EXPORT AND IMPORT PERMITS ACTSOFTWOOD LUMBER PRODUCTS EXPORT CHARGE ACT, 2006Allocation Method Order – Softwood Lumber ProductsThe Minister of Foreign Affairs, pursuant to paragraph 6.3(3)(a)a of the Export and Import Permits Act and section 108 of the Softwood Lumber Products Export Charge Act, 2006b, hereby makes the annexed Allocation Method Order – Softwood Lumber Products.S.C. 2006, c. 13, s. 111S.C. 2006, c. 13Ottawa, July 12, 2007PETER GORDON MACKAYMinister of Foreign AffairsDefinitionsThe following definitions apply in this Order.ActLoiAct means the Export and Import Permits Act.current softwood lumber productsproduits de bois d’oeuvre courantscurrent softwood lumber products means the products described in item 5104, Group 5, of the schedule to the Export Control List.exportedexportéexported has the meaning set out in section 6.4 of the Act.former softwood lumber productsanciens produits de bois d’oeuvreformer softwood lumber products means the products described in item 5105, Group 5, of the schedule to the Export Control List as it existed during the reference period.Manitoba quantityquantité pour le ManitobaManitoba quantity means the quantity of current softwood lumber products that may be exported from Manitoba to the United States during a month under subsection 6.3(2) of the Act.Ontario quantityquantité pour l’OntarioOntario quantity means the quantity of current softwood lumber products that may be exported from Ontario to the United States during a month under subsection 6.3(2) of the Act.primary producerentreprise de première transformationprimary producer means a person who produced or produces former, current or Quebec softwood lumber products from softwood sawlogs.primary producer’s productsproduits d’une entreprise de première transformationprimary producer’s products means the former softwood lumber products that the primary producer produced at any time and that were not remanufactured in Canada.Quebec quantityquantité pour le QuébecQuebec quantity means the quantity of current softwood lumber products that may be exported from Quebec to the United States during a month under subsection 6.3(2) of the Act.Quebec softwood lumber productsproduits de bois d’oeuvre du QuébecQuebec softwood lumber products means the softwood lumber products produced in Quebec that were reported to the Minister of Natural Resources and Wildlife under the Forest Act, R.S.Q., c. F-4.1.reference periodpériode de référencereference period means the period beginning on April 1, 2001 and ending on December 31, 2005.remanufacturerentreprise de seconde transformationremanufacturer means a person who remanufactured or remanufactures — within the meaning of subsection 13(1) of the Softwood Lumber Products Export Charge Act, 2006 — former or current softwood lumber products.remanufacturer’s productsproduits d’une entreprise de seconde transformationremanufacturer’s products means the former softwood lumber products that the remanufacturer remanufactured at any time and that were not further remanufactured in Canada.Saskatchewan quantityquantité pour la SaskatchewanSaskatchewan quantity means the quantity of current softwood lumber products that may be exported from Saskatchewan to the United States during a month under subsection 6.3(2) of the Act.ApplicationThis Order establishes the method for allocating the monthly quantity of current softwood lumber products that may be exported from Ontario, Quebec, Manitoba and Saskatchewan in 2007 for the purposes of paragraph 6.3(3)(a) of the Act.ONTARIOAllocationThe allocation of the Ontario quantity to a primary producer or remanufacturer who applies for an export allocation is calculated in accordance with the formulaOQ × (HP/THP)whereOQis the Ontario quantity;HPis the primary producer’s or remanufacturer’s percentage share as determined under section 4; andTHPis the total of all primary producers’ and remanufacturers’ percentage shares as determined under section 4.Best 12-month periodIn this section, best 12-month period, in respect of a primary producer, means the 12-month period set out in the description of PPBEV in paragraph (2)(a) and, in respect of a remanufacturer, means the 12-month period set out in the description of RBEV in paragraph (3)(a).Primary producer’s percentage shareThe percentage share of a primary producer is the higher of the percentages calculated under paragraphs (a) and (b):the percentage calculated in accordance with the formula(PPBEV/TBEV) × 100wherePPBEVis the highest volume of the primary producer’s products that were exported from Ontario to the United States under export permits during a period of 12 consecutive months within the reference period, andTBEVis the total volume of the primary producers’ and remanufacturers’ products exported from Ontario to the United States under export permits during their respective best 12-month periods, excluding the volume of primary producers and remanufacturers who indicate in writing to the Minister before December 14, 2006 that they relinquish their allocation of the Ontario quantity for 2007;the percentage calculated in accordance with the formula(PPEO/TEO) × 100wherePPEOis the volume of the primary producer’s products that were exported from Ontario to the United States under export permits during the reference period, andTEOis the total volume of the primary producers’ and remanufacturers’ products exported from Ontario to the United States under export permits during the reference period, excluding the volume of primary producers and remanufacturers who indicate in writing to the Minister before December 14, 2006 that they relinquish their allocation of the Ontario quantity for 2007.Remanufacturer’s percentage shareThe percentage share of a remanufacturer is the higher of the percentages calculated under paragraphs (a) and (b):the percentage calculated in accordance with the formula(RBEV/TBEV) × 100whereRBEVis the highest volume of the remanufacturer’s products that were exported from Ontario to the United States under export permits during a period of 12 consecutive months within the reference period, andTBEVis the total volume of the primary producers’ and remanufacturers’ products exported from Ontario to the United States under export permits during their respective best 12-month periods, excluding the volume of primary producers and remanufacturers who indicate in writing to the Minister before December 14, 2006 that they relinquish their allocation of the Ontario quantity for 2007;the percentage calculated in accordance with the formula(REO/TEO) × 100whereREOis the volume of the remanufacturer’s products exported from Ontario to the United States under export permits during the reference period, andTEOis the total volume of the primary producers’ and remanufacturers’ products exported from Ontario to the United States under export permits during the reference period, excluding the volume of primary producers and remanufacturers