Canadian softwood lumber duties will change materially on October 19, 2026, when final 2024 administrative review rates take effect. Importers and customs brokers must align producer identities, exporter relationships, cash deposits, and financial reserves before applying the new antidumping and countervailing duty rates.
Final 2024 AD and CVD Rates
The reviews cover entries made from January 1 through December 31, 2024 under the antidumping order A-122-857 and countervailing duty order C-122-858. The final results establish company-specific rates for selected respondents and separate rates for companies that participated in the reviews but were not individually examined.
Antidumping Duty Rates
The final antidumping duty, or AD, margins are:
| Company or Group | Final AD Rate |
|---|---|
| Canfor entity group | 17.00% |
| West Fraser entity group | 4.71% |
| Resolute entity group | 13.13% |
| 220 non-selected companies | 10.64% |
The Canfor group includes Canfor Corporation, Canadian Forest Products Ltd., Canfor Wood Products Marketing Ltd., Canfor Fox Creek Ltd., and Canfor Whitecourt Ltd. The West Fraser group includes West Fraser Mills Ltd., Blue Ridge Lumber Inc., Manning Forest Products Ltd., and Sundre Forest Products Inc. The Resolute rate applies to Resolute Growth Canada Inc. and the affiliates treated as part of that entity.
The 10.64 percent non-selected rate is based on the weighted average of the three mandatory respondents. Companies never reviewed generally remain subject to the 6.04 percent AD all-others cash deposit rate, unless another company-specific rate applies.
Countervailing Duty Rates
The final countervailing duty, or CVD, rates are 12.42 percent for Resolute FP Canada Inc. and its cross-owned affiliates, 15.31 percent for West Fraser Mills Ltd. and its cross-owned affiliates, and 14.11 percent for 215 non-selected companies. Firms not covered by the review generally remain subject to the 14.19 percent CVD all-others rate.
Company treatment differs between the AD and CVD proceedings. For example, Canfor entities received a selected respondent rate in the AD review but appear among the non-selected companies in the CVD review. Brokers should not assume that one company classification applies across both cases.
Cash Deposits and 2024 Entry Assessments
Administrative review results affect two distinct compliance obligations. They establish prospective cash deposit requirements for new entries and provide the basis for assessing duties on entries from the completed period of review. Confusing these functions can create deposit errors, inaccurate reserves, and unexpected liquidation exposure.
October 19 Cash Deposit Changeover
New cash deposit rates apply to covered entries entered, or withdrawn from warehouse for consumption, on or after October 19, 2026. Customs brokers should update AD and CVD rate tables before transmitting entries on or after that date.
Each transaction should be tested against the applicable producer, exporter, company grouping, and case number. Commercial invoices, mill certificates, purchase orders, and manufacturer identification data should support the selected rate. A familiar supplier name is not sufficient when the legal entity appearing on the entry differs from the entity listed in the review.
Rates for companies not reviewed do not automatically change to the non-selected rate. A firm that has never received a reviewed rate generally continues under the applicable all-others rate. Importers should also distinguish a company that was reviewed as non-selected from one for which the review was rescinded.
Reserving for 2024 Liquidations
The final results also affect entries from the January 1 through December 31, 2024 review period. Finance teams should compare estimated exposure under the final results with the AD/CVD deposits originally paid on those entries. The difference may indicate a potential additional duty bill or refund, although actual liquidation depends on the assessment instructions and entry-specific circumstances.
The AD review was rescinded for 105 companies, including 93 companies following review-request withdrawals and 12 companies without suspended entries. Covered entries associated with rescinded companies are generally assessed at the cash deposit rate in effect when the merchandise entered. Assessment instructions are not expected earlier than 41 days after publication, giving importers a limited period to validate entry populations and supporting records.
Combined Duty Exposure and Landed Cost
AD and CVD rates must be evaluated together because both deposit components can apply to the same shipment. The combined percentage can be substantial even where one component declined. Importers should incorporate both cases into purchasing decisions, margin analysis, customer pricing, and cash flow forecasts.
Combined AD and CVD Components
The basic combined rates are:
| Company Category | AD | CVD | Combined AD/CVD |
|---|---|---|---|
| West Fraser | 4.71% | 15.31% | 20.02% |
| Resolute | 13.13% | 12.42% | 25.55% |
| Canfor | 17.00% | 14.11% | 31.11% |
| Non-selected companies | 10.64% | 14.11% | 24.75% |
These totals are useful planning figures, but they do not replace entry-level calculations. The applicable rate depends on the exact legal entities, scope status, entered value, and instructions governing each case. The AD category and CVD category may also differ for the same producer.
Section 232 and Other Import Costs
An additional 10 percent Section 232 tariff on covered timber and lumber has applied since October 2025. If a shipment falls within that measure and no exclusion applies, adding 10 percentage points produces a preliminary planning rate of 30.02 percent for West Fraser, 35.55 percent for Resolute, 41.11 percent for Canfor, and 34.75 percent for a company receiving both non-selected review rates.
This arithmetic should be treated as an initial landed-cost estimate rather than a final entry determination. Classification, scope coverage, valuation, special tariff provisions, and the treatment of individual duty components may change the actual amount payable. Ordinary customs duties, merchandise processing fees, harbor maintenance fees, brokerage charges, inland transportation, and financing costs may also affect total landed cost.
Compliance Priorities for Importers and Brokers
The rate change requires more than a tariff database update. Canadian softwood lumber transactions often involve mills, marketing companies, exporters, resellers, and affiliated groups. A control process must connect the commercial supply chain to the precise entities covered by each AD and CVD rate.
