Softwood Lumber Products Export Permit Fees Regulations (SOR/96-317)

Interpretation

1 The definitions in this section apply in these Regulations.

Agreement

Agreement means the Softwood Lumber Agreement, signed on May 29, 1996, between the Government of Canada and the Government of the United States. (accord)

board foot

board foot means a unit of measurement of lumber equal to 12 inches × 12 inches × 1 inch, and one thousand board feet is equal to 2.36 cubic meters or 92.91 square meters of lumber. All conversions of board feet to cubic meters or to square meters shall be made on a nominal measurement basis and shall not be rounded up to the nearest cubic meter or square meter. (pied-planche)

Department

Department means the Department of Foreign Affairs and International Trade. (ministère)

established base

established base, in respect of any year, means a quantity of softwood lumber products exported by all exporters to the United States that does not exceed 14.7 billion board feet and that is set out in Article II of the Agreement. (régime de base)

exporter

exporter means a person who exports softwood lumber products to the United States. (exportateur)

export level

export level has the same meaning as in section 1 of the Export Permits Regulations (Softwood Lumber Products). (niveau d’exportation)

lower fee base

lower fee base, in respect of any year, means a quantity of softwood lumber products exported by all exporters to the United States that exceeds 14.7 billion board feet but does not exceed 15.35 billion board feet and that is set out in Article II of the Agreement. (régime de prix inférieur)

Minister

Minister means the Minister of Foreign Affairs. (ministre)

permit

permit means an export permit issued pursuant to subsection 7(1) of the Export and Import Permits Act. (licence)

softwood lumber products

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

upper fee base

upper fee base, in respect of any year, means a quantity of softwood lumber products exported by all exporters to the United States that exceeds 15.35 billion board feet and that is set out in Article II of the Agreement. (régime de prix supérieur)

year

year means a twelve-month period beginning on April 1 and ending on the following March 31. (année)

Conversion to Canadian Dollars

2 In these Regulations, where a fee is expressed in U.S. dollars, the fee shall be paid in equivalent Canadian dollars and the conversion to Canadian dollars shall be based on the official prevailing conversion rate of the Bank of Canada as published in the Bank of Canada’s Daily Memorandum of Exchange Rates.

Fees Payable

3 The fee to be paid by an exporter for the issuance of a permit in respect of exports of softwood lumber products in the established fee base is

• (a) $9, where the permit is delivered by a person who is not employed in the public service of Canada but who is under contract with the Minister to deliver the permit; and

• (b) $14, where the permit is delivered by an official of the Export and Import Controls Bureau of the Department.

• 4 (1) In addition to the fee referred to in section 3, and subject to sections 5, 8 and 9, where in any quarter of a year the total exports of softwood lumber products by an exporter and a resident of Canada who has been issued a permit by the Minister in respect of a portion of the exporter’s export level exceed 28.75 per cent of the exporter’s export level for the established base or, where in any year the total exports by an exporter and a resident of Canada who has been issued a permit by the Minister in respect of a portion of the exporter’s export level exceed the exporter’s export level for the established base, the fee to be paid by the exporter for the granting of a permit is

  • (a) US$50 per thousand board feet for exports in the lower fee base; or

  • (b) US$100 per thousand board feet for exports in the upper fee base.

• (2) Despite subsection (1), with respect to softwood lumber products first manufactured in British Columbia and exported on or before March 31, 2000 the fee to be paid by the exporter for the granting of a permit is

  • (a) for lower fee base export quantities of 90,000,000 board feet, at a rate equivalent to the upper fee base fee per 1,000 board feet; and

  • (b) for upper fee base export quantities in excess of 110,000,000 board feet, U.S.$146.25 per 1,000 board feet.

• (3) Despite subsection (1), with respect to softwood lumber products first manufactured in British Columbia and exported during the year beginning on April 1, 2000, the fee to be paid by the exporter for the granting of a permit is

  • (a) at a rate equivalent to the upper fee base fee per 1,000 board feet for the greater of

    • (i) lower fee base export quantities of 90,000,000 board feet, or

    • (ii) lower fee base export quantities that exceed 272,000,000 board feet; and

  • (b) for upper fee base export quantities in excess of 110,000,000 board feet, the sum of the upper fee base rate and U.S.$40.39 per 1,000 board feet.

5 An exporter is exempt from the fee referred to in section 4

• (a) where the production of softwood lumber products by the exporter in the previous calendar year was less than 10 million board feet; or

• (b) where the production of softwood lumber products by the exporter has been reduced in the previous calendar quarter by at least 25 per cent by comparison to the same calendar quarter of the previous year due to a worker strike, or a mill fire or forest fire or any other force majeure, and the exporter informs the Government of Canada of the reduction and the Government of Canada provides notice and documentation of the reduction to the Government of the United States within 60 days after the disrupting event.

6 Subject to sections 8 and 9, the fee to be paid by an exporter for the granting of a permit in respect of exports of softwood lumber products in the lower fee base is US$50 per thousand board feet.

7 Subject to sections 8 and 9, the fee to be paid by an exporter for the granting of a permit in respect of exports of softwood lumber products in the upper fee base is US$100 per thousand board feet.

