Today, U.S. Secretary of Commerce Wilbur Ross announced the affirmative preliminary determination in the antidumping duty (AD) investigation of softwood lumber from Canada.
The Commerce Department determined that exporters from Canada have sold softwood lumber the United States at 7.72 percent to 4.59 percent less than fair value based on factual evidence provided by the interested parties. Commerce will instruct U.S. Customs and Border Protection (CBP) to collect cash deposits from importers of softwood lumber from Canada based on these preliminary rates.
These preliminary AD rates are in addition to the preliminary countervailing duty (CVD) rates that the Commerce Department assessed on softwood lumber on April 24, 2017. When combined the applicable duty rates range from 30.88 percent to 17.41 percent.
“The United States is committed to free and fair trade, as seen today with the preliminary decision to exclude softwood lumber from the Canadian Atlantic Provinces in the ongoing antidumping and countervailing duty cases,” said Secretary Ross. “While I remain optimistic that we will be able to reach a negotiated solution on softwood lumber, until we do we will continue to vigorously apply the AD and CVD laws to stand up for American companies and their workers.”
Commerce earlier today released its preliminary determination that softwood lumber products produced in the provinces of Newfoundland and Labrador, Nova Scotia, and Prince Edward Island, also referred to as the Atlantic Provinces, should be excluded from the ongoing investigation.
In 2016, imports of softwood lumber from Canada were valued at an estimated $5.66 billion.
The petition was filed on behalf of the Committee Overseeing Action for Lumber International Trade Investigations or Negotiations (COALITION), which is an ad hoc association whose members are:
- U.S. Lumber Coalition, Inc. (DC)
- Collum’s Lumber Products, L.L.C. (SC)
- Hankins, Inc. (MS)
- Potlatch Corporation (WA)
- Rex Lumber Company (FL)
- Seneca Sawmill Company (OR)
- Sierra Pacific Industries (CA)
- Stimson Lumber Company (OR)
- Swanson Group (OR)
- Weyerhaeuser Company (WA)
- Carpenters Industrial Council (OR);
- Giustina Land and Timber Company (OR)
- Sullivan Forestry Consultants, Inc. (GA)
Click HERE for a fact sheet on today’s decision.
The Department of Commerce is currently scheduled to announce its final AD determination on September 7, 2017.
The U.S. International Trade Commissions (ITC) is conducting a parallel investigation to determine if the American producers have been harmed by the softwood lumber imports from Canada. If the Commerce Department’s final determination is affirmative, and the ITC makes an affirmative final injury determination, the Commerce Department will issue an antidumping order. If the ITC does not find that U.S. producers have been harmed, then the investigation will end, and no duties will be collected.
The U.S. Department of Commerce’s Enforcement and Compliance unit within the International Trade Administration is responsible for vigorously enforcing U.S. trade laws and does so through an impartial, transparent process grounded in U.S. law that reflects international rules and is based solely on factual evidence.
Foreign companies that price their products in the U.S. market below the cost of production or below prices in their home markets are subject to AD.
Companies that receive unfair subsidies from their governments in the form of grants, loans, equity infusions, tax breaks and production inputs are subject to “countervailing duties”(CVD) aimed at directly countering those subsidies.
From January 20, 2017, through June 26, 2017, Commerce has initiated 49 antidumping and countervailing duty investigations. Commerce currently maintains 401 antidumping and countervailing duty orders which provide relief to American companies and industries impacted by unfair trade.