Notices

1.1 The purpose of this Notice is to inform Canadian softwood lumber exporters of recent developments affecting shipments of drilled softwood studs to the United States. The Government of Canada provides the following information without prejudice to its position respecting any tariff classification rulings of the Government of the United States.

2.1 This Notice shall remain valid until further notice.

3.1 On April 15,1998, the U.S. Customs Service published a general notice in the Customs Bulletin announcing its intention to proceed with a revocation of a 1997 ruling of certain drilled softwood studs that would shift the classification of drilled studs from H.S. 4418.90.4040 to H.S. 4407.10.0015. Comments on this proposed action will be entertained by U.S. Customs until May 15, 1998 and a final decision is expected to be taken shortly after this date.

3.2 On October 27, 1997, the U.S. Customs Service issued a notice in the Federal Register seeking public comments regarding the commercial uses of wood studs with drilled holes. Canada notified U.S. Customs that it considered that these products were properly classified under HS 4418.

3.2 The April 15 notice also indicates that U.S. Customs will review ''all other rulings concerning articles under heading 4418''. This indicates the possibility that other lumber products could be similarly affected.

4.1 If the proposed ruling is made final, U.S. Customs may deem that drilled studs fall under the scope of the Canada-United States Agreement on Softwood Lumber.

4.2 The April 15th notice waives any ''claims for detrimental reliance'' for any claims made after October 27, 1997 and makes no mention of an effective date. Customs must publish a final ruling in the Customs Bulletin within 30 days after the closing of the comment period. Any final ruling or decision would then become effective 60 days after this last date.

4.3 The Canadian Government has been unable to obtain any clear indication from U.S. Customs whether any final ruling will have a retroactive application. The Canadian government through its Embassy is continuing to pursue this matter.

4.4 Until the situation respecting the effective date of the U.S. ruling is clarified by U. S. Customs, Canadian exporters of softwood lumber should seek advice from their customs brokers or legal counsel regarding shipments of pre-drilled softwood studs to the United States.

5.1 Enquiries about the recent notice issued by the U.S. Customs Serrvice on drilled studs may be addressed to: