Office of the Premier

Softwood lumber duties confirmed

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Office of the Premier

Softwood lumber duties confirmed

Contacts
Jen Holmwood
Deputy Communications Director
Office of the Premier
250 818-4881
Contacts
Jen Holmwood
Deputy Communications Director
Office of the Premier
250 818-4881

Backgrounders

Softwood Lumber: International Trade Commission vote

FREQUENTLY ASKED QUESTIONS

What is material injury and what are the implications?

  • On Dec. 7, 2017, the U.S. International Trade Commission ruled that softwood lumber imports from Canada have materially injured the U.S. domestic lumber industry. As a result, the U.S. Department of Commerce will issue countervailing duty and anti-dumping orders, requiring payment of countervailing and anti-dumping duties on a go forward basis on all shipments of softwood lumber from Canada. All duties paid to date remain held in trust by the U.S. pending the First Administrative Review and the conclusion of all appeals.
  • The U.S. International Trade Commission final determination is expected to be published after Dec. 22, 2017. Countervailing duty and anti-dumping orders issued by U.S. Department of Commerce will follow shortly in December 2017 or January 2018, concluding the investigation phase of the case.

What was the ruling on critical circumstances?

  • The U.S. International Trade Commission made a negative finding concerning critical circumstances in the anti-dumping investigation. This means no retroactive payment of duties is required. 

When are companies required to pay cash deposits?

  • Companies paid countervailing duties from April 28 to Aug. 25, 2017, at the preliminary rates published in the U.S. Department of Commerce’s preliminary determination.
  • Companies have not been required to pay countervailing duties since Aug. 26, 2017. Payment of these duties will resume at the final duty rates following the publication of the U.S. International Trade Commission’s final injury determination which is expected sometime after Dec. 22, 2017.
  • Since June 30, Canadian companies have been paying anti-dumping duties based on the preliminary rates determined in the U.S. Department of Commerce’s preliminary determination.
  • Following the publication in the Federal Register of the U.S. Department of Commerce’s final anti-dumping determination on Nov. 8, companies started paying anti-dumping duties based on the final rates. 
  • The final anti-dumping duties will continue to be payable until Dec. 27. If the ruling from the U.S. International Trade Commission is published later than Dec. 27, there could be a short gap period where anti-dumping duties are not payable between Dec. 27 and the publication date of the U.S. International Trade Commission final determination. The final duties will then resume on the date of publication.
  • All duties in the form of cash deposits will be held in trust by the U.S. until all appeals of U.S. decisions are finalized.

What are the avenues of appeal?

  • Appeals have been made under the World Trade Organization (WTO) and the North American Free Trade Agreement (NAFTA).
  • On Nov. 14, 2017, Canada filed a notice of intent to appeal under Chapter 19 with the NAFTA Secretariat regarding the countervailing duty investigation.
  • On Nov. 28, 2017, Canada filed a consultation request for the CVD and AD cases with the World Trade Organization.
  • On Dec. 5, 2017, Canada filed a notice of intent to appeal under Chapter 19 with the NAFTA Secretariat regarding the anti-dumping duty investigation.

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