who indicate in writing to the Minister before December 14, 2006 that they relinquish their allocation of the Ontario quantity for 2007.QUEBECPrimary producers with an export historyIf some or all of a primary producer’s products were exported from Quebec to the United States under export permits during the reference period and the primary producer applies for an export allocation, the primary producer must choose to receive an allocation of the Quebec quantity under the method described in section 6 (which is based on their historic export volume) or the method described in subsection 7(1) (which is based on their historic production volume).Primary producers without an export historyIf none of a primary producer’s products were exported from Quebec to the United States under export permits during the reference period and the primary producer produced Quebec softwood lumber products during the period beginning on January 1, 2003 and ending on December 31, 2005 and applies for an export allocation, the primary producer may only receive the allocation under the method described in subsection 7(1) (which is based on their historic production volume).RemanufacturersIf some or all of a remanufacturer’s products were exported from Quebec to the United States under export permits during the reference period and the remanufacturer applies for an export allocation, the remanufacturer may only receive the allocation under the method described in section 9 (which is based on their historic export volume).Allocation to primary producers — historic export volumeThe allocation of the Quebec quantity to a primary producer that is based on their historic export volume is calculated in accordance with the formulaQQ × (PPE/TQE) × 94%whereQQis the Quebec quantity;PPEis the volume of the primary producer’s products exported from Quebec to the United States under export permits during the reference period; andTQEis the total volume of former softwood lumber products exported from Quebec to the United States under export permits during the reference period.Allocation to primary producers — historic production volumeThe allocation of the Quebec quantity to a primary producer that is based on their historic production volume is calculated in accordance with the formulaRP × (PPPV/TPV)whereRPis the reserve pool calculated in accordance with section 8;PPPVis the volume of Quebec softwood lumber products that the primary producer produced during the period beginning on January 1, 2003 and ending on December 31, 2005; andTPVis the total volume of Quebec softwood lumber products produced during the period beginning on January 1, 2003 and ending on December 31, 2005 of all primary producers whose allocations are based on their historic production volume.Records of production volumeThe volume of Quebec softwood lumber products produced by a primary producer is based on records provided, with the consent of the primary producer, by the Government of Quebec to the Government of Canada.Reserve poolThe reserve pool is calculated in accordance with the formulaA + B + CwhereAis the volume of former softwood lumber products determined in accordance with subsection (2);Bis the volume of former softwood lumber products determined in accordance with subsection (3); andCis the volume of former softwood lumber products determined in accordance with subsection (4).Description of AThe volume of former softwood lumber products for the description of A in subsection (1) is calculated in accordance with the formulaQQ × (TPPE/TQE) × 6%whereQQis the Quebec quantity;TPPEis the total volume of primary producers’ products that were exported from Quebec to the United States under export permits during the reference period in respect of primary producers who have chosen to receive an allocation of the Quebec quantity under the allocation method described in section 6; andTQEis the total volume of former softwood lumber products exported from Quebec to the United States under export permits during the reference period.Description of BThe volume of former softwood lumber products for the description of B in subsection (1) is calculated in accordance with the formulaQQ × (TPPEPV/TQE)whereQQis the Quebec quantity;TPPEPVis the total volume of primary producers’ products exported from Quebec to the United States under export permits during the reference period in respect of primary producers who have chosen to receive an allocation of the Quebec quantity under the allocation method described in subsection 7(1); andTQEis the total volume of former softwood lumber products exported from Quebec to the United States under export permits during the reference period.Description of CThe volume of former softwood lumber products for the description of C in subsection (1) is calculated in accordance with the formulaQQ × (TNPE/TQE)whereQQis the Quebec quantity;TNPEis the total volume of primary producers’ and remanufacturers’ products exported from Quebec to the United States under export permits during the reference period in respect of primary producers and remanufacturers who do not apply for an export allocation before December 14, 2006; andTQEis the total volume of former softwood lumber products exported from Quebec to the United States under export permits during the reference period.Allocation to remanufacturersThe allocation of the Quebec quantity to a remanufacturer that is based on their historic export volume is calculated in accordance with the formulaQQ × (RE/TQE)whereQQis the Quebec quantity;REis the volume of the remanufacturer’s products exported from Quebec to the United States under export permits during the reference period; andTQEis the total volume of former softwood lumber products exported from Quebec to the United States under export permits during the reference period.MANITOBAAllocationThe allocation of the Manitoba quantity to a primary producer or remanufacturer who applies for an export allocation is calculated in accordance with the formulaMQ × (EM/TEM)whereMQis the Manitoba quantity;EMis the volume of the primary producer’s or remanufacturer’s products that were exported from Manitoba to the United States under export permits during the reference period; andTEMis the total volume of the primary producers’ and remanufacturers’ products exported from Manitoba to the United States under export permits during the reference period, excluding the volume of primary producers and remanufacturers who indicate in writing to the Minister before December 14, 2006 that they relinquish their allocation of the Manitoba quantity for 2007.SASKATCHEWANAllocationThe allocation of the Saskatchewan quantity to a primary producer or remanufacturer is based on the order of applying for the export allocation, with each applicant receiving the volume applied for until the Saskatchewan quantity is fully allocated.COMING INTO FORCEOctober 12, 2006This Order is deemed to have come into force on October 12, 2006.