ARCHIVED - Notice of Conclusion of Re-investigation

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Certain Laminate Flooring

Ottawa, May 29, 2009

On May 29, 2009, the Canada Border Services Agency (CBSA) concluded its re-investigation of the normal values and export prices of certain laminate flooring originating in or exported from the People's Republic of China (China) and France and concluded its review of subsidizing in China, pursuant to the Special Import Measures Act (SIMA).

The re-investigation was initiated on October 23, 2008 as part of the CBSA's enforcement of the finding made by the Canadian International Trade Tribunal (Tribunal) on June 16, 2005.

The goods subject to the Tribunal's finding, and additional product information to assist in differentiating between subject and non-subject goods is provided in Appendix 1.

The subject goods are usually classified under the following Harmonized System classification numbers:

• 4411.13.00.92

• 4411.14.00.92

• 4411.92.90.20

With respect to the re-investigation of normal values and export prices, at the initiation of the re-investigation, the CBSA sent Requests for Information (RFI) to exporters and importers to obtain information on the costs and selling prices of subject goods and like goods.

Specific normal values for future shipments have been determined for the following cooperative exporters listed below:

Country	Exporters With Normal Values
China	Asia Dekor (Heyuan) Woods Co., Ltd
	Asia Dékor (Shenzhen) Woods, Co., Ltd
	Changsha Lingge Wood Co., Ltd
	Changzhou Alltop Wood Industries Co., Ltd
	Changzhou Kaier Floor Co., Ltd
	Changzhou Kangyu Woods Industry Co., Ltd
	Changzhou Lingdian Wood Co., Ltd
	Changzhou Otai Decorative Material Co., Ltd
	Changzhou Pridon Wood Products Co., Ltd
	Changzhou Saili Wood Co., Ltd
	Chinafloors (Shanghai) Timber Co., Ltd
	Chinafloors (Zhejiang) Timber Co., Ltd
	Chuzhou Chunzhou Wood Industry Co., Ltd
	Efloor (Guangzhou) Timber Industry Co., Ltd
	Fujian Yongan Forestry (Group) Joint-Stock Co., Ltd
	Harbin Delida Decoration Material Co., Ltd
	Jiangsu Beier Decoration Material Co., Ltd
	Jiangsu Eting Woodwork Co., Ltd
	Jiangsu Guangyu Decorative Materials Co., Ltd
	Jiangsu Kelida Decorative Material Co., Ltd
	Jiangsu Lodgi Woods Industry Co., Ltd
	Jiangsu Ougang Changsheng Decorative Materials Co., Ltd
	Jiangsu Oulong Flooring Co., Ltd
	Jiangsu Zhongxin Desai Wood Product Co., Ltd
	Krono (Beijing) Flooring Co., Ltd
	Krono (Jiangsu) Flooring Co., Ltd
	Muchsee Woods (Chuzhou) Co., Ltd
	Plantation Timber Products Flooring (Leshan) Ltd
	Shanghai Allsun Wood Industry Co., Ltd
	Vohringer Wood Products (Shanghai) Co., Ltd
	Yekalon Industry Co., Ltd
	Yekalon Mills Co., Ltd
France	EPI (Espace Production international S.A.)
United States	Armstrong World Industries Inc.
	Shaw Industries Inc.

Importers are requested to contact the exporter directly if they wish to obtain information on normal values. The CBSA maintains a policy of not releasing such information to importers, except on a "need to know" basis, in conformity with the provisions contained in memorandum D14-1-2, Disclosure of Normal Values, Export Prices, and Amounts of Subsidy established under the Special Import Measures Act to importers.

With respect to the re-investigation of the amounts of subsidy, separate Requests for Information were sent to the government of China and to exporters in China to obtain information on various subsidy programs in that country. Specific subsidy rates for future shipments have been determined for these cooperative exporters. The rates are listed below:

