Allocation Method Order (2015) — Softwood Lumber Products (SOR/2014-321)

Interpretation

Marginal note:Definitions

1 The following definitions apply in this Order.

Act

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

exported

exported has the meaning assigned by section 6.4 of the Act. (exporté)

Manitoba quantity

Manitoba quantity means the quantity of 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 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 softwood lumber products from softwood sawlogs and, in the case of Quebec, includes a person who produces Quebec softwood lumber products from softwood sawlogs. (entreprise de première transformation)

primary producer’s products

primary producer’s products means the softwood lumber products that are produced by a primary producer and that are not remanufactured in Canada. (produits d’une entreprise de première transformation)

Quebec quantity

Quebec quantity means the quantity of 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, CQLR, c. F-4.1. (produits de bois d’œuvre du Québec)

reference period

reference period means a period of 36 consecutive months ending on October 31 of the year before the year in which the export allocation will apply. (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 — softwood lumber products. (entreprise de seconde transformation)

remanufacturer’s products

remanufacturer’s products means the softwood lumber products that are remanufactured by a remanufacturer and that are not further remanufactured in Canada. (produits d’une entreprise de seconde transformation)

Saskatchewan quantity

Saskatchewan quantity means the quantity of 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)

softwood lumber products

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

General

Marginal note:Application

2 This Order establishes the method for allocating the quantity of softwood lumber products that may be exported during a month from each of Ontario, Quebec, Manitoba and Saskatchewan for the purpose of paragraph 6.3(3)(a) of the Act.

Marginal note:Relinquishing export allocation

3 For the purposes of this Order, a primary producer or remanufacturer relinquishes its export allocation for a given year by so informing the Minister in writing no later than 21 days before the beginning of the year in which the export allocation would have applied.

Marginal note:Transfer of portion of export allocation

4 When a primary producer or remanufacturer transfers, with the consent of the Minister under subsection 6.3(4) of the Act, a portion of the export allocation issued to it by the Minister for a month, that portion 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, if

• (a) the portion transferred includes a corresponding volume of products; or

• (b) the total of the portion that is transferred during the month and that does not include products does not exceed 15% of the volume of the primary producer’s or remanufacturer’s export allocation for that month.

Ontario

Marginal note:Determination of allocation

5 The allocation of the Ontario quantity to a primary producer or remanufacturer who applies for an export allocation is determined by the formula

Marginal note:Allocation of remainder

• 6 (1) Subject to subsection (2), the allocation of the remainder of the Ontario quantity is based on the order of receipt of applications for an export permit for a share of the remainder, with each applicant receiving the volume applied for until the remainder of the Ontario quantity is fully allocated.

• Marginal note:Exhaustion of monthly allocation

  (2) An applicant who has received an allocation of the Ontario quantity for a month must exhaust that allocation before applying for an export permit for a share of the remainder, which is to be dealt with in accordance with subsection (1).

Quebec

Marginal note:Remanufacturers

• 7 (1) 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 of the Quebec quantity determined by the formula in section 8 (which is based on its historic export volume).

• Marginal note:Primary producers without 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 set out in the PPPV in subsection 10(1) and it applies for an export allocation, the primary producer may only receive the allocation of the Quebec quantity determined by the formula in that subsection (which is based on its historic production volume).

• Marginal note:Primary producers with export history

  (3) 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 either an allocation of the Quebec quantity determined by the formula in section 12 (which is based on its historic export volume) or the formula in subsection 10(1) (which is based on its historic production volume).

Marginal note:Allocation to remanufacturers

• 8 (1) Subject to subsection (2), the allocation of the Quebec quantity to a remanufacturer that is based on its historic export volume is determined by 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 primary producers’ and remanufacturers’ products that were exported from Quebec to the United States under export permits during the reference period, excluding the volume of products of primary producers and remanufacturers who relinquish their export allocations in accordance with section 3.

• Marginal note:Minimum of total allocations

  (2) The sum of the allocations of the Quebec quantity to remanufacturers must be equal to or greater than 7.5% of the Quebec quantity.

Marginal note:Reserve pool

9 The reserve pool is determined by the formula

Marginal note:Allocation to primary producers — historic production volume

• 10 (1) The allocation of the Quebec quantity to a primary producer that is based on its historic production volume is determined by the formula

  RP × (PPPV/TPV)

  where

  RP

  is the reserve pool determined under section 9;

  PPPV

  is the volume of Quebec softwood lumber products that the primary producer produced during a period of 36 consecutive months beginning on January 1 of the fourth year before the year in which the export allocation will apply; and

  TPV

  is the total volume of Quebec softwood lumber products produced during that period by primary producers whose allocations are based on their historic production volume.

• Marginal note:Maximum allocation

  (2) The allocation referred to in subsection (1) must not exceed 40% of the primary producer’s average monthly volume of Quebec softwood lumber products produced during the period of 36 consecutive months beginning on January 1 of the fourth year before the year in which the export allocation will apply.

• Marginal note:Records of production volume

  (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:Residual non-allocated quantity

11 The residual non-allocated quantity of the reserve pool is determined by the formula

Marginal note:Allocation to primary producers — historic export volume

12 The allocation of the Quebec quantity to a primary producer that is based on its historic export volume is determined by the formula