Allocation Method Order (2009) – Softwood Lumber Products

Link to law: http://laws-lois.justice.gc.ca/eng/regulations/SOR-2009-10/FullText.html

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Allocation Method Order (2009) – Softwood Lumber Products

SOR/2009-10EXPORT AND IMPORT PERMITS ACT
Registration 2008-12-23
Allocation Method Order (2009) – Softwood Lumber ProductsThe 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.
Return to footnote aS.C. 2006, c. 13, s. 111
Ottawa, December 22, 2008
LAWRENCE CANNON
Minister of Foreign Affairs
Marginal note:Definitions

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

Act
Loi

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

current softwood lumber products
produits de bois d’oeuvre courants

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
exporté

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

former softwood lumber products
anciens produits de bois d’oeuvre

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
quantité pour le Manitoba

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
quantité pour l’Ontario

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
entreprise de première transformation

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
produits d’une entreprise de première transformation

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
quantité pour le Québec

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
produits de bois d’oeuvre du Québec

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
période de référence

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
entreprise de seconde transformation

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
produits d’une entreprise de seconde transformation

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
quantité pour la Saskatchewan

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

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 2009 for the purposes of paragraph 6.3(3)(a) of the Act.

PART 1 Ontario

Marginal note:Percentage Share

3 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)

4 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)

5 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 2 Quebec

Marginal note:Primary producers with an export history

6 (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

7 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

8 (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

9 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

10 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

11 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.



PART 3 Manitoba

Marginal note:Percentage Share

12 For the purposes of this Part, a Manitoba primary producer’s or remanufacturer’s percentage share is the greater of

(a) the percentage calculated in accordance with the formula

(EM/TEM) × 100
where

EM 
is the volume of the primary producer’s or remanufacturer’s products that were exported from Manitoba to the United States under export permits during the reference period; and

TEM 
is the total volume of the primary producers’ and remanufacturers’ products that were exported from Manitoba to the United States under export permits during the reference period; and

(b) the percentage calculated in accordance with the formula

AM × 0.9
where

AM 
is the allocation share of the primary producer or remanufacturer for the 2008 allocation year.

Marginal note:export-allocation percentage share determined under paragraph 12(a)

13 If the percentage share of a primary producer or remanufacturer who applies for an export allocation is greater when calculated under paragraph 12(a) than under paragraph 12 (b), the allocation of the Manitoba quantity to the primary producer or remanufacturer is calculated in accordance with the formula

MQ × [(MPa/TMPa) × (1 - TMPb)]
where

MQ 
is the Manitoba quantity;

MPa 
is the primary producer’s or remanufacturer’s percentage share determined under paragraph 12(a);

TMPa 
is the total of all primary producers’ and remanufacturers’ percentage shares determined under paragraph 12(a); and

TMPb 
is the total of all primary producers’ and remanufacturers’ percentage shares determined under paragraph 12(b).

Marginal note:export allocation — percentage share determined under paragraph 12(b)

14 If the percentage share of a primary producer or remanufacturer who applies for an export allocation is greater when calculated under paragraph 12(b) than under paragraph 12(a), the allocation of the Manitoba quantity to the primary producer or remanufacturer is calculated in accordance with the formula

MQ × PMb
where

MQ 
is the Manitoba quantity; and

PMb 
is the primary producer’s or remanufacturer’s percentage share determined under paragraph 12(b).



PART 4 Saskatchewan

Marginal note:Allocation

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

SQ × (ES/TSQ)
where

SQ 
is the Saskatchewan quantity;

ES 
is the volume of the primary producer’s or remanufacturer’s products that were exported from Saskatchewan to the United States under export permits during the reference period; and

TSQ 
is the total quantity of current softwood lumber products that could have been exported from Saskatchewan to the United States during the reference period.

Marginal note:Allocation of Residual Quantity

16 The allocation of the residual quantity is based on the order of receipt of applications for the export allocation, with each applicant receiving the volume applied for until the Saskatchewan quantity is fully allocated.

PART 5 Coming into Force

Marginal note:Registration

17 This Order comes into force on the day on which it is registered.