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Softwood Lumber from Canada Subject of New AD/CV Petition

Monday, November 28, 2016

A petition filed Nov. 25 alleges that softwood lumber from Canada is being sold at less than fair value in the U.S. market and benefitting from countervailable subsidies. The alleged dumping margins are as high as 52.89 percent and the petitioners have identified numerous programs as providing unfair subsidies. The petitioners are also alleging the existence of critical circumstances, which means that CV duty deposits could be required as early as mid-December and AD duty deposits could be required as soon as early February.

The product covered by this petition is softwood lumber, siding, flooring, and certain other coniferous wood, including the following.

- 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 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 goods that would otherwise meet the definition of the scope above

Subject softwood lumber products are currently classifiable under HTSUS subheadings 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, 4409.10.0500, 4409.10.1020, 4409.10.1040, 4409.10.1060, 4409.10.1080, 4409.10.2000, 4409.10.9020, 4409.10.9040, and 4418.90.2500.

Subject products may also be classified as stringers, square cut box spring frame components, fence pickets, truss components, pallet components, and door and window frame parts under HTSUS subheadings 4415.20.4000, 4415.20.8000, 4418.90.4605, 4418.90.4620, 4418.90.4640, 4418.90.4695, 4421.90.7040, 4421.90.9400, and 4421.90.9780.

The Department of Commerce and the International Trade Commission will next determine whether to launch AD and/or CV duty and injury investigations, respectively, on these products. There are strict statutory deadlines associated with these proceedings, so affected companies that wish to protect their interests should contact trade counsel as soon as possible.

For more information contact Kristen Smith at (202) 730-4965, Mark Ludwikowski at (202) 730-4967 or David Craven at (312) 279-2844.

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