Exporter from China	Countervailing duty (RMB/square metre)
Asia Dekor (Heyuan) Woods Co., Ltd	2.50
Asia Dékor (Shenzhen) Woods, Co., Ltd	2.15
Changsha Lingge Wood Co., Ltd	0
Changzhou Alltop Wood Industries Co., Ltd	0
Changzhou Kaier Floor Co., Ltd	0
Changzhou Kangyu Woods Industry Co., Ltd	0
Changzhou Lingdian Wood Co., Ltd	0
Changzhou Otai Decorative Material Co., Ltd	0
Changzhou Pridon Wood Products Co., Ltd	0
Changzhou Saili Wood Co., Ltd	0
Chinafloors (Shanghai) Timber Co., Ltd	0.854
Chinafloors (Zhejiang) Timber Co., Ltd	0
Chuzhou Chunzhou Wood Industry Co., Ltd	0
Efloor (Guangzhou) Timber Industry Co., Ltd	0
Fujian Yongan Forestry (Group) Joint-Stock Co., Ltd	1.0955
Harbin Delida Decoration Material Co., Ltd	0
Jiangsu Beier Decoration Material Co., Ltd	0.0261
Jiangsu Eting Woodwork Co., Ltd	0
Jiangsu Guangyu Decorative Materials Co., Ltd	0
Jiangsu Kelida Decorative Material Co., Ltd	0
Jiangsu Lodgi Woods Industry Co., Ltd	0
Jiangsu Ougang Changsheng Decorative Materials Co., Ltd	0
Jiangsu Oulong Flooring Co., Ltd	0
Jiangsu Zhongxin Desai Wood Product Co., Ltd	0
Krono (Beijing) Flooring Co., Ltd	3.54
Krono (Jiangsu) Flooring Co., Ltd	1.164
Muchsee Woods (Chuzhou) Co., Ltd	0
Plantation Timber Products Flooring (Leshan) Ltd	0.54
Shanghai Allsun Wood Industry Co., Ltd	0
Vohringer Wood Products (Shanghai) Co., Ltd	0.71
Yekalon Industry Co., Ltd	1.05
Yekalon Mills Co., Ltd	0
All other exporters from China	3.54

For exporters that cooperated with the CBSA in this re-investigation, the normal values and amounts of subsidy established will be effective for subject goods released from the CBSA on or after May 29, 2009. The previous normal values and amounts of subsidy will apply to importations of subject goods that have cleared CBSA prior to May 29, 2009.

In addition, the normal values and amounts of subsidy determined on the basis of the re-investigation will be applied to any entries of subject goods under appeal that have yet to be re-determined at the time of the conclusion of this re-investigation.

For all exporters other than those listed above and for any subject good for which a specific normal value has not been determined, the normal value will continue to be based on the export price of the subject goods advanced by 30% in accordance with the ministerial specification.

Appendix 2 provides the procedure to request normal values for new models.

Similarly, for exporters of subject goods originating in China who did not provide sufficient information to determine amounts of subsidy, the applicable amount of subsidy will be determined in accordance with a ministerial specification at the rate of 3.54 Chinese renminbi per square metre.

Where a producer or exporter becomes aware that there have been substantial changes to domestic prices, market conditions or costs associated with production and sales of subject goods, the CBSA should be advised in order that normal values can be reviewed, and updated if required, to reflect current market conditions. Similarly, the amount of export charges to be deducted from the export price may also need revision to reflect current conditions, as would, in the case of goods originating in or exported from China, the amounts of subsidy. Where changes have occurred and the CBSA has not been advised in a timely manner, the extent of these changes could warrant retroactive assessments of anti-dumping and/or countervailing duty.

Importers are reminded that it is their responsibility to calculate and declare their anti-dumping and countervailing duty liability. If importers are using the services of a customs broker to clear importations, the brokerage firm should be advised that the goods are subject to anti-dumping and/or countervailing measures and be provided with sufficient information necessary to clear the shipments. In order to determine their anti-dumping liability, importers should contact their suppliers who can provide information on normal values. Additional information regarding the importer`s responsibilities are contained in Appendix 3.

The Customs Act applies, with any modifications that the circumstances require, with respect to the accounting and payment of anti-dumping and countervailing duties. As such, failure to pay duties within the prescribed time will result in the application of the interest provisions of the Act. Should the importer disagree with the determination made on any importation of goods, a request for re-determination should be sent to:

Director General
Trade Programs Directorate
Canada Border Services Agency
C/O Manager Compliance Unit
Anti-dumping and Countervailing Program
100 Metcalfe Street, 11^th Floor
Ottawa, ON K1A 0L8

Such a request must be received within 90 days from the making of the determination, in the form and manner outlined in Memorandum D14-1-3, Procedures for Making a Request for a Re-determination (an Appeal) of Goods Under the Special Import Measures Act.

Any questions concerning the above should be directed to:

SIMA Registry and Disclosure Unit
Anti-dumping and Countervailing Program
Canada Border Services Agency
11^th Floor, 100 Metcalfe Street
Ottawa ON K1A 0L8

E-mail: simaregistry-depotlmsi@cbsa-asfc.gc.ca
Fax: (613) 948-4844

Officers' names and contact information:

Richard Killeen
(613) 954-7236
Richard.Killeen@cbsa-asfc.gc.ca

Brian Hodgson
(613) 954-7237
Brian.Hodgson@cbsa-asfc.gc.ca

Appendix 1

Product Definition

Subject Goods

The goods subject to the Canadian International Trade Tribunal's finding are defined as:

"laminate flooring in thickness ranging from 5.5 mm to 13mm (other than laminate hardwood flooring where the hardwood component exceeds 2mm in thickness)".

