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Allocation Method Order (2009) – Softwood Lumber Products (SOR/2009-10)

Regulations are current to 2024-10-30

Allocation Method Order (2009) – Softwood Lumber Products

SOR/2009-10

EXPORT AND IMPORT PERMITS ACT

Registration 2008-12-23

Allocation Method Order (2009) – Softwood Lumber Products

The Minister of Foreign Affairs, pursuant to paragraph 6.3(3)(a)Footnote a of the Export and Import Permits Act, hereby makes the annexed Allocation Method Order (2009) – Softwood Lumber Products.

Ottawa, December 22, 2008

LAWRENCE CANNON
Minister of Foreign Affairs

Marginal note:Definitions

  •  (1) The following definitions apply in this Order.

    Act

    Act means the Export and Import Permits Act. (Loi)

    current softwood lumber products

    current softwood lumber products means the products referred to in item 5104, Group 5, of the schedule to the Export Control List. (produits de bois d’oeuvre courants)

    exported

    exported has the meaning set out in section 6.4 of the Act. (exporté)

    former softwood lumber products

    former softwood lumber products means, in the case of Quebec, the products referred to in item 5105, Group 5, of the schedule to the Export Control List as it existed during the period beginning on November 1, 2005 and ending on October 11, 2006. (anciens produits de bois d’oeuvre)

    Manitoba quantity

    Manitoba quantity means the quantity of current softwood lumber products that may be exported from Manitoba to the United States during a month under subsection 6.3(2) of the Act. (quantité pour le Manitoba)

    Ontario quantity

    Ontario quantity means the quantity of current softwood lumber products that may be exported from Ontario to the United States during a month under subsection 6.3(2) of the Act. (quantité pour l’Ontario)

    primary producer

    primary producer means a person who produces current softwood lumber products from softwood sawlogs and, in the case of Quebec, includes a person who produced former or Quebec softwood lumber products from softwood sawlogs. (entreprise de première transformation)

    primary producer’s products

    primary producer’s products means the current softwood lumber products that the primary producer produced at any time, that were not remanufactured in Canada and, in the case of Quebec, includes former softwood lumber products. (produits d’une entreprise de première transformation)

    Quebec quantity

    Quebec quantity means the quantity of current softwood lumber products that may be exported from Quebec to the United States during a month under subsection 6.3(2) of the Act. (quantité pour le Québec)

    Quebec softwood lumber products

    Quebec softwood lumber products means the softwood lumber products produced in Quebec that were reported to the Minister of Natural Resources and Wildlife under the Forest Act, R.S.Q., c. F-4.1. (produits de bois d’oeuvre du Québec)

    reference period

    reference period means

    • (a) in the case of Ontario, the period beginning on November 1, 2007 and ending on October 31, 2008,

    • (b) in the case of Quebec, the period beginning on November 1, 2005 and ending on October 31, 2008,

    • (c) in the case of Manitoba, the period beginning on November 1, 2007 and ending on October 31, 2008, and

    • (d) in the case of Saskatchewan, the period beginning on November 1, 2007 and ending on October 31, 2008. (période de référence)

    remanufacturer

    remanufacturer means a person who remanufactures — within the meaning of subsection 13(1) of the Softwood Lumber Products Export Charge Act, 2006 — current softwood lumber products and, in the case of Quebec, includes a person who remanufactured former softwood lumber products. (entreprise de seconde transformation)

    remanufacturer’s products

    remanufacturer’s products means the current softwood lumber products that the remanufacturer remanufactured at any time, that were not further remanufactured in Canada and, in the case of Quebec, includes former softwood lumber products. (produits d’une entreprise de seconde transformation)

    Saskatchewan quantity

    Saskatchewan quantity means the quantity of current softwood lumber products that may be exported from Saskatchewan to the United States during a month under subsection 6.3(2) of the Act. (quantité pour la Saskatchewan)

  • Marginal note:Transfer of export allocation

    (2) If a primary producer or remanufacturer transfers, with the consent of the Minister under subsection 6.3(4) of the Act, a portion of its export allocation for a month, together with the corresponding volume of its products, that volume is deemed to be included in the volume of the primary producer’s or remanufacturer’s products that were exported in that month to the United States under export permits and not in the volume of the transferee.

Marginal note:Application

 This Order establishes the method for allocating the monthly quantity of current softwood lumber products that may be exported from Ontario, Quebec, Manitoba and Saskatchewan in 2009 for the purposes of paragraph 6.3(3)(a) of the Act.

PART 1Ontario

Marginal note:Percentage Share

 For the purposes of this Part, an Ontario primary producer’s or remanufacturer’s percentage share is the greater of

  • (a) the percentage calculated in accordance with the formula

    (EO/TEO) × 100

    where

    EO
    is the volume of the primary producer’s or remanufacturer’s products that were exported from Ontario to the United States under export permits during the reference period; and
    TEO
    is the total volume of the primary producers’ and remanufacturers’ products that were exported from Ontario to the United States under export permits during the reference period; and
  • (b) the percentage calculated in accordance with the formula

    AO × 0.9

    where

    AO
    is the primary producer’s or remanufacturer’s percentage share for 2008.

