Notices
SOFTWOOD LUMBER: EXPORT FEES
Parent
Notice to Exporters
Export and Import Permits Act
Serial No. 124
Date: March 31, 2000
Table of Contents
1.0 Purpose
1.1 The purpose of this Notice is to provide information to exporters on the fee schedule for softwood lumber exports to the United States that came into effect on April 1, 1996, regarding export fees.
1.2 This Notice cancels and replaces Notice to Exporters No. 116 of March 13, 1999.
2.0 Duration
2.1 This Notice shall remain valid until further notice.
3.0 New Fee Schedule
Under Article II, paragraph 2 of the Canada-United States Agreement on Softwood Lumber, Canada is required to collect a fee on issuance of a permit for export to the United States for softwood lumber first manufactured in the province of Ontario, Quebec, British Columbia or Alberta for quantities above the established base in a given year. Accordingly, for 1999-2000 the fee schedule is established by the Softwood Lumber Products Export Permit Fees Regulations as follows:
1999-2000 Fee Schedule
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Exports
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Fee
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(a) 14.7 billion board feet (the established base (EB)) or less
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Free
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(b) More than 14.7 and less than or equal to 15.35 billion board feet
(the lower fee base (LFB))
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US$52.93 per thousand board feet
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(c) Amounts in excess of 15.35 billion board feet
(the upper fee base (UFB))
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US$105.86 per thousand board feet
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3.1 Paragraph 3 of Article II requires that fees shall be adjusted for inflation on April 1 of each year, beginning April 1, 1997. This requirement is implemented in Canada by Section 9 of the Softwood Lumber Products Export Permit Fees Regulations. Thus, inflation is 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.
3.2 As a result, the inflation adjustment has been determined to be 1.90 per cent. Accordingly, the revised fee schedule, effective April 1, 2000, is established by the Softwood Lumber Products Export Permit Fees Regulations as follows:
Revised Fee Schedule - 01 April 2000
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Exports
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Fee
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(a) 14.7 billion board feet (the established base (EB)) or less
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Free
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(b) More than 14.7 and less than or equal to 15.35 billion board feet (the lower fee base (LFB))
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US$53.94 per thousand board feet
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(c) Amounts in excess of 15.35 billion board feet (the upper fee base (UFB))
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US$107.88 per thousand board feet
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3.3 Payment should be made in Canadian funds either directly or through the Canadian Customs broker who is processing the export permit application by cheque, money order or bank transfer. (For details, see Notice to Exporters No. 109, December 10, 1998.) The EICB will apply the prevailing conversion rate of the Bank of Canada as published in the Bank of Canada Daily Memorandum of Exchange Rates. Payment should be made by cheque or money order, to the Receiver General for Canada.
3.4 Exporters are encouraged to make pre-arrangements with their Canadian Customs Broker for the processing of any shipments of softwood lumber that may attract a fee. Anyone exporting softwood lumber without an export permit is liable for prosecution under the provisions of the Export and Import Permits Act. In addition, anyone found to be exporting without proper permits leaves itself open to administrative sanctions, such as full or partial loss of export level allocation. As well, U.S. Customs will provide EICB information on shipments without export documentation so that appropriate action may be taken under Canadian law.
3.5 Exporters who do not have an allocation will automatically be assessed the US$107.88 per thousand board feet UFB fees when requesting export permits.
3.6 As indicated in the Notice to Exporters No. 120, of September 3, 1999, the settlement of the B.C. stumpage dispute provides the following amendments:
(i) The greater of 90 million board feet or any amount in excess of 272 million board feet of Year Five LFB allocations to B.C. companies will be re-priced at UFB fee level; Canada shall collect a fee equivalent to the issuance of a permit for export to the United States of quantities of this softwood lumber ("re-priced LFB");
(ii) Canada shall collect a fee on the issuance of a permit for export to the United States of quantities of UFB by B.C. companies (which includes any quantity re-priced pursuant to paragraph 3.2 (i) above, in excess of 110 million board feet, the average of Year One and Two UFB shipments, at the fee level of US$40.39 above the applicable UFB rate set out in Article 11.3 of the Agreement. Accordingly, for 2000-2001, this fee is set at US$148.27 per thousand board feet.
4.0 Information about new fee schedule
4.1 Who to ask: Enquiries about the new fee schedule described in this Notice or about the Canada-United States Agreement on Softwood Lumber, may be addressed to:
Softwood Lumber Division (EPS)
Export and Import Controls Bureau
Department of Foreign Affairs
and International Trade
Mailing address:
P.O. Box 481
Station A,
Ottawa, Ontario, K1N 9K6
Courier address:
Tower C, 4th Floor
Lester B. Pearson Building,
125 Sussex Drive,
Ottawa, Ontario, K1A 0G2
E-mail address:
extott*eps@dfait-maeci.gc.ca
Telephone: (613) 944-2167
Facsimile: (613) 944-2170
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