SWLN45 - The Export Charge

April 2013

Table of Contents

• 1 Introduction
• 2 The export charge and rates
  • 2.1 Regional options
  • 2.2 Adjustments to the export charge
  • 2.3 The monthly export charge rate
• 3 Softwood lumber products subject to the export charge [subsection 10(1) and section 2, definition of "softwood lumber product"]
• 4 Softwood lumber products excluded from the export charge [subsection 11(1) and section 15]
  • 4.1 The Atlantic provinces
  • 4.2 The territories
  • 4.3 Schedule of exempt persons
• 5 Registration
  • 5.1 General registration (section 22)
  • 5.2 Certified independent remanufacturers (section 25)
  • 5.3 Multiple mills
  • 5.4 Security [subsection 22(5)]
• 6 Calculating the amount of the export charge payable
  • 6.1 When the export charge is payable [subsection 10(2)]
  • 6.2 Amount payable [subsection 12(1)]
  • 6.3 Export price (section 13)
  • 6.4 Exchange rate [subsection 13(3)]
• 7 Returns and payments
  • 7.1 Monthly filing and payments
  • 7.2 Separate returns (section 30)
  • 7.3 Method of payment
  • 7.4 Payments not received
  • 7.5 Relief from penalty or interest (section 37)
• 8 Records (section 48)
• 9 Contact information for CRA and CRA Web pages
• 10 Contact information for export permits and Web pages for Foreign Affairs
• 11 Glossary

1. Introduction

Canada and the United States (U.S.) signed the Softwood Lumber Agreement between the Government of Canada and the Government of the United States of America (the Agreement) on September 12, 2006. The term of the Agreement is seven years, with an option to renew for two additional years. The Agreement contains several export measures, including an export charge on softwood lumber products leaving Canada for the U.S. On January 23, 2012, a two-year extension to the Agreement was signed.

The Softwood Lumber Products Export Charge Act, 2006 (the Act) became law on December 14, 2006 ^{Footnote 1}. The Act provides for the implementation of the export charge and its administration and collection by the Canada Revenue Agency (CRA). The Act does not apply to softwood lumber products exported to a country other than the U.S., and that only pass in transit through the U.S.

All legislative provisions referred to in this notice are from the Act. The export charge and compliance requirements relating to it will be explained in this notice.

The Department of Foreign Affairs, Trade and Development (Foreign Affairs) administers the other export measure, volume restraints, in accordance with the Export and Import Permits Act. Volume restraints are monthly quotas on the amount of softwood lumber products that can be shipped to the U.S. Since this export measure will not be discussed in detail in this notice, please refer to the Foreign Affairs Web site for further information, at www.international.gc.ca/controls-controles/softwood-bois_oeuvre/index.aspx?view=d.

The CRA softwood lumber Web pages contain all publications and forms referred to in this notice. Other useful information may also be found on this site, such as the Act, the regulations and monthly export charge rates. Refer to
www.cra-arc.gc.ca/tx/bsnss/tpcs/swl/menu-eng.html.

2. The export charge and rates

2.1 Regional options

Under the Act, when the reference price (i.e., market price) of lumber is higher than US$355 per thousand board feet (MBF), there is unrestricted trade in softwood lumber products exported from Canada to the U.S. However, when the reference price of lumber drops to or below US$355/MBF, the export measures are triggered and apply to specified Canadian softwood lumber products leaving Canada for the U.S.

The following Canadian regions must choose one of the two options described below that will govern the export measures for a period of three years: the B.C. Interior, the B.C. Coast, Alberta, Saskatchewan, Manitoba, Ontario and Quebec. The rules for the Atlantic provinces and the territories are discussed further in sections 2.3 and 4.1 of this notice.

• Option A comprises an export charge, with the rate varying with the reference price, commencing October 12, 2006.
• Option B comprises an export charge plus volume restraint, where both the rate and the volume restraint vary with the reference price, commencing January 1, 2007.

Each region has two opportunities to change the option that it chose in 2006, when the Agreement was implemented. These are the following:

• the first day of January following the third anniversary of the date of implementation (i.e., on January 1, 2010); and
• the first day of January following the sixth anniversary of the date of implementation (i.e., on January 1, 2013).

For the three-year period starting on January 1, 2010, Option A applies to the B.C. Interior, the B.C. Coast and Alberta. Option B applies to Saskatchewan, Manitoba, Ontario and Quebec.