Marginal note:Export allocation — percentage share determined under paragraph 3(a)

 If the percentage share of a primary producer or remanufacturer who applies for an export allocation is greater when calculated under paragraph 3(a) than under paragraph 3(b), the allocation of the Ontario quantity to the primary producer or remanufacturer is calculated in accordance with the formula

OQ × [(OPa/TOPa) × (1 - TOPb)]

where

OQ
is the Ontario quantity;
OPa
is the primary producer’s or remanufacturer’s percentage share determined under paragraph 3(a);
TOPa
is the total of all primary producers’ and remanufacturers’ percentage shares determined under paragraph 3(a); and
TOPb
is the total of all primary producers’ and remanufacturers’ percentage shares as determined under paragraph 3(b).

Marginal note:export allocation — percentage share determined under paragraph 3(b)

 If the percentage share of a primary producer or remanufacturer who applies for an export allocation is greater when calculated under paragraph 3(b) than under paragraph 3(a), the allocation of the Ontario quantity to the primary producer or remanufacturer is calculated in accordance with the formula

OQ × OPb

where

OQ
is the Ontario quantity; and
OPb
is the primary producer’s or remanufacturer’s percentage share determined under paragraph 3(b).

PART 2Quebec

Marginal note:Primary producers with an export history

  •  (1) If some or all of a primary producer’s products were exported from Quebec to the United States under export permits during the reference period and the primary producer applies for an export allocation, the primary producer must choose to receive an allocation of the Quebec quantity calculated using the formula set out in section 7 (which is based on their historic export volume) or the formula set out in subsection 8(1) (which is based on their historic production volume).

  • Marginal note:Primary producers without an export history

    (2) If none of a primary producer’s products were exported from Quebec to the United States under export permits during the reference period and if the primary producer produced Quebec softwood lumber products during the period beginning on January 1, 2005 and ending on December 31, 2007 and it applies for an export allocation, the primary producer may only receive the allocation calculated in accordance with the formula set out in subsection 8(1) (which is based on its historic production volume).

  • Marginal note:Remanufacturers

    (3) If some or all of a remanufacturer’s products were exported from Quebec to the United States under export permits during the reference period and the remanufacturer applies for an export allocation, the remanufacturer may only receive the allocation calculated using the formula set out in section 11 (which is based on its historic export volume).

Marginal note:Allocation to primary producers — historic export volume

 The allocation of the Quebec quantity to a primary producer that is based on its historic export volume is calculated in accordance with the formula

(PPE/TPPE) ×{[QQ × (TPPE/TEQ) × 94%] + RNA}

where

PPE
is the volume of the primary producer’s products that were exported from Quebec to the United States under export permits during the reference period;
TPPE
is the total volume of the primary producers’ products that were exported from Quebec to the United States under export permits during the reference period;
QQ
is the Quebec quantity;
TEQ
is the total volume of the primary producers’ and remanufacturers’ products that were exported from Quebec to the United States under export permits during the reference period; and
RNA
is the residual non-allocated quantity of the reserve pool calculated under section 10.

Marginal note:Allocation to primary producers — historic production volume

  •  (1) The allocation of the Quebec quantity to a primary producer that is based on its historic production volume is calculated in accordance with the formula

    RP × (PPPV/TPV)

    where

    RP
    is the reserve pool calculated under section 9;
    PPPV
    is the volume of Quebec softwood lumber products that the primary producer produced during the period beginning on January 1, 2005 and ending on December 31, 2007; and
    TPV
    is the total volume of Quebec softwood lumber products produced during the same period by primary producers whose allocations are based on their historic production volume.
  • Marginal note:Maximum allocation

    (2) The allocation may not exceed 40% of the primary producer’s average monthly volume of Quebec softwood lumber products produced during the period beginning on January 1, 2005 and ending on December 31, 2007.

  • Marginal note:Records of production volumes

    (3) The volume of Quebec softwood lumber products produced by a primary producer is based on records provided, with the consent of the primary producer, by the Government of Quebec to the Government of Canada.

Marginal note:Reserve pool

 The reserve pool is calculated in accordance with the formula

QQ × (TPPE/TEQ) × 6%

where

QQ
is the Quebec quantity;
TPPE
is the total volume of the primary producers’ products that were exported from Quebec to the United States under export permits during the reference period; and
TEQ
is the total volume of the primary producers’ and remanufacturers’ products that were exported from Quebec to the United States under export permits during the reference period.

Marginal note:Residual non-allocated quantity

 The residual non-allocated quantity of the reserve pool is calculated in accordance with the formula

RP - AP

where

RP
is the reserve pool; and
AP
is the total volume of current softwood lumber products allocated to primary producers calculated under section 8.

Marginal note:Allocation to remanufacturers

 The allocation of the Quebec quantity to a remanufacturer that is based on its historic export volume is calculated in accordance with the formula

QQ × (RE/TEQ)

where

QQ
is the Quebec quantity;
RE
is the volume of the remanufacturer’s products that were exported from Quebec to the United States under export permits during the reference period; and
TEQ
is the total volume of the primary producers’ and remanufacturers’ products that were exported from Quebec to the United States under export permits during the reference period.
 

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