Additional Product Information

Laminate flooring is a rigid flooring material consisting of several layers: a wear or surface layer, a decorative layer, a core layer -usually high-density fibreboard (HDF) - and a backer or balancing layer. Laminate flooring with paper has wear, decorative and balancing layers of paper. The decorative layer is printed with the motif and colour that will show on the flooring, usually a wood grain or ceramic tile pattern.

The decorative and balancing layers of laminate flooring with wood consist of a thin layer (e.g. 0.5 mm) of real wood veneer, while the wear layer takes the form of multiple coats of polyurethane.

In the market, laminate flooring may be described as "laminated wood flooring", "floating wood flooring" or "floating flooring".

The thickness of the subject goods is that of the laminate flooring only. If a laminate flooring has what may be referred to as an attached underlay to reduce noise levels or attached foam backer or noise reduction layer, the thickness of this underlay is not added to the thickness of the actual laminate flooring in determining if the product thickness is within the subject range.

Appendix 2

Procedure to Request Normal Values for a New Model

General Instructions:

For models sold to Canada for which an exporter does not have a specific normal value, the importer will be assessed anti-dumping duty equal to 30% of the export price.

Exporters wishing to obtain a normal value for a new model/product, after the conclusion of this re-investigation, will have to export the new model to Canada, have the Canadian importer pay the applicable dumping duties and appeal the importation.

Import and Appeal:

An exporter may export subject goods to an importer in Canada. If the subject goods do not have a specific normal value, the CBSA will assess anti-dumping duties equal to 30% of the export price and any applicable countervailing duty per square metre. The importer in Canada must pay the applicable duties, and then may file an appeal of the anti-dumping duty assessment to the CBSA. The importer can request that the CBSA determine a specific normal value for any new model. The appeal must be sent to:

Director General
Trade Programs Directorate
Canada Border Services Agency
C/O Manager Compliance Unit
Anti-dumping and Countervailing Program
100 Metcalfe Street, 11^th Floor
Ottawa, ON K1A 0L8

On receiving the appeal from the importer, the CBSA will send a Request for Information to the exporter. The exporter will have 37 days to provide a complete response to the questionnaire.

If a complete response is provided, the CBSA will use the information to determine normal values for the new subject models under appeal. These normal values will be used to process the appeal and may also be used for future shipments of these new models to Canada.

If a complete response is not provided by the exporter, the subject goods under appeal and all future shipments of these new subject models made by the exporter will be assessed anti-dumping duty equal to 30% of the export price.

Summary:

Under this scenario, each importation of new subject models for which an exporter does not have a specific normal value will be assessed anti-dumping duty equal to 30% of the export price (as well as any applicable countervailing duty). The importer will have to pay the dumping duties and appeal each entry if they wish to have specific normal values established for these new models. The CBSA will contact the exporter to determine a specific normal value. The CBSA will use these specific normal values to process the appeals and issue refunds to the importer, if applicable, of anti-dumping duties paid.

This method of determining normal values requires a shipment of new subject models/product to Canada to initiate the process of obtaining normal values.

Appendix 3

Importer's Responsibilities - Additional Information

1. Calculating and paying anti-dumping and countervailing duties

You are required to declare your company's liability, if any, for the anti-dumping and countervailing duties and taxes on any subject goods imported into Canada. In this regard, it is your responsibility to inform your broker that you are importing goods subject to such duties, to instruct the broker that your liability, if any, is to be declared at the time of accounting for the goods in question, and to ensure that the proper amount of duties have been paid.

The amount of any interest on duties owing or returned under SIMA is determined under the Customs Act. The rate of interest used is set in the Interest Rate for Customs Purposes Regulations (refer to Customs Memorandum D17-1-19) at: www.cbsa-asfc.gc.ca/publications/dm-md/d17-eng.html

To assist importers and their brokers in fulfilling their responsibilities when they import goods that are subject to duties under the Special Import Measures Act (SIMA), refer to "The SIMA Self-Assessment Guide" available on the CBSA website at: http://cbsa-asfc.gc.ca/sima-lmsi/self-auto-eng.html and the customs series of D memoranda at: www.cbsa-asfc.gc.ca/publications/dm-md/d14-eng.html

Please also note that the SIMA contains provisions to deal with those situations where:

1. The importer in Canada is reimbursed in any manner for the payment of anti dumping duty by the manufacturer, the producer, vendor or exporter of the goods; or

2. There is an agreement ("compensatory arrangement") between two or more of any of the following, namely the manufacturer, producer, vendor, exporter, the importer in Canada, subsequent purchaser and any other person, that directly or indirectly affects or relates to the price of the imported goods, the sale of those goods, the net return to the manufacturer, producer, vendor or exporter, or the net cost to the importer of the goods.

