[Federal Register Volume 89, Number 145 (Monday, July 29, 2024)]
[Notices]
[Pages 60869-60871]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-16635]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-122-858]


Certain Softwood Lumber Products from Canada: Notice of 
Initiation of Countervailing Duty Changed Circumstances Review

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


[[Page 60870]]


SUMMARY: Based on a request from TRAPA Forest Products Ltd. (TRAPA), 
the U.S. Department of Commerce (Commerce) is initiating a changed 
circumstances review (CCR) of the countervailing duty (CVD) order on 
certain softwood lumber products from Canada to determine whether TRAPA 
is the successor-in-interest (SII) to Trans-Pacific Trading Ltd. 
(Trans-Pacific).

DATES: Applicable July 29, 2024.

FOR FURTHER INFORMATION CONTACT: Kristen Johnson, 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) 482-4793.

SUPPLEMENTARY INFORMATION:

Background

    On January 3, 2018, Commerce published the CVD order on certain 
softwood lumber products from Canada.\1\ On April 11, 2024, TRAPA 
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\ We found TRAPA's CCR request 
to be deficient and issued a letter to TRAPA on May 8, 2024.\3\ On June 
7, 2024, TRAPA submitted an amended CCR request providing additional 
information and documentation.\4\ In its CCR request, TRAPA stated that 
there was a company name change from Trans-Pacific to TRAPA on April 8, 
2024, and thus, TRAPA is the SII to Trans-Pacific. TRAPA requests that 
Commerce assign to TRAPA the same CVD cash deposit rate that it has or 
may assign to Trans-Pacific and to conduct the CCR on an expedited 
basis.
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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 TRAPA's Letter, ``Request for Expedited Changed 
Circumstances Review,'' dated April 11, 2024.
    \3\ See Commerce's Letter, ``Response to Changed Circumstances 
Review Request,'' dated May 8, 2024.
    \4\ See TRAPA's Letter, ``Amended Request for Expedited Changed 
Circumstances Review,'' dated June 7, 2024 (TRAPA's CCR Request).
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    On July 22, 2024, Commerce tolled certain deadlines in this 
administrative proceeding by seven days.\5\ The deadline for the 
initiation is now July 29, 2024.
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    \5\  See Memorandum, ``Tolling of Deadlines for Antidumping and 
Countervailing Duty Proceedings,'' dated July 22, 2024.
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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 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 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; 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;

[[Page 60871]]

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.\6\
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    \6\ 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.\7\
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    \7\  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 that shows changed 
circumstances sufficient to warrant a review of an order. In accordance 
with 19 CFR 351.216(d), Commerce determines that the information 
submitted by TRAPA in its request for a 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 TRAPA's CCR 
Request.
    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.\8\ Here, TRAPA requests 
that Commerce initiate a CCR to determine that it is the SII to Trans-
Pacific based on a name change.\9\
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    \8\  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).
    \9\ In CVD CCRs involving SII determinations, Commerce follows 
the practice described 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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    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 determines that it requires 
additional time to analyze the CCR request.

Preliminary and Final Results of the CCR

    Commerce intends to publish in the Federal Register a notice of the 
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 TRAPA's CCR Request. 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).

Notification to Interested Parties

    We are issuing and publishing this initiation notice in accordance 
with sections 751(b)(1) and 777(i) of the Act, 19 CFR 351.216(b), and 
19 CFR 351.221(b)(1).

    Dated: July 23, 2024.
Scot Fullerton,
Acting Deputy Assistant Secretary for Antidumping and Countervailing 
Duty Operations.
[FR Doc. 2024-16635 Filed 7-26-24; 8:45 am]
BILLING CODE 3510-DS-P