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Allocation Method Order (2010) — Softwood Lumber Products (SOR/2009-320)

Regulations are current to 2024-10-30

Allocation Method Order (2010) — Softwood Lumber Products

SOR/2009-320

EXPORT AND IMPORT PERMITS ACT

Registration 2009-11-30

Allocation Method Order (2010) — Softwood Lumber Products

The Minister of Foreign Affairs, pursuant to paragraph 6.3(3)(a)Footnote a of the Export and Import Permits ActFootnote b, hereby makes the annexed Allocation Method Order (2010) — Softwood Lumber Products.

Ottawa, November 30, 2009

LAWRENCE CANNON
Minister of Foreign Affairs

Marginal note:Definitions

 The following definitions apply in this Order.

Act

Act means the Export and Import Permits Act. (Loi)

exported

exported has the meaning set out in section 6.4 of the Act. (exporté)

Manitoba quantity

Manitoba quantity means the quantity of softwood lumber products that may be exported from Manitoba to the United States during a month under subsection 6.3(2) of the Act. (quantité pour le Manitoba)

Ontario quantity

Ontario quantity means the quantity of softwood lumber products that may be exported from Ontario to the United States during a month under subsection 6.3(2) of the Act. (quantité pour l’Ontario)

primary producer

primary producer means a person who produces softwood lumber products from softwood sawlogs and, in the case of Quebec, includes a person who produces Quebec softwood lumber products from softwood sawlogs. (entreprise de première transformation)

primary producer’s products

primary producer’s products means the softwood lumber products that a primary producer produces and that are not remanufactured in Canada. (produits d’une entreprise de première transformation)

Quebec quantity

Quebec quantity means the quantity of softwood lumber products that may be exported from Quebec to the United States during a month under subsection 6.3(2) of the Act. (quantité pour le Québec)

Quebec softwood lumber products

Quebec 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. (produits de bois d’oeuvre du Québec)

reference period

reference period means the period beginning on November 1, 2006 and ending on October 31, 2009. (période de référence)

remanufacturer

remanufacturer means a person who remanufactures — within the meaning of subsection 13(1) of the Softwood Lumber Products Export Charge Act, 2006 — softwood lumber products. (entreprise de seconde transformation)

remanufacturer’s products

remanufacturer’s products means the softwood lumber products that a remanufacturer remanufactures and that are not further remanufactured in Canada. (produits d’une entreprise de seconde transformation)

Saskatchewa‍n quantity

Saskatchewa‍n quantity means the quantity of softwood lumber products that may be exported from Saskatchewan to the United States during a month under subsection 6.3(2) of the Act. (quantité pour la Saskatchewan)

softwood lumber products

softwood lumber products means the products referred to in item 5104, Group 5 of the schedule to the Export Control List. (produits de bois d’oeuvre)

General

Marginal note:Application

 This Order establishes the method for allocating the quantity of softwood lumber products that may be exported during a month from Ontario, Quebec, Manitoba and Saskatchewan in 2010 for the purposes of paragraph 6.3(3)(a) of the Act.

Marginal note:Relinquishing an export allocation

 For the purposes of this Order, a primary producer or remanufacturer relinquishes their export allocation for 2010 by so informing the Minister in writing by December 11, 2009.

Marginal note:Transfer of export allocation

 If a primary producer or remanufacturer transfers, with the consent of the Minister under subsection 6.3(4) of the Act, a portion of the export allocation issued to it by the Minister for a month, that portion is deemed to be included in the volume of the primary producer’s or remanufacturer’s products that were exported in that month to the United States under export permits, and not in the volume of the transferee, so long as

  • (a) the portion transferred includes a corresponding volume of products; or

  • (b) the total of the portion transferred during the month that does not include products does not exceed 15% of the volume of the primary producer’s or remanufacturer’s export allocation for the month.

Ontario

Marginal note:Allocation

 The allocation of the Ontario quantity to a primary producer or remanufacturer who applies for an export allocation is calculated in accordance with the formula

OQ × (EO/TEO)

where

OQ
is the Ontario quantity;
EO
is the volume of the primary producer’s or remanufacturer’s products that were exported from Ontario to the United States under export permits during the reference period; and
TEO
is the total volume of primary producers’ and remanufacturers’ products that were exported from Ontario to the United States under export permits during the reference period, excluding the volume of products of primary producers and remanufacturers who relinquish their export allocations for 2010.

Quebec

Marginal note:Primary producers with an export history

  •  (1) If 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 calculated in accordance with the formula set out in section 7(which is based on their historic export volume) or the formula set out in subsection 8(1) (which is based on their historic production volume).

  • Marginal note:Primary producers without an export history

    (2) If none of a primary producer’s products were exported from Quebec to the United States under export permits during the reference period and if the primary producer produced Quebec softwood lumber products during the period beginning on January 1, 2006 and ending on December 31, 2008 and it applies for an export allocation, the primary producer may only receive the allocation calculated in accordance with the formula set out in subsection 8(1) (which is based on its historic production volume).

