Softwood Lumber Agreement Effective Date: October 12, 2006

October 12, 2006

U.S. Government communication indicates the Softwood Lumber Agreement (SLA) between Canada and the United States became effective today, October 12, 2006.  This bulletin will provide updated information.

What’s New?
Following required Canadian Parliamentary action during the week of September 18, 2006, and final details worked out in the past few days, the SLA became effective today, October 12, 2006 (hereafter “Effective Date”).

Starting today, October 12, 2006, Export Permits will be required for each shipment of softwood lumber (SWL) to the United States.

Permits must be obtained on or before date of shipment.  The Canadian government Foreign Affairs and International Trade (DFAIT) web site provides additional Export Permit details.

Additional Export Permit details are available via Livingston’s October 10th Trade News bulletin.

The Export Permit number will be required on the subsequent U.S. Import Entry Summary document, CBP7501.  As a result, shipper’s import documents should clearly reflect the Export Permit number.

(NOTE: The DFAIT office has also provided a SLA Frequently Asked Questions page on their website.

New Province of Origin Codes for British Columbia 
We no longer will be able to use ‘XC’ for softwood lumber products from British Columbia. Merchandise must be identified as originating from the coastal region or the interior region of BC.  For lumber originating in BC, customers should note on their invoices for Customs the appropriate code as follows:
 
XD     BRITISH COLUMBIA (COASTAL)        
XE     BRITISH COLUMBIA (INTERIOR)

Revocation of Antidumping and Countervailing duty orders
On the Effective Date, the United States has revoked retroactively the existing SWL Antidumping Duty (ADD) Order and the Countervailing Duty (CVD) Order in their entirety, as of May 22, 2002, without the possibility of their reinstatement.

On the Effective Date, or no later than three (3) days after the Effective Date, the U.S. Department of Commerce is to instruct U.S. Customs and Border Protection (CBP), via the Federal Register, to:
-cease collecting cash deposits, as of the Effective Date, on imports of SWL products from Canada.
-liquidate all Covered Entries**  made on or after May 22, 2002, without regard to ADD or CVD and refund all deposits collected on such entries, with all accrued interest, to the Importers of Record or their designates.

** Per the SLA, “Covered Entries” means unliquidated entries that were subject to the ADD Order and/or the CVD Order.

Refund of Antidumping and Countervailing duty cash deposits
Within 10 days after the Effective Date, the United States is to begin to liquidate all Covered Entries made on or after May 22, 2002, without regard to ADD or CVD, and with interest.

The United States will complete the liquidation of Covered Entries and the refund of all cash deposits as soon as possible, but not later than six (6) months after the revocation publication in the Federal Register.

Export Development Canada (EDC), an agent of the Governm-ent of Canada, will facilitate the refund program which is expected to speed up the duty refund process for participating softwood lumber companies. Additional expedited refund details are available via  Livingston’s September 15, 2006, Trade News Bulletin.

Of the approximately $US 5 billion in refunds, $US 1 billion (19 percent) will be distributed by EDC to other parties named in the agreement.

Livingston Can Help
Watch Livingston’s Website for further updates. General questions about the 2006 Canada-U.S. Softwood Lumber Agreement should be directed to Livingston’s U.S. Regulatory Affairs group at USRegaffairs@livingstonintl.com or 1-800-437-4324.