[Federal Register Volume 75, Number 167 (Monday, August 30, 2010)]
[Notices]
[Pages 53014-53015]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-21486]
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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
[Docket No. USTR-2010-0015]
Notice and Modification of Action: Canada--Compliance with
Softwood Lumber Agreement
AGENCY: Office of the United States Trade Representative.
ACTION: Notice and modification of action.
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SUMMARY: Under the 2006 Softwood Lumber Agreement (SLA), Canada agreed
to impose export measures on Canadian exports of softwood lumber
products to the United States. At the request of the United States, an
arbitral tribunal established under the SLA determined in March 2008
that Canada had breached certain SLA obligations. In February 2009, the
tribunal issued a remedy award instructing Canada to collect an
additional 10 percent ad valorem export charge on softwood lumber
shipments from Ontario, Quebec, Manitoba, and Saskatchewan, until an
entire amount of CDN $68 million has been collected. Canada did not
begin collecting the additional export charge. In April 2009, the
United States Trade Representative (``Trade Representative'') initiated
an investigation under Section 302 of the Trade Act of 1974, as amended
(``Trade Act''). In that investigation, the Trade Representative
determined that Canada's failure to implement the tribunal's remedy
award had the effect of denying U.S. rights under the SLA; and,
pursuant to Section 301 of the Trade Act, the Trade Representative
imposed 10 percent ad valorem duties on imports of softwood lumber
products subject to the SLA from the provinces of Ontario, Quebec,
Manitoba, and Saskatchewan (the April 2009 action). Under the April
2009 action, the duties are to remain in place until such time as the
United States collects $54.8 million, the U.S. dollar equivalent of CDN
$68 million at the time. The Government of Canada, however, has now
adopted its own measures to address Canada's breach of the SLA. In
particular, Canada will begin collection of an additional 10 percent
charge on exports of softwood lumber products from the provinces of
Ontario, Quebec, Manitoba, and Saskatchewan, which will be effective
with respect to softwood lumber products with a shipment date of
September 1, 2010 or later. Per an understanding between the
Governments of the United States and Canada, Canada will collect the
additional 10 percent charge on exports until the total of the amounts
collected under the U.S. import duty and the Canadian charge on exports
is equal to CDN $68 million. The Trade Representative has determined
that Canada's measures satisfactorily grant the rights of the United
States under the SLA. Accordingly, the Trade Representative has
modified the April 2009 action by removing the 10 percent ad valorem
duties on imports of softwood lumber products subject to the SLA from
the provinces of Ontario, Quebec, Manitoba, and Saskatchewan, effective
with respect to imports with a shipment date of September 1, 2010 or
later.
DATES: The modification of the April 2009 action is effective with
respect to imports of softwood lumber products subject to the SLA from
the provinces of Ontario, Quebec, Manitoba, and Saskatchewan with a
shipment date of September 1, 2010 or later.
FOR FURTHER INFORMATION CONTACT: John Melle, Deputy Assistant USTR for
the Americas, (202) 395-3412, or Suzanne Garner, Assistant General
Counsel, (202) 395-9663, for questions concerning the enforcement of
U.S. rights under the SLA; Heather Sykes, Chief, Trade Policy Branch,
U.S. Customs and Border Protection, Department of Homeland Security,
(202) 863-6099, for questions concerning entries of softwood lumber
products, or William Busis, Chair of the Section 301 Committee and
Deputy Assistant USTR for Monitoring and Enforcement, (202) 395-3150,
for questions concerning procedures under Section 301.
SUPPLEMENTARY INFORMATION:
A. Enforcement of U.S. rights under the SLA
For further information concerning U.S. rights under the SLA and
the April 2009 action, see Initiation of Section 302 Investigation,
Determination of Action Under Section 301, and Request for Comments:
Canada--Compliance With Softwood Lumber Agreement, 74 FR 16,436 (April
10, 2009) (notice); 74 FR 17,276 (April 14, 2009) (annex).
