Softwood Lumber Products Export Charge Act, 2006 (S.C. 2006, c. 13)

Marginal note:Higher rate — Ontario and Quebec

Footnote ^*12.2 The rate of charge applicable in respect of an export of a softwood lumber product from Ontario or Quebec on or after the day on which this section comes into force is equal to the sum of the rate of charge otherwise applicable under this Act and

• (a) 0.1%, in the case of an export from Ontario; or

• (b) 2.6%, in the case of an export from Quebec.

• Return to footnote ^*[Note: Section 12.2 of the Softwood Lumber Products Export Charge Act, 2006 ceases to be in force on October 12, 2013, see SOR/2014-121.]

Marginal note:Definitions

• Footnote ^*13 (1) The following definitions apply in this section.

  FOB value

  FOB value means a value consisting of all costs payable by a purchaser, including those incurred in the placement aboard the conveyance for shipment, but not including the actual shipping costs and the amount of a charge payable under section 10. (valeur franco à bord)

  independent remanufacturer

  independent remanufacturer means a person who is certified under section 25. (entreprise indépendante de seconde transformation)

  remanufactured

  remanufactured means, in relation to a softwood lumber product, that the softwood lumber product, in order to produce a semi-finished or finished softwood lumber product, has been subjected to changes including changes in thickness, width, length, profile, texture, moisture or grading, has been joined together by finger jointing or has been turned. (seconde transformation)

• Marginal note:Export price

  (2) The export price of a softwood lumber product is to be determined in accordance with the following rules:

  • (a) if the product has undergone only primary processing, the export price is the FOB value that is determined at the facility where the product underwent its last primary processing before export;

  • (b) if the product was last remanufactured before export by an independent remanufacturer, the export price is the FOB value that is determined at the facility where the softwood lumber used to make the remanufactured product underwent its last primary processing before export;

  • (c) if the product was last remanufactured before export by a remanufacturer that is not an independent remanufacturer, the export price is the FOB value that is determined at the facility where the product underwent its last processing before export;

  • (d) for a product described in paragraph (a), (b) or (c) in respect of which an FOB value cannot be determined, the export price is the market price for identical products sold in Canada at approximately the same time and in one of the following arm’s length transactions, listed in order of precedence:

    • (i) a transaction at substantially the same trade level but in different quantities,

    • (ii) a transaction at a different trade level but in similar quantities, or

    • (iii) a transaction at a different trade level and in different quantities; and

  • (e) if the export price determined in accordance with any of paragraphs (a) to (d) is greater than US$500 per thousand board feet, the export price is deemed to be US$500 per thousand board feet.

• Marginal note:Exchange rate

  (3) For the purposes of subsection (2), the rate of exchange in order to determine the export price in Canadian dollars of a softwood lumber product is the rate of exchange as quoted by the Bank of Canada at noon on the day before the day on which the charge referred to in section 10 becomes payable.

  • Return to footnote ^*[Note: Section 13 of the Softwood Lumber Products Export Charge Act, 2006 ceases to be in force on October 12, 2015, see SOR/2016-155.]

Marginal note:Surge mechanism

• Footnote ^*14 (1) The amount of the charge applicable to an export of a softwood lumber product from a region during a month is increased by 50% if

  • (a) the export is one that does not require an export allocation under paragraph 6.3(3)(b) of the Export and Import Permits Act; and

  • (b) the exports of softwood lumber from the region during that month exceed the monthly trigger volume applicable to that region.

• Marginal note:Surge mechanism if certain provisions apply

  (1.1) If the rate of charge provided for by section 12.1 or 12.2 applies in respect of an export, the increase under subsection (1) in respect of that export is to be calculated as if the rate had not applied and the rate provided for by subsection 12(3) or (4) had applied.

• Marginal note:Exports in excess of trigger volume

  (2) Exports from a region for a month are considered to have exceeded the monthly trigger volume if the volume of exports from that region for that month exceed 101% of the monthly trigger volume for that region for that month.

