J&J International Trade Notice 2002-7

April 11, 2002

Canadian Softwood Lumber

Duty Free Opportunity - Twenty-Something Days Prior to Order

Due to the announced postponement of the ITC "Injury" or "Threat of Injury" finding and publication from May 6th to May 16th, it appears there could very well be a window of opportunity in which to export AD impacted materials FREE of ANY duty liabilities.

Section 733 of the Tariff Act providing for "Preliminary Anti-Dumping Determinations" states in subsection B (3) paragraph 2: The instructions of the administering authority under paragraphs (1) and (2) may not remain in effect for more than 4 months, except that the administering authority may, at the request of exporters representing a significant proportion of exports of the subject merchandise, extend that 4-month period to not more than 6 months. Bold underlined emphasis added.

Commerce has verbally confirmed that this Tariff Act provision, similar to the WTO proviso with regard to Countervailing cases, limits their timeframe in which to publish their Finding. This only becomes an issue because Commerce just recently announced they were postponing this decision until May 16th, understanding that the Order, yet to be issued as a result of such a decision, will require another 5 to 7 days to be published.

Effecting U.S. Customs "Clearance" of shipments under an "Immediate Delivery Release" (I.D.) format would allow shipments crossing the border as early as April 22nd (ten working-days prior to May 6th and the broker’s deadline to file summary documents) benefit of a window, now stretched from ten days to a possible twenty-five or more.

Your broker’s task is to effect "I.D. Release" on shipments crossing ten working-days prior to the six month deadline (May 6th), and then, immediately after the deadline, switch to an "Entry Release" format, similarly qualifying for duty free treatment all shipments that physically crossed the border prior to the late-May issuance of the Order. Keep in mind, we never know until it is actually published, the date such an Order would go into effect. If published May 24th at 3:00 p.m. East Coast time, all shipments crossing that day – from 9:00 p.m. West Coast Time (midnight East Coast Time) May 23rd, would be assessed not only the AD margin rate, but the 19.34% CVD rate, as well.

A Finding of "Threat of Injury", determining injury had yet to be sustained, but would ultimately result if the situation were allowed to continue unabated, would provide for dismissal of all previously posted liabilities. CVD/AD duty assessments could only be made against shipments entered on or after issuance of the anticipated late-May Order.

 

Michael D. Jones, President