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Notice to Exporters on Transitional RulesTransitional Rules for Option B regions for the months of October, November and December 2006November 2006 This document includes references to potential requirements associated with the implementation of the proposed Softwood Lumber Products Export Charge Act, 2006, legislation that has been tabled in Parliament by the Government but not yet enacted. Nothing in this document should be taken as a representation by the Canada Revenue Agency (CRA) that the law will eventually be enacted in the manner proposed. This notice outlines and explains the transitional provisions contained in section 104 of the proposed Softwood Lumber Products Export Charge Act, 2006 (Act) that apply to registrants that elect to seek an export allocation under paragraph 6.3(3)(b) of the Export and Import Permits Act. OverviewThe regions of Saskatchewan, Manitoba, Ontario and Quebec have elected to be governed under Option B of the export measures set out in the Softwood Lumber Agreement, 2006 (SLA). These regions have therefore opted to pay the charge at a lower rate, subject to a volume restraint. In these circumstances, the export charge would be levied under subsection 11(3) of the proposed Act. In order to provide the Government of Canada with sufficient time to develop and implement the systems necessary to administer the volume restraints under Option B, section 104 of the proposed Act sets out proposed transitional provisions that would apply during the period from October 12 to December 31, 2006. During this transitional period, all regions will be required to calculate their export charges payable using the “Option A” export charge rates, as provided in the table below. In certain circumstances, an exporter will be entitled to request a refund of the difference between the export charge it actually paid during the transitional period and the export charge it would have paid if Option B had been in effect during that period. The last section of this notice includes sample calculations, under the two options, for the export charge payable and refund claims during the transitional period of October 12 to December 31, 2006.
Transitional provisionsThe following special transitional provisions would apply to exporters of softwood lumber products that underwent first primary processing in Option B regions:
For more information on the regional quota volume and the 12% limit, please refer to the DFAIT web page on the softwood lumber products export charge at www.softwoodlumber.gc.ca. Procedure for claiming the transitional period refund Exporters who qualify for the special transitional rules described above would apply and account for the transitional refund as follows:
Please note that at the time of publishing this notice, the softwood lumber refund form was not yet available. As an alternative to the refund form simply attach to your monthly return a statement signed by an authorized company official indicating the following information: 1. that you wish to claim a transitional refund; 2. the amount of the claim; 3. the calendar month to which the refund applies; 4. your softwood lumber account number and your complete mailing address.
Note: If, in anticipation of ultimately receiving the transitional refund, exporters choose to remit only the amount that would have been payable under Option B, they should be aware of the following:
* Indicates an Option B region # Indicates a region of origin that has exceeded its volume restraint during the month. Therefore the charge would apply at the Option A rate, even though this is an Option B region. |
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