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[Federal Register Volume 70, Number 187 (Wednesday, September 28, 2005)]
[Notices]
[Pages 56640-56642]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-19361]

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DEPARTMENT OF COMMERCE

International Trade Administration

[C-122-839]

Final Results of Countervailing Duty New Shipper Review: Certain 
Softwood Lumber Products From Canada

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: On May 3, 2005, the Department of Commerce (the Department) 
published in the Federal Register the preliminary results of the new 
shipper review of Seed Timber Co. Ltd. (Seed Timber) under the 
countervailing duty (CVD) order on certain softwood lumber products 
from Canada. See Certain Softwood Lumber Products from Canada: 
Preliminary Results of Countervailing Duty New Shipper Review, 70 FR 
22848 (May 3, 2005) (Preliminary Results).
    Based on our analysis of comments received in this review, the 
Department has not revised the net subsidy rate for Seed Timber, the 
only producer/exporter of subject merchandise covered by this review. 
For further discussion of our analysis of the comments received for 
these final results, see the September 22, 2005, Issues and Decision 
Memorandum from Barbara E. Tillman, Acting Deputy Assistant Secretary 
for Import Administration, to Joseph A. Spetrini, Acting Assistant 
Secretary for Import Administration, concerning the Final Results of 
Countervailing Duty New Shipper Review: Certain Softwood Lumber 
Products from Canada. (New Shipper Decision Memorandum). The final net 
subsidy rate for Seed Timber is listed below in ``Final Results of 
Review.''

EFFECTIVE DATE:  September 28, 2005.

FOR FURTHER INFORMATION CONTACT: Kristen Johnson, AD/CVD Operations, 
Office 3, Import Administration, U.S. Department of Commerce, Room 
4014, 14th Street and Constitution Avenue, NW, Washington, DC 20230; 
telephone: (202) 482-4793.

SUPPLEMENTARY INFORMATION:

Background

    On June 30, 2004, we initiated a new shipper review for Seed Timber 
covering the review period January 1, 2003, through December 31, 2003 
(POR). See Certain Softwood Lumber Products From Canada: Notice of 
Initiation of Antidumping Duty New Shipper Review for the Period May 1, 
2003, through April 30, 2004, and Notice of Initiation of 
Countervailing Duty New Shipper Review for the Period January 1, 2003, 
Through December 31, 2003, 69 FR 41229 (July 8, 2004).\1\ On May 3, 
2005, the preliminary results of Seed Timber's new shipper review were 
published in the Federal Register . See Preliminary Results, 70 FR 
22848. Interested parties submitted case briefs to the Department on 
June 2, 2005.\2\
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    \1\ Seed Timber's antidumping new shipper review was 
subsequently rescinded as a result of the company's withdrawal of 
its request for a review (69 FR 54766, September 10, 2004).
    \2\ Case briefs were submitted on behalf of the Coalition of 
Fair Lumber Imports Executive Committee (the petitioners), the 
Government of Canada, and the Government of British Columbia.
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    In accordance with 19 CFR 351.214(a), this new shipper review 
covers only the exporter or producer for which a review was 
specifically requested. Accordingly, this new shipper review only 
covers subject merchandise exported and produced by Seed Timber.

Scope of Order

    The products covered by this order are softwood lumber, flooring 
and siding (softwood lumber products). Softwood lumber products include 
all products classified under subheadings 4407.1000, 4409.1010, 
4409.1090, and 4409.1020, respectively, of the Harmonized Tariff 
Schedule of the United States (HTSUS), and any softwood lumber, 
flooring and siding described below. These softwood lumber products 
include:
    (1) Coniferous wood, sawn or chipped lengthwise, sliced or peeled, 
whether or not planed, sanded or finger-jointed, of a thickness 
exceeding six millimeters;
    (2) Coniferous wood siding (including strips and friezes for 
parquet flooring, not assembled) continuously shaped (tongued, grooved, 
rabbeted, chamfered, v-jointed, beaded, molded, rounded or the like) 
along any of its edges or faces, whether or not planed, sanded or 
finger-jointed;
    (3) Other coniferous wood (including

[[Page 56641]]

