[Federal Register Volume 86, Number 120 (Friday, June 25, 2021)]
[Notices]
[Pages 33660-33662]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-13623]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-122-858]


Certain Softwood Lumber Products From Canada: Notice of 
Initiation and Preliminary Results of Countervailing Duty Changed 
Circumstances Review

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

SUMMARY: The Department of Commerce (Commerce) is initiating a changed 
circumstances review (CCR) to determine whether Chaleur Forest Products 
LP (CFP LP) and Chaleur Forest Products Inc. (CFP Inc.) are the 
successors-in-interest (SIIs) to Chaleur Sawmills LP (Chaleur LP) and 
Fornebu Lumber Co. Inc. (Fornebu Inc.), respectively, in the context of 
the

[[Page 33661]]

countervailing duty (CVD) order on certain softwood lumber products 
(softwood lumber) from Canada. We also preliminarily determine that CFP 
LP and CFP Inc. are the SIIs to Chaleur LP and Fornebu Inc., 
respectively. Interested parties are invited to comment on these 
preliminary results.

DATES: Applicable June 25, 2021.

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 in the Federal Register a 
CVD order on softwood lumber from Canada.\1\ On March 11, 2021, CFP LP 
and CFP Inc. (collectively, the Chaleur Companies) requested that, 
pursuant to section 751(b) of the Tariff Act of 1930, as amended (the 
Act), 19 CFR 351.216, and 19 CFR 351.221(c)(3), Commerce conduct a CCR 
of the Order to confirm that CFP LP and CFP Inc. are the SIIs to 
Chaleur LP and Fornebu Inc., respectively, and accordingly, to assign 
them the cash deposit rates of Chaleur LP and Fornebu Inc.\2\ In its 
submission, the Chaleur Companies state that Chaleur LP and Fornebu 
Inc. undertook name changes to CFP LP and CFP Inc., respectively, but 
are otherwise unchanged.\3\ In a March 19, 2021, filing, the Committee 
Overseeing Action for Lumber International Trade Investigations or 
Negotiations (hereinafter referred to as the petitioner) argued that 
Fornebu Inc. was not eligible to receive a cash deposit rate that 
differs from the all-others rate that is listed in the Order and, thus, 
argued that Commerce should refrain from initiating the CCR.\4\ In a 
March 29, 2021, filing, the Chaleur Companies argue that Fornebu Inc. 
is eligible for a CCR and that Commerce should, therefore, initiate and 
preliminarily determine that CFP LP and CFP Inc. are the SIIs to 
Chaleur LP and Fornebu Inc, respectively.\5\
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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 Chaleur Companies' Letter, ``Certain Softwood Lumber 
Products from Canada: Chaleur's Request for Changed Circumstances 
Reviews,'' dated March 11, 2021 (CCR Request).
    \3\ Id. at 2-3.
    \4\ See Petitioner's Letter, ``Certain Softwood Lumber Products 
from Canada: Response to Chaleur's Response for Changed 
Circumstances Reviews,'' dated March 19, 2021.
    \5\ See Chaleur Companies' Letter, ``Certain Softwood Lumber 
Products from Canada: Rebuttal to Petitioner's Response to Chaleur's 
Request for Changed Circumstances Reviews,'' dated March 29, 2021.
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    On April 12, 2021, Commerce issued a deficiency letter to the 
Chaleur Companies requesting additional information and documentation 
regarding changes to operations, ownership, and corporate and legal 
structure during the relevant period.\6\ On May 3, 2021, the Chaleur 
Companies submitted an adequate response to the deficiency letter.\7\
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    \6\ See Commerce's Letter, ``Certain Softwood Lumber Products 
from Canada: Countervailing Duty Changed Circumstances Review 
Request: Response to CCR Request from Chaleur Forest Products LP 
(Chaleur FP LP) and Chaleur Forest Products Inc. (Chaleur FP Inc.) 
(collectively, the Chaleur Companies),'' dated April 12, 2021.
    \7\ See Chaleur Companies' Letter, ``Certain Softwood Lumber 
Products from Canada: Chaleur's Response to the Department's 
Deficiency Letter,'' dated May 3, 2021 (Deficiency Response).
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Scope of the Order

    The merchandise subject to the Order is certain softwood lumber 
products.\8\ The products are currently classified under the following 
Harmonized Tariff Schedule of the United States (HTSUS) item numbers: 
4406.11.0000; 4406.91.0000; 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; 
4407.19.05.00; 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; 4418.50.0010; 4418.50.0030; 4418.50.0050 
and 4418.99.10.00. Although the HTSUS numbers are provided for 
convenience and customs purposes, the written product description 
remains dispositive.
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    \8\ For a complete description of the Order, see Memorandum, 
``Initiation and Preliminary Results of Changed Circumstances 
Review: Preliminary Decision Memorandum,'' dated concurrently with 
this notice (Initiation and Preliminary Decision Memorandum).
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Initiation and Preliminary Results of CCR

