{"id":100331,"date":"2026-10-19T04:47:44","date_gmt":"2026-10-19T04:47:44","guid":{"rendered":"https:\/\/www.timberindustrynews.com\/?p=100331"},"modified":"2026-10-19T20:29:50","modified_gmt":"2026-10-19T20:29:50","slug":"is-canadian-lumber-always-canadian-a-us-court-faces-the-question","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/is-canadian-lumber-always-canadian-a-us-court-faces-the-question\/","title":{"rendered":"Is Canadian lumber always Canadian? A US court faces the question"},"content":{"rendered":"

When does Canadian lumber cease to be Canadian? A dispute before the US Court of International Trade has brought the question into focus as US import duties continue to affect lumber trade between North America and overseas markets.<\/p>\n

The case concerns western red cedar shipped from Canada to New Zealand for further processing before being exported to the United States. The importer and US customs authorities disagree over whether the work carried out in New Zealand was enough to change the lumber's country of origin.<\/p>\n

Eleven processing stages, but still Canadian lumber<\/strong><\/p>\n

Coastal Forest Products filed a complaint with the US Court of International Trade on October 9, challenging a determination by US Customs and Border Protection (CBP) that it had evaded duties on Canadian softwood lumber.<\/p>\n

The cedar was supplied by British Columbia producer Western Forest Products and shipped to Herman Pacific, better known as Hermpac, a New Zealand company specialising in western red cedar remanufacturing.<\/p>\n

At its facilities in Silverdale, north of Auckland, Hermpac carries out resawing, kiln drying, planing, moulding and other processing operations. Coastal argues that the work performed on the Canadian lumber amounted to substantial transformation, making the merchandise a product of New Zealand.<\/p>\n

CBP did not accept that argument.<\/p>\n

Two customs officials spent four days at Hermpac's facilities in January 2026, examining 11 stages of production. Their investigation found that much of the work left the original lumber essentially unchanged, apart from drying and further processing.<\/p>\n

The agency concluded that the cedar remained Canadian for the purposes of US antidumping and countervailing duty orders. It issued an affirmative evasion determination in May, which was upheld following an administrative review in September.<\/p>\n

The investigation began after the US Lumber Coalition submitted allegations in June 2025, supported by shipping records tracing Canadian lumber through New Zealand. The organisation, which represents American softwood lumber producers, welcomed the findings, maintaining that third-country processing should not be used to avoid existing duties.<\/p>\n

The determination concerns Coastal as the US importer. Neither Western Forest Products nor Hermpac was found to have evaded duties.<\/p>\n

<\/a>
Western red cedar lumber, widely used in exterior cladding, decking and joinery for its natural durability and dimensional stability.<\/figcaption><\/figure>\n

Lumber traders are divided<\/strong><\/p>\n

The case has also attracted attention among lumber traders, with disagreement over whether secondary processing should be enough to establish a new country of origin.<\/p>\n

Lumber sourcing and sales consultant Brandon Tyrrell raised the issue whether cedar shipped halfway around the world, cut, dried and then sold in the United States should still be considered Canadian lumber.<\/p>\n

Tyrrell pointed to another problem familiar to importers: knowing where lumber was shipped from does not necessarily establish where it originates for customs purposes.<\/p>\n

He also questioned how closely buyers examine the duties included in a delivered price and who bears the cost when the declared origin is subsequently challenged.<\/p>\n

Jack Saunders, who works in lumber sales and purchasing, argued that the cedar should be considered a New Zealand product. He compared the situation with logs exported to China and later imported as manufactured wood products.<\/p>\n

Another industry participant disagreed, arguing that the cedar remained Canadian-grown timber and that processing overseas did not change that fact.<\/p>\n

The comparison with log exports has its limits. Hermpac received sawn lumber rather than roundwood. The dispute concerns how much additional manufacturing is required before that lumber can be treated as originating in another country.<\/p>\n

Saunders also criticised the restrictions on international trade, describing the growing administrative requirements as unnecessary obstacles to the movement of goods.<\/p>\n

Higher duties raise the stakes<\/strong><\/p>\n

The dispute comes as Canadian softwood lumber faces some of the highest US trade duties in years.<\/p>\n

Following the sixth administrative review, combined antidumping and countervailing duty cash deposit rates reached 35.16% for many Canadian producers, although individual company rates differ. A separate 10% Section 232 tariff was introduced in October 2025.<\/p>\n

In Coastal's case, CBP suspended liquidation of the affected entries and required applicable cash deposits. The duties are tied to the relevant Canadian producer's rates rather than automatically to the general rate.<\/p>\n

Canadian producers are also fighting a separate legal battle over how US antidumping margins are calculated.<\/p>\n

As GWMI reported on October 1, Canfor and West Fraser have challenged the Commerce Department's revised differential pricing methodology before the US Court of Appeals for the Federal Circuit.<\/p>\n

That dispute concerns a 2% price-difference threshold used to identify significant variations in export prices. The Canadian companies argue that the test fails to account adequately for normal price fluctuations in the lumber market, where prices can change sharply between customers, regions and delivery periods.<\/p>\n

The Coastal proceedings concern customs origin rather than dumping calculations, but both cases involve the duties applied to Canadian softwood lumber entering the United States.<\/p>\n

What happens next?<\/strong><\/p>\n

The US Court of International Trade will review CBP's determination and the evidence collected during the investigation. The United States is expected to submit the administrative record in November, including the findings from the January inspection at Hermpac.<\/p>\n

The court will have to consider whether the agency correctly assessed the processing carried out in New Zealand and whether its evasion finding can stand.<\/p>\n

Canadian lumber is regularly shipped abroad for resawing, drying and finishing before reaching customers in other markets. Some of that work produces lumber with different dimensions, grades or specifications. Whether it also changes the product's customs origin is another matter.<\/p>\n

Coastal argues that Hermpac's processing made the cedar a New Zealand product. CBP maintains that it remained Canadian lumber, subject to Canadian duties. The court has yet to rule.<\/p>","protected":false},"excerpt":{"rendered":"

When does Canadian lumber cease to be Canadian? A dispute before the US Court of International Trade has brought the question into focus as US import duties continue to affect lumber trade between North America<\/p>","protected":false},"author":1,"featured_media":100332,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"Default","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[5204],"tags":[],"class_list":["post-100331","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-news"],"acf":[],"yoast_head":"\nIs Canadian lumber always Canadian? 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