CSMS Message: 03-000807

FEBRUARY 28, 2003
TO: INTERIM DIRECTORS, FIELD OPERATIONS

FROM: EXECUTIVE DIRECTOR, TRADE COMPLIANCE AND FACILITATION
OFFICE OF FIELD OPERATIONS

SUBJECT: CLARIFICATION OF SCOPE LANGUAGE AND PROCEDURES FOR U.S. LUMBER
PRODUCTS SENT TO CANADA FOR FURTHER PROCESSING AND RETURNED TO
U.S/ADD-CVD REFUNDS (FOR DISSEMINATION TO IMPORTING PUBLIC)

WE REFER TO HEADQUARTERS MESSAGE 3034202, DATED FEBRUARY 2, 2003,
CONCERNING CLARIFICATION OF MESSAGES 2144201 AND 2144202 OF MAY 24, 2002
AND COMMERCE'S CLARIFIED SCOPE LANGUAGE MENTIONED IN THE FIRST
REFERENCED MESSAGE INVOLVING U.S. LUMBER PRODUCTS FURTHER PROCESSED IN
CANADA AND RETURNED TO THE UNITED STATES. THE PERTINENT ANTIDUMPING(ADD)
AND COUNTERVAILING DUTY(CVD) CASES ARE A-122-838 AND C-122-839
RESPECTIVELY. THE HTS NUMBERS COVERED BY THESE CASES ARE 4407.10.00,
4409.10.10, 4409.10.20, 4409.10.90, 4418.90.4590, 4421.90.7040, AND
4421.90.9740. IN THIS REGARD, THE FOLLOWING PROCEDURES WILL BE FOLLOWED:

1. U.S. LUMBER PRODUCTS SCOPE LANGUAGE CLARIFICATION BY COMMERCE

AS STATED IN ITEM 2 OF HEADQUARTERS MESSAGE 3034202 OF FEBRUARY 2, 2003,
ALL SOFTWOOD LUMBER PRODUCTS ENTERED IN THE U.S. FOR CONSUMPTION FROM
CANADA AND CLAIMING EXEMPTION FROM THE AD AND CVD DUTIES BASED ON U.S.-
ORIGIN GOODS PURSUANT TO THE AD AND CVD ORDERS MUST MEET THEN FOLLOWING
CONDITION:

UPON ENTRY INTO THE UNITED STATES OF THE LUMBER PRODUCTS AFTER UNDER-
GOING CANADIAN FURTHER PROCESSING, THE IMPORTER MUST ESTABLISH TO U.S.
CUSTOMS SATISFACTION (I.E., BY MEANS OF THE APPROPRIATE DOCUMENTATION)
THAT THE SOFTWOOD LUMBER PRODUCTS ENTERED AND DOCUMENTED AS U.S.-
ORIGIN WERE FIRST PRODUCED IN THE U.S. AS A LUMBER PRODUCT SATISFYING
THE PHYSICAL PARAMETERS OF THE SOFTWOOD LUMBER PRODUCT SCOPE.