• 8 (1) The definitions in this subsection apply in this section.

  additional quantity

  additional quantity means an additional quantity of 92 million board feet of softwood lumber products that may be exported to the United States during the four calendar quarters following the calendar quarter referred to in subsection (2). (quantité additionnelle)

  average price

  average price means the price in US dollars during a calendar quarter that is the simple average of the weekly price, as published in Random Lengths, for the weeks that end that calendar quarter. (prix moyen)

  second additional quantity

  second additional quantity means a quantity of 72.5 million board feet of softwood lumber products that, in addition to the additional quantity, may be exported to the United States up to and including March 31, 2001. (deuxième quantité additionnelle)

• (2) The fees referred to in sections 4, 6 and 7 are not payable in respect of an additional quantity if, for any calendar quarter, the average price per thousand board feet as published in Random Lengths for Spruce-Pine-Fir, Eastern, Kiln Dried, 2 x 4 random length, Standard & Better, Great Lakes delivered, equals or exceeds

  • (a) US$405, in respect of any calendar quarter during the period beginning on April 1, 1996 and ending on March 31, 1998; and

  • (b) US$410, in respect of any calendar quarter after the period referred to in paragraph (a).

• (3) The fees referred to in sections 4, 6 and 7 are not payable in respect of the second additional quantity.

8.1 In addition to the fee referred to in section 3 and subject to section 9, the fee to be paid by an exporter without benefit of an export level, for the granting of a permit, is US$100 per thousand board feet.

9 The fees referred to in sections 4, 6, 7 and 8.1 shall be adjusted for inflation on April 1 of each year, beginning on April 1, 1997, based on the annual percentage change in the simple average, over the previous calendar year, of the annual value in

• (a) the Consumer Price Index, All Urban Consumers, less foods and fuels published by the U.S. Department of Labor, Bureau of Labor Statistics; and

• (b) the Consumer Prices and Price Indexes, published by Statistics Canada, catalogue no. 62-010-XPB.

Time and Means of Payment

10 The fees referred to in sections 3, 4, 6, 7 and 8.1 shall be paid at the time of issuance of the permit, by cheque payable to the Receiver General.

Remissions

11 Subject to sections 14 to 16 and 18, remission is hereby granted of the fee paid by an exporter under section 4 for the granting of a permit where the total exports of softwood lumber products by exporters with benefit of export levels in a quarter of a year do not exceed 28.75 per cent of the established base, on condition that the total of the export quantities for which remission is made and the exports for which no fees were paid pursuant to section 4 does not exceed the total of 28.75 per cent of 14.7 billion board feet and an additional quantity as defined in subsection 8(1).

12 Subject to sections 14, 15, 17 and 18, remission is hereby granted of one half of the fee paid by an exporter under section 4 or 8.1 for the granting of a permit where the total exports of softwood lumber products by all exporters in any quarter of a year do not exceed 28.75 per cent of the established base and the total exports of softwood lumber products by all exporters during that year do not exceed the established base, on condition that the total of the export quantities for which remission is made and the exports for which no fees were paid pursuant to sections 4 and 8.1 does not exceed the total of 14.7 billion board feet and an additional quantity as defined in subsection 8(1).

13 Subject to sections 14, 15, 17 and 18, remission is hereby granted of one third of the fee paid by an exporter under section 4 or 8.1 for the granting of a permit where the total exports of softwood lumber products by all exporters in any quarter of a year exceed 28.75 per cent of the established base and the total exports of softwood lumber products by all exporters during that year do not exceed the established base, on condition that the total of the export quantities for which remission is made and the exports for which no fees were paid pursuant to sections 4 and 8.1 does not exceed the total of 14.7 billion board feet and an additional quantity as defined in subsection 8(1).

14 The aggregate of the amounts remitted to an exporter under sections 11 to 13 shall not exceed 100 per cent of the fees paid by that exporter under section 4 or 8.1.

15 An exporter’s export quantity for which fees are remitted shall be deducted from the exporter’s share of the established base until the exporter has used up its share of the established base. Thereafter, all additional export quantities shall be deducted from the exporter’s share of the lower fee base.

16 In circumstances described in section 11, remission is made, up to the maximum of the exporter’s share of the established base, in the following sequence:

• (a) to exporters who have exported softwood lumber products with benefit of an export level, in respect of paid upper fee base fees; and

• (b) to exporters who have exported softwood lumber products with benefit of an export level, in respect of paid lower fee base fees.

17 In circumstances described in sections 12 and 13, remission is made, up to the maximum of the exporter’s share of the established base, in the following sequence:

• (a) to exporters who have exported softwood lumber products with benefit of an export level,

  • (i) in respect of paid upper fee base fees, and

  • (ii) in respect of paid lower fee base fees; and

• (b) to exporters who have exported softwood lumber products without benefit of an export level, in respect of fees paid pursuant to section 8.1.

18 Where full remission under any of paragraphs 16(a) or (b) or 17(a) or (b) is not possible because the total of the export quantities for which remission is made and exports for which no fees were paid may not exceed the total of the established base and an additional quantity as defined in subsection 8(1), as provided in section 11, 12 or 13, remission is made in proportion to the export quantities for which full remission might otherwise have been made.