Should it be determined that such arrangements exist, the CBSA will adjust the export price of the goods to the extent necessary to eliminate the amount of the reimbursement or the effect of the compensatory arrangement. This adjustment may result in the demand for the payment of additional anti-dumping duty. This process ensures that the importer properly assumes the anti-dumping duty and that such duty will be reflected in the subsequent selling price of the goods in Canada.

2. Properly describing the imported goods

You must properly describe the imported goods for Customs and SIMA purposes, as outlined in Appendix 4, regardless of whether the documentation is provided as paper or electronically (e.g. through the use of ACROSS). Failure to provide this information may result in an incorrect assessment of anti-dumping and countervailing duties and the application of penalties pursuant to the Administrative Monetary Penalty System (AMPS).

3. Using the proper SIMA codes

If you import goods subject to a SIMA finding, you are responsible for ensuring that the information provided to Customs includes the proper coding. The codes are used in field 32 of the form B3 and field 26 of the form B2. The proper codes and their interpretations are provided in Appendix 5. For further information on completing these forms, please refer to Customs Memorandum D17-1-10, Coding of Customs Accounting Documents, and D17-2-1, Coding of Adjustment Request Forms.

Should your firm import the subject goods and not provide a proper product description or not use the correct SIMA coding, your firm will be issued an Administrative Monetary Penalty (AMP). For further information on the AMPS, please consult the CBSA website at: http://cbsa-asfc.gc.ca/sima-lmsi/amps-rsap/menu-eng.html

Please be aware that if your firm's imports include goods subject to an action under SIMA and other goods that fall under the same classification number, your firm must separate these goods; that is, use a separate line for each category of goods and indicate, where appropriate, the SIMA code. If your company is in doubt regarding any of these requirements, do not hesitate to contact the officers mentioned above.

Appendix 4

Information Required on CBSA Documents

The following information is required to be provided to the CBSA, whether the documentation is submitted in hard copy or in electronic form.

Please ensure that the information submitted for CBSA purposes fully describes the subject goods. Failure to do so may result in an incorrect assessment of anti-dumping or an administrative penalty against the importer.

At a minimum, the import documentation (commercial invoice) should clearly indicate the following:

• full product description including:
  • product identification name or number, as ruled for normal value (for example, length x width x thickness, AC#, E#);
  • if the laminate flooring includes a "sound backing" material, indicate this, including the backing thickness;
  • quantity in square metres;
• name and address of the producer/manufacturer, if known;
• name and address of vendor (if different from producer);
• name and address of customer in Canada;
• Canadian importer's name and address (if different from the customer);
• date of sale;
• date of shipment;
• unit selling price (on a per square metre basis)
• currency of invoicing (for example, USD, CAD, etc.);
• terms and conditions of sale (for example, FOB (place), CIF, etc.); and
• all costs, expenses, and charges incurred by the exporter and vendor in the shipment of the subject goods to Canada, from the point of direct shipment (includes inland freight, insurance, brokerage, port fees, bank charges, ocean freight, etc.).

Appendix 5

Interpretation of the SIMA Codes

The SIMA code is to be reported in field 32 on the B3. SIMA codes are two-digit numbers. The first digit is from 1 to 5 and represents the type of assessment (see Chart 1 below). The second digit is from 0 to 2 and represents the form of payment (see Chart 2 below).

As an example, code "51" indicates that the goods are subject to an injury finding and/or a Surtax Order, that the SIMA duties and/or the amount of surtax are payable and they are being paid in cash (which includes any accepted cash payment method, i.e. credit card, debit, etc.).

Chart 1 - The first digit is the assessment type:

SIMA code	Explanation
1	Goods, although the same classification, are specifically exempted from a Tribunal injury finding or from a Surtax Order under the Customs Tariff.
2	Goods are subject to an undertaking under SIMA.
3	Goods are subject to provisional duty.
4	Goods are subject to a Tribunal injury finding, but no SIMA duty is payable.
5	Goods are subject to a Tribunal injury finding and/or a Surtax Order and SIMA duties and/or amount of surtax are payable.

Chart 2 - The second digit indicates the payment type:

SIMA code	Explanation
0	No liability.
1	Cash payment (which includes credit card, debit, etc.).
2	Security Bond (issued by a financial institution or acceptable bonding company). Bonds can only be used for provisional duty or during the time of an expedited review.

Note: When goods are subject to a Tribunal injury finding and/or a Surtax Order and the SIMA duties and/or the amount of surtax are exempted by a remission order, importers must use SIMA code "50" and enter the OIC number in field 26 on the form B3.