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| Original News Release |
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| Original News Release |
On
Dec. 14, 2004, the U.S. Department of Commerce released its final determination
that duties of 21.21 per cent (17.18 per cent countervailing duty and 4.03 per
cent anti-dumping) should apply on Canadian softwood lumber imports. These new
rates are based on a review by the U.S. Department of Commerce on the first
year that the duties were in place - from May 22, 2002 to March 31, 2003.
1.
When will the new rates take
effect?
The new
rates will take effect once the decision is published in the U.S. federal
register in order to be communicated to U.S. customs. This usually occurs
within two weeks.
2.
What happens to the duties
collected to date?
Today’s determination sets the final
rate for the period May 22, 2002 to March 31, 2003. If there are no appeals of
this determination, the companies should receive a refund of the difference
including interest. Today’s determination of the U.S. Department of Commerce
also applies to new shipments.
3.
How much have Canadian and
B.C. companies paid in softwood duties?
To date, Canadian companies have paid
close to $US3 billion, with $US1.8 billion coming from B.C. companies. Based on
the new rate of 21.21 per cent, Commerce should refund $US100 million to B.C.
companies.
4.
Will B.C. companies ever get
the $US1.8 billion paid in duties back?
That is the subject of legal appeals
through WTO and NAFTA.
5.
What’s the current status of
the NAFTA challenges?
The current NAFTA challenges relate to
the initial determinations, and have no bearing on today’s decision.
In November, the U.S. government asked
for an “extraordinary challenge” of the NAFTA panel remand on the finding of
“no threat of injury.” The U.S. has not been successful in its appeal of past
NAFTA decisions. If the finding of “no threat of injury” is upheld, there is no
basis for duties to be collected and duties paid to date are returned to
Canadian producers. That ruling is
expected in March 2005.
For a chronology of the different legal
appeals, visit the Ministry of Forests’ softwood lumber website at www.for.gov.bc.ca online.
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contact: |
Communications Director Ministry of Forests 250 387-8486 |
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Visit the Province's website at www.gov.bc.ca for online information and services. |
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