strips and friezes for parquet flooring, not assembled) continuously 
shaped (tongued, grooved, rabbeted, chamfered, v-jointed, beaded, 
molded, rounded or the like) along any of its edges or faces (other 
than wood moldings and wood dowel rods) whether or not planed, sanded 
or finger-jointed; and
    (4) Coniferous wood flooring (including strips and friezes for 
parquet flooring, not assembled) continuously shaped (tongued, grooved, 
rabbeted, chamfered, v-jointed, beaded, molded, rounded or the like) 
along any of its edges or faces, whether or not planed, sanded or 
finger-jointed.
    Although the HTSUS subheadings are provided for convenience and 
customs purposes, the written description of the merchandise subject to 
this order is dispositive.
    As specifically stated in the Issues and Decision Memorandum 
accompanying the Notice of Final Determination of Sales at Less Than 
Fair Value: Certain Softwood Lumber Products from Canada, 67 FR 15539 
(April 2, 2002) (see comment 53, item D, page 116, and comment 57, item 
B-7, page 126), available at www.ia.ita.doc.gov/frn, drilled and 
notched lumber and angle cut lumber are covered by the scope of this 
order.
    The following softwood lumber products are excluded from the scope 
of this order provided they meet the specified requirements detailed 
below:
    (1) Stringers (pallet components used for runners): if they have at 
least two notches on the side, positioned at equal distance from the 
center, to properly accommodate forklift blades, properly classified 
under HTSUS 4421.90.98.40.
    (2) 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 should be radius-cut at both 
ends. The kits should be individually packaged, they should 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.
    (3) 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 substantial cuts so as to completely round one corner.
    (4) Fence pickets requiring no further processing and properly 
classified under HTSUS 4421.90.70, 1'' or less in actual thickness, up 
to 8'' wide, 6' or less in length, and have finials or decorative 
cuttings that clearly identify them as fence pickets. In the case of 
dog-eared fence pickets, the corners of the boards should be cut off so 
as to remove pieces of wood in the shape of isosceles right angle 
triangles with sides measuring 3/4 inch or more.
    (5) U.S.-origin lumber shipped to Canada for minor processing and 
imported into the United States, is excluded from the scope of this 
order if the following conditions are met: 1) the processing occurring 
in Canada is limited to kiln-drying, planing to create smooth-to-size 
board, and sanding, and 2) if the importer establishes to the 
satisfaction of U.S. Customs and Border Protection (CBP) that the 
lumber is of U.S. origin.
    (6) Softwood lumber products contained in single family home 
packages or kits,\3\ regardless of tariff classification, are excluded 
from the scope of this order if the importer certifies to items 6 A, B, 
C, D, and requirement 6 E is met:
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    \3\ To ensure administrability, we clarified the language of 
exclusion number 6 to require an importer certification and to 
permit single or multiple entries on multiple days as well as 
instructing importers to retain and make available for inspection 
specific documentation in support of each entry.
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    A. The imported home package or kit constitutes a full package of 
the number of wooden pieces specified in the plan, design or blueprint 
necessary to produce a home of at least 700 square feet produced to a 
specified plan, design or blueprint;
    B. The package or kit must contain all necessary internal and 
external doors and windows, nails, screws, glue, sub floor, sheathing, 
beams, posts, connectors, and if included in the purchase contract, 
decking, trim, drywall and roof shingles specified in the plan, design 
or blueprint.
    C. Prior to importation, the package or kit must be sold to a 
retailer of complete home packages or kits pursuant to a valid purchase 
contract referencing the particular home design plan or blueprint, and 
signed by a customer not affiliated with the importer;
    D. Softwood lumber products entered as part of a single family home 
package or kit, whether in a single entry or multiple entries on 
multiple days, will be used solely for the construction of the single 
family home specified by the home design matching the entry.
    E. For each entry, the following documentation must be retained by 
the importer and made available to CBP upon request:
    i. A copy of the appropriate home design, plan, or blueprint 
matching the entry;
    ii. A purchase contract from a retailer of home kits or packages 
signed by a customer not affiliated with the importer;
    iii. A listing of inventory of all parts of the package or kit 
being entered that conforms to the home design package being entered;
    iv. In the case of multiple shipments on the same contract, all 
items listed in E(iii) which are included in the present shipment shall 
be identified as well.
    Lumber products that CBP may classify as stringers, radius cut box-
spring-frame components, and fence pickets, not conforming to the above 
requirements, as well as truss components, pallet components, and door 
and window frame parts, are covered under the scope of this order and 
may be classified under HTSUS subheadings 4418.90.45.90, 4421.90.70.40, 
and 4421.90.97.40.
    Finally, as clarified throughout the course of the investigation, 
the following products, previously identified as Group A, remain 
outside the scope of this order. They are:
    1. Trusses and truss kits, properly classified under HTSUS 4418.90;
    2. I-joist beams;
    3. Assembled box spring frames;
    4. Pallets and pallet kits, properly classified under HTSUS 
4415.20;
    5. Garage doors;
    6. Edge-glued wood, properly classified under HTSUS 4421.90.98.40;
    7. Properly classified complete door frames;
    8. Properly classified complete window frames;
    9. Properly classified furniture.
    In addition, this scope language was further clarified to specify 
that all softwood lumber products entered from Canada claiming non-
subject status based on U.S. country of origin will be treated as non-
subject U.S.-origin merchandise under the countervailing duty order, 
provided that these softwood lumber products meet the following 
condition: upon entry, the importer, exporter, Canadian processor and/
or original U.S. producer establish to CBP's satisfaction that the 
softwood lumber entered and documented as U.S.-origin softwood lumber 
was first

