U.S. imposes 10% duty on Canadian softwood lumber

U.S. imposes 10% duty on Canadian softwood lumber

   U.S. Customs and Border Protection will begin to collect a 10 percent duty on Canadian softwood lumber imports, starting April 15.

   The duty will be imposed on softwood lumber products as defined by the U.S.-Canada Softwood Lumber Agreement until the United States has collected $54.8 million, CBP's Office of International Trade said in a statement to the trade on Thursday.

   The 10 percent ad valorem duty was directed by the Office of the U.S. Trade Representative under Section 301 of the Trade Act on imports of softwood lumber products from the Canadian provinces of Ontario, Quebec, Manitoba and Saskatchewan.

   On April 3, U.S. Trade Representative Ronald Kirk expressed disappointment with Canada's failure to 'cure' its breach of the 2006 Softwood Lumber Agreement between the United States and Canada and Canada's decision to pursue further arbitration proceedings.

   On Feb. 26, a tribunal found that Canada had breached the Softwood Lumber Agreement by failing to calculate quotas properly during the first six months of 2007. In that decision, the tribunal determined that Canada must cure the breach by March 28. The Canadian government offered to pay the U.S. government $36.66 million, but Kirk said that amount 'does not cure the breach identified by the tribunal.'

   CBP said the Section 301 action applies to softwood lumber products that are entered for consumption or withdrawn from warehouse for consumption on or after April 15, the agency said. U.S. Harmonized Tariff Schedule subheading 9903.53.01 will be used to collect the 10 percent duty and must now be listed in addition to the HTS classification number on the entry summary documentation.

   'The procedures set forth in CBP's test program for post entry amendments may not be used by participants in that test to submit amendments regarding entries affected by this action,' the agency said.

   Other entry requirements under the 2006 Softwood Lumber Agreement and the 2008 Softwood Lumber Act continue to apply. For additional information, view the CBP Web site or send questions to swl2008@dhs.gov. ' Chris Gillis