5 May 2025

🌲Amended Final Results of Countervailing Duty Review on Softwood Lumber

Certain Softwood Lumber Products From Canada: Notice of Amended Final Results of Countervailing Duty Expedited Review; Notice of Exclusion From Countervailing Duty Order

Summary

On January 21, 2025, the U.S. Court of International Trade (CIT) issued an order in Committee Overseeing Action for Lumber International Trade Investigations or Negotiations, et al., v. United States, et al., Consol. Ct. No. 19-00122 (Slip Op. 25-8) (CIT 2025) (COALITION V), partially sustaining the U.S. Department of Commerce's (Commerce) final results of remand redetermination (remand redetermination), concerning the countervailing duty (CVD) order on certain softwood lumber products (softwood lumber) from Canada. In particular, the CIT sustained Commerce's remand redetermination calculating a 0.88 percent de minimis subsidy rate for Fontaine, Inc. and its cross-owned affiliates Gestion Natanis Inc., Les Placements Jean-Paul Fontaine Ltee, and Placements Nicolas Fontaine Inc. (collectively, Fontaine) and determination to exclude subject merchandise produced and exported by Fontaine from the CVD order on softwood lumber from Canada. On March 13, 2025, the CIT issued an order severing Fontaine, Inc., et al., v. United States, et al., Ct. No. 19- 00154, (Fontaine v. US) from COALITION. The CIT further issued its judgment and ordered that Fontaine's enjoined entries be liquidated in accordance with the final court decision. On April 18, 2025, pursuant to CIT Rule 60(b)(6), the Court further ordered that Commerce: (1) publish an amended final results of the CVD expedited review with respect to Fontaine that reflects the calculated 0.00 percent cash deposit rate for Fontaine, and (2) ensure that subject entries enjoined in the action are liquidated in accordance with the final court decision, including all appeals, consistent with the requirements of section 516A(e) of the Tariff Act of 1930, as amended. Accordingly, Commerce is issuing these amended final results of CVD expedited review reflecting the zero percent cash deposit rate determined in Commerce's remand redetermination. Moreover, we are confirming that Commerce will also direct CBP to liquidate entries enjoined in this action of softwood lumber produced and exported by Fontaine, entered, or withdrawn from warehouse, for consumption, on or after April 28, 2017, in accordance with the final court decision in this case, including all appeals.

Agencies

  • Commerce Department
  • International Trade Administration

Business Impact ?

$$$ - High

The document communicates a significant amendment regarding countervailing duties on certain softwood lumber from Canada, specifically reducing the cash deposit rate for Fontaine, Inc. to zero percent. This impacts financial strategies for businesses involved in the import and export of softwood lumber, potentially leading to increased competitiveness in pricing.

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