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Import:Export Wood Purchasing News - October/November 2020

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Check out this issue of Import/Export Wood Purchasing News.

Another new piece of

Another new piece of equipment at Wheeland Lumber is this TS Manufacturing bin sorter. Wheeland Lumber Co. Updates Equipment to Ensure Quality Liberty, Pennsylvania–Wheeland Lumber Co. Inc. has been busy modernizing its sawmill here to improve efficiencies and ensure quality products as it copes with a shortage of good labor. Located in the lumber-history rich mountains of North Central Pennsylvania, close to the Susquehanna River, the company buys 3 million board feet of hardwood lumber annually, mainly Hard Maple (FAS, No. 1 Common) and Soft Maple (Nos. 1 and 2 Common) in 4/4, 5/4 and some 8/4 thicknesses for its dimension plant. Species also produced at the mill include Cherry, Red and White Oak, Hard and Soft Maple, Ash, Poplar and Basswood. Wheeland Lumber is situated within the region of the Marcellus shale formation, where natural gas production and its associated jobs have been booming. “Labor has become an issue, trying to find quality people and retain them,” said Derek Wheeland, president of the fourth-generation, family-owned company. “In rural America, it’s particularly difficult to find qualified individuals to run machinery.” Installation of more productive equipment that requires fewer people to operate has been the company’s solution to that problem. “We put in a TS Manufacturing bin sorter with 33 bins to reduce labor costs and increase efficiencies,” Wheeland said. “We also replaced an outdated stacker with the more current technology of a TS Manufacturing stacker. In doing so, we actually were able to produce more lumber through the system quicker with fewer people. So, By Paul Miller Jr. “Hard work, honesty and determination are the values that motivate our employees and are the basis for our continued growth in the industry.” – Ray Wheeland, vice president, Wheeland Lumber Co. Inc once again, we have improved on our efficiencies there.” In addition, a new Nicholson Manufacturing r2 Ring Debarker is producing a better yield on the logs. “The rosser-head debarker that we were using took off too much wood fiber, whereas the Ring Debarker mainly only pulls off the bark,” said Ray Wheeland, vice president. “We have reduced the amount of bark that we generate by 25 percent. We want less bark fiber because it is not worth anything, so we want to put it more into lumber form.” The sorter, which has 33 bins, has reduced Wheeland Lumber’s labor costs while improving efficiencies. Continued on page 16 Page 4 Import/Export Wood Purchasing News n October/November 2020

Commerce Proposes Sweeping AD/CVD Changes Comments were due to the U.S. Department of Commerce by mid-September on a proposed rule that would make sweeping changes to the administration and enforcement of the antidumping (AD) and countervailing duty (CVD) laws. Specifically, according to the International Wood Products Association, Commerce proposes: •to modify its regulation concerning the time for submission of comments pertaining to industry support in AD and CVD proceedings; •to modify its regulation regarding new shipper reviews; to modify its regulation concerning scope matters in AD and CVD proceedings; •to promulgate a new regulation concerning circumvention of AD and CVD orders; •to promulgate a new regulation concerning covered merchandise referrals received from U.S. Customs and Border Protection (CBP); •to promulgate a new regulation pertaining to Commerce requests for certifications from interested parties to establish whether merchandise is subject to an AD or CVD order; •to modify its regulation regarding importer reimbursement certifications filed with CBP; and •to modify its regulations regarding letters of appearance in AD and CVD proceedings and importer filing requirements for access to business proprietary information. After considering comments, Commerce would have to publish a Final Rule before these changes would go into effect. New U.S. Marking Rules for Goods Made in Hong Kong U.S. Customs and Border Protection (CBP) has issued a new cargo systems messaging service (CSMS) that provides guidance on the new country of origin marking rules for goods produced in Hong Kong based on the U.S. President Donald Trump’s recent Executive Order (EO) on Hong Kong Normalization. According to CBP’s CSMS #43633412, “A transition period will be granted for importers to implement marking consistent with this position for imported goods produced in Hong Kong. Such goods, when entered or withdrawn from warehouse for consumption into the United States, after September 25, 2020 must be marked to indicate that their origin is ‘China’ for purposes of 19 U.S.C. 1304.” Furthermore, that CBP transition period has been granted “in order to give the trade sufficient time to adjust to the new marking rules. During this period, Personnel from the Ports of Entry and Centers of Excellence and Expertise (Centers) are directed to neither issue marking notices, nor take further enforcement actions on goods produced in Hong Kong for purposes of 19 U.S.C. 1304. Centers should take measures to inform accounts of these new marking rules for Hong Kong set forth in the EO.” Stay in touch and informed woodpurchasingnews.com WASHINGTON SCENE WTO Issues Report in Favor of Canadian Softwood Lumber; NAHB CEO Asks Trump to Meet with Canada to End Tariffs Averaging more than 20 Percent According to the Quebec Forest Industry Council, the World Trade Organization (WTO) recently released its final report finding in favor of Canada’s softwood lumber industry. In its 226-page report, an international panel of the WTO found that virtually every reason advanced by the United States for imposing countervailing duties on imports of softwood lumber from Canada is unfounded. According to the WTO report, the U.S. Dept. of Commerce (USDOC) repeatedly failed to provide evidence or reasoning for its decisions and, in most instances, available evidence was expressly contrary to the USDOC’s analysis and conclusions. The Central Canadian softwood lumber industry, representing Quebec and Ontario, has been unwavering in its position supporting free, unencumbered access to the U.S. marketplace. The Quebec Forest Industry Council reported that lumber from Quebec and Ontario is not subsidized, and the politics of managed softwood lumber trade only serves to benefit a small number of U.S. interests, while adversely impacting Canadian manufacturers, U.S. consumers and millions of hard-working Americans employed in the housing sector. Concerned with increased lumber prices and developments that could hurt the housing sector, and in turn, the overall American economy, G. Howard, CEO Continued on page 15 Import/Export Wood Purchasing News n October/November 2020 Page 5

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