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Canadian lumber producers face U.S. duties as high as 24 per cent

The U.S. Department of Commerce has confirmed that duties will be placed on Canadian lumber imports, beginning next week.  The duties, ranging from 3 to 24 per cent, are being applied because the U.S. believes Canadian lumber mills are subsidized by the Canadian government.  The U.S. Lumber Coalition believes Canada’s timber pricing policies “give Canadian producers an unfair cost advantage that injures U.S. producers and their workers.” 

Canada has responded directly, with a Statement by Canada from the Honourable Jim Carr, Minister of Natural Resources and Honourable Chrystia Freeland, Minister of Foreign Affairs.  “The Government of Canada disagrees strongly with the U.S. Department of Commerce’s decision to impose an unfair and punitive duty.  The accusations are baseless and unfounded.”  Ms. Freeland also stated in an interview “…when it comes to defending Canada’s interests, we’re going to play hard”.

The merchandise subject to this investigation is softwood lumber, siding, flooring and certain other coniferous wood (“softwood lumber products”).

The scope includes:

  • Coniferous wood, sawn, or chipped lengthwise, sliced or peeled, whether or not planed, whether or not sanded, or whether or not finger-jointed, of an actual thickness exceeding six millimeters.
  • Coniferous wood siding, flooring, and other coniferous wood (other than mouldings and dowel rods), including strips and friezes for parquet flooring, that is continuously shaped (including, but not limited to, tongued, grooved, rebated, chamfered, V-jointed, beaded, molded, rounded) along any of its edges, ends, or faces, whether or not planed, whether or not sanded, or whether or not end-jointed.
  • Coniferous drilled and notched lumber and angle cut lumber.
  • Coniferous lumber stacked on edge and fastened together with nails, whether or not with plywood sheathing.
  • Components or parts of semi-finished or unassembled finished products made from subject merchandise that would otherwise meet the definition of the scope above.

For more information, contact Brian Rowe, Director – Customs Compliance & Regulatory Affairs.

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