While traditional video coders employ a block-based feedback loop of motion estima- tion and motion compensation (ME/MC) to exploit the temporal redundancy in a video signal, other systems have avoided the ME/MC feedback loop by applying a wavelet trans- form in the temporal direction via motion-compensated temporal filtering (MCTF). How- ever, an alternative to these ME/MC-based approaches has arisen recently in the form of the dual-tree complex discrete wavelet transform (DDWT1). The DDWT is a redundant transform that, in the 3D case, produces four times as many subbands as the DWT, with each subband oriented in a different direction. When applied to a video signal, these orien- tations help isolate salient signal features moving in different directions, providing inherent motion selectivity. The ability of the transform to describe motion without explicitME/MC has motivated the use of the DDWT in video-coding systems looking to avoid the compu- tational complexity associated with motion estimation. However, since the 3D DDWT is four times redundant, efficient coding of the transform coefficients is a challenging task.