TRADE ALERT

USCIT Decision Orders Full Refund of Duties on Unliquadated Entries of Canadian Softwood Lumber

(October 16, 2006)

The day after the U.S. - Canada Softwood Lumber Agreement officially entered into force, the U.S. Court of International Trade (USCIT) handed down a ruling on Tembec v. United States (http://www.cit.uscourts.gov/slip_op/Slip_op06/06-152.pdf).  The court ruled that the antidumping and countervailing duties deposited by Canadian firms must be refunded, 100% to the plaintiffs. This ruling conflicts with the current agreement that called for an 81% refund—19% was being withheld and directed to US interests.

Under the terms of the agreement, the United States receives approximately $1 billion, with the remaining duty deposits and accrued interest returned to those companies that paid the duty deposits.  Canada would receive more than 80% of the duty and interest held by the US. 

The United States Trade Representative has taken the position that the agreement should render the case moot, and the United States and Canada have already filed motions with the court making this point. 

Deringer continues to monitor this issue and will provide more information as it becomes available. Deringer's consulting & regulatory affairs group offers a full scope of services to support importers/exporters, carriers, and supply chain partners. For more information regarding this advisory, please email us at consulting@anderinger.com.