U.S.A. Imposing 10% Additional Duty on Certain Softwood Lumber Products from Canada Effective April 15, 2009

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Issue 31, April 9, 2009

The U.S. Trade Representative (USTR) has announced that the U.S. will be imposing an additional 10% duty on imports of certain softwood lumber products from Canada. This action is in response to Canada’s failure to cure its breach of the 2006 Softwood Lumber Agreement between the U.S. and Canada (SLA 2006) or provide the monetary compensation determined by a SLA arbitral tribunal.

The USTR states that the additional 10% ad valorem duty rate is scheduled to be effective for the subject products entered for consumption or withdrawn from warehouse for consumption on or after April 15, 2009.

To apply the additional duty rate, the U.S. Harmonized Tariff Schedule will be amended to add a new tariff number and new note to HTSUS Subchapter III of Chapter 99. HTSUS 9903.53.01 will cover softwood lumber products are a product of Canada, or originating goods of Canada under the terms of HTS General Note 12 (NAFTA), and are described in U.S. Note 13, whose province of origin is Ontario, Quebec, Manitoba, or Saskatchewan.

New U.S. Note 13 to HTS Subchapter III of Chapter 99 describes the softwood lumber products subject to this action as those classified under HTS 4407.10.01, 4409.10.10, 4409.10.20, 4409.10.90, 4418.90.25, and 4418.90.4605, and any softwood lumber, flooring, and siding described in the note. The scope of the new U.S. Note 13 is identical to the scope of SLA 2006.

These duties will remain in place until such time as the U.S. has collected $54.8 million, which is the U.S. dollar equivalent of the amount awarded by the tribunal, based on the exchange rate at the time.

A copy of the USTR’s press release on this matter can be viewed at-
http://www.ustr.gov/Document_Library/Press_Releases/2009/April/United_
States_Imposes_Tariffs_On_Softwood_Lumber_From_Four_Canadian_
Provinces_Due_To_Canadas_Failure_To_Comply_With_The_Softwood.html

Regards,

Paul E. Vroman
DHL Global Forwarding
Manager, Regulatory & Compliance Consulting and Projects
Licensed Customs Broker/ NCBFAA Certified Customs Specialist