CSMS Message: 92-000491

TO : ALL ABI BROKERS.

FROM : LISA CROSBY

SUBJECT : LIQ-SOFTWOOD LUMBER

DATE : 09/25/92

2262071
SEPTEMBER 22, 1992

CATEGORY: INA CO:TO:T:T WW

TO : ASSISTANT REGIONAL COMMISSIONERS (OPERATIONS)
DEPUTY ASSISTANT REGIONAL COMMISSIONER (COMMERCIAL
OPERATIONS)

FROM : ACTING DIRECTOR
OFFICE OF TRADE OPERATIONS

PASS TO: IMPORT SPECIALISTS HANDLING SOFTWOOD LUMBER, ENTRY
OFFICERS, OTHER INTERESTED CUSTOMS OFFICERS, IMPORTERS
AND BROKERS

SUBJECT: LIQUIDATION OF ENTRY SUMMARIES FOR SOFTWOOD LUMBER FROM
CANADA

BACKGROUND

E-MAIL INSTRUCTION NUMBER 2277071 DATED, OCTOBER 4, 1991,
DIRECTED THAT ENTRY SUMMARIES OF CERTAIN SOFTWOOD LUMBER PRODUCTS
FROM CANADA SUBJECT TO AN INVESTIGATION BY THE OFFICE OF THE
UNITED STATES TRADE REPRESENTATIVE (USTR) UNDER SECTION 302 OF
THE TRADE ACT OF 1974, AS AMENDED, BE WITHHELD OR EXTENDED
PENDING ISSUANCE OF LIQUIDATION INSTRUCTIONS BY USTR. THIS
ACTION WAS MANDATED BY USTR IN FEDERAL REGISTER NOTICE 58947,
DATED NOVEMBER 22, 1991.

THAT SAME FEDERAL REGISTER NOTICE INDICATED ADDITIONAL 301
DUTIES WOULD BE IMPOSED UPON AN AFFIRMATIVE FINAL SUBSIDY
DETERMINATION BY THE DEPARTMENT OF COMMERCE AND AN AFFIRMATIVE
FINAL INJURY DETERMINATION BY THE INTERNATIONAL TRADE COMMISSION
(ITC) IN THE COUNTERVAILING DUTY INVESTIGATION INITIATED BY THE
DEPARTMENT OF COMMERCE. THESE AFFIRMATIVE DETERMINATIONS HAVE
NOW BEEN MADE. ACCORDINGLY, USTR HAD INSTRUCTED CUSTOMS TO
LIQUIDATE ENTRY SUMMARIES FOR THE PERIOD OCTOBER 4, 1991, TO
MARCH 11, 1992, AS DESCRIBED BELOW.

CANADA, SEVERAL PROVINCES, AND U.S. AND CANADIAN INDUSTRIES
HAVE REQUESTED BINATIONAL PANEL REVIEW OF THE COMMERCE AND ITC
DETERMINATIONS PURSUANT TO CHAPTER 19 OF THE CANADA - UNITED
STATES FREE TRADE AGREEMENT. CONSEQUENTLY, USTR IS MODIFYING THE
ORIGINAL 301 INSTRUCTIONS TO DIRECT CUSTOMS TO NOTIFY IMPORTERS
OF RECORD THAT THEY MAY REQUEST THAT LIQUIDATION OF AFFECTED
ENTRY SUMMARIES BE EXTENDED AND LIQUIDATED IN ACCORDANCE WITH THE
OUTCOME OF THE CHAPTER 19 REVIEW (I.E., AT THE LOWER OF THE
APPLICABLE MOU RATE OR THE RATE IN EFFECT AT THE CONCLUSION OF
THE CHAPTER 19 PROCEEDINGS). USTR HAS ISSUED NEW INSTRUCTIONS,
WHICH WILL BE PUBLISHED IN THE FEDERAL REGISTER SHORTLY,
AUTHORIZING THIS ACTION.
ACTION

1. UNLESS EXTENDED IN ACCORDANCE WITH ITEM THREE BELOW, ENTRY
SUMMARIES ARE TO BE LIQUIDATED WITH THE ASSESSMENT OF
ADDITIONAL 301 DUTIES (USING COLLECTION CLASS CODE 01) AT
THE FOLLOWING RATES:

A) BRITISH COLUMBIA -- 0 PERCENT.
B) PRINCE EDWARD ISLAND, NOVA SCOTIA, NEW BRUNSWICK, AND
NEWFOUNDLAND -- 0 PERCENT. (THIS RATE SHALL NOT APPLY
TO SOFTWOOD LUMBER PRODUCTS PRODUCED FROM CROWN TIMBER
HARVESTED IN ANY OTHER PROVINCE; IN SUCH CASE, USE THE
RATE APPLICABLE FOR THE PROVINCE OF HARVEST.)
C) QUEBEC -- 6.2 PERCENT AD VALOREM FOR ENTRIES FILED ON
OR AFTER OCTOBER 4, 1991 THROUGH OCTOBER 31, 1991
(UNLESS AN EXPORT CERTIFICATE WAS SUBMITTED
DEMONSTRATING THAT THE SHIPMENT WAS EXPORTED TO THE
U.S. PRIOR TO OCTOBER 4, 1991, IN WHICH CASE NO
ADDITIONAL 301 DUTIES WILL BE ASSESSED). 3.1 PERCENT
AD VALOREM FOR ENTRIES FILED ON OR AFTER
NOVEMBER 1, 1991 THROUGH MARCH 3, 1992.
D) ALL OTHER PROVINCES -- 6.51 PERCENT AD VALOREM.

