We didn’t want to send out our Trade Notice dealing with this issue until we could provide you with substantiated information that most of you had not already gleaned from media sources. The following, though not much, should allow you enough information to make whatever decisions you deem necessary.

Although Commerce didn’t have a leg to stand on, they ran right out September 31^st and announced their Preliminary Determination supporting the CFLI ‘s allegations of Dumping against the entire Canadian Forest Industry. Although six Canadian companies have "Specific" rates, all "Other" Canadian softwood lumber exporters, whether producers, remans or wholesalers, to include those in the Maritimes, will be assessed the weighted average of 12.58% ad valorem. Abitibi is @13.64%, Canfor @12.98%, Slocan @ 19.24%, Tembec @ 10.76%, West Fraser @ 5.94% and Weyerhaeuser @ 11.93%.

Commerce’s announcement (as concurred by them moments ago), expected to become effective when published in the Federal Register in the next four to seven days, is not to be applied retroactively. Shipments "Entered" into the U.S. prior to publication would be assessed only the 19.31% CVD. Once published, Single Entry CVD/ADD bonds or cash would have to be posted for the combined 19.31% CVD and 12.58% ADD - a total of 31.91%. This combined amount would continue until December 15^th (120 days from Commerce’s August 17^th Publication of the Preliminary Determination), at which time the CVD portion would be terminated until publication of Commerce’s Final Determination of both cases, which now have been aligned to run concurrently - reducing and limiting your bonding or cash deposits from that date forward to the ADD case’s "Other" 12.58%, or "Specific" rate(s).

In speaking with Commerce’s Senior CVD analyst this morning, we were advised that they have yet to arrive at their decision regarding U.S. primary mill sawn lumber remanned in Canada and re-export to the U.S. They allowed that U.S. Customs was also pressing them for a decision in this matter – because we are pressing both agencies. We don’t see how they could not determine that any subsidy benefit in this instance would be impossible, and hope they will arrive at and publish their favorable decision soon.

U.S. Customs Headquarters, per our meetings with them in early October, have announced that they will not return the Single Entry Bonds unlawfully secured for shipments "Entered" prior to September 10 ^th . However, our attorneys allow that since the bonds were mandated unlawfully, if we were to lose the CVD/ADD case, the courts would not sustain Customs’ position if they attempted to collect on those bond amounts.
 
 

Michael D. Jones, President