SOFTWOOD LUMBER PRODUCTS (OF U.S. ORIGIN) IMPORTED FROM CANADA AFTER
FURTHER PROCESSING SHOULD BE CLASSIFIED IN THE CONDITION AS
RE-IMPORTED INTO THE U.S. IN ADDITION TO THE PREVIOUS THREE ACCEPTABLE
MINOR PROCESSING OPERATIONS IN CANADA, I.E., KILN-DRYING, PLANING TO
CREATE SMOOTH-TO-SIZE BOARD, AND SANDING, OUTLINED IN ABOVE CITED
MESSAGES OF MAY 24, 2002, ALL FURTHER PROCESSING OPERATIONS IN CANADA
ARE ACCEPTABLE FOR THE PURPOSE OF MAINTAINING U.S.-ORIGIN OF THE
RETURNED LUMBER PRODUCT FROM CANADA. IN THIS REGARD, COMMERCE HAS
STATED THAT A U.S. LUMBER PRODUCT THAT LEAVES THE U.S. SATISFYING THE
PHYSICAL PARAMETERS OF THE SCOPE OF THE AD/CVD ORDERS, IS PROCESSED IN
CANADA AND RETURNS TO THE U.S. SATISFYING THE PHYSICAL PARAMETERS OF
THE SCOPE OF THE ORDERS IS PRESUMED TO BE OF U.S. ORIGIN FOR THE
PURPOSES OF THESE ORDERS. ONLY IF RAISED AND DOCUMENTED WILL THE
DEPARTMENT OF COMMERCE CONSIDER EXCEPTIONS TO THIS GENERAL PRINCIPLE
ON A CASE-BY-CASE BASIS AND WILL INFORM CUSTOMS WHEN AN EXCEPTION
SHOULD BE RECOGNIZED FOR PURPOSES OF COLLECTING AD/CVD DUTY DEPOSITS
AND SUSPENDING LIQUIDATION OF PARTICULAR ENTRIES. PLEASE ALSO NOTE THAT
U.S. LUMBER PRODUCTS FURTHER PROCESSED IN THE MARITIME PROVINCES OF
CANADA AND THEN RETURNED TO THE U.S. ARE ALSO EXEMPT FROM AD/CVD DUTIES.

2. ENTRY TYPE AND HTS NUMBERS FOR ENTRY SUMMARIES INVOLVING U.S. LUMBER
PRODUCTS FURTHER PROCESSED IN CANADA

AN IMPORTER CLAIMING NON-APPLICABILITY OF AD/CVD DUTIES FOR U.S. LUMBER
PRODUCTS FURTHER PROCESSED IN CANADA MUST FILE A TYPE CODE '01' ENTRY
WITH THE U.S. BEING SHOWN AS THE COUNTRY OF ORIGIN, A CA PREFIX TO THE
NAFTA DUTY-FREE RATE HTS NUMBER (E.G., 4407.10.00). NOTE THAT NO DUTY
OR MERCHANDISE PROCESSING FEE (MPF) IS APPLICABLE AND NO ADD/CVD CASE
NUMBER DATA IS TO BE GIVEN FOR AN ABI STATEMENT ENTRY TRANSMISSION TO
CUSTOMS. A RETURN ELECTRONIC MESSAGE TO THE FILER WILL STATE THAT THE
ENTRY IS ACCEPTED BY CUSTOMS AS WELL AS INDICATE THE NEED FOR SUBMISSION
OF A FOLLOW-UP PAPER ENTRY SUMMARY FOR IMPORT SPECIALIST TEAM REVIEW. IF
THE IMPORTER DOES NOT SUBMIT THE SUPPORTING DOCUMENTATION WITH HIS PAPER
ENTRY SUMMARY AT THIS POINT, THE '01' ENTRY WILL BE REJECTED FOR FAILURE
TO PROVIDE DOCUMENTATION TO SUPPORT THE CLAIM AND THE IMPORTER WILL BE
TOLD TO FILE AN '03' ENTRY SUMMARY ALONG WITH PAYMENT OF AD/CVD DUTIES.

3. SUPPORTING DOCUMENTS FOR VALID CLAIM

FOR CURRENT TRANSACTIONS, THE SUPPORTING DOCUMENTS ON EACH NEW SHIPPER,
IMPORTER, MANUFACTURER, EXPORTER COMBINATION ARE TO BE FILED ONLY WITH
THE FIRST ENTRY SUMMARY. THEREAFTER, UNLESS THE CIRCUMSTANCES AND/OR
SHIPPER, IMPORTER, MANUFACTURER, EXPORTER COMBINATION HAVE CHANGED, NO
SUPPORTING DOCUMENTS WILL HAVE TO ACCOMPANY FUTURE ENTRY SUMMARIES IN
THIS REGARD. DOCUMENTS TO SUBSTANTIATE THE CLAIM WILL DEPEND ON CIRCUM-
STANCES OF THE TRANSACTION, KNOWLEDGE OF THE PARTIES, ETC., AS
APPROPRIATE. IT IS INCUMBENT UPON THE IMPORTER TO SUBMIT SUPPORTING
DOCUMENTS TO CORROBORATE HIS CLAIM. AN IMPORTER CANNOT BOND FOR THESE
SUPPORTING DOCUMENTS AS THEY ARE UTILIZED TO ESTABLISH THE APPLICABILITY
OF AD/CVD DUTIES AT THE TIME OF ENTRY SUMMARY FILING.

