REGULATION CHANGES FOR SOFTWOOD LUMBER

U.S. Department of Commerce has completed its antidumping duty investigation on softwood lumber products from Canada, and has ruled in favor of assessing ADD.

The Department of Commerce has concluded its preliminary determination in the antidumping duty investigation, including a vote on “critical circumstances” on certain softwood lumber products from Canada (A-122-857). In its ruling, Commerce has determined that Antidumping duties are to be assessed, effective June 26, 2017.

Commerce will suspend liquidation and require cash deposits of estimated antidumping duties beginning June 26, 2017. We await the DOC’s “Message” to U.S. Customs and Border Protection (CBP), which will enable CBP to program ACE and thereby allow these entries to be filed accordingly.

The 90-day “critical circumstances” affirmative vote on AD will go back to Tuesday, March 28, 2017 for all affected entries. In this instance, only the “All Others” case will be affected.

Companies with a continuous bond may incur an increase to their bond, and importers without a continuous bond will be required to submit a cash deposit.

The document Softwood Lumber ADD/CVD FAQ contains some key considerations with respect to bonds; exceptions or exclusions; critical circumstances and retroactive collection of CVD/ADD.

Key milestones

August 26, 2017

  • The collection of CVD duty will end on August 26 and CVD cannot be reinstated until the U.S. International Trade Commission’s (ITC) final determination on Case C-122-858. The period of time from end of provisional duty measures until ITC’s final determination is known as a “Gap Period”.

June 26, 2017

  • The Department of Commerce completed its investigation, and determined that critical circumstances do exist for both Countervailing Duty and Antidumping Duty. Retroactive duties will be assessed for a period of 90 days prior to effective dates.

April 28, 2017

  • The United States International Trade Administration published a preliminary affirmative determination for the Countervailing Duty (CVD) investigation into various softwood lumber products from Canada in the Federal Register with an effective date of April 28, 2017.
    The publication also set the (retroactive) effective date for all appropriate entries subject to critical circumstances as January 28, 2017.

April 19, 2017

  • In response to the Coalition petition presented on January 26, the United States International Trade Administration set a new date of Friday, June 23, 2017 as the ADD Preliminary Decision date. A notice was published in the April 19, 2017 Federal Register.

February 2, 2017

  • In response to the Coalition petition presented on January 26, the United States International Trade Administration set a new date of Monday, April 24, 2017 as the CVD Preliminary Decision date.

January 26, 2017

  • The Coalition prepared and presented a petition to the U.S. International Trade Administration, requesting a postponement of the Countervailing Duty (CVD) and Antidumping (ADD) decisions.

January 6, 2016

  • The United States International Trade Commission (USITC) determined that there is a reasonable indication that a U.S. industry is materially injured by reason of imports of softwood lumber products from Canada that are allegedly subsidized and sold in the United States at less than fair value.

December 22, 2016

  • The U.S. Department of Commerce initiated a countervailing duty investigation on softwood lumber products from Canada.

November 25, 2016

  • The Committee Overseeing Action for Lumber International Trade Investigations or Negotiations (Coalition) filled a petition with the U.S. Department of Commerce and the International Trade Administration.

Supporting our clients’ needs

As always, Livingston will continue to monitor the progress of discussions regarding the softwood lumber dispute between Canada and the United States, and we will keep you informed of any updates.

If you have any immediate questions please contact softwoodlumber@livingstonintl.com.