CSMS Message: 05-000458

DATE: 04/25/2005
TO: DIRECTORS, FIELD OPERATIONS

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

RE: ANTIDUMPING AND/OR COUNVERVAILING DUTIES (AD/CVD)
RATES FOR CANADIAN SOFTWOOD LUMBER ENTRIES

BASED UPON REVIEW OF MESSAGES FROM THE DEPARTMENT OF COMMERCE (DOC), AS
WELL AS THE HISTORICAL FILES, THE AD/CVD TEAM AT HEADQUARTERS OFFERS THE
FOLLOWING GUIDANCE TO ALL PARTIES FOR USE IN DETERMINING THE APPLICABLE
RATE FOR THE TWO CURRENT SOFTWOOD LUMBER CASES: A122838 AND C122839.
THIS MESSAGE CONSTITUTES THE CURRENT APPLICATION BY CUSTOMS AND BORDER
PROTECTION OF DOCS INSTRUCTIONS. IT IS BASED UPON THE FEDERAL REGISTER
NOTICES (VOLUME 69, NUMBER 243) DATED DECEMBER 20, 2004 AND APPLIES TO
ENTRIES ENTERED AFTER THAT DATE.

AD RATES

- IF THE EXPORTER OF THE SUBJECT MERCHANDISE HAS ITS OWN RATE, USE
THE EXPORTERS RATE FOR DETERMINING THE CASH DEPOSIT RATE.

- IF THE EXPORTER OF THE SUBJECT MERCHANDISE DOES NOT HAVE ITS OWN
RATE,BUT THE MANUFACTURER HAS ITS OWN RATE, THE CASH DEPOSIT RATE WILL
WILL BE THE MANUFACTURERS RATE.

- WHERE NEITHER THE EXPORTER NOR THE MANUFACTURER CURRENTLY HAS ITS
OWN RATE OR THE MANUFACTURER IS UNKNOWN, USE THE 'ALL OTHER' RATE FOR
ESTABLISHING THE CASH DEPOSIT RATE. FOR ENTRIES OF SOFTWOOD LUMBER,
THE IMPORTER MUST IDENTIFY THE MANUFACTURER AND EXPORTER IN ALL
CIRCUMSTANCES WHERE SUCH PARTIES ARE KNOWN.

CV RATES

IF THE SHIPMENT IS ACCOMPANIED BY AN ORIGINAL VALID MARATIME LUMBER
BOARD (MLB) CERTIFICATE DEMONSTRATING THAT THE LUMBER WASPRODUCED IN
THE MARITIMES IT IS EXEMPT FROM CVD.

- IF IT IS PRODUCED AND EXPORTED BY AN EXCLUDED COMPANY - IT IS
EXEMPT FROM CVD.

- THE 0% RATE APPLIES TO MERCHANDISE PRODUCED OR EXPORTED BY
BY COMPANIES SUBJECT TO THE 0% RATE.

- IF NONE OF THE ABOVE APPLY AND THE PRODUCER HAS ITS OWN SPECIFIC
SUFFIX/RATE - USE THEIR INDIVIDUAL RATE; IF THE PRODUCER IS UNKNOWN -
USE THEEXPORTER'S INDIVIDUAL SUFFIX/RATE AND IF NEITHER HAS THEIR OWN
INDIVIDUAL RATE - USE THE COUNTRY-WIDE RATE.

FOR ALL CASES, THE PRODUCER AND/OR MANUFACTURER IS DEFINED AS THE ENTITY
THAT PROCESSES THE GOOD INTO ITS CONDITION AS IMPORTED INTO THE UNITED
STATES.

SCENARIOS FOR AD CASES:

1. MILL A TRANSFORMS LOGS INTO LUMBER AND EXPORTS THE LUMBER TO THE
U.S. - USE THE RATE OR MILL A; IF ONE DOES NOT EXIST USE THE ALL
OTHERS RATE.

2. MILL A TRANSFORMS LOGS INTO LUMBER THAT ARE FURTHER MANUFACTURED BY
MILL B (MILL B IS THE MANUFACTURER/PRODUCER). MILL B EXPORTS THE PRODUCT
TO THE U.S. - USE THE RATE FOR MILL B. IF ONE DOES NOT EXIST - USE
THE OTHERS RATE.