The Minister of International Trade establishes volume restraint levels, in accordance with the requirements of the Agreement and in with the regions, for those that selected Option B. The Trade Controls and Technical Barriers Bureau of Foreign Affairs monitors monthly shipments of softwood lumber products to the U.S. and administers the volume restraints on softwood lumber products through the issuance of export permits.

The chart below illustrates the two options available to the regions and the applicable export charge rate, based on the reference price.

Reference price (per MBF)	Option A – export charge (expressed as a % of export price)	Option B – export charge (expressed as a % of export price) with volume restraint
Over US $355	No export charge	No export charge and no volume restraint
US$336-355	5%	2.5% export charge + maximum volume shipped cannot exceed the region's share of 34% of expected U.S. consumption for the month.
US$316-335	10%	3% export charge + maximum volume shipped cannot exceed the region's share of 32% of expected U.S. consumption for the month.
US$315 or under	15%	5% export charge + maximum volume shipped cannot exceed the region's share of 30% of expected U.S. consumption for the month.

Regions under Option B may increase their monthly volume restraint through carryforward and/or carryback allowances equal to 12% of the region's monthly volume restraint. Export charge revenues, less certain costs, collected by the Government of Canada will be distributed to the provinces from which the softwood lumber products originated.

2.2 Adjustments to the export charge

Surge mechanism (section 14)

Option A regions are subject to a limit (referred to as the "trigger volume") in the amount of softwood lumber products produced in their region that can be exported to the U.S. in a month. The trigger volume is based on the region's historic share of Canadian exports to the U.S. market, using the 2004 and 2005 calendar years as a reference for determining market share. Each month, Foreign Affairs calculates a region's trigger volumes.

If an Option A region's exports in a month exceed its trigger volume, the region is considered to be in "surge" and there are two consequences.

• If the region's exports exceed its trigger volume by 1% or less, the region's trigger volume in the next month is reduced by the overage amount.
• If the region's exports exceed its trigger volume by more than 1% in a month, the monthly export charge rate applying to all exports originating from the region that month is increased by 50%. For example, if an Option A region was in surge in January 2010 when the export charge rate was 15%, a revised rate of 22.5% would apply to all exports originating from that region in January (see section 2.1 of this notice for the rules on assigning lumber to a region).

Foreign Affairs monitors monthly shipments to the U.S. to determine if a region is subject to surge and informs the CRA if it is. Exporters of softwood lumber products originating from an Option A region can check the CRA softwood lumber Web pages to determine if a region is in surge and for the applicable export charge rate.

For more information, see Softwood Lumber Products Export Charge Notice SWLN6, Calculating and Reporting the Surge Charge.

Third country adjustment (section 40)

Any applicable export charges are refunded if the following three conditions apply in two
consecutive quarters in a year, when compared respectively with each of the same two consecutive quarters in the preceding year:

• the share of the U.S. market attributable to imports from countries other than Canada has increased by more than 20%;
• the share of the U.S. market attributable to imports from Canada has decreased; and
• the share of the U.S. market attributable to U.S. domestic producers has increased.

If the third country adjustment is triggered, export charges will be retroactively refunded by up to the equivalent of five percentage points, or if the export charge is 5% or less, the refund is equal to a charge that is reduced to zero.

The third country adjustment will not apply to any Option A region that has triggered the surge mechanism.

For more information, see Softwood Lumber Products Export Charge Notice SWLN11, Third Country Adjustment Refund.

2.3 The monthly export charge rate

The exporter must determine a monthly export charge rate or rates relating to the lumber it ships. For example, an exporter located in Alberta that ships lumber from Alberta would apply the export charge rate for Alberta. However, if an exporter in Alberta shipped lumber from Alberta, Saskatchewan and Manitoba, it would apply the export charge rate for each of those regions.

To determine the export charge rate for a particular month, the provisions explained in the following paragraphs are relevant.

Time of export (section 5)

Softwood lumber products are considered exported at the time the products are last loaded aboard a conveyance for export, subject to the following exceptions:

• where the product is exported by rail, it is considered to be exported at the time the railcar containing the product is released to the railway for assembly to form part of a train for export;
• where the product is transhipped through a Canadian reload or other inventory location, it is considered to be exported at the time at which the product last leaves a reload or other inventory location for export.

Reference price [subsection 12(5)]

The export charge rate varies with the reference price of lumber. This is a representative price for lumber in a particular month, which is determined by market surveys. The reference price will be based on the most recent four-week average of the weekly Framing Lumber Composite Price, published by Random Lengths Publications Incorporated and available at least 21 days before the start of a particular month.