2. ENTRY SUMMARIES FOR SOFTWOOD LUMBER PRODUCTS FROM THE
FOLLOWING COMPANIES WILL BE EXEMPT FROM THE ASSESSMENT OF
THE ADDITIONAL 301 DUTIES:

- J.A. FONTAINE ET FILS INC.
- J.D. IRVING, LTD.
- MARCEL LAUZON INC,
- LES PRODUITS FORESTIERS D&G, LTD.
- FRANCOIS GIGUERE, INC.
- REAL GRONDIN, INC.
- BOIS DAAQUAM
- RENE BERNARD, INC.
- WILFRID PAQUET & FILS, LTEE.
- GRONDIN INDUSTRIES
- CARRIER & BEGIN INC.
- CLERMOND HAMMEL, LTEE.
- PAUL VALLEE, INC.
- SCIERIE TESSIER LACHANCE, INC.
- SCIERIE LA PATRIE, INC.

3. IMPORTERS OF RECORD FOR ENTRY SUMMARIES TO BE LIQUIDATED IN
ACCORDANCE WITH ITEM NUMBER ONE MAY REQUEST THAT LIQUIDATION
BE EXTENDED PURSUANT TO CUSTOMS REGULATION 159.12(A)(II) (19
USC 1504(B)(3)), PENDING THE CONCLUSION OF CHAPTER 19
PROCEEDINGS. REQUESTS FOR EXTENSION SHALL BE DIRECTED TO
THE DISTRICT DIRECTOR AT THE PORT OF ENTRY AND SHALL PROVIDE
THE ENTRY NUMBER(S) AND THE DATE(S) OF ENTRY.

CUSTOMS DISTRICT OFFICES SHALL GRANT SUCH REQUESTS FOR
EXTENSION UNLESS THERE ARE OVERRIDING CONCERNS THAT WARRANT
DENIAL. LOCAL CUSTOMS OFFICES SHALL NOTIFY HEADQUARTERS OF
OVERRIDING CONCERNS THAT WARRANT DENIAL AND SHALL NOT DENY
REQUESTS WITHOUT HEADQUARTERS' CONCURRENCE. HEADQUARTERS
WILL ISSUE LIQUIDATION INSTRUCTIONS FOR EXTENDED ENTRY
SUMMARIES ONCE THE CHAPTER 19 PROCEEDINGS ARE COMPLETED.

USTR HAS INDICATED THAT THE CHAPTER 19 PROCEEDINGS MAY LAST
FOR MORE THAN A YEAR, THUS MAKING A SECOND EXTENSION OF
LIQUIDATION NECESSARY. PER CR 159.12(D)(2), IF AN IMPORTER
DETERMINES THAT ADDITIONAL TIME IS NECESSARY BEYOND THE
ORIGINAL ONE-YEAR EXTENSION, HE MUST REQUEST A SECOND
EXTENSION IN WRITING BEFORE THE ORIGINAL EXTENSION EXPIRES,
GIVING REASONS FOR THE REQUEST. ACCORDINGLY, IMPORTERS OF
RECORD ARE CAUTIONED THAT IT IS INCUMBENT UPON THEM TO STAY
ADVISED OF THE STATUS OF THE CHAPTER 19 PROCEEDINGS AND TO
REQUEST A SECOND EXTENSION IF NECESSARY.

4. LIQUIDATIONS WILL BE DELAYED AS LONG AS POSSIBLE TO ALLOW
IMPORTERS OF RECORD TO REQUEST EXTENSIONS IN ACCORDANCE WITH
ITEM NUMBER THREE. FIELD OFFICES, HOWEVER, SHALL PROCEED TO
LIQUIDATE IMMEDIATELY IF IT IS NECESSARY TO PREVENT THE
ENTRY SUMMARY FROM LIQUIDATING AUTOMATICALLY.

5. IF AN IMPORTER OF RECORD FAILS TO REQUEST EXTENSION OF
LIQUIDATION IN ACCORDANCE WITH ITEM NUMBER THREE BUT FILES A
TIMELY PROTEST PURSUANT TO CR 174.11 (19 USC 1514),
REQUESTING THAT THE ENTRY SUMMARY BE LIQUIDATED UPON
COMPLETION OF THE CHAPTER 19 PROCEEDINGS, CUSTOMS SHALL
SUSPEND THE PROTEST PENDING THE COMPLETION OF CHAPTER 19
PROCEEDINGS.

6. PURSUANT TO CR 173.3 (19 USC 1501), CUSTOMS SHALL
RELIQUIDATE ANY ENTRY SUMMARIES COVERED BY THE 301 ACTION
THAT HAVE LIQUIDATED AUTOMATICALLY, USING THE RATES SHOWN IN
ITEM NUMBER ONE ABOVE. THESE RELIQUIDATIONS MAY BE
PROTESTED IN ACCORDANCE WITH ITEM NUMBER FIVE.

QUESTIONS REGARDING THESE INSTRUCTIONS SHOULD BE DIRECTED TO
BILL WAGNER AT (202)927-0693.

/S/ WILLIAM J. LUEBKERT