Notice to Exporters

Softwood lumber exports to the United States: Possible company exclusions process regarding a potential United States investigation into imports of certain Canadian softwood lumber products into the United States.

Serial No. 200
Date: October 19, 2016

Table of Contents

1.0 Background

1.1 The 2006 Canada-U.S. Softwood Lumber Agreement (SLA) expired on October 12, 2015. The United States government and industry agreed to not undertake trade remedies action against Canadian softwood lumber products for one year following the expiry of the SLA. Therefore, as of October 13, 2016, the United States softwood lumber industry is in a position to petition the United States Department of Commerce (Commerce) to initiate an investigation into imports of certain Canadian softwood lumber products into the United States. Such an investigation could result in countervailing and anti-dumping duties being imposed on these products.

1.2 As part of its investigation process, Commerce has the authority to exclude from its determination of countervailable subsidy (and thus duties), any company that has an individual net countervailable subsidy rate of zero or de minimis (generally where the aggregate of the net countervailable subsidies is less than 1 percent ad valorem). If a company were to receive an exclusion, it would be exempt from any countervailing duties that Commerce might impose.

1.3 Canada is working towards obtaining agreement from the United States to undertake a process which will allow Canadian companies to apply in order to be considered for a company exclusion.

2.0 Purpose

2.1. The purpose of this Notice is to highlight to exporters of softwood lumber products to the United States the proposed company exclusions application process and the associated e-portal. Initially, the e-portal will allow only for early registration and information dissemination. The e-portal will only enable companies to apply for an exclusion following initiation of an investigation by the United States.

2.2 Note: Companies that have been excluded from previous U.S. investigations or agreements on softwood lumber will not automatically be excluded from any future U.S. countervailing duty investigation.

2.3 While the Government of Canada will work towards securing the commitment of the United States to establish a company exclusions process for Canadian industry, the United States is under no obligation to undertake such a process. Further, if the United States opts to undertake an exclusions process, it will have sole discretion to determine the criteria that companies will be required to meet.

3.0 Company Exclusions process e-portal

3.1 In order to better assist companies to apply to be considered for exclusion should the United States agree to an exclusions process, the Government of Canada has hired an external firm, Raymond Chabot Grant Thornton Consulting Inc. (RCGT), to manage the application intake process.

3.2 The e-portal will initially allow Canadian companies to: a) create their profile and b) access and familiarize themselves with the current version of the Company Exclusions package, which will be updated following initiation of an investigation by the U.S. Department of Commerce. Those who have registered in the e-portal will be notified of any changes to the Company Exclusions package. Note that the e-portal will only enable companies to formally apply following initiation of this investigation by the United States.

3.3 All information regarding the eligibility for the company exclusions process will be available exclusively through the e-portal. Registering for the e-portal is therefore strongly encouraged to ensure that you remain informed in real time, as changes occur, as these changes may impact your company’s eligibility.

3.4 While both the e-portal and all related guidance to companies are provided in both official languages, it is important to note that the United States will only accept submissions in English. Due to this requirement, all forms required by the United States must be completed in English. To assist companies to better understand this process, all materials are currently available in both official languages. The Government of Canada will work to provide a revised Company Exclusions package in both official languages as soon as possible following the initiation of an investigation by the United States.

4.0 Further Notice

4.1 Questions regarding the company exclusions process can be directed to:

Telephone: 1 800 438-9092

E-portal web address: