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Commerce Department Urged to Stop Dragging Its Feet on Eliminating Lumber Duties

“The Commerce Department is moving in the right path, going from a rate of 18.79% down to 7.82%,” said NAHB President Bobby Rayburn. “But we believe that the duties should have gone straight to zero and that is the message that we continue to send to the federal government.”

The Commerce Department proposed the lower tariff in an attempt to comply with a North American Free Trade Agreement (NAFTA) appeals panel. The panel can choose to accept the new rate, or ask the Commerce Department to make further changes.

In January, the NAFTA panel rejected an Administration proposal to reduce the duties to 13.23%.

Until the NAFTA panel rules on the latest proposal from the Commerce Department, the 18.79% countervailing duties will remain in effect. Anti-dumping duties bring the total tariffs to 27.2%.

As a result of the tariffs and strong demand for softwood lumber in the U.S. and overseas, the cost of framing lumber increased from less than $300 per 1,000 board feet last summer to a recent peak of $472 last week, according to Random Lengths, a trade publication based in Eugene, OR.

A separate NAFTA panel is expected to rule shortly on whether Canadian lumber imports represent a threat of injury to U.S. producers.

A definitive ruling by that panel, which may come later this month, could end the entire litigation process and require the Administration to eliminate the duties altogether — if there are no further appeals from the U.S.

“It’s time to end the duties on Canadian lumber shipments and once and for all rescind this hidden tax that has been imposed on American home buyers and renters,” said Rayburn.

For more information, e-mail Michael Strauss or call him at 800-368-5242 x8252.

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