Validate Producer and Exporter Identities
Importers and brokers should complete the following steps before applying the final rates:
- Identify the physical producer and exporter for every covered entry.
- Compare each legal entity against the AD selected, AD non-selected, CVD selected, CVD non-selected, rescinded, and all-others categories.
- Confirm that affiliated company names are mapped to the proper entity group.
- Update broker instructions and entry-system reference tables effective October 19, 2026.
- Retain invoices, mill documentation, purchase records, and written supplier confirmations supporting the rate decision.
Supplier master records should preserve legal names rather than relying solely on trade names or abbreviated labels. A change in exporter, manufacturer, or invoicing entity can alter the correct deposit treatment even when the underlying commercial relationship appears unchanged.
Review Historical Entries and Certificates
Importers should extract all potentially covered 2024 entries and reconcile deposits by case number, producer, exporter, and entry date. Entry-level schedules should separate selected respondents, non-selected companies, all-others companies, and firms subject to rescission. Finance teams can then compare deposits paid with potential assessment exposure and adjust reserves where appropriate.
Importers should also confirm that required reimbursement certificates are filed before liquidation. Failure to address reimbursement certification can create significant assessment consequences under the AD framework.
AD and CVD amounts are not eligible for duty drawback under 19 U.S.C. 1677h. However, ordinary customs duties paid on the same entries may remain eligible when the merchandise is subsequently exported or destroyed and the transaction otherwise satisfies drawback requirements. Accounting records should therefore separate AD/CVD from potentially recoverable ordinary duties.
- Commerce published the 2024 AD administrative review finals on October 19, 2026 (91 FR 66087), covering the January 1 to December 31, 2024 period of review.* Mandatory respondent rates are Canfor 17.00 percent, West Fraser 4.71 percent, and Resolute 13.13 percent, with 10.64 percent for 220 non-selected companies. New cash deposit rates apply to entries on or after October 19, 2026.
- The companion CVD review finals were also published October 19, 2026.* Rates are 12.42 percent for Resolute FP Canada Inc. and affiliates, 15.31 percent for West Fraser Mills Ltd. and affiliates, and 14.11 percent for 215 non-selected companies. Combined AD/CVD for most producers is 24.75 percent.
- These rates represent a reduction from the prior (2023) review.* Non-selected combined AD/CVD falls from around 35 percent previously. An additional 10 percent Section 232 tariff on timber and lumber (in place since October 2025) brings the all-in rate to about 34.75 percent for most entries. Unpublished versions of the determinations were released October 14-15, 2026.
- Canadian industry groups criticized the outcome as still punitive.* The BC Lumber Trade Council stated on October 14 that the combined duties plus 232 tariff impose a heavy burden on producers, mills, and US homebuilders. Ontario ministers issued a similar statement October 16 calling the measures unjustified and costly.
- Discussions on X from October 15-16 focused on implementation and market impact.* Importers of record noted the October 19 cash deposit changeover and advised brokers to update systems. The National Association of Home Builders highlighted that duties dropped but remain high at 34.75 percent total with the 232 tariff, affecting US construction costs. Lumber traders described the math as improved for buyers compared to last year.
- A separate NAFTA binational panel decision issued October 5, 2026 (noticed October 13) affirmed Commerce's redetermination in the original 2017 CVD case, concluding that long-running challenge without altering current cash deposit rates. A USMCA panel notice around October 8 addressed a different (2017-2018) CVD review.
Frequently Asked Questions
When Do the New Canadian Softwood Lumber Duty Rates Apply?
The new cash deposit rates apply to covered entries made on or after October 19, 2026. Entries made before that date generally retain the deposit rate applicable at entry, although entries from the 2024 review period may be liquidated under the final assessment instructions.
What Is the Combined Rate for Non-Selected Companies?
A company receiving both non-selected rates has a combined AD/CVD deposit component of 24.75 percent, consisting of 10.64 percent AD and 14.11 percent CVD. If the merchandise is also subject to the 10 percent Section 232 tariff, the preliminary combined planning figure is approximately 34.75 percent.
Are the Final Review Rates the Same as Final Entry Liability?
Not necessarily. Cash deposits secure potential liability but do not always equal the amount ultimately assessed. Final liquidation can depend on company-specific assessment calculations, Commerce instructions, entry facts, scope treatment, and litigation-related suspension. Importers should monitor liquidation status rather than treating the deposit as the final cost.
Why Can One Company Have Different AD and CVD Categories?
The AD and CVD proceedings are separate administrative cases with different respondent selections, affiliated entity findings, and non-selected company lists. A producer can receive an individually calculated AD rate while receiving the non-selected CVD rate. Each case must be evaluated independently.
Can Canadian Softwood Lumber Duties Be Recovered Through Drawback?
AD and CVD duties generally cannot be recovered through duty drawback. Ordinary customs duties paid on the same imported merchandise may still qualify if the goods are exported or destroyed and all applicable drawback requirements are met. Claim calculations must exclude the ineligible AD/CVD amounts.
How Stable Software Can Help
Separate Drawback Opportunity From AD/CVD Exposure
Although AD and CVD payments are not drawback-eligible, importers may still have recoverable ordinary customs duties on qualifying exports or destructions. A disciplined drawback process should isolate eligible duty components without including prohibited AD/CVD amounts.
DrawbackAI is Stable Software's flat-license duty drawback software for U.S. customs brokers. Brokers can white-label the software for importer clients and file claims under their own filer codes. Stable Software charges a flat software license and never takes a percentage of the refund. Customs brokers evaluating Canadian lumber entry data can use a broker-led drawback program to pursue eligible ordinary duties while maintaining a clear boundary around excluded AD/CVD payments.
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