Lumber Duties Update

Reacting to Canada's unilateral termination of the 1986 Softwood Lumber Memo of Understanding last month, the United States imposed bonding requirements equal to the MOU export tax on imports of lumber from that country.

U.S. importers of lumber from Alberta, Ontario, Manitoba and Saskatchewan provinces must post a bond of l1Vo.Imports from Quebec require a 6.2Vo bond. Lumber from British Columbia was exempt from import taxes because higher stumpage fees are in effect in that province, but a0%obond must be posted.

The Commerce Deparlment began a countervailing duty investigation to determine whether Canadian provinces are providing stumpage subsidies. If they are, an offsetting duty will be imposed on Canadian lumber imports with importers paying the lesser of the bond rates or the subsidy rates for the interim period.

APA Sees Shortages Spteading

Against a business climate of projected slow recovery, American Plywood Association members were warned at the group's 55th annual meeting that environmentalists are committed to shutting down the wood products indus[y everywhere.

APA chairman John Galloway, Hood Industries, Hattiesburg, Ms., said too many in the South look at current western timber supply problems and say to themselves, "too bad, but rallying for a unified, gassroots effort.

A Coalition for Fair Lumber Imports spokesman said that the U.S. industry group was pleased with the action and that they are confident that the Commerce Department will find large subsidies still exist.

The importer of record will be responsible for paying the bond. If implemented, permanent duties may be higher or lower than the amounts of the bonds. Bonds will be returned if the investigation fails to reveal subsidies. If duties are applied only to provinces participating in the MOU, lumber from British Columbia will not be affected.

Because of the low demand for lumber, the action has had little effect so far on the market. However, there is concem over lumber purchased in Albetla and Ontario in anticipation of the Oct. 4 tax cancellation. This lumber is now subject to the l5Vo bond and a possible l5Vo duty.

APA also predicted U.S. shuctuial panel indush'y production of 26.5 billion sq. ft., 3/8" basis in 1992 up 9Vo from the 24.3 billion expected for 1991.

About 400 attended the Sept. 29Oct. I meeting at the Red LionJantzen Beach, Portland, Or.

Canada To Sustained Yield

In an effort to enhance its most important expolt, Canada has begun a long term program in eight forcsts to move to sustained yield.

Under the $88 million plan, Canada will attempt to balance planting and cutting so that a continued and permanent supply of forest products is produced from the nation's forests. Onetenth of the world's forests are in Canada.

Bullders Express Bankrupt

better them than us."

"These people don't realize that them is us and us is them," he said. He added that at the cunent 5Vo annual rate of preservationist-inspired land withdrawals, the South could lose access to half the region's public forests by the year 2000.

"We are short-sighted if we take only a corporate view or a regional view because the environmental movement has taken a long view for the entire country," said Galloway,

After looking for additional capital for several months, Builders Express, Inc., San Antonio, Tx., filed for protection under chapter I I of the U.S. Bankruptcy Code.

The company has warehouse home center stores in Longview, Tx., Clarksville; Tn., and Topeka, Ks. Company officials feel that the bankruptcy filing will give them breathing room to arrange a capital infusion.

Chairman Sean F. [,ee pointed out that despite its difficulties, the stores have been performing well. "We have a good concept that works and we still hope that an investor will see the value we have created and come forward."