SWLN39 - Termination of the 10% Additional Export Charge and Refund of Overpayments
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SWLN39 - Termination of the 10% Additional Export Charge and Refund of Overpayments
June 2011
The purpose of this notice is to advise exporters that the additional 10% export charge on softwood lumber products originating from Option B regions will be terminated effective July 1, 2011. A refund process is available to reimburse any overpayments of this charge.
The information in this notice is for reference purposes only and does not replace the Softwood Lumber Products Export Charge Act, 2006 (the Act) or its regulations. Should there be any discrepancy between the information in this notice and that contained in the Act or its regulations, the legislative provisions apply. As the information in this publication may not completely address your particular situation, you may wish to refer to the Act or appropriate regulation, or call the number at the end of this document for additional information.
Background
In 2007, the United States (U.S.) requested arbitration from the London Court of International Arbitration (LCIA) with respect to Canada's application of the adjustment factor under the Softwood Lumber Agreement, 2006 (the Agreement). The adjustment factor is used to calculate export quotas for Option B regions (Quebec, Ontario, Manitoba and Saskatchewan) that have chosen to operate under a volume restraint.
In February 2009, the LCIA ruled that Canada did not properly apply the adjustment factor during the first six months of 2007. To remedy this breach of the Agreement, Canada was ordered to impose an additional 10% export charge on softwood lumber products originating from Option B regions until a total of C$68.26 million (remedy amount) was collected.
Refund of overpayment of the 10% additional export charges
The Canada Revenue Agency (CRA) has determined that the full remedy amount of C$68.26 million has been satisfied. The Government of Canada will terminate the 10% additional export charge on exports from Option B regions, effective July 1, 2011.
The CRA will determine the amount of any overpayment of the 10% additional export charge and provide refunds to exporters based on their pro-rata share of the overpayment for the month in which the overpayment occurred. Note that exporters will not be required to file refund applications.
Enquiries
For questions about filing an export charge return or making a payment, please call 1-800-935-0313.
For technical or refund enquiries about the Softwood Lumber Products Export Charge Act, 2006, please call 1-866-330-3304.
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:
- 2011-02-14