[Federal Register Volume 59, Number 201 (Wednesday, October 19, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-25889]
[[Page Unknown]]
[Federal Register: October 19, 1994]
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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
[Docket No. 301-87]
Termination of Section 301 Action and Request for Public Comment:
Canadian Exports of Softwood Lumber
AGENCY: Office of the United States Trade Representative.
ACTION: Notice.
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SUMMARY: The United States Trade Representative (USTR) has determined
to terminate action taken under section 301 of the Trade Act of 1974 on
certain entries of softwood lumber products from Canada. The USTR is
taking this action in light of the completion of binational panel
proceedings under Chapter 19 of the U.S.-Canada Free Trade Agreement
concerning countervailing duty (CVD) determinations involving Canadian
softwood lumber. During these proceedings, the binational panel
directed the Department of Commerce to determine that imports of
softwood lumber did not receive countervailable subsidies.
As a result of the termination of the Section 301 action, the
Customs Service will: cease the extension of liquidation that was
ordered pursuant to Section 301 on softwood lumber from Canada that
entered from October 4, 1991 to March 12, 1992; de-obligate bonds
collected on those entries pursuant to Section 301; and assess no
Section 301 duties on those entries.
ADDRESSES: Office of the United States Trade Representative, 600 17th
Street NW., Washington, DC 20506.
FOR FURTHER INFORMATION CONTACT:
David Weiss, Deputy Assistant United States Trade Representative for
North American Affairs, (202) 395-3412; or William Kane, Assistant
General Counsel, (202) 395-6800.
SUPPLEMENTARY INFORMATION: On December 15, 1986, the United States and
Canada concluded a Memorandum of Understanding (MOU) under which, among
other things, Canada agreed to impose a 15 percent export charge on
certain softwood lumber products exported to the United States.
On September 3, 1991, Canada announced that it would unilaterally
terminate the MOU in 30 days. In response, on October 4, 1991, Commerce
announced that it would self-initiate a CVD investigation on softwood
lumber from Canada. On the same date, USTR initiated an investigation
under section 301, and determined under section 301(b) that Canada's
acts, policies and practices in terminating the MOU were unreasonable
and burdened or restricted U.S. commerce. 56 Fed. Reg. 50738 (October
8, 1991). USTR further determined that action was appropriate pursuant
to section 304 to restore and maintain the status quo ante pending
issuance of a preliminary CVD determination, and, if warranted, to
impose duties to offset the effects of any subsidies found in the
investigation.
USTR directed the Customs Service, inter alia, to: (1) impose
bonding requirements on certain softwood lumber from Canada entering
between October 4, 1991 and the date of Commerce's preliminary CVD
determination; (2) withhold or extend, as appropriate, liquidation of
all such entries of softwood lumber until the imposition of duties; and
(3) collect Section 301 duties at the rate specified in the MOU or the
rate of subsidy found in the final Commerce CVD determination,
whichever was lower. Id. USTR later issued an amended notice of
initiation containing certain technical corrections to its original
notice. 56 Fed. Reg. 58944 (Nov. 22, 1991).
On March 12, 1992, Commerce published its preliminary CVD
determination. On May 28, 1992, Commerce published its final CVD
determination, and determined an estimated subsidy rate of 6.51 per
cent ad valorem. Both the domestic industry and affected Canadian
parties appealed the final determination to binational panels
established pursuant to Chapter 19 of the U.S.-Canada Free Trade
Agreement (FTA).
As a result, on September 28, 1992, USTR published notice of a
modification of the Section 301 action. 57 Fed. Reg. 44609 (Sept. 28,
1992). USTR directed Customs to inform importers that they may request
extension of liquidation on entries covered by the Section 301 action,
and that ``any entries extended pursuant to such a request will be
assessed 301 duties in accordance with the outcome of chapter 19
proceedings (i.e., at the lower of the applicable MOU rate or the
Commerce rate at the conclusion of chapter 19 proceedings).'' Id. at
44610.
On May 6, 1993, the binational panel remanded the CVD determination
to Commerce to reexamine certain of its findings. On September 17,
1993, Commerce responded by issuing a remand determination, finding a
subsidy rate of 11.54 per cent ad valorem.
On December 17, 1993, the panel issued a second decision, again
remanding the determination to Commerce, but this time with
instructions to determine that countervailable subsidies were not being
provided to Canadian producers of softwood lumber. On January 6, 1994,
Commerce issued a second remand decision, complying with the panel's
instructions.
On February 23, 1994, the panel affirmed Commerce's second remand
determination. The binational panel's decision became final on March
17, 1994. 59 Fed. Reg. 12584 (March 17, 1994).
On April 6, 1994, USTR filed a request for the establishment of an
Extraordinary Challenge Committee (ECC) pursuant to FTA Article
1904.13. The request challenged the panel's substantive determination
as well as the conduct of two of the five panelists.
On August 3, 1994, the ECC, by a two-to-one decision, affirmed the
panel's decision. On August 16, 1994, Commerce published notice of
revocation of the CVD order on softwood lumber from Canada and
termination of the suspension of liquidation on softwood lumber entered
on or after March 17, 1994. 59 Fed. Reg. 42029 (Aug. 16, 1994).
USTR's previous notice of September 1992 indicated that covered
entries would be assessed Section 301 duties at the lower of the MOU
rate or the Commerce subsidy rate at the conclusion of Chapter 19
proceedings. Chapter 19 proceedings have now concluded with a
determination of no countervailable subsidies. Accordingly, no Section
301 duties will be assessed on the covered entries.
The Customs Service is therefore directed to: cease the extension
of liquidation that was ordered pursuant to Section 301 on softwood
lumber from Canada that entered from October 4, 1991 to March 12, 1992;
de-obligate bonds collected on those entries pursuant to Section 301;
and assess no Section 301 duties on those entries. This action pertains
only to the Section 301 action and is unrelated to the disposition of
cash deposits collected pursuant to the lumber CVD order itself.
Under Section 307, the USTR may modify or terminate action, subject
to the direction, if any, of the President, if, inter alia, the action
was taken under section 301(b) and the USTR finds the action no longer
to be appropriate. USTR has consulted with representatives of the
affected domestic industry regarding this action.
Public Comment: Requirements for Submissions
Section 307(a)(2) requires USTR to provide an opportunity for
comment by interested parties affected by a termination of action
concerning the effects of the termination and whether the termination
is appropriate. Accordingly, all interested persons affected by this
termination may submit written comments concerning it. USTR will
consider any comments submitted.
Comments must be filed in accordance with the requirements set
forth in 15 CFR 2006.8(b). Comments must be in English and provided in
twenty copies to: Chairman, Section 301 Committee, room 223, USTR, 600
17th Street NW., Washington, D.C. 20506. All comments should be
submitted by November 18, 1994.
Comments will be placed in a file (Docket 301-87) open to public
inspection pursuant to 15 CFR 2006.13, except for confidential business
information exempt from public inspection in accordance with 15 CFR
2006.15. Confidential business information submitted in accordance with
15 CFR 2006.15 must be clearly marked ``Business Confidential'' in a
contrasting color ink at the top of each page on each of the 20 copies,
and must be accompanied by a nonconfidential summary of the
confidential information. The nonconfidential summary shall be placed
in the docket, which is open to public inspection.
Irving A. Williamson,
Chairman, Section 301 Committee.
[FR Doc. 94-25889 Filed 10-18-94; 8:45 am]
BILLING CODE 3190-01-M