Current Status:

Second CVD Administrative Review Final Determination
The final determination in the second Administrative Review (AR2), covering lumber imports during the time period April 1, 2003 to March 31, 2004, was released on December 6, 2005 (Factsheet).

In its AR2 final determination, the US Department of Commerce calculated a CVD rate for Canada of 8.70%.  This final CVD rate, in addition to the final anti-dumping rate, sets the cash deposit rate to be paid on softwood lumber exports shipped after December 12, 2005.  It also, subject to appeal, sets the actual amount of duties owing on lumber that was shipped during the period April 1, 2003 to March 31, 2004.  Canada has appealed the results of the second administrative review to NAFTA so all deposits for the 2003/04 period will remain undistributed until the appeal process is finished.

Third CVD Administrative Review
The third Administrative Review (AR3), covering lumber imports to the United States over the period April 1, 2004 to March 31, 2005, is currently under way.  The US Department of Commerce has issued its questionnaires to Canada; and Canada's voluminous responses were submitted October 3, 2005.  As with the other Administrative Reviews, Commerce has extended the time frame. 

NEW!!!  On May 31, 2006 the Department of Commerce released its preliminary findings for the third Administrative Review (details).

First CVD Administrative Review
The final results of the first CVD administrative review were released December 14, 2004; minor corrections were released in January and February 2005.  Commerce calculated a countervailable subsidy rate of 16.37%, higher than its June preliminary determination.  This final CVD rate, in addition to the final anti-dumping rate, set the cash deposit rate to be paid on softwood lumber exports shipped after December 20, 2004.  It also, subject to appeal, set the actual amount of duties owing on lumber that was shipped during the period May 22, 2002 to March 31, 2003.  Since Canada has appealed the results of the first administrative review to NAFTA, all deposits for the 2002/03 period remain undistributed until the appeal process is finished.

Anti-Dumping Administrative Reviews
The final results of the second anti-dumping administrative review as amended in January, 2006 are as follows:

As in the CVD case, this final determination sets the cash deposits going forward and, subject to appeal, sets the actual duties owing for the April 1, 2003 – March 31, 2004 period.  Companies that did not request an anti-dumping administrative review pay an anti-dumping "All others" rate of 11.43% as calculated by the US Department of Commerce in its section 129 determination in response to the WTO panel on anti-dumping.  The next opportunity for companies to request an administrative review will be May 2006.

Chronology of Events Leading to the Current Status:  

• Preliminary Determinations of CVD and AD Administrative Review #2:  On June 1, 2005, the US Department of Commerce released the preliminary determinations of CVD and AD rates that will be paid on exports shipped during the period of April 1, 2003 to March 31, 2004.  The rates do not affect the cash deposit rate on exports to the U.S. (Commerce Factsheet). 

• Revised AD Rates Due to WTO Panel:  On May 2, 2005, Commerce announced new anti-dumping rates to apply from April 27, 2005.  Commerce announced that it calculated these rates using a different methodology in order to implement the recommendations of the WTO.  The new rates were, in general higher than the orginal investigation rates, with an all others rate of 11.54%.  For all companies that requested a review, these rates were replaced with the results of the second administrative review in December 2005.  (Details).

• Revised Final Determinations of CVD and AD Administrative Review #1:  The AD rates in the December 14^th announcement were slightly revised on January 24, 2005 (Details) and the CVD rate was revised on February 24, 2005 (Details).  These rates were charged on exports to the U.S. effective December 20, 2004. 

• Final Determinations of CVD and AD Administrative Review #1:  On December 14, 2004 the US Department of Commerce released the final determinations of CVD and AD rates that will be paid on exports shipped during the period May 22, 2002 to March 31, 2003.  More information is available at the following links [unrevised rates]:  DOC Fact Sheet, DFAIT Press Release, BC Press Release.

• Preliminary Determinations of CVD and AD Administrative Review #1:  On June 3, 2004 the US Department of Commerce released the preliminary determinations of CVD and AD rates that will be paid on exports shipped during the period of May 22, 2002 to March 31, 2003.  The rates did not affect the cash deposit rate on exports to the U.S. (Details).