  • Marginal note:Remanufacturers

    (3) If 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 calculated in accordance with the formula set out in section 11 (which is based on its historic export volume).

Marginal note:Allocation to primary producers — historic export volume

 The allocation of the Quebec quantity to a primary producer that is based on its historic export volume is calculated in accordance with the formula

(PPE/TPPEH) × {[QQ × (TPPE/TEQ) × 96%] + RNA}

where

PPE
is the volume of the primary producer’s products that were exported from Quebec to the United States under export permits during the reference period;
TPPEH
is 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 export allocations based on historic export volume, excluding the volume of products of primary producers who relinquish their export allocations for 2010;
QQ
is the Quebec quantity;
TPPE
is the total volume of primary producers’ products that were exported from Quebec to the United States under export permits during the reference period, excluding the volume of products of primary producers who relinquish their export allocations for 2010;
TEQ
is the total volume of primary producers’ and remanufacturers’ products that were exported from Quebec to the United States under export permits during the reference period, excluding the volume of products of primary producers and remanufacturers who relinquish their export allocations for 2010; and
RNA
is the residual non-allocated quantity of the reserve pool calculated under section 10.

Marginal note:Allocation to primary producers — historic production volume

  •  (1) The allocation of the Quebec quantity to a primary producer that is based on its historic production volume is calculated in accordance with the formula

    RP × (PPPV/TPV)

    where

    RP
    is the reserve pool calculated under section 9;
    PPPV
    is the volume of Quebec softwood lumber products that the primary producer produced during the period beginning on January 1, 2006 and ending on December 31, 2008; and
    TPV
    is the total volume of Quebec softwood lumber products produced during the same period by primary producers whose allocations are based on their historic production volume.
  • Marginal note:Maximum allocation

    (2) The allocation may not exceed 40% of the primary producer’s average monthly volume of Quebec softwood lumber products produced during the period beginning on January 1, 2006 and ending on December 31, 2008.

  • Marginal note:Records of production volumes

    (3) The 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.

Marginal note:Reserve pool

 The reserve pool is calculated in accordance with the formula

QQ × (TPPE/TEQ) × 4%

where

QQ
is the Quebec quantity;
TPPE
is the total volume of primary producers’ products that were exported from Quebec to the United States under export permits during the reference period, excluding the volume of products of primary producers who relinquish their export allocations for 2010; and
TEQ
is the total volume of primary producers’ and remanufacturers’ products that were exported from Quebec to the United States under export permits during the reference period, excluding the volume of products of primary producers and remanufacturers who relinquish their export allocations for 2010.

Marginal note:Residual non-allocated quantity

 The residual non-allocated quantity of the reserve pool is calculated in accordance with the formula

RP – AP

where

RP
is the reserve pool; and
AP
is the total volume of softwood lumber products allocated to primary producers calculated under section 8.

Marginal note:Allocation to remanufacturers

 The allocation of the Quebec quantity to a remanufacturer that is based on its historic export volume is calculated in accordance with the formula

QQ × (RE/TEQ)

where

QQ
is the Quebec quantity;
RE
is the volume of the remanufacturer’s products that were exported from Quebec to the United States under export permits during the reference period; and
TEQ
is the total volume of primary producers’ and remanufacturers’ products that were exported from Quebec to the United States under export permits during the reference period, excluding the volume of products of primary producers and remanufacturers who relinquish their export allocations for 2010.

Manitoba

Marginal note:Allocation

 The allocation of the Manitoba quantity to a primary producer or remanufacturer who applies for an export allocation is calculated in accordance with the formula

MQ × (EM/TEM)

where

MQ
is the Manitoba quantity;
EM
is 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; and
TEM
is the total volume of primary producers’ and remanufacturers’ products that were exported from Manitoba to the United States under export permits during the reference period, excluding the volume of products of primary producers and remanufacturers who relinquish their export allocations for 2010.

Saskatchewan

Marginal note:Allocation

 The allocation of the Saskatchewan quantity to a primary producer or remanufacturer who applies for an export allocation is calculated in accordance with the formula

SQ × (ES/TSQ)

where

SQ
is the Saskatchewan quantity;
ES
is the volume of the primary producer’s or remanufacturer’s products that were exported from Saskatchewan to the United States under export permits during the reference period; and
TSQ
is the total of the Saskatchewan quantities for the reference period.

Marginal note:Allocation of remainder

 The allocation of the remainder of the Saskatchewan quantity is based on the order of receipt of applications for an export allocation of the remainder, with each applicant receiving the volume applied for until the Saskatchewan quantity is fully allocated.

Coming into Force

Marginal note:Registration

 This Order comes into force on the day on which it is registered.


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