The CRA will post the reference price and export charge rates for each month on its softwood lumber Web page.

Region of export – for all regions, except the Atlantic provinces and the territories [subsection 12(2)]

Generally, a softwood lumber product is deemed exported from the region where it underwent its first primary processing.

However, if the softwood lumber product underwent its first primary processing in the Atlantic provinces or the territories (i.e., regions whose softwood lumber exports are excluded from the export charge, if certain conditions are met; see section 4 of this notice for more information), the product is deemed to be exported from the region of origin of the logs. For example, if a softwood lumber product underwent its first primary processing in New Brunswick from logs harvested in Quebec, the product is deemed exported from Quebec. Therefore, the export measure option that Quebec has chosen applies (i.e., Option B).

Region of export – the Atlantic provinces [subsection 11(2)]

A softwood lumber product will be deemed to be exported from the Atlantic provinces if it is made from logs that originate from Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador or the State of Maine and that undergo first primary processing in one of those provinces.

Region of export – the territories [subsection 11(3)]

A softwood lumber product will be deemed to be exported from the territories if it is made from logs that originate from the Yukon, the Northwest Territories or Nunavut and that undergo first primary processing in one of those territories.

The CRA will post the reference price and export charge rates for each month on its softwood lumber Web page.

3. Softwood lumber products subject to the export charge [subsection 10(1) and section 2, definition of "softwood lumber product"]

The export charge applies to softwood lumber products set out in Annexes 1A and 1B of the Agreement and referenced in section 8.4 of the Export and Import Permits Act. The Trade Controls and Technical Barriers Bureau of Foreign Affairs administers the Export and Import Permits Act and related regulations, including the list of covered softwood lumber products through the Export Control List. To view the list of covered products, please refer to Annexe 1 of Foreign Affairs' Notice SER-143, Softwood Lumber Exports to the United States – Permit Requirements.

4. Softwood lumber products excluded from the export charge [subsection 11(1) and section 15]

The export charge does not apply to exports of softwood lumber products from the regions and companies described below.

4.1 The Atlantic provinces

Softwood lumber products exported from the Atlantic provinces and accompanied by an original Maritime Lumber Bureau Certificate of Origin are not subject to the export charge. The products are excluded whether they are shipped directly to the U.S. from an Atlantic province or shipped to a province that is not an Atlantic province and reloaded or further processed and subsequently exported to the U.S.

In certain circumstances, exporters in the Atlantic provinces may incur a charge on their shipments to the U.S. This occurs if, in a calendar quarter, as monitored by Foreign Affairs, total exports from the region exceed the sum of that quarter's total beginning inventory and total production of excluded exports, as described above. The charge will apply to those exporters that have, in the calendar quarter, shipped more than the sum of their total beginning inventory and total production of excluded exports for the quarter (excess exports). This charge is C$200/MBF on the excess exports, payable at the time the product is exported.

4.2 The territories

Softwood lumber products exported from the territories are not subject to the export charge.

4.3 Schedule of exempt persons

Softwood lumber products produced and exported by a company listed in the Schedule of Exempt Persons to the Act are not subject to the charge. The exclusion applies, provided that such companies do not exceed their "annual export limit" (defined in the Agreement and based on each company's softwood lumber production for the calendar years 2004 and 2005).

However, exporters of softwood lumber products described in this section are still required to be registered and to file monthly returns with the CRA.

5. Registration

5.1 General registration (section 22)

Every exporter of softwood lumber products is required to be registered with the CRA before exporting such products to the U.S. To register, exporters must complete Form B253, Softwood Lumber Products Export Charge – Registration Form.

5.2 Certified independent remanufacturers (section 25)

Exporters that qualify as independent remanufacturers and are certified as such by the Minister of National Revenue (Minister) are eligible for a lower export price under the Act. They may calculate the export charge payable using the export price set out in paragraph 13(2)(b) of the Act. This may be described as the "first mill" value of the softwood lumber used in their remanufactured products.

Exporters must apply for certification as an independent remanufacturer at the time they register. They must complete Form B253 and a supplement, Form B253-1, Softwood Lumber Products Export Charge – Independent Remanufacturer Registration Supplement. The application must include the following documents and certifications:

• for each province (other than the Atlantic provinces, Yukon, the Northwest Territories or Nunavut) in which the applicant acquires softwood lumber product, an original certificate that the applicant
  • does not hold Crown tenure in that province, and
  • after October 11, 2006, has not acquired standing timber directly from that province;
• a list of remanufactured softwood lumber products that it expects to produce in the next year; and
• certification, as required in section C on Form B-253-1, that it is not an "associated person" ^{Footnote 2} with any company that holds provincial Crown tenure rights or that has acquired standing timber directly from a province.