• Marginal note:Trigger volume

  (3) The monthly trigger volume applicable to a region, other than the BC Coast as defined in subsection 6.3(1) of the Export and Import Permits Act, is the amount determined by the formula

  [A × (B/100) × 1.1] - C

  where

  A

  is the expected monthly American consumption of softwood lumber products, as calculated in accordance with the prescribed formula;

  B

  is

  • (a) in respect of Ontario, 3.15,

  • (b) in respect of Quebec, 4.39,

  • (c) in respect of Manitoba, 0.29,

  • (d) in respect of Saskatchewan, 0.42,

  • (e) in respect of Alberta, 2.49, and

  • (f) in respect of the BC Interior, as defined in subsection 6.3(1) of the Export and Import Permits Act, 17.43; and

  C

  is the amount by which the exports from the region of softwood lumber products during the previous month exceeded the trigger volume for the region for the previous month, if those exports exceeded the trigger volume for the previous month by 1% or less of that trigger volume.

• Marginal note:Trigger volume — BC Coast

  (4) The monthly trigger volume applicable to the BC Coast as defined in subsection 6.3(1) of the Export and Import Permits Act is the amount determined by the formula

  (A × 0.0186 × 1.1 × B) - C

  where

  A

  is the expected monthly American consumption of softwood lumber products, as calculated in accordance with the prescribed formula;

  B

  is

  • (a) in respect of January, the quotient obtained by dividing 0.7212 by 0.9288,

  • (b) in respect of February, the quotient obtained by dividing 0.9767 by 0.8944,

  • (c) in respect of March, the quotient obtained by dividing 0.9025 by 1.0014,

  • (d) in respect of April, the quotient obtained by dividing 1.3557 by 1.0707,

  • (e) in respect of May, the quotient obtained by dividing 1.1461 by 1.0679,

  • (f) in respect of June, the quotient obtained by dividing 1.1771 by 1.0405,

  • (g) in respect of July, the quotient obtained by dividing 0.9213 by 1.0508,

  • (h) in respect of August, the quotient obtained by dividing 1.0719 by 1.0501,

  • (i) in respect of September, the quotient obtained by dividing 1.0584 by 0.9953,

  • (j) in respect of October, the quotient obtained by dividing 0.9477 by 1.0636,

  • (k) in respect of November, the quotient obtained by dividing 0.8466 by 0.9435, and

  • (l) in respect of December, the quotient obtained by dividing 0.8746 by 0.8930; and

  C

  is the amount by which the exports from the region of softwood lumber products during the previous month exceeded the trigger volume for the region for the previous month, if those exports exceeded the trigger volume for the previous month by 1% or less of that trigger volume.

  • Return to footnote ^*[Note: Section 14 of the Softwood Lumber Products Export Charge Act, 2006 ceases to be in force on October 12, 2015, see SOR/2016-155.]

Marginal note:Charge

• Footnote ^*15 (1) If, during a particular calendar quarter, total exports of softwood lumber products from Nova Scotia, New Brunswick, Prince Edward Island and Newfoundland and Labrador, as provided in subsection 11(2), exceed the aggregate sum of total production in that calendar quarter and total inventory at the beginning of that calendar quarter, of softwood lumber products that underwent their first primary processing in one of those provinces from softwood sawlogs originating in one of those provinces or in the State of Maine, each person responsible for excess exports as determined under subsection (2) shall pay to Her Majesty in right of Canada a charge calculated by applying $200 per thousand board feet of exported lumber products to that person’s excess exports.

• Marginal note:When charge payable

  (1.1) The charge becomes payable at the time that the softwood lumber product is exported.

• Marginal note:Excess exports

  (2) A person’s excess exports shall equal the amount by which its exports exceed in a particular calendar quarter the sum of the person’s total production in that calendar quarter and total inventory at the beginning of that calendar quarter of softwood products that underwent their first primary processing in New Brunswick, Nova Scotia, Prince Edward Island or Newfoundland and Labrador from softwood sawlogs originating in one of those provinces or in the State of Maine.

  • Return to footnote ^*[Note: Section 15 of the Softwood Lumber Products Export Charge Act, 2006 ceases to be in force on October 12, 2015, see SOR/2016-155.]

Exemptions

Marginal note:Exemption — schedule

• 16 (1) Despite section 10, a person whose name is set out in the schedule is exempt from the charge referred to in that section in respect of the export of softwood lumber products that the person produces if the person satisfies the prescribed conditions.