    Pursuant to section 751(b)(1) of the Act, Commerce will conduct a 
CCR upon receipt of information concerning, or a request from, an 
interested party for a review of a CVD order which shows changed 
circumstances sufficient to warrant a review of the order. The 
information submitted by the Chaleur Companies supporting their claim 
that CFP LP and CFP Inc. are the SIIs to Chaleur LP and Fornebu Inc., 
respectively, demonstrates changed circumstances sufficient to warrant 
such a review.\9\ 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 Chaleur Companies' filings.\10\
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    \9\ See 19 CFR 351.216(d); see also CCR Request and Deficiency 
Response.
    \10\ See CCR Request and Deficiency Response.
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    Section 351.221(c)(3)(ii) of Commerce's regulations permits 
Commerce to combine the notice of initiation of a CCR and the notice of 
preliminary results if Commerce concludes that expedited action is 
warranted.\11\ In this instance, because the record contains 
information necessary to make a preliminary finding, we find that 
expedited action is warranted and have combined the notice of 
initiation and the notice of preliminary results.\12\
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    \11\ See 19 CFR 351.221(c)(3)(ii).
    \12\ See, e.g., Notice of Initiation and Preliminary Results of 
Changed Circumstances Reviews: Certain Passenger Vehicle and Light 
Truck Tires from the People's Republic of China, 85 FR 5193 (January 
29, 2020), unchanged in Certain Passenger Vehicle and Light Truck 
Tires from the People's Republic of China: Final Results of Changed 
Circumstances Reviews, 85 FR 14638 (March 13, 2020) (Passenger 
Vehicle and Light Truck Tires from China CCR).
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    In a CVD CCR, Commerce will make an affirmative successorship 
finding (i.e., that the respondent company is the

[[Page 33662]]

same subsidized entity for CVD cash deposit purposes as the predecessor 
company) where there is no evidence of significant changes in the 
respondent's: (1) Operations; (2) ownership; and (3) corporate and 
legal structure during the relevant period (i.e., the ``look-back 
window'') that could have affected the nature and extent of the 
respondent's subsidy levels.\13\ Where Commerce makes an affirmative 
CVD successorship finding, the successor's merchandise will be entitled 
to enter under the predecessor's cash deposit rate.\14\
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    \13\ See Certain Pasta from Turkey: Preliminary Results of 
Countervailing Duty Changed Circumstances Review, 74 FR 47225 
(September 15, 2009). Here, the relevant period, or ``look-back 
window,'' is December 31, 2020 (end of the period of review 
associated with the most recent opportunity to request an 
administrative review) through March 11, 2021 (date of the CCR 
request).
    \14\ See Passenger Vehicle and Light Truck Tires from China CCR.
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    In accordance with 19 CFR 351.216, we preliminarily determine that 
CFP LP and CFP Inc. are the SIIs to Chaleur LP and Fornebu Inc., 
respectively. Record evidence, as submitted by the Chaleur Companies, 
indicates that CFP LP and CFP Inc. operate as essentially the same 
business entities as Chaleur LP and Fornebu Inc., respectively, with 
respect to the subject merchandise.\15\ Specifically, all record 
information with respect to trading operations, shareholders, and 
corporate and legal structure demonstrates that CFP LP and CFP Inc. are 
the same subsidized entity as their predecessors.\16\ For the complete 
SII analysis, refer to the accompanying Initiation and Preliminary 
Decision Memorandum. Commerce will issue its final results of the 
review in accordance with the time limits set forth in 19 CFR 
351.216(e).
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    \15\ See Initiation and Preliminary Decision Memorandum; see 
also CCR Request and Deficiency Response.
    \16\ Id.
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    Should the final results remain the same as these preliminary 
results, we will instruct U.S. Customs and Border Protection to assign 
entries of subject merchandise exported by CFP LP and CFP Inc. the CVD 
cash deposit rates applicable to Chaleur LP and Fornebu Inc., effective 
the date of publication of the final results.

Public Comment

    Pursuant to 19 CFR 351.310(c), and interested party may request a 
hearing within 30 days of publication of this notice. In accordance 
with 19 CFR 351.309(c)(1)(ii), interested parties may submit case 
briefs not later than 30 days after the date of publication of this 
notice. Rebuttal briefs, limited to issues raised in the case briefs, 
may be filed no later than seven days after the case briefs, in 
accordance with 19 CFR 351.309(d). Parties who submit case or rebuttal 
briefs are requested to submit with each argument: (1) A statement of 
the issue; (2) a brief summary of the argument; and (3) a table of 
authorities.\17\ All comments are to be filed electronically using 
Enforcement and Compliance's Antidumping and Countervailing Duty 
Centralized Electronic Service System (ACCESS) available to registered 
users at https://access.trade.gov, and must also be served on 
interested parties. An electronically filed document must be received 
successfully in its entirety by ACCESS by 5:00 p.m. Eastern Time on the 
day it is due.\18\ Until further notice, Commerce has temporarily 
modified certain of its requirements for serving documents containing 
business proprietary information.\19\
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    \17\ See 19 CFR 351.309(c)(2).
    \18\ See 19 CFR 351.303(b).
    \19\ See Temporary Rule Modifying AD/CVD Service Requirements 
Due to COVID-19; Extension of Effective Period, 85 FR 41363 (July 
10, 2020).
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Final Results of the Changed Circumstances Review

    Consistent with 19 CFR 351.216(e), Commerce will issue the final 
results of this CCR no later than 270 days after the date on which this 
review was initiated, or within 45 days of publication of these 
preliminary results, if all parties agree to our preliminary finding.

Notification to Interested Parties

    This notice is published in accordance with sections 751(b)(1) and 
777(i) of the Act, and 19 CFR 351.216(b) and 351.221(c)(3).

    Dated: June 14, 2021.
Ryan Majerus,
Deputy Assistant Secretary for Policy and Negotiations.
[FR Doc. 2021-13623 Filed 6-24-21; 8:45 am]
BILLING CODE 3510-DS-P