Completed applications for certification should be sent to the Surrey Tax Centre, at the address shown in section 9 of this notice. Where an application is approved, the Minister will issue a letter confirming the certification and its effective date.

Certified independent remanufacturers are required to maintain their eligibility at all times and must renew their certification on an annual basis. The CRA maintains a registry on its softwood lumber Web pages, which lists certified independent remanufacturers and indicates the status of the certification, such as amendment, suspension, renewal, cancellation or reinstatement.

For more information, see Softwood Lumber Products Export Charge Notice SWLN5, Certification of Independent Remanufacturers.

5.3 Multiple mills

Exporters operating several mills, in one or more regions, must apply for the assignment of a unique registration number for each mill where logs undergo first primary processing. To register for this, exporters must complete Form B253-2, Softwood Lumber Products Export Charge – Registration Supplement – Multiple Regions or Mills.

5.4 Security [subsection 22(5)]

An exporter that is required to be registered and is either not resident in Canada or does not have a permanent establishment in Canada must provide and maintain security with the CRA. This security is required to ensure that the exporter pays or remits all amounts payable under the legislation. Security, as a condition of registration, will be required at the time of registration.

Amount of security

The amount of security that must be posted is set at a minimum of $5000 and a maximum of $2 million. The amount of security required is calculated at 50% of a registrant's actual export charge paid for the previous 12-month period.

Form of security

Security, in Canadian funds, may be in the form of cash, certified cheque, money order, or bond. Bonds must be in a form approved by the Minister. For more information, see Softwood Lumber Products Export Charge Notice SWLN4, Security Requirements for Non-Resident Persons and Persons Without a Permanent Establishment in Canada .

6. Calculating the amount of the export charge payable

6.1 When the export charge is payable [subsection 10(2)]

The export charge becomes payable at the time the softwood lumber product is exported from Canada (to determine when products are considered exported, see section 2.3 of this notice entitled "Time of export").

6.2 Amount payable [subsection 12(1)]

The amount of the export charge payable in a particular month is calculated using the applicable export charge rate for that month multiplied by the export price of the softwood lumber products exported.

6.3 Export price (section 13)

The export price is the price on which the export charge is levied. Before determining the export price, it is important to understand what the FOB value is. Actual definitions of the terms "export price" and "FOB value" can be found in the Act.

Determining the FOB value

The free on board value or "FOB value" for a softwood lumber product consists of all costs payable by a purchaser, including those incurred in the placement aboard the conveyance for shipment. However, those costs do not include the actual shipping costs and the amount of the export charge.

The CRA has issued an administrative policy on determining FOB value, which allows certain deductions to be made from the sale price. The allowable deductions include the following:

• sale price adjustments (e.g., cash discounts, early payment discounts, volume discounts);
• shipping costs (e.g., freight, freight insurance, reload center handling costs);
• export administration fees (e.g., brokerage fees, export permit fees, Canadian and U.S. port charges); and
• other adjustments (e.g., quality discounts, sales returns).

Determining the export price

Where the lumber has been subject to primary processing or remanufacturing, or has been processed by an independent remanufacturer, the export price is the FOB value of the lumber. However, if the exporter cannot determine an FOB value, a market value must be used. Finally, if the lumber has an actual FOB value higher than US $500/MBF, the export price will be deemed to be US $500/MBF.

The export price of a softwood lumber product is determined as follows:

1. for a product that has undergone only primary processing, it is the FOB value at the facility where the product underwent its last primary processing before export;
2. for a product last remanufactured before export by an independent remanufacturer, it is the FOB value at the facility where the softwood lumber used to make the remanufactured product underwent its last primary processing before export;
3. for a product last remanufactured before export by a non-independent remanufacturer, it is the FOB value at the facility where the product underwent its last processing before export;
4. for a product described above for which an FOB value cannot be determined, a market value may be used. This will be the market price for identical products sold in Canada at approximately the same time and in an arm's length transaction, listed in order of precedence:
   
   1. a transaction at substantially the same trade level but in different quantities,
   2. a transaction at a different trade level but in similar quantities, or
   3. a transaction at a different trade level and in different quantities; and
5. for a product with an export price that is more than US$500/MBF (determined in accordance with any of the paragraphs a. to d. above), it will be considered to have an export price of US$500/MBF.