3. SAME SCENARIO AS #2, HOWEVER, MILL B SELLS THEIR PRODUCT TO
COMPANY C. COMPANY C EXPORTS THESE GOODS TO THE U.S. WITHOUT
ANY ADDITIONAL PROCESSING USE THE RATE FOR COMPANY C, AS
THE EXPORTER. IF ONE DOES NOT EXIST, USE THE MANUFACTURERS
RATE FOR MILL B. IF ONE DOES NOT EXIST USE THE ALL OTHERS RATE.

4. SAME SCENARIO AS #3, HOWEVER, MILL B IS UNKNOWN. COMPANY C
EXPORTS THESE GOODS TO THE U.S. WITHOUT ANY ADDITIONAL PROCESSING -
USE THE RATE FOR COMPANY C, AS THE EXPORTER. IF ONE DOES NOT EXIST,
USE THE ALL OTHERS RATE, AS THE MANUFACTURER IS UNKNOWN.

SCENARIOS FOR CV CASES:

1. MILL A, IN THE MARITIMES, TRANSFORMS LOGS INTO LUMBER AND EXPORTS
THE LUMBER TO THE U.S. AN ORIGINAL VALID MLB ACCOMPANIES
THE SHIPMENT CVD DOES NOT APPLY.

2. MILL A TRANSFORMS LOGS INTO LUMBER AND EXPORTS THE LUMBER TO THE
U.S. - MILL A IS ON THE EXCLUDED LIST CVD DOES NOT APPLY.

3. MILL A, IN THE MARITIMES, TRANSFORMS LOGS INTO LUMBER.
MILL A SELLS THE LUMBER TO A NON-MARITIME MILL, MILL B. MILL B FURTHER
MANUFACTURES THE LUMBER AND EXPORTS THE LUMBER TO THE U.S.
MILL B IS ON THE EXCLUDED LIST CVD DOES NOT APPLY.

4. MILL A, IN THE MARITIMES, TRANSFORMS LOGS INTO LUMBER. MILL A SELLS
TO A NON-MARITIME MILL, MILL B. MILL B FURTHER MANUFACTURES THE
LUMBER AND RESELLS THE LUMBER TO COMPANY C WHO EXPORTS
THE LUMBER TO THE U.S. MILL B IS ON THE EXCLUDED LIST; HOWEVER,
AS MILL B IS NOT BOTH THE EXPORTER AND PRODUCER THE EXCEPTION
NOT APPLY. COMPANY C IS LISTED WITH A 0% RATE APPLY THE 0% RATE.

5. MILL A, IN THE MARITIMES, TRANSFORMS LOGS INTO LUMBER. MILL A SELLS
THE LUMBER TO A NON-MARITIME MILL, MILL B. MILL B FURTHER MANUFACTURES
THE LUMBER AND RESELLS THE LUMBER TO COMPANY D WHO EXPORTS THE LUMBER
TO THE U.S. MILL B IS ON THE EXCLUDED LIST; HOWEVER; AS MILL B IS NOT
BOTH THE EXPORTER AND PRODUCER-THE EXCEPTION DOES NOT APPLY. COMPANY D
IS NOT LISTED AS ELIGIBLE FOR A 0% RATE-IF COMPANY D HAS ITS OWN SUFFIX
-ENTER PURSUANT TO THAT SUFFIX AND RATE; IF NOT-APPLY THE COUNTRY WIDE
RATE WITH SUFFUX "000".

THIS MESSAGE DOES NOT APPLY TO U.S. ORIGIN PRODUCTS DEFINED BY MESSAGE
3034202, DATED FEBRUARY 03, 2003. CBP MUST WAIT FOR LIQUIDATION
INSTRUCTIONS FROM DOC FOR ENTRIES FILED PRIOR TO DECEMBER 20, 2004
BEFORE PROVIDING GUIDANCE TO THE FIELD ON THE APPLICABILITY OF RATES
FOR PRIOR IMPORTS.

ANY QUESTIONS BY THE PUBLIC REGARDING FURTHER APPLICATION OF DOC'S
INSTRUCTIONS SHOULD BE DIRECTED TO THE DOC. IF YOU HAVE ANY QUESTIONS
ABOUT THIS MESSAGE OR ITS CONTENT, PLEASE CONTACT MS. CHRISTINE FURGASON
ADCVD TEAM LEADER, AT (202) 344-2293.

/S/

CATHY SAUDECA