• Companies selected for Zero Rate Reviews (Administrative Review #1):  On March 15, 2004 the US Department of Commerce identified 11 companies (of the 148 companies who claimed zero or de minimis rates) for which they would conduct company specific reviews (Details).  Of the 11 companies selected, 4 companies are located in BC.  The Canada wide countervailing duty rate will continue to be applied to those companies not selected for a company specific review.  In August 2004, the DOC issued a memorandum indicating that they would not be conducting any zero rate reviews as a part of the second review.  Canada has filed briefs arguing that the US should not terminate these reviews.  The corresponding DOC response has not been received.

• Administrative Review #1 Proceedings (CVD):  On November 12, 2003 Canada filed its response to the US Department of Commerce's administrative review questionnaire of September 12, 2003.  BC's portion of the response was over 20 volumes.  The administrative review process began in June of 2003 (following the first anniversary of the final countervailing duty (CVD) order in the initial investigation).  The review determined the actual amount of duties to be paid by Canadian softwood producers for the period of May 22, 2002 to March 31, 2003.

• Preliminary Results of Expedited Review, Group 2 (Initial Investigation):  On November 18, 2003 the Department of Commerce announced the preliminary results of the expedited reviews of 16 group two companies under the countervailing duty order on softwood lumber products from Canada (Details).

• First Administrative Review:  In June 2003 the U.S. Department of Commerce (DOC) began an administrative review of the countervailing (CVD) and anti-dumping (AD) duty orders respecting softwood lumber from Canada.  Individual companies had the opportunity to submit requests for administrative reviews in one or both of the CVD and AD cases.  Requests for reviews had to be submitted to the DOC by May 30, 2003.

• Preliminary Results of Expedited Review: On May 1, 2003, Commerce issued the preliminary results of the expedited review for several group one companies, including 15 from BC.  Companies will not receive their own cash deposit rates until Commerce issues the final results of review.

• Expedited Reviews / Round 2:  On September 20, 2002, the US Department of Commerce (DOC) initiated expedited reviews of the countervailing duty order on certain softwood lumber products from Canada.  This included an additional 31 companies, a number of which operate in BC.  DOC also indicated that they would consider requests for a pass-through analysis of arm's length transactions.  For more information, including a full listing of companies included in this second round, see the Federal Register notice.

• Expedited Reviews:  On July 17, 2002 the U.S. Department of Commerce (DOC) issued a notice of initiation for expedited reviews.  DOC received over 100 requests for expedited review.  A streamlined review methodology was adopted, which involved segregating the applicants into two groups.  On August 14, Commerce issued the preliminary results for 18 of the companies in Group 1 (those who obtain more than 50% of their wood from the US, the Maritimes, and Canadian private lands) including City Lumber Sales and Services Limited and Herridge Sawmills Ltd. in BC.  If the final results remain the same as the preliminary results of reviews, US Customs Service will be instructed to amend the cash deposit rate for each reviewed company.  For further information on the process and companies being reviewed, please see the DOC Federal Register notice.

• Final CVD and AD Orders Published:  On May 22, 2002, the US Department of Commerce published the final orders in the countervailing duty and antidumping cases.  The US Customs Service Instructions for the countervailing and anti-dumping duty orders are now posted on the Customs Service electronic bulletin board (US Customs).  The US Customs Service will require cash deposits on lumber imported from Canada on or after May 22, 2002.

• USITC Final Determination:  On May 2, 2002, the U.S. International Trade Commission (USITC) voted 4 to 0 that the United States softwood lumber industry is "threatened" with material injury.  US Customs will refund bonds posted or cash deposits paid between the preliminary determination and the publication of the final order on May 22.  For more details please refer to the "Backgrounder" provided by DFAIT.