For more information on the export price and the FOB value, see Softwood Lumber Products Export Charge Notice SWLN3, Calculation of Export Price.

6.4 Exchange rate [subsection 13(3)]

The export charge owing must be remitted to the CRA in Canadian dollars, even though the export price was expressed in U.S. dollars. To convert the export price to Canadian dollars, exporters are required to use the rate of exchange as quoted by the Bank of Canada at noon on the day before the day the export charge becomes payable.

Exporters can check the noon exchange rate on the Bank of Canada Web site at www.bankofcanada.ca/en/rates/exchange-look.html.

7. Returns and payments

7.1 Monthly filing and payments

Reporting the export charge (section 26)

Registered exporters must file a return and pay the export charge each month (i.e., calendar month), using Form B275, Softwood Lumber Products Export Charge Return.

The return and export charge payment are due on or before the last day of the first month following the month covered by the return. For example, a return and payment for the month of January will be due on or before the last day of February. The CRA will mail a return and a remittance voucher to each registered exporter approximately 30 days prior to the due date.

Nil returns

A return must still be filed by registered exporters even in the following situations:

• the export charge has not been triggered (because the reference price is over US $355/MBF);
• the export charge does not apply to the softwood lumber products because the exports are from the Atlantic provinces, the territories or by a company listed in the Schedule of Exempt Persons; or
• the exporter did not export during the month.

In these cases, a completed return must be filed indicating that no export charge is payable (i.e., a nil return).

Reporting the surge charge

Form B279, Softwood Lumber Products Surge Charge Return must be used to report the surge charge.

When a surge charge is announced during a particular month, the surge charge is payable on or before the last day of the month following that month. For example, if in June, a surge is announced on softwood lumber products exported during the month of April, the export charge for June and the surge charge for April must be reported and remitted on or before the last day of the month following the month of June (i.e., July 31).

7.2 Separate returns (section 30)

Exporters operating separate branches or divisions may apply to the CRA to file a separate return (or refund application) in respect of a branch or division. This may be permitted if the following conditions are met:

• the branch or division can be separately identified by reference to its location or the nature of activities engaged in by each; and
• separate records, books of account and accounting systems are maintained in respect of the branch or division.

7.3 Method of payment

The following CRA Web page provides information on how payments of the softwood lumber products export charge may be made: www.cra-arc.gc.ca/tx/bsnss/tpcs/swl/pymnt-eng.html. Some options for payment are described below:

• use CRA's "My Payment" service, which is an electronic payment service that uses Interac® Online, which allows individuals and businesses to make payments directly to the CRA from their online banking accounts. For more information on "My Payment", go to www.cra-arc.gc.ca/esrvc-srvce/tx/mypymnt/menu-eng.html;
• through your financial institution's telephone and Internet banking services. For more information, go to the CRA Web page www.cra-arc.gc.ca/esrvc-srvce/pymnts/bsnss/menu-eng.html;
• at your financial institution, accompanied by a completed remittance voucher (note that payments over $50,000 must be made at a financial institution);
• mail a cheque or money order, payable to the Receiver General of Canada, along with a completed remittance voucher (www.cra-arc.gc.ca/tx/pymnts/thrlvs-eng.html#copies), to the following address:

Surrey Tax Centre
9755 King George Blvd.
Surrey, BC V3T 5E1

7.4 Payments not received

Any payment not received by the required due date is considered late and is subject to arrears interest. Also, pursuant to section 64 of the Act, if a person fails to file a return by the required date, they may be subject to a penalty.

7.5 Relief from penalty or interest (section 37)

The Minister may grant relief from penalties or interest when the following types of situations prevent a taxpayer from meeting their tax obligations:

• extraordinary circumstances;
• actions of the Canada Revenue Agency;
• inability to pay or financial hardship; or
• other circumstances.

Effective April 1, 2007, the Minister may, within 10 calendar years after the end of a reporting period or an application was made by a person before that date, waive or cancel any amount that is interest or a penalty payable under section 64 on amounts required to be paid in that reporting period. For additional information, please go to the CRA Web page at www.cra-arc.gc.ca/gncy/cmplntsdspts/cnclwvpnlty/menu-eng.html

8. Records (section 48)

Exporters are required to keep all records that are necessary to determine whether they have complied with the Act. The records must be kept in Canada, in English or French, unless otherwise authorized by the Minister. For records to be maintained outside Canada, a written request must be submitted. Please contact your regional excise duty office for more information. These offices are listed in Excise Duty Memorandum EDM 1.1.2, Regional Excise Duty Offices.

