Allocation Method Order (2012) — Softwood Lumber Products

Allocation Method Order (2012) — Softwood Lumber Products The Minister of Foreign Affairs, pursuant to paragraph 6.3(3)(a)a of the Export and Import Permits Actb, hereby makes the annexed Allocation Method Order (2012) — Softwood Lumber Products. Ottawa, November 15, 2011 S.C. 2006, c. 13, s. 111 R.S., c. E-19 Definitions The following definitions apply in this Order. Act means the Export and Import Permits Act. (Loi) exported has the meaning assigned by section 6.4 of the Act. (exporté) 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 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 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 means the softwood lumber products that a primary producer produces and that are not remanufactured in Canada. (produits d’une entreprise de première transformation) 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 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’œuvre du Québec) reference period means the period beginning on November 1, 2008 and ending on October 31, 2011. (période de référence) 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 means the softwood lumber products that a remanufacturer remanufactures and that are not further remanufactured in Canada. (produits d’une entreprise de seconde transformation) 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 means the products referred to in item 5104, Group 5 of the schedule to the Export Control List. (produits de bois d’oeuvre) Application 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 in 2012 for the purpose of paragraph 6.3(3)(a) of the Act. Relinquishing export allocation For the purposes of this Order, a primary producer or remanufacturer relinquishes its export allocation for 2012 by so informing the Minister in writing by December 10, 2011. Transfer of export allocation 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 the portion transferred includes a corresponding volume of products; or 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 the month. Determination of allocation The allocation of the Ontario quantity to a primary producer or remanufacturer who