• Marginal note:Amendments to schedule

  (2) The Governor in Council may, by regulation, amend the schedule by adding, deleting or changing the name of a person.

Marginal note:Exempt exports

• 17 (1) The Governor in Council may, on the recommendation of the Minister for International Trade, by regulation, conditionally or unconditionally, exempt the export of softwood lumber products from a region from

  • (a) the charge referred to in section 10; or

  • (b) the application of any part of a rate of charge that is higher than the rate of charge provided for by subsection 12(3) or (4).

• Marginal note:Exempt products

  (2) The Governor in Council may, on the recommendation of the Minister for International Trade, by regulation, conditionally or unconditionally, exempt any softwood lumber product from the charges referred to in sections 10 and 15.

• Marginal note:Exempt person

  (3) Any person exempted from registering under subsection 22(2) is exempted from the charges referred to in sections 10 and 15.

Charge on Refunds of Duty Deposits

Marginal note:Definitions

• 18 (1) The following definitions apply in this section.

  covered entry

  covered entry means an entry that, on October 12, 2006, has not been liquidated and in respect of which a duty deposit has been made. (importation non tarifée)

  duty deposit

  duty deposit means an amount deposited under a United States duty order. (dépôt douanier)

  duty deposit refund

  duty deposit refund of a specified person means the refund of a duty deposit and all interest on that deposit accrued under United States law up to the earlier of

  • (a) the day on which the refund is issued to the specified person or a designate of the specified person, and

  • (b) the day on which the specified person sells the rights to the refund to Her Majesty in right of Canada. (remboursement)

  revocation

  revocation means a revocation of a United States duty order including any direction to end any suspension of liquidation of a covered entry or to refund any duty deposit. (révocation)

  specified person

  specified person means a person that filed the documents and information required under the applicable United States law in respect of the importation of any softwood lumber product into the United States during the period beginning on May 22, 2002 and ending on October 11, 2006. (intéressé)

  specified rate

  specified rate means the rate determined by the formula

  A/B

  where

  A

  is US$1,000,000,000; and

  B

  is the total, expressed in United States dollars, of all duty deposits and all interest accrued on them under United States law as of October 12, 2006. (taux applicable)

  United States duty order

  United States duty order means

  • (a) the Notice of Amended Final Determination of Sales at Less Than Fair Value and Antidumping Duty Order: Certain Softwood Lumber Products from Canada, 67 Fed. Reg. 36,068 (May 22, 2002), as amended; or

  • (b) the Notice of Amended Final Affirmative Countervailing Duty Determination and Notice of Countervailing Duty Order: Certain Softwood Lumber Products from Canada, 67 Fed. Reg. 36,070 (May 22, 2002), as amended. (décret douanier américain)

• Marginal note:Rounding

  (2) The specified rate shall be expressed as a decimal fraction rounded off to four digits after the decimal point, but if the fifth digit is five or greater, the fourth digit is increased by one.

• Marginal note:Imposition of charge on duty deposit refund

  (3) Every specified person in respect of whom a covered entry is to be liquidated as a result of a revocation shall pay to Her Majesty in Right of Canada a charge at the specified rate on the amount of any duty deposit refund that relates to the covered entry.

• Marginal note:Liability for charge

  (4) The charge under subsection (3) is payable by the specified person even if the refund is issued to a designate of the specified person.

• Marginal note:When charge payable

  (5) The charge under subsection (3) becomes payable by the specified person on the later of

  • (a) the day on which this Act is assented to, and

  • (b) the day that is the earlier of

    • (i) the day on which the duty deposit refund is issued to the specified person or a designate of the specified person, and

    • (ii) the day on which the specified person sells the rights to the duty deposit refund to Her Majesty in right of Canada.

• Marginal note:Joint and several or solidary liability

  (6) If, at any time after September 18, 2006, a specified person sells or otherwise disposes of the rights to a duty deposit refund to a person other than Her Majesty in right of Canada, the specified person and the other person are jointly and severally, or solidarily, liable to pay the charge under subsection (3) and any penalties and interest payable under this Act in relation to that charge.