Records must be retained for six years after the end of the year to which they relate.

9. Contact information for CRA and CRA Web pages

Questions concerning registration, returns or payments may be referred to:

Surrey Tax Centre
Softwood Lumber Division
9755 King George Blvd.
Surrey, B.C. V3T 5E1
Telephone: 1-800-935-0313 (service in English) or 1-800-935-0340 (service en français)
Fax: 604-585- 5772

Questions concerning the Act and related policies may be referred to:

Softwood Lumber Unit
Excise Duties and Taxes Division
Excise and GST/HST Rulings Directorate
320 Queen Street, 20th Floor
Ottawa, ON K1A 0L5
Telephone: 1-866-330-3304 (service in English) or 1-888-609-0073 (service en français)
Fax: 613-954-2226
CRA softwood lumber Web page: www.cra.gc.ca/softwood.

10. Contact information for export permits and Web pages for Foreign Affairs

Effective October 12, 2006, all shipments of softwood lumber products to the U.S. will require an export permit. The export permit must be obtained before shipment and is issued by the Trade Controls and Technical Barriers Bureau of Foreign Affairs.

Export Permit questions should be referred to:

Trade Controls and Technical Barriers Bureau
Foreign Affairs, Trade and Development Canada
125 Sussex Drive
Ottawa, ON K1A 0G2
Hot Line: 613-944-2168 or 1-877-808-8838
Fax: 613-992-8728
E-mail address: softwood.boisdoeuvre@international.gc.ca
Web page: www.softwoodlumber.gc.ca

Questions regarding the Agreement should be referred to the Softwood Lumber Division of FAITC:

Softwood Lumber Division
Foreign Affairs, Trade and Development Canada
125 Sussex Drive
Ottawa, ON K1A 0G2
Hot Line: 613- 944-2167
Fax: 613-944-1452
E-mail address: softwood.boisdoeuvre@international.gc.ca
Web page: www.softwoodlumber.gc.ca

11. Glossary

This glossary contains an explanation of certain terms used in this notice. For greater certainty, please refer to the Act. See the Department of Justice Web site http://laws.justice.gc.ca/eng/acts/S-12.55/index.html.

Associated persons

1. Persons related to each other in that:
   
   1. they are individuals connected by blood relationship, marriage, common-law partnership, or adoption within the meaning of subsection 251(6) of the Income Tax Act,
   2. one is an officer or director of the other,
   3. each such person is an officer or director of the same 2 corporations, associations, partnerships, or other organizations,
   4. they are partners,
   5. one is the employer of the other,
   6. they directly or indirectly control or are controlled by the same person,
   7. one directly or indirectly controls or is controlled by the other,
   8. any other person directly or indirectly owns, holds or controls 5% or more of the outstanding voting stock or shares of each such person, or
   9. one directly or indirectly owns, holds or controls 5% or more of the outstanding voting stock or shares of the other; or
2. persons not related to each other, but not dealing with each other at arm's length. It is a question of fact whether persons not related to each other were at a particular time dealing with each other at arm's length.

Atlantic province
New Brunswick, Nova Scotia, Prince Edward Island and Newfoundland and Labrador.

Board foot (BF)
A unit of measurement of lumber equal to 12 inches ×12 inches × 1 inch.

Calendar quarter
A period of three months beginning on the first day of January, April, July or October.

Independent remanufacturer
A person who produces remanufactured softwood lumber products and is certified to be "independent" by the CRA.

MBF
One thousand board feet.

Primary processing
The production of softwood lumber products from softwood sawlogs

Primary processor
An entity engaged in primary processing

Records
Any material on which data are recorded or marked and that is capable of being read or understood by a person or a computer system or other device.

Remanufactured softwood lumber products
Means 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, joined together by finger jointing or turned.

Remanufacturer of softwood lumber products
An entity that produces remanufactured softwood lumber products.

Tenure holder
A person who holds specific rights to harvest timber in a Crown/public forest.

Territories
Yukon, the Northwest Territories and Nunavut.

Footnotes

Footnote 1

The Act came into effect on October 12, 2006, and the export charge applies as of that date.

Return to footnote 1 referrer

Footnote 2

This term is defined in the section of this notice entitled "Glossary".

Return to footnote 2 referrer

Enquiries

All technical publications on the softwood lumber products export charge are available on the CRA Web site at www.cra.gc.ca/softwood.

Date modified:

2013-04-22