Products 
LP.\8\
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    \8\ We note that the nature of this CCR request is distinct from 
that of a CVD ``successor-in-interest'' (SII) CCR request that 
Commerce more commonly receives, which clarifies the appropriate 
cash deposit rate for an entity and which is governed by the 
practice laid out in Certain Pasta from Turkey: Preliminary Results 
of Countervailing Duty Changed Circumstances Review, 74 FR 47225 
(September 15, 2009), unchanged in Certain Pasta from Turkey: Final 
Results of Countervailing Duty Changed Circumstances Review, 74 FR 
54022 (October 21, 2009).
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    A potential affirmative finding of cross-ownership regarding 
Interfor Corporation, EACOM Timber Corporation, Chaleur Forest Products 
Inc., and Chaleur Forest Products LP could result in a cross-owned 
entity that is large enough to be selected as a respondent in a future 
administrative review.\9\ We note that this request arises in the 
context of a longstanding proceeding that is generally characterized by 
the relatively dominant position of a handful of large Canadian 
producers/exporters that routinely get selected as mandatory 
respondents within a broader field of dozens of much smaller producers/
exporters. Accordingly, recognizing it is not Commerce's general 
practice to routinely initiate CCR requests in proceedings simply 
because there may be some indication of cross-ownership between two or 
more exporters, we find the circumstances here to be relatively unique. 
Moreover, the petitioner has provided a sufficient factual basis to 
support initiation of this CCR.
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    \9\ This is relevant given Commerce's longstanding practice not 
to make de novo cross-ownership findings at the respondent selection 
stage.
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    For the reasons outlined above, Commerce determines that the issue 
raised by the petitioner of whether Interfor Corporation, EACOM Timber 
Corporation, Chaleur Forest Products Inc., and Chaleur Forest Products 
LP are cross-owned constitutes a sufficient basis to conduct a CCR of 
the Order. Accordingly, in accordance with section 751(b)(1)(A) of the 
Act and 19 CFR 351.216(d), we are initiating a CCR based upon the 
information contained in the petitioner's submission.
    In the event that Commerce determines an expedited action is 
warranted, 19 CFR 351.221(c)(3)(ii) permits Commerce to combine the 
notice of initiation of the review and the preliminary results of 
review into a single notice. However, we are not combining this notice 
of initiation with the preliminary results, pursuant to 19 CFR 
351.221(c)(3)(ii), because Commerce has determined that it is necessary 
to issue a questionnaire to Interfor Corporation and gather additional 
information regarding the company's corporate structure and ownership. 
After examining any properly filed comments and following up with any 
additional questionnaires as needed, we intend to issue the preliminary 
results of this CCR.

Preliminary and Final Results of the CCR

    Commerce intends to publish in the Federal Register a notice of the

[[Page 48442]]

preliminary results of this CCR in accordance with 19 CFR 351.221(b)(4) 
and (c)(3)(i). Commerce will set forth its preliminary factual and 
legal conclusions in that notice regarding the factual question of 
whether Interfor Corporation, EACOM Timber Corporation, Chaleur Forest 
Products Inc., and Chaleur Forest Products LP are cross-owned.\10\ 
Unless extended, Commerce will issue the final results of this CCR in 
accordance with the time limits set forth in 19 CFR 351.216(e).
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    \10\ Commerce does not intend to identify in this CCR the 
appropriate cash deposit rate in the event these parties are 
determined to be cross-owned, as that is the purpose of a SII CCR 
review.
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Notification to Interested Parties

    This initiation notice is published in accordance with section 
751(b)(1) of the Act, 19 CFR 351.216(d), and 19 CFR 351.221(b)(1).

    Dated: July 21, 2023.
James Maeder,
Deputy Assistant Secretary for Antidumping and Countervailing Duty 
Operations.
[FR Doc. 2023-15951 Filed 7-26-23; 8:45 am]
BILLING CODE 3510-DS-P