MESSAGE NO: 3139111 DATE: 05 19 1993
CATEGORY: CVD TYPE: INF
REFERENCE: REFERENCE DATE:
CASES: C - 122 - 816 - -
- - - -
- - - -

PERIOD COVERED: 05 19 1993 TO

LIQ SUSPENSION DATE:

TO: REGIONAL DIRECTORS, COMMERCIAL OPERATIONS
DISTRICT DIRECTORS, AREA AND PORT DIRECTORS

FROM: DIRECTOR, IMPORT SPECIALIST DIVISION

RE: CERTAIN TAXES (GST) ARE NOT PART OF FIRST MILL VALUE
FOR CASH DEPOSIT PURPOSES


1. THE DEPARTMENT HAS RECEIVED SEVERAL PROPOSALS REGARDING THE
COLLECTION OF CASH DEPOSITS FOR ENTRIES COVERED BY THE
COUNTERVAILING DUTY ORDER ON CERTAIN SOFTWOOD LUMBER FROM
CANADA (C-122-816).

2. IN RESPONSE TO ONE OF THESE PROPOSALS, THE DEPARTMENT HAS
DECIDED THAT THE GOODS AND SERVICE TAX (GST) SHOULD NOT BE
INCLUDED IN CALCULATING THE FIRST MILL VALUE OF THE SUBJECT
MERCHANDISE.

ACCORDINGLY, CUSTOMS IS INSTRUCTED TO EXCLUDE THE GST FROM
THE FIRST MILL VALUE ON WHICH CASH DEPOSITS ARE TO BE MADE.

3. THE DEPARTMENT IS ALSO CONSIDERING EXCLUDING PROMPT PAYMENT
DISCOUNTS FROM THE ASSESSED VALUE OF SUBJECT MERCHANDISE.
HOWEVER, NO FINAL DECISION HAS BEEN MADE ON THIS ISSUE.

THEREFORE, CUSTOMS SHOULD CONTINUE TO COLLECT CASH DEPOSITS
WITHOUT EXCLUDING PROMPT PAYMENT DISCOUNTS.

4. THE DEPARTMENT HAS DECIDED NOT TO ADOPT ANY OF THE REMAINING
PROPOSALS. THESE OTHER PROPOSALS INCLUDED: 1) FURTHER
ADJUSTMENTS FOR REMANUFACTURED PRODUCTS; 2) EXCLUDING
KILN-DRYING FROM THE FIRST-MILL VALUE WHEN PLANING AND
KILN-DRYING OCCUR TOGETHER AT A SECOND MILL; 3) EXCLUDING
FROM THE ORDER LUMBER REMANUFACTURED FROM LUMBER MILLED IN
THE ATLANTIC PROVINCES OR THE U.S.; AND 4) EXCLUSION OF
FENCING MATERIALS FROM THE ORDER.




5. IF THERE ARE ANY QUESTIONS REGARDING THIS MATTER BY CUSTOMS
OFFICERS, PLEASE CONTACT THE IMPORT SPECIALIST DIVISION,
OTHER AGENCY BRANCH VIA E-MAIL USING ATTRIBUTE "HQ OAB". THE
IMPORTING PUBLIC AND OTHER INTERESTED PARTIES SHOULD CONTACT
THE OFFICE OF COUNTERVAILING COMPLIANCE, IMPORT
ADMINISTRATION, INTERNATIONAL TRADE ADMINISTRATION,
DEPARTMENT OF COMMERCE (202) 482-2786.

6. THERE ARE NO RESTRICTIONS ON THE RELEASE OF THIS INFORMATION.



NANCY MCTIERNAN