[Federal Register: August 5, 2003 (Volume 68, Number 150)]
[Notices]               
[Page 46165-46166]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr05au03-36]                         

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DEPARTMENT OF COMMERCE

 
International Trade Administration, North American Free Trade 
Agreement, Article 1904 NAFTA Panel Reviews; Notice of Panel Decision

AGENCY: NAFTA Secretariat, United States Section, International Trade 
Administration, Department of Commerce.

ACTION: Notice of panel decision.

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SUMMARY: On July 17, 2003, the binational panel issued its decision in 
the review of the final results of the antidumping duty determination 
made by the International Trade Administration (ITA) respecting Certain 
Softwood Lumber Products from Canada (Secretariat File No. USA-CDA-
2002-1904-02) affirmed in part and remanded in part the determination 
of the Department of Commerce. The Department will return the 
determination on remand no later than September 15, 2003. A copy of the 
complete panel decision is available from the NAFTA Secretariat.

FOR FURTHER INFORMATION CONTACT: Caratina L. Alston, United States 
Secretary, NAFTA Secretariat, Suite 2061, 14th and Constitution Avenue, 
Washington, DC 20230, (202) 482-5438.

SUPPLEMENTARY INFORMATION: Chapter 19 of the North American Free-Trade 
Agreement (``Agreement'') establishes a mechanism to replace domestic 
judicial review of final determinations in antidumping and 
countervailing duty cases involving imports from the other country with 
review by independent binational panels. When a Request for Panel 
Review is filed, a panel is established to act in place of national 
courts to review expeditiously the final determination to determine 
whether it conforms with the antidumping or countervailing duty law of 
the country that made the determination.
    Under Article 1904 of the Agreement, which came into force on 
January 1, 1994, the Government of the United States, the Government of 
Canada and the Government of Mexico established Rules of Procedure for 
Article 1904 Binational Panel Reviews (``Rules''). These rules were 
published in the Federal Register on February 23, 1994 (59 FR 8686).
    Panel Decision: On July 17, 2003, the Binational Panel affirmed in 
part and remanded in part the Department of Commerce's final 
antidumping duty determination. The following issues were remanded to 
the Department:
    1. To explain the factual background of Commerce's determination 
that, for purposes of determining Constructed Value (CV) profit, the 
``foreign like product'' should be defined as each Canadian 
Respondent's aggregate sales of subject merchandise during the period 
of investigation was reasonable and in accordance with law;
    2. To re-allocate joint production costs using a value-based 
allocation methodology which takes into account dimensional differences 
between different jointly produced softwood lumber products;
    3. To make an adjustment pursuant to 19 U.S.C. 1677b(a)(6)(c)(ii) 
to reflect dimensional differences between different softwood lumber 
products being compared;
    4. To exclude exports made by Scieries Saguenay Ltee. (SSL) from 
the final LTFV determination rendered in respect of Abitibi-
Consolidated Inc.;
    5. To exclude from the cost of production and constructed value of 
softwood lumber products produced during the period of investigation by 
Abitibi the costs of redemption of stock options issued to executives 
of Donohue, Inc.;
    6. To treat ``trim blocks'' produced by Abitibi Inc. as subject 
merchandise rather than by-products, and to allocate production costs 
to the trim blocks produced by Abitibi during the period of the 
investigation;
    7. To explain the agency's reason for determining why, based upon 
an examination of the entire record, general and administrative 
expenses incurred in

[[Page 46166]]

production of softwood lumber by Tembec Inc. according to parent 
company consolidated financial statements is reasonable and lawful 
consistent with the agency's obligation, set out at 19 U.S.C. 
1677b(b)(3)(B), to calculate such expenses ``based on actual data 
pertaining to production and sales of the foreign like product';
    8. To explain why Commerce's final determination concerning 
Tembec's credit expenses does not contain a clerical error with respect 
to programming language used to make currency conversions; or, if the 
final determination does contain such an error, to identify and correct 
the error;
    9. To explain why Commerce's decision to use Tembec's internal 
prices for wood chips was representative of the cost of producing such 
wood chips, and why such prices constituted a reasonable and 
permissible basis for calculating an offset to Tembec's production 
costs;
    10. To consider the claims of West Fraser Mills that Commerce erred 
in adjusting the offset to production costs resulting from West 
Fraser's by-product sales of wood chips to unaffiliated purchasers in 
British Columbia during the period of investigation, and particularly, 
to consider whether the timing of West Fraser's wood chip sales to 
unaffiliated parties during the early part of the period of 
investigation, and the existence of a long term contract, cause those 
sales to be not fairly representative of West Fraser's wood chip prices 
during the POI;
    11. To provide a complete explanation of Commerce's decision that 
finger-jointed flangestock (FJF) does not constitute a separate ``class 
or kind'' of merchandise for purposes of this investigation; and in so 
doing, to explain how the agency applied each of the Diversified 
Products factors to its consideration of FJF, the determinations 
reached with respect to each such factor, and how the agency weighed 
these factors in reaching its determination; and
    12. To provide a complete explanation of Commerce's determination 
not to treat square-end bed frame components as a separate ``class or 
kind'' of merchandise for purposes of this investigation; and in so 
doing, to explain how the agency applied each of the Diversified 
Products factors to its consideration of square-end bed frame 
components, and how the agency weighed these factors in reaching its 
determination; and
    13. To publish revised less than fair value (LTFV) margins for the 
investigated Respondents, including a revised ``all others'' rate, as 
determined after carrying out the above remand instructions.

Commerce was directed to issue it's determination on remand within 60 
days of the issuance of the decision or not later than September 15, 
2003.

    Dated: July 28, 2003.
Caratina L. Alston,
United States Secretary, NAFTA Secretariat.
[FR Doc. 03-19820 Filed 8-4-03; 8:45 am]