Canadian Softwood Lumber CVD Rates Drop

Canadian softwood lumber CVD rates have been amended after final panel action, reducing the original All Others rate from 14.19 percent to 12.80 percent. The practical effect depends on the producer, exporter, entry date, and whether a later administrative review established a superseding cash deposit rate.

What the Amended CVD Determination Changes

The amendment revises the original countervailing duty determination covering certain softwood lumber products from Canada. It follows a lengthy panel and remand process concerning the 2017 investigation, but it does not reset every Canadian lumber exporter to the newly calculated rates.

Revised Original Investigation Rates

The amended company-specific and All Others rates are:

The underlying investigation concluded in 2017, followed by an amended final determination and CVD order in early 2018. A first remand determination was completed in December 2024. The panel issued a decision on that remand in March 2026, Commerce completed a second remand determination in June 2026, and the panel affirmed that determination on October 5, 2026. Final panel action followed on October 19.

Commerce determined that the final panel judgment was not in harmony with its original determination. The resulting amendment is applicable October 29, 2026, with formal publication scheduled for November 3, 2026.

For importers and brokers, the key point is that these are amended original investigation rates. They are not necessarily the rates currently required at entry. Later administrative review results may supersede them for individual companies or groups of companies.

Why Current Cash Deposit Rates May Not Change

A CVD order can contain several generations of rates. The original investigation establishes the initial rates, while subsequent administrative reviews can establish newer cash deposit rates and final assessment rates for particular review periods. This creates an important distinction between correcting an original determination and changing the rate currently collected at the border.

Superseding Rates Control for Major Producers

Canfor, J.D. Irving, Resolute, Tolko, and West Fraser have received superseding cash deposit rates through later administrative reviews. As a result, their current CVD cash deposit rates do not change merely because the original investigation rates have been amended.

The seventh administrative review, covering 2024 entries, produced CVD rates of 12.42 percent for Resolute and affiliated entities, 15.31 percent for West Fraser and affiliates, and 14.11 percent for qualifying non-selected companies. Those later rates illustrate why brokers should not use the amended original table as a universal entry-filing schedule.

Combined antidumping and countervailing duty exposure also remains material. For many covered producers, the combined AD/CVD rate is approximately 24.75 percent, although company-specific combined rates vary. A separate 10 percent Section 232 tariff generally remains additive when the merchandise is within the applicable scope, potentially bringing the all-in trade remedy and tariff burden to approximately 34.75 percent for many shipments.

Importers should confirm each exporter and producer combination against the most current instructions available for the entry date. For companies that remain subject to the original All Others rate and do not have a superseding rate, Commerce is expected to issue revised cash deposit instructions reflecting 12.80 percent. Brokers should wait for operative instructions rather than manually substituting a rate based solely on the amended determination.

Importer and Broker Compliance Priorities

The rate change reinforces the importance of producer-level and exporter-level controls. Canadian lumber transactions frequently involve mills, resellers, affiliated entities, and exporters that may not be the manufacturer. A rate assigned to one entity should not automatically be applied to another party with a similar commercial name or corporate relationship.

Validate the Complete Entry Chain

Importers and customs brokers should retain records identifying the producer, exporter, seller, importer of record, entry number, entry date, country of origin, entered value, tariff classification, and applicable AD/CVD case number. Commercial invoices and mill documentation should support the identity used to determine the cash deposit rate.

A practical control process should include the following steps:

1. Confirm that the merchandise falls within the scope of the softwood lumber orders.
2. Identify both the producer and exporter rather than relying only on the invoice seller.
3. Determine whether either party has a company-specific or superseding review rate.
4. Review current CBP cash deposit instructions for the entry date.
5. Separate AD, CVD, ordinary customs duty, and Section 232 amounts in the entry data.
6. Preserve documentation for liquidation review, protests, reconciliation analysis, and drawback calculations where relevant.