EXAMPLES ARE AS FOLLOWS: U.S. 1ST MILL DOCUMENT, CANADIAN PROCESSOR
DECLARATION, U.S. PROCESSOR DECLARATION, MILL INVENTORY REPORTS/MILL
OPERATION REPORTS AND ANY OTHER DOCUMENTS THAT THE ENTRY FILER OR
CUSTOMS DEEMS APPROPRIATE.

WITH RESPECT TO ALL PAST ENTRIES COVERING ONLY U.S. LUMBER PRODUCTS
FURTHER PROCESSED IN CANADA ON SUCH ENTRIES, THE DOCUMENTS ABOVE ARE
EXAMPLES OF ENTRY SUMMARY SUPPORTING DOCUMENTATION THAT THE ENTRY FILER
MAY SUBMIT TO CUSTOMS FOR HIS RETROACTIVE CLAIM (NOTE THAT ONE SEPARATE
SET OF SUPPORTING DOCUMENTS FOR EACH SHIPPER, IMPORTER, MANUFACTURER,
EXPORTER COMBINATION IS TO BE SUBMITTED).

4. PROCEDURE FOR SEEKING A REFUND PAYMENT OF AD/CVD DUTIES

IN ORDER TO LIQUIDATE CURRENTLY SUSPENDED ENTRIES COVERING ONLY ALLEGED
U.S. LUMBER PRODUCTS MEETING THE REQUIREMENTS SET FORTH IN COMMERCE
MESSAGE 3034202 OF FEBRUARY 3, 2003, IN ADDITION TO PROVIDING SUPPORTING
DOCUMENTS SPECIFIED BY THE IMPORT SPECIALIST FOR A VALID CLAIM, THE
IMPORTER MUST ALSO PROVIDE CUSTOMS A LISTING OF THE SPECIFIC CUSTOMS
ENTRIES, DATES OF ENTRY AND PORTS OF ENTRY BY ENTRY FILER FOR EACH
SHIPPER, IMPORTER, MANUFACTURER, EXPORTER COMBINATION FOR LIQUIDATION
AND REFUND PURPOSES.

IN THE CASE OF A CLAIM FOR ADD/CVD REFUND FOR PAST MIXED ENTRIES
COVERING BOTH EXEMPT AND NON-EXEMPT LUMBER PRODUCTS, A SEPARATE LISTING
ALONG WITH SUPPORTING DOCUMENTS WILL ALSO HAVE TO BE PROVIDED FOR THE
EXEMPT LUMBER PRODUCTS BY THE IMPORTER AT THE TIME OF ISSUANCE OF A
COMMERCE LIQUIDATION SUSPENSION REMOVAL INSTRUCTION INVOLVING THE NON-
EXEMPT LUMBER PRODUCTS.

INTEREST PROVISIONS APPLY TO THESE EXEMPT CLAIMS FOR PAST ENTRIES AT THE
TIME OF LIQUIDATION/REFUNDING.

OUR OFFICE OF REGULATIONS AND RULINGS (OR&R), CUSTOMS HEADQUARTERS, HAS
CONFIRMED THAT THERE IS NO LEGAL AUTHORITY TO GRANT ANY REFUNDS WITH
RESPECT TO THESE U.S. LUMBER PRODUCT CLAIMS PRIOR TO LIQUIDATION OF THE
ENTRY.

QUESTIONS CONCERNING THIS ISSUANCE SHOULD BE DIRECTED TO MR. LEO WELLS,
OTHER GOVERNMENT AGENCIES BRANCH, CUSTOMS HEADQUARTERS, AT
(202) 927-0771.

ELIZABETH G. DURANT