• Revised Final Determinations:  On April 25, 2002, the US Department of Commerce revised its final determinations in the CVD and AD investigations.  The final subsidy rate was determined to be 18.79%.  The average dumping rate was determined to be 8.43%.  Individual company dumping rates are as follows:  Abitibi 12.44%; Canfor 5.96%; Slocan 7.71%; Tembec 10.21%; West Fraser 2.18%; Weyerhaeuser 12.39%.  All other companies pay the average dumping rate of 8.43%.  The combined CVD/AD rate is 27.22%.

• Company exclusions:  The US Department of Commerce announced on March 22, 2002 that of a total of 351 companies applying for exclusion from the softwood lumber countervailing duty investigation, only 20 companies would be excluded from the trade action.  These companies obtain their logs from US, Maritime, or private Canadian sources. (Details)

• Final Determinations:  On March 22, 2002, the U.S. Department of Commerce announced its final determinations in the CVD and AD investigations.  (US Department of Commerce Fact Sheet [contains unrevised rates])  Commerce determined an average combined CVD/AD rate of 29.01%.  Commerce also revoked its critical circumstances ruling in the preliminary determination.  As a result, no bonds are required for shipments made from May 19, 2001 to August 17, 2001.

• Product Exclusions:  On March 11, 2002, the US Department of Commerce released its decision on class and kind of products covered by the countervailing duty and antidumping investigations.  Exclusion from these proceedings was requested by producers of softwood lumber products made from western red cedar, eastern white pine, and eastern white cedar as well as producers of finger-jointed flange stock, pallet stock, and bed-frame components.  The US Department of Commerce decided that these products will remain subject to the investigation because they were unable to establish clear dividing lines between these products and the other softwood lumber products subject to the investigations.  (Details on scope of the investigation) (February 2, 2002 amendment).  Earlier, the US Customs Service provided a question and answer document for Canadian softwood lumber importers to clarify which products are covered  (Details).

• On February 20, 2002 - The US Department of Commerce announced that it would review 30 companies that obtain their logs from US, Maritime, or private Canadian sources to see if they qualify for exclusion from the CVD investigation.

• "Gap Period":  The combined countervailing duty/anti-dumping preliminary duty (CVD/AD) rate of nearly 32% (19.31% plus 12.58%) was only in effect until mid-December 2001, since the World Trade Organization does not allow provisional CVD duties to extend beyond four months.  Only the anti-dumping duty (12.58%) applied from mid-December 2001 to early May, 2002 when a similar gap period opened for the anti-dumping duties.  This created a "window" of opportunity for companies to ship lumber duty-free into the US before May 22 when the final orders came into effect.

• On December 17, 2001 - The provincial government filed a six-volume response to the second supplemental questionnaire from the US Department of Commerce.

• On October 31, 2001 - The US Department of Commerce announced its decision to impose an anti-dumping duty of 12.58% on Canadian softwood lumber imports (Details).

• On October 29, 2001 - Canada filed company exclusion requests with the US Department of Commerce.

• August 10, 2001 - The US Department of Commerce issued its preliminary determination of subsidy in its countervailing duty investigation of softwood lumber from Canada.  The Department of Commerce found that Canadian softwood lumber exports to the US were subsidized in the order of 19.31%.

• August 10, 2001 - The US Department of Commerce made an affirmative critical circumstances determination, concluding that there has been a surge of softwood lumber exports from Canada since April 1, 2001.  As a result, retroactive countervailing measures, in the form of bonds or cash deposits in the order of 19.31%, were applied to shipments made on or after May 17, 2001.

• On August 3, 2001 - The provincial government filed a five-volume response to the first supplemental questionnaire from the US Department of Commerce.

• June 28, 2001 - The provincial government filed its 20-volume response to the countervailing duty (CVD) questionnaire from the US Department of Commerce.

• May 16, 2001 - The International Trade Commission (ITC) made a preliminary determination that the alleged subsidies pose a threat of injury to the US industry.

• April 2, 2001 - The executive committee of the US Coalition for Fair Lumber Imports filed CVD & AD petitions against Canadian softwood lumber.