U.S. – Canada Softwood Lumber Agreement 2006

January 2007

Objectives

Obligations

Scope

Exclusions

Entry Summary Information

Document Requirements

Enforcement

Data Quality/Clean-up Campaign

Softwood Lumber Background

May 22, 2002

Softwood lumber products from Canada are subject to antidumping and countervailing duties

Sept 12, 2006

Softwood Lumber Agreement signed

Oct 12, 2006

Softwood Lumber Agreement entered into force

Oct 16, 2006

Interim rule promulgated by CBP (71 FR 201 dated 10/18/06)

AD/CVD to SLA 2006

Obligations of SLA 2006

Antidumping and Countervailing duties for Softwood Lumber products from Canada were revoked1,351,752 entries were affected by the revocation

$5,569,628,689.13 was refunded

Majority of liquidations completed in 13 weeks

Softwood lumber products are subject to export measures in Canada prior to importationSome exclusions apply

Requires submission of new entry summary information

Differences between 1996 and 2006 1996

Export permit provided 20 days after release

British Columbia Province code was XC

Provinces – British Columbia, Quebec, Ontario and Alberta

2006 Export permit must be obtained prior to export and the permit number

transmitted to CBP at entry summary

British Columbia region was divided into BC Coast - XD and BC Interior - XE

Regions – British Columbia, Quebec, Ontario, Alberta, Manitoba, Saskatchewan

Excluded Regions – Maritime, Yukon, Northwest Territories, Nunavut only when softwood lumber product is produced from logs originating in these regions

Sections of Agreement addressing Customs issues Article I Scope of Coverage

Annex 1 A Softwood Lumber Products

Article X Exclusions from export measures Regions – Maritimes, Yukon, Nunavut, Northwest Territories

Companies – Listed in Annex 10

Article XV Information Collection and Exchange

Article XXI Definitions Defines various terms within the Agreement

Products Subject to SLA 2006 Softwood lumber products processed in Canada and

imported into the US and classified in Chapter 44 of the HTS2007 HTSUS

4407.10.01

4409.10.05

4409.10.10

4409.10.20

4409.10.90

*4418.90.2500

*4418.90.4690

*4421.90.7040

*4421.90.9740

* Lumber products classified in these tariff numbers that do not conform to the specifications of the exclusion in Annex 1A(4) are subject to SLA 2006

2006 HTSUS

4407.10.00

4409.10.05

4409.10.10

4409.10.20

4409.10.90

*4418.90.4590

*4421.90.7040

*4421.90.9740

First Mill

What is a First Mill?The facility at which the Softwood Lumber Products are

first produced

Why is it important?The Region of Origin being reported to CBP is based on the

Region where the goods were first produced

The Export Charge and Export Charge Plus Volume Restraint is assigned by Region

Export Measures

Regions that selected this Option*:

British Columbia Coast and Interior

Alberta

NOTE: All Regions required to use Option A from Oct. 12, 2006 – Dec. 31, 2006

Option B

Regions that selected this Option:

Manitoba

Saskatchewan

Ontario

Quebec

Option A

Exclusions

Excluded from scope of AgreementSpecific products

Products meeting certain requirements

Excluded from export measures in CanadaSpecific Regions

Specific Companies

Excluded from Scope of Agreement

Certain softwood lumber products classified in Chapter 44 of the HTS are exempt from the scope of the SLA 2006

List of these products is found in Annex 1A (3)(a-k)

Specific Products

Excluded from Scope of Agreement

Processed softwood lumber products that meet specific specifications are exempted from the scope of the SLA 2006

List of these products is found in Annex 1A (4)(a-f) and (5)

Products Meeting Certain Requirements

Excluded From Export Measures

First produced in the Yukon, Northwest Territories or Nunavut from logs originating in the those regions

Maritime Region

Specific Companies Products produced by certain companies

List of companies found in Annex 10

Specific Regions

First produced in the Maritimes from logs originating in the Maritimes or Maine

Entry Summary Information

Region of Origin

Export Permit Number issued by Canada

Original paper Certificate of Origin issued by the Maritime Lumber Bureau for lumber originating or produced from Maritime logs

Additional Required Information*

Remote Location Filing (RLF) may be used for all softwood lumber entries except from the Maritimes

Region of Origin

Country of Origin on entry summary must reflect the Region of Origin in Canada

Region of Origin must reflect corresponding Province Code in Canada XA = Alberta, etc.

British Columbia XD = BC Coast

XE = BC Interior

Entry Summary Procedures

Export Permit

Export permit MUST be for one entry summary only NO duplicates allowed under any circumstance

The export permit number MUST be reported on the entry summary for the following:Products excluded from export measures but included in

scope

Products included in scope

The export permit is not required for the following:Products exempt from the scope

Entry Summary Information

Export Permit Configurations

Letter corresponding to month shipped MUST precede export permit number A = January

B = February

C = March, etc.

Lumber Products subject to the Scope

Export Permit Configuration

Products that are within scope but are from a Region or company that is excluded MUST submit an export permit number.

Letter corresponding to the excluded Region or excluded company MUST precede the export permit number (do not report month shipped):

M = Maritimes

N = Nunavut

W = Northwest Territories

Y = Yukon

X = Companies listed in Annex 10

Regions and Companies Excluded from Export Measures

Export Permit Configuration

The export permit field on entry summary is a required field

The following number should be input in the export permit field for products that are excluded from the scope of the SLA 2006 such as those products classified under 4418.90.45.90:

P88888888

Products Excluded From Scope

Permit Not Obtained

Softwood Lumber Products that require an export permit and one has not been obtained at entry summary should use the following number:

R88888888

Export Permit follow-up required

Entry Summary Procedures

Maritime Entries

Entry Summary MUST be filed as a paper summary

The Original Certificate of Origin issued by the Maritime Lumber Bureau MUST be provided in paper form with the entry summary documents

Export Permit is required

Maritime Provinces: New Brunswick

Nova Scotia

Prince Edward Island

Newfoundland and Labrador

Entry Summary Procedures

Document Requirements

Export Permit MUST be produced upon request by CBP

Paper copy of Maritime Certificate of Origin MUST be presented at entry summary

All Softwood Lumber Entries

Enforcement Actions Recordkeeping

19 USC 1509(a)1(A) and (g) Authority to examine and request documents

Penalty for failure to produce requested documents

Broker Penalties 19 USC 1641

Penalties for failure to exercise responsible supervision and control over customs business

Fraud 19 USC 1592

Penalties for fraud, gross negligence and negligence

Data Quality Submit appropriate Region code

Submit appropriate Export Permit Number format

No Duplicate use of permit numbers

Submit Supplemental Information Letters/Post – Entry Amendments (SIL/PEA) to make corrections

References The SLA 2006:

www.ustr.gov

Interim Rule and Implementation Instructions:

www.cbp.gov

1-800-916-4834 CBP SLA Questions

1-877-808-8838 or 613-944-2168 Softwood Lumber Control Hotline

www.dfait-maeci.gc.ca/eicb/softwood/menu-en.asp