Canada Softwood Lumber: CVD Exemption Reinstated for 4 Companies
The Commerce Department is reinstating exemptions for four exporters under the countervailing duty order on softwood lumber products from Canada (C-122-858), implementing a recent court decision that upheld the results of an expedited review conducted by the agency that first exempted the companies in 2019 (see 1907030015).
Commerce had revoked the exemptions in 2021 and subjected the four exporters to CV duties (see 2108270032), after an initial Court of International Trade decision found Commerce wasn’t allowed to conduct the expedited review. The U.S. Court of Appeals for the Federal Circuit recently reversed CIT’s decision.
As a result, the following companies will again be exempt from the CVD order:
- Les Produits Forestiers D&G Ltée and its affiliates Le Groupe Gesco-Star Ltée, Les Produits Forestiers Portbec Ltée and Les Produits Forestiers Startrees Ltée
- Marcel Lauzon Inc. and its affiliates Placements Marcel Lauzon Ltee and Investissements LRC Inc.
- North American Forest Products Ltd. and its affiliates Parent-Violette Gestion Ltée and Le Groupe Parent Ltée
- Scierie Alexandre Lemay & Fils Inc. and its affiliates Bois Lemay Inc. and Industrie Lemay Inc.
As a result, Commerce will direct CBP to discontinue suspension of liquidation and the collection of CVD cash deposits on softwood lumber produced and exported by D&G, Lemay, MLI, and NAFP (and their affiliates) and entered on or after Aug. 28, 2021, the date when Commerce previously put duties back in place for the companies. Commerce also will order the refund of all CVD cash deposits on such shipments.
The exemption only applies to merchandise both produced and exported by D&G, Lemay, MLI, and NAFP and their affiliates. “Subject merchandise that D&G, Lemay, MLI, and NAFP export but do not produce, as well as merchandise D&G, Lemay, MLI, and NAFP produce but is exported by another company remain subject to the Order,” Commerce said.
Roland Boulanger & Cie Ltée and its affiliates Industries Daveluyville, Inc. and Les Manufacturiers Warwick Ltée were exempted from the CVD order in 2019, and then reinstated as a result of the CIT decision in 2021, but didn’t participate in the litigation, so will remain subject to the CVD order.