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📦 Softwood lumber products described in U.S. note 13 to this subchapter, whose Region of Origin is Manitoba, Ontario, Quebec or Saskatchewan

Softwood lumber products described in U.S. note 13 to this subchapter, whose Region of Origin is Manitoba, Ontario, Quebec or Saskatchewan

HS Code:

📦

Overview

Softwood lumber products, as described in U.S. note 13 to subchapter III of Chapter 44 of the Harmonized Tariff Schedule (HTS), refer to specific types of coniferous wood products primarily used in construction, such as framing lumber, structural panels, and other building materials. This category includes products originating from the Canadian provinces of Manitoba, Ontario, Quebec, and Saskatchewan, which are key regions for softwood lumber production due to their vast forest resources and established forestry industries. These products are subject to specific trade agreements and tariff considerations under U.S.-Canada trade frameworks, including the USMCA (United States-Mexico-Canada Agreement) and historical softwood lumber agreements.

Total Trade Volume

Approximately 14.5 billion board feet

Data from 2022

Source

U.S. International Trade Commission (USITC) and Statistics Canada

Tariff Analysis

Average Rate

Approximately 9% combined countervailing and anti-dumping duties (as of 2022)

Highest Rate

Up to 24.12% for certain Canadian producers under U.S. Department of Commerce rulings

Lowest Rate

0% for exempt producers or under specific quota agreements

Common Restrictions

  • Countervailing duties (CVD) due to alleged subsidies by Canadian governments
  • Anti-dumping duties (ADD) based on pricing practices
  • Quota restrictions under historical Softwood Lumber Agreements
  • Periodic review and adjustment of duty rates by the U.S. Department of Commerce

Market Trends

Increased demand for construction materials in the U.S.

Higher export volumes from Canadian provinces to meet U.S. housing market needs, though tempered by tariff costs.

2021-2022

Fluctuating softwood lumber prices

Significant price volatility due to supply chain disruptions and U.S. housing starts, affecting profitability for exporters.

2020-2022

Sustainability and certification requirements

Growing emphasis on sustainable forestry practices influencing production and trade policies in Canada and export markets.

2019-2022

Recent Developments

U.S. Department of Commerce Duty Review

The U.S. Department of Commerce completed its administrative review of countervailing and anti-dumping duties on Canadian softwood lumber, adjusting rates for producers in Manitoba, Ontario, Quebec, and Saskatchewan.

November 2022

Mixed impact with some producers facing higher duties, potentially reducing competitiveness, while others received lower rates.

USMCA Dispute Panel Ruling

A dispute panel under the USMCA ruled on certain aspects of U.S. duties on Canadian softwood lumber, urging reconsideration of calculation methodologies.

August 2021

Potential for reduced duties or renegotiated terms, though implementation remains pending further bilateral discussions.

Canadian Forestry Investment in Sustainability

Provinces like Quebec and Ontario announced increased investment in sustainable forestry practices to align with international certification standards.

March 2023

May improve market access and reduce trade barriers related to environmental concerns in key export markets like the U.S.