Cash deposits are not always the final duty liability. Administrative reviews can establish final assessment rates that differ from the amount deposited at entry. Liquidation timing, suspension instructions, scope proceedings, and court or panel actions may also affect treatment. Importers should therefore maintain entry-level reserves and monitor open entries until liquidation is complete.

Brokers should also avoid applying the 12.80 percent All Others rate to a named producer that has a later review rate. Conversely, an exporter without a superseding rate may be eligible for the amended original rate once CBP receives and implements the appropriate instructions.

Duty Drawback and Landed Cost Implications

The amendment may reduce prospective cash deposits for certain exporters still governed by the original All Others rate, but it does not change the fundamental drawback treatment of antidumping and countervailing duties. Trade compliance teams must distinguish between recoverable ordinary customs duties and nonrecoverable AD/CVD amounts.

Keep AD/CVD Outside Drawback Calculations

Antidumping and countervailing duties are not eligible for drawback under 19 U.S.C. 1677h. This restriction applies even when the imported merchandise is later exported, destroyed, or used to manufacture an exported article. A lower CVD rate can reduce the cash burden, but the resulting CVD payment still should not be included in a drawback claim.

Ordinary customs duties paid on the same entries may remain eligible when the merchandise is exported or destroyed, or when it is used in qualifying manufacturing activity that results in exported goods. The claim must still satisfy the applicable statutory, regulatory, documentary, and timing requirements.

Importers should maintain separate duty fields for:

• Ordinary customs duties
• Antidumping duties
• Countervailing duties
• Section 232 duties
• Merchandise processing fees and other charges

This separation supports accurate landed cost reporting and prevents ineligible AD/CVD amounts from entering drawback calculations. It also helps finance teams distinguish refundable duty opportunities from trade remedy costs that must remain in product margins and reserves.

The amended rates should not prompt broad historical adjustments without entry-specific analysis. Teams should determine which rate governed each entry, whether the entry has liquidated, whether a later review applies, and whether new assessment or cash deposit instructions affect the transaction.

Frequently Asked Questions

The amended determination raises different questions for importers using the All Others rate and companies associated with producers that have later administrative review rates.

What Is the New All Others CVD Rate?

The amended original All Others rate is 12.80 percent, down from 14.19 percent. It generally matters for covered companies that remain subject to the original investigation rate and do not have a superseding cash deposit rate from a later administrative review.

Do All Canadian Lumber Importers Immediately Use 12.80 Percent?

No. The correct rate depends on the producer, exporter, entry date, and applicable cash deposit instructions. Major producers such as Canfor, J.D. Irving, Resolute, Tolko, and West Fraser have superseding rates, so their current deposits are not changed by the amendment to the original determination.

Does the Lower Rate Create an Automatic Refund?

Not necessarily. A lower amended original rate does not automatically produce a refund for every prior entry. Final liability depends on the period of entry, applicable administrative review, liquidation status, assessment instructions, and other case-specific factors. Importers should analyze affected entries individually.

Are AD and CVD Payments Eligible for Duty Drawback?

No. Antidumping and countervailing duties are not eligible for drawback. Ordinary customs duties paid on the same entry may still qualify when the merchandise is exported, destroyed, or used in qualifying production for export and all other drawback requirements are met.

How Should Brokers Determine the Correct Rate?

Brokers should identify the producer and exporter, confirm scope coverage, review the most current cash deposit instructions, and determine whether a later administrative review supersedes the original rate. Rate validation should occur for each relevant producer-exporter combination rather than only at the importer account level.

How Stable Software Can Help

Stable Software offers DrawbackAI, flat-license duty drawback software designed for U.S. customs brokers. Brokers can white-label the software for importer clients and file claims under their own filer code.

This model allows brokers to provide duty drawback services without sharing a percentage of the importer’s refund with the software provider. Stable Software charges a flat software license and never takes a percentage of recovered duty. For Canadian lumber importers, that structure can support a disciplined approach to pursuing eligible ordinary customs duty drawback while keeping noneligible AD/CVD amounts outside claim calculations. Customs brokers evaluating a scalable drawback offering can explore how DrawbackAI fits their client service model.

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