Cedar Shingles Exempt From AD/CV Duties on Softwood Lumber, Despite Short Length, Commerce Says
Cedar shingles manufactured and exported by Valley Cedar for inclusion in the U.S. in shingle panels are not covered by antidumping and countervailing duties on softwood lumber from Canada (A-122-857/C-122-858), the Commerce Department said in a May 12 scope ruling. Though different in dimensions than the cedar shakes and shingles Commerce has previously found exempt, Valley Cedar’s shingles are destined for the same uses, the agency said.
Sign up for a free preview to unlock the rest of this article
Export Compliance Daily combines U.S. export control news, foreign border import regulation and policy developments into a single daily information service that reliably informs its trade professional readers about important current issues affecting their operations.
The scope of the AD/CVD orders on softwood lumber generally covers cedar shims, but Commerce has in two separate scope rulings found shakes and shingles made of cedar to be exempt. Both of those rulings, however, applied to shingles with a nominal length of 15 to 24 inches. The cedar shingles imported by Valley Cedar are only six to 12 inches long.
That left “ambiguity” Whether Valley Cedar’s products are cedar shingles previously excluded from the scope, Commerce said. “We cannot conclusively determine, from the plain language of the scope alone, whether the products at issue are cedar shingles or, as the petitioner asserts, in-scope wood shims, without addressing factors” found in 19 CFR 351.225(k)(2), Commerce said.
The physical characteristics of the cedar shingles didn't provide clarity on whether the shingles should be covered shims or exempt shingles. While the shingles are made from high-quality Western red cedar and have minimal defects – in contrast to shims normally made of low-quality wood with visible imperfections – there is overlap between the dimensions of Valley Cedar’s shingles and covered shims, which range in length from 8 to 16 inches, Commerce said.
But the uses, consumer expectations and sales and advertising of the shingles was identical to those exempt from duties, Commerce said. They are ultimately assembled for installation onto buildings into shingle panels, and are assembled prior to being distributed to Valley Cedar’s U.S. customers, Commerce said. They are also not for sale separately from the shingle panel, and are solely marketed as part of shingle panels, the agency said.
“Based on the foregoing, we find that the totality of evidence establishes that the products identified in Valley Cedar’s scope ruling request are cedar shingles that are distinct from in-scope softwood lumber, particularly wood shims, based on evidence provided with respect to customer expectations, ultimate use, channels of trade, and the manner in which the products are advertised,” Commerce said.