Allocation Method Order – Softwood Lumber Products (SOR/2007-166)

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 described 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 the products described in item 5105, Group 5, of the schedule to the Export Control List as it existed during the reference period. (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 produced or produces former, current or Quebec softwood lumber products from softwood sawlogs. (entreprise de première transformation)

primary producer’s products

primary producer’s products means the former softwood lumber products that the primary producer produced at any time and that were not remanufactured in Canada. (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 the period beginning on April 1, 2001 and ending on December 31, 2005. (période de référence)

remanufacturer

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

remanufacturer’s products

remanufacturer’s products means the former softwood lumber products that the remanufacturer remanufactured at any time and that were not further remanufactured in Canada. (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:Application

2 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 2007 for the purposes of paragraph 6.3(3)(a) of the Act.

PART 1Ontario

Marginal note:Allocation

3 The allocation of the Ontario quantity to a primary producer or remanufacturer who applies for an export allocation is calculated in accordance with the formula

Marginal note:Best 12-month period

• 4 (1) In this section, best 12-month period, in respect of a primary producer, means the 12-month period set out in the description of PPBEV in paragraph (2)(a) and, in respect of a remanufacturer, means the 12-month period set out in the description of RBEV in paragraph (3)(a).

• Marginal note:Primary producer’s percentage share

  (2) The percentage share of a primary producer is the higher of the percentages calculated under paragraphs (a) and (b):

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

    (PPBEV/TBEV) × 100

    where

    PPBEV

    is the highest volume of the primary producer’s products that were exported from Ontario to the United States under export permits during a period of 12 consecutive months within the reference period, and

    TBEV

    is the total volume of the primary producers’ and remanufacturers’ products exported from Ontario to the United States under export permits during their respective best 12-month periods, excluding the volume of primary producers and remanufacturers who indicate in writing to the Minister before December 14, 2006 that they relinquish their allocation of the Ontario quantity for 2007;

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

    (PPEO/TEO) × 100

    where

    PPEO

    is the volume of the primary producer’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 exported from Ontario to the United States under export permits during the reference period, excluding the volume of primary producers and remanufacturers who indicate in writing to the Minister before December 14, 2006 that they relinquish their allocation of the Ontario quantity for 2007.

• Marginal note:Remanufacturer’s percentage share

  (3) The percentage share of a remanufacturer is the higher of the percentages calculated under paragraphs (a) and (b):

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

    (RBEV/TBEV) × 100

    where

    RBEV

    is the highest volume of the remanufacturer’s products that were exported from Ontario to the United States under export permits during a period of 12 consecutive months within the reference period, and

    TBEV

    is the total volume of the primary producers’ and remanufacturers’ products exported from Ontario to the United States under export permits during their respective best 12-month periods, excluding the volume of primary producers and remanufacturers who indicate in writing to the Minister before December 14, 2006 that they relinquish their allocation of the Ontario quantity for 2007;

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

    (REO/TEO) × 100

    where

    REO

    is the volume of the remanufacturer’s products 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 exported from Ontario to the United States under export permits during the reference period, excluding the volume of primary producers and remanufacturers who indicate in writing to the Minister before December 14, 2006 that they relinquish their allocation of the Ontario quantity for 2007.

PART 2Quebec

Marginal note:Primary producers with an export history

• 5 (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 under the method described in section 6 (which is based on their historic export volume) or the method described in subsection 7(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 the primary producer produced Quebec softwood lumber products during the period beginning on January 1, 2003 and ending on December 31, 2005 and applies for an export allocation, the primary producer may only receive the allocation under the method described in subsection 7(1) (which is based on their 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 under the method described in section 9 (which is based on their historic export volume).

Marginal note:Allocation to primary producers — historic export volume

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

Marginal note:Allocation to primary producers — historic production volume

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

  RP × (PPPV/TPV)

  where

  RP

  is the reserve pool calculated in accordance with section 8;

  PPPV

  is the volume of Quebec softwood lumber products that the primary producer produced during the period beginning on January 1, 2003 and ending on December 31, 2005; and

  TPV

  is the total volume of Quebec softwood lumber products produced during the period beginning on January 1, 2003 and ending on December 31, 2005 of all primary producers whose allocations are based on their historic production volume.

• Marginal note:Records of production volume

  (2) 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

• 8 (1) The reserve pool is calculated in accordance with the formula

  A + B + C

  where

  A

  is the volume of former softwood lumber products determined in accordance with subsection (2);

  B

  is the volume of former softwood lumber products determined in accordance with subsection (3); and

  C

  is the volume of former softwood lumber products determined in accordance with subsection (4).

• Marginal note:Description of A

  (2) The volume of former softwood lumber products for the description of A in subsection (1) is calculated in accordance with the formula

  QQ × (TPPE/TQE) × 6%

  where

  QQ

  is the Quebec quantity;

  TPPE

  is the total volume of primary producers’ products that were exported from Quebec to the United States under export permits during the reference period in respect of primary producers who have chosen to receive an allocation of the Quebec quantity under the allocation method described in section 6; and

  TQE

  is the total volume of former softwood lumber products exported from Quebec to the United States under export permits during the reference period.

• Marginal note:Description of B

  (3) The volume of former softwood lumber products for the description of B in subsection (1) is calculated in accordance with the formula

  QQ × (TPPEPV/TQE)

  where

  QQ

  is the Quebec quantity;

  TPPEPV

  is the total volume of primary producers’ products exported from Quebec to the United States under export permits during the reference period in respect of primary producers who have chosen to receive an allocation of the Quebec quantity under the allocation method described in subsection 7(1); and

  TQE

  is the total volume of former softwood lumber products exported from Quebec to the United States under export permits during the reference period.

• Marginal note:Description of C

  (4) The volume of former softwood lumber products for the description of C in subsection (1) is calculated in accordance with the formula

  QQ × (TNPE/TQE)

  where

  QQ

  is the Quebec quantity;

  TNPE

  is the total volume of primary producers’ and remanufacturers’ products exported from Quebec to the United States under export permits during the reference period in respect of primary producers and remanufacturers who do not apply for an export allocation before December 14, 2006; and

  TQE

  is the total volume of former softwood lumber products exported from Quebec to the United States under export permits during the reference period.

Marginal note:Allocation to remanufacturers

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

PART 3Manitoba

Marginal note:Allocation

10 The allocation of the Manitoba quantity to a primary producer or remanufacturer who applies for an export allocation is calculated in accordance with the formula

PART 4Saskatchewan

Marginal note:Allocation

11 The allocation of the Saskatchewan quantity to a primary producer or remanufacturer is based on the order of applying for the export allocation, with each applicant receiving the volume applied for until the Saskatchewan quantity is fully allocated.

PART 5Coming into Force

Marginal note:October 12, 2006

12 This Order is deemed to have come into force on October 12, 2006.