[[Page 56642]]

produced in the United States as a lumber product satisfying the 
physical parameters of the softwood lumber scope.\4\ The presumption of 
non-subject status can, however, be rebutted by evidence demonstrating 
that the merchandise was substantially transformed in Canada.
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    \4\ See scope clarification message 3034202, dated February 3, 
2003, to CBP, concerning treatment of U.S.-origin lumber on file in 
the Department's Central Records Unit, room B-099.
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Analysis of Comments Received

    All issues raised in the case briefs submitted by interested 
parties to this new shipper review are addressed in the New Shipper 
Decision Memorandum, which is hereby adopted by this notice. A list of 
the issues contained in that decision memorandum is attached to this 
notice as Appendix I. Parties can find a complete discussion of the 
issues raised in this review and the corresponding recommendations in 
that public memorandum, which is on file in the Central Records Unit 
(CRU), room B-099 of the Main Commerce Building. In addition, a 
complete copy of the New Shipper Decision Memorandum can be accessed 
directly on the World Wide Web at http://ia.ita.doc.gov, under the 
heading ``Federal Register Notices.'' The paper copy and electronic 
version of the decision memorandum are identical in content.

Final Results of Review

    In accordance with section 751(a)(2)(B)(i) of the Tariff Act of 
1930, as amended (the Act), we have determined an individual rate for 
Seed Timber. We determine the total net countervailable subsidy rate to 
be:

------------------------------------------------------------------------
                  Producer/Exporter                    Net Subsidy Rate
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Seed Timber Co. Ltd.................................     2.22 percent ad
                                                                 valorem
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    In accordance with 19 CFR 356.8(a), we will issue appropriate 
assessment instructions directly to CBP on or after 41 days following 
the publication of the final results of this review, to liquidate 
shipments of the subject merchandise produced or exported by Seed 
Timber entered, or withdrawn from warehouse, for consumption from 
January 1, 2003, through December 31, 2003, at 2.22 percent ad valorem 
of the f.o.b. invoice price.
    We will also instruct CBP to collect cash deposits of estimated 
countervailing duties at 2.22 percent ad valorem of the f.o.b. invoice 
price on all shipments of the subject merchandise from Seed Timber 
entered, or withdrawn from warehouse, for consumption on or after the 
date of publication of the final results of this new shipper review. 
This cash deposit requirement will remain in effect until publication 
of the final results of the second administrative review of the 
countervailing duty order on certain softwood lumber products from 
Canada.\5\
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    \5\ The Department has extended the time limit for completion of 
the final results of the second administrative review until December 
4, 2005. See Notice of Extension of Time Limit for Final Results of 
Countervailing Duty Administrative Review: Certain Softwood Lumber 
from Canada, 70 FR 51751 (August 31, 2005).
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Return or Destruction of Proprietary Information

    This notice serves as a reminder to parties subject to 
administrative protective order (APO) of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO in accordance with 19 CFR 351.305(a)(3). Timely written 
notification of return/destruction of APO material or conversion to 
judicial protective order is hereby requested. Failure to comply is a 
violation of the APO.
    This review and notice is issued and published in accordance with 
sections 751(a) and 777(i)(1) of the Act.

    Dated: September 22, 2005.
Joseph A. Spetrini,
Acting Assistant Secretary for Import Administration.

APPENDIX I - Issues and Decision Memorandum

I. Analysis of Programs

    A. Program Determined to Be Countervailable
    1. British Columbia's Provincial Stumpage Program
    B. Programs Determined to Be Not Used
    1. Non-Stumpage Programs of the Government of British Columbia
    a. Grants, Loans, and Loan Guarantees Provided from Forest Renewal 
BC
    b. Payments Associated with Tenure Reclamation
    c. Land-Base Investment Program
    d. Forestry Innovation Investment Program
    e. Allowances for Harvesting Beetle-Infested Timber
    f. Tax Breaks for Timber Harvesters on Private Timber Land
    2. Non-Stumpage Programs of the Federal Government of Canada
    a. Non-Repayable Grants and Conditionally Repayable Contributions 
from the Department of Western Economic Diversification
    b. Workers Assistance Packages
    c. Softwood Marketing Subsidies
    d. Litigation Related Payments to Lumber Trade Associations

II.Total Ad Valorem Rate

III. Analysis of Comments

Comment 1: U.S. Log Data
Comment 2: Lower-Grade Cedar
Comment 3: Pond Values
Comment 4: Domestic Log Prices
Comment 5: Cross-Border U.S. Log Price Benchmarks
Comment 6: Net Benefit Calculation
[FR Doc. 05-19361 Filed 9-27-05; 8:45 am]
BILLING CODE 3510-DS-S
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