CSMS Message: 94-001051

TO : ALL ABI BROKERS.

FROM : LISA CROSBY

SUBJECT : OTH-CA SOFTWOOD LUMBER

DATE : 10/21/94

5293073
OCTOBER 20, 1994

CATEGORY: OTH CO:TO:TF:TP LAC

TO : ASSISTANT REGIONAL COMMISSIONERS OPERATIONS, DISTRICT
AREA AND PORT DIRECTORS

FROM : DIRECTOR, OFFICE OF TRADE OPERATIONS

SUBJECT: TERMINATION OF SECTION 301 ACTION ON IMPORTS OF
CANADIAN SOFTWOOD LUMBER

PASS TO: NATIONAL AND FIELD IMPORT SPECIALISTS, INSPECTORS,
ENTRY OFFICERS, AND OTHER INTERESTED PARTIES

BACKGROUND:

IN EMAIL MESSAGE NUMBER 2277071, DATED OCTOBER 4, 1991, YOU WERE
DIRECTED TO WITHHOLD OR EXTEND LIQUIDATION OF ENTRY SUMMARIES FOR
CERTAIN SOFTWOOD LUMBER PRODUCTS FROM CANADA. THESE PRODUCTS
WERE 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, AND WERE NOT TO BE LIQUIDATED UNTIL
INSTRUCTIONS WERE ISSUED BY USTR.

IN SEPTEMBER OF 1992, USTR INSTRUCTED CUSTOMS TO PROCEED WITH
LIQUIDATION OF ENTRY SUMMARIES FOR THE PERIOD OCTOBER 4, 1991, TO
MARCH 11, 1992 (SEE EMAIL MESSAGE 2262071, DATED SEPTEMBER 22,
1992). USTR DIRECTED CUSTOMS TO LIQUIDATE THESE ENTRY SUMMARIES,
COLLECTING ADDITIONAL 301 DUTIES AT THE RATE SPECIFIED IN THE
MEMORANDUM OF UNDERSTANDING OR THE RATE OF SUBSIDY FOUND BY THE
DEPARTMENT OF COMMERCE IN ITS FINAL COUNTERVAILING DUTY
DETERMINATION, WHICHEVER WAS LESS.

SINCE VARIOUS PARTIES HAD REQUESTED BINATIONAL PANEL REVIEW OF
THE SUBSIDY AND INJURY DETERMINATIONS, USTR FURTHER PROVIDED THAT
IMPORTERS COULD REQUEST EXTENSION OF LIQUIDATION PURSUANT TO 19
C.F.R. 159.12(A)(II) (19 U.S.C. 1504B)(3)), PENDING CONCLUSION OF
THE CHAPTER 19 BINATIONAL PANEL REVIEW. USTR PROVIDED THAT THESE
SUMMARIES WOULD BE LIQUIDATED AT THE RATE REQUIRED BY THE MOU OR
THAT MANDATED BY THE BINATIONAL PANEL REVIEW PROCESS, WHICHEVER
WAS LESS. IMPORTERS WERE PERMITTED TO PROTEST ENTRY SUMMARIES
THAT HAD BEEN LIQUIDATED WITH THE ASSESSMENT OF 301 DUTIES; FIELD
OFFICES WERE INSTRUCTED TO SUSPEND THESE PROTESTS SO THAT THE
ENTRY SUMMARIES COULD BE RELIQUIDATED AT THE LESSER OF THE MOU
RATE OR THAT REQUIRED BY THE BINATIONAL PANEL UPON CONCLUSION OF
THE REVIEW PROCESS.

THE CHAPTER 19 REVIEW PROCESS IS NOW CONCLUDED. THE BINATIONAL
PANEL FOUND THAT COUNTERVAILABLE SUBSIDIES WERE NOT BEING
PROVIDED TO CANADIAN PRODUCERS OF SOFTWOOD LUMBER. ON AUGUST 3,
1994, AN EXTRAORDINARY CHALLENGE COMMITTEE AFFIRMED THE
BINATIONAL PANEL'S DETERMINATION. ACCORDINGLY, IN A FEDERAL
REGISTER NOTICE DATED OCTOBER 19, 1994, USTR DIRECTED CUSTOMS NOT
TO ASSESS ADDITIONAL 301 DUTIES ON ENTRY SUMMARIES WHOSE
LIQUIDATION WAS EXTENDED AT THE IMPORTER'S REQUEST OR THAT WERE
PROPERLY PROTESTED BY THE IMPORTER (SEE 59 FEDERAL REGISTER
52846).

ACTION:

1. FOR THOSE IMPORTERS WHO REQUESTED EXTENSION OF LIQUIDATION
IN ACCORDANCE WITH 19 C.F.R. 159.12(A)(II), AND REQUESTED
ADDITIONAL EXTENSIONS IN WRITING IN ACCORDANCE WITH 19
C.F.R. 159.12(D)(2), CUSTOMS SHALL LIQUIDATE THE ENTRY
SUMMARIES WITHOUT THE IMPOSITION OF ADDITIONAL 301 DUTIES.
BONDS COLLECTED ON THESE ENTRY SUMMARIES PURSUANT TO SECTION
301 SHALL BE DE-OBLIGATED.

2. FOR THOSE IMPORTERS WHO PROTESTED THE ASSESSMENT OF 301
DUTIES ON LIQUIDATED ENTRY SUMMARIES IN ACCORDANCE WITH 19
C.F.R. 174.11 (19 U.S.C. 1514), CUSTOMS SHALL RELIQUIDATE
THE ENTRY SUMMARIES WITH A REFUND OF THE ADDITIONAL 301
DUTIES (THESE DUTIES WERE COLLECTED UNDER COLLECTION CLASS
CODE 01). INTEREST SHALL BE PAID FROM THE DATE THE
ADDITIONAL 301 DUTIES WERE PAID.

3. THESE INSTRUCTIONS PERTAIN ONLY TO THE SECTION 301 ACTION
AND ARE UNRELATED TO THE DISPOSITION OF CASH DEPOSITS
COLLECTED PURSUANT TO THE LUMBER CVD ORDER ITSELF.

QUESTIONS REGARDING THIS MESSAGE MAY BE DIRECTED TO LISA CROSBY,
TRADE PROGRAMS BRANCH, AT (202) 927-0163.

PHILIP METZGER