Primelock UV-Treated Boards Covered by AD/CV Duties on Softwood Lumber Unless Edge-Glued, Commerce Says

The Primelock trim boards are made of clear Eastern white pine, most of which was purchased in the U.S., though in some cases the boards were sawn in Canada. At Matra’s facility, the trim boards are kiln dried, planed, finger-joined, sanded, profiled, coated, printed and tagged, and are finished with a UV protective coating applied using a patented process. Boards eight inches or wider are edge-glued using a waterproof synthetic resin.

The scope of the AD/CV duty orders on softwood lumber from Canada exempts “finished goods” that “contain, or are comprised of, subject merchandise and have undergone sufficient processing such that they can no longer be considered intermediate products, and such products can be readily differentiated from merchandise subject to this order at the time of importation.” According to the scope, “such differentiation may, for example, be shown through marks of special adaptation as a particular product.”

Matra argued the application of UV protective coating turns the boards into finished goods exempt from AD/CV duties. But during the investigation, Commerce found that lumber-treated products that are painted, stained or treated are not automatically finished goods. “We find that the Primelock UV protective coating described in the Scope Ruling Request is analogous to the painted, stained, and treated products previously examined by Commerce,” the agency said.

The products are also not “installation ready” as claimed by Matra, Commerce said. The boards come in 16-foot lengths like other boards covered by AD/CV duties, and are processed after importation by cutting them to length, stapling or nailing them. The trim boards can also be used “for a variety of purposes (i.e., as an intermediate product).” Matra had compared the boards to I-joists, which may also be cut to length and are listed in the scope as exempt. But “‘I-joists are finished structural construction members used to satisfy specific architectural or design requirements in a construction project,’ whereas a trim board is used primarily for non-structural purposes and can be easily adapted and used in many different structures for aesthetic reasons,” Commerce said.

Nor does the trade dress added to the boards count as “marks of special adaptation” associated with finished goods. “The language in the scope regarding ‘marks of special adaptation’ refers to industry standards that indicate the use of a particular board. In contrast, trademarks or logos merely identify and distinguish one company’s products from those of another company for branding purposes,” Commerce said.

On the other hand, Matra’s edge-glued trim boards are finished goods exempt from AD/CV duties, Commerce said. During its investigation, Commerce determined that edge-glued lumber products are finished goods and are excluded from softwood lumber duties. “[C]onsistent with Commerce’s prior finding, we find that the products at issue that are edge-glued (specifically, those products described in the Scope Ruling Request as lumber with a width of 8, 10 or 12 inches [that] have been edge glued using a waterproof synthetic resin, Type I vinyl emulsion cross-linking adhesive (ASTM D5572-95)) are finished goods that are excluded from the scope of the Orders,” the agency said.

Email ITTNews@warren-news.com for a copy of this scope ruling.