Ministry of International Trade and Responsible for Asia Pacific Strategy and Multiculturalism
2006 Softwood Lumber Agreement
Surge and Export Charge Rate 2010 - 2011Export Charge Rate
The export charge rate in a month is based on the prevailing monthly price which is the four-week average of the industry standard Random Lengths Framing Lumber Composite Price. As shown in the following table, when the prevailing monthly price is above $US355/mbf there is no export charge, and the export charge rises as the prevailing monthly price falls.
Prevailing Monthly Price for Agreement (US$/mbf)
|BC Export Charge Rate|
|Over 355||No Export Charge|
|315 or under||15%|
The table below shows the British Columbia export charge rate for recent months. For a historical time series see Surge and Export Charge Rates 2006-2009. Export charge rates for other provinces are available at the Canada Revenue Agency website.
|Prevailing Monthly Price for Agreement (US$/mbf)||BC Export Charge Rate|
|June 2010||361||No Export Charge|
Export Volume Monitoring
The following link is to the Federal Foreign Affairs and International Trade Canada (DFAIT) website where provincial statistics on lumber exports are updated daily. The table also shows the surge limit for each region for the current month.
The table below shows surge limits for recent months. For historical time series see Surge and Export Charge Rates 2006-2009.
British Columbia Monthly Surge Limits, million board feet
|Expected US Consumption||BC Coast Surge Limit||BC Coast Actual Exports||BC Interior Surge Limit||BC Interior Actual Exports|
* Export levels are based on export permit data and are subject to change.
Under the export tax option chosen by British Columbia in the 2006 Softwood Lumber Agreement (SLA2006), there is provision for a retroactive penalty amounting to 50% of the applicable tax rate if exports during a month are greater than 110% of a defined market share.
The Coast and Interior regions of British Columbia are treated separately under the agreement. Exporters report the “Region of Origin” of the primary mill for lumber they ship so that exports are allocated to the appropriate region for surge and quota calculations (details).
The surge limit for each region is calculated based on defined market shares of Expected US Consumption. Each region's market share is laid out in the Agreement in Annex 8.
Expected US Consumption is a 12-month rolling average of US consumption, 3 months lagged, and adjusted by monthly seasonal adjustments as laid out in Annex 8 of the Agreement. For example, the Expected US Consumption for calculating the November 2006 surge limit is based on US consumption data for August 2005-July 2006.
The federal government's Department of Foreign Affairs and International Trade (DFAIT) has committed to publish lumber statistics daily on their website.
BC Market Share in SLA 2006
|2004-05 Share of Expected US Consumption||Surge Limit Share = 110% * Share|
Source: Annex 8 of SLA 2006