B. Canada's Measures Addressing the Breach of the SLA
Canada has adopted measures to comply with the February 2009 remedy
award by imposing a 10 percent export charge on exports of softwood
lumber products subject to the SLA from the provinces of Ontario,
Quebec, Manitoba, and Saskatchewan. Canada enacted the necessary
legislation, in the form of an amendment to the Softwood Lumber
Products Export Charge Act, 2006, with parliamentary approval and royal
assent on July 12, 2010. On August 4, 2010, Canada issued an Order in
Council setting September 1, 2010 as the date to begin imposing the 10%
charge on shipments of softwood lumber products from the provinces of
Ontario, Quebec, Manitoba, and Saskatchewan.
Per an understanding between the Governments of the United States
and Canada, Canada will collect the additional 10 percent charge on
exports until the total of the amounts collected under the U.S. import
duty and the Canadian charge on exports is equal to CDN $68 million.
The understanding also provides for the United States and Canada to
exchange information on the ongoing amounts collected under the U.S.
import duty and the Canadian charge on exports.
C. Public Comment
In May 2010, the Section 301 Committee invited comments from
interested persons with respect to the
[[Page 53015]]
possible modification or termination of the April 2009 action in the
event the Government of Canada adopted a law imposing an additional 10
percent export charge on softwood lumber products from the provinces of
Ontario, Quebec, Manitoba, and Saskatchewan. See 75 FR 30097 (May 28,
2010).
D. Modification of April 2009 Action
Section 307 of the Trade Act authorizes the Trade Representative to
modify or terminate an action taken under Section 301 if, among other
things, ``the foreign country is taking satisfactory measures to grant
the rights of the United States under a trade agreement.'' Sections
301(a)(2)(B)(i) and 307(1)(A). Pursuant to the recommendations of the
Trade Policy Staff Committee and the Section 301 Committee, and taking
account of the comments received in response to the May 2010 notice,
the Trade Representative has determined: (1) That Canada's adoption of
the July 2010 amendment to the Softwood Lumber Products Export Charge
Act, 2006, and the August 2010 Order in Council constitute
``satisfactory measures''; and (2) to modify the April 2009 action by
removing the 10% import duty on entries of softwood lumber products
from the provinces of Ontario, Quebec, Manitoba, and Saskatchewan with
a shipment date of September 1, 2010 or later. In order to prevent any
gap in collection of the charge, the 10% import duty will continue to
apply to entries after September 1, 2010 with a shipment date of August
31, 2010 or earlier.
In accordance with the Trade Representative's determination to
modify the April 2009 action, and effective with respect to articles
entered, or withdrawn from warehouse for consumption, on or after
September 1, 2010, U.S. Note 13 to subchapter III of chapter 99 of the
Harmonized Tariff Schedule of the United States (HTS) is modified by
deleting subdivision (i) and inserting the following new subdivision in
lieu thereof:
``(i) The additional duties provided for in subheading
9903.53.01 shall apply to articles entered, or withdrawn from
warehouse for consumption, on or after September 1, 2010, if the
Canadian export permits associated with the entries display a
shipment date prior to September 1, 2010. The additional duties
provided for in subheading 9903.53.01 shall not apply to articles
entered, or withdrawn from warehouse for consumption, on or after
September 1, 2010, if the Canadian export permits associated with
the entries display a shipment date of September 1, 2010 or later.''
E. Section 306 Monitoring
Pursuant to Section 306(a) of the Trade Act, the Trade
Representative will continue to monitor the implementation of Canada's
measures imposing a 10 percent export charge on exports of softwood
lumber products subject to the SLA from the provinces of Ontario,
Quebec, Manitoba, and Saskatchewan. Pursuant to Section 306(b), if the
Trade Representative considers that Canada is not satisfactorily
implementing these measures, the Trade Representative will determine
what further action to take under Section 301.
William L. Busis,
Chair, Section 301 Committee.
[FR Doc. 2010-21486 Filed 8-27-10; 8:45 am]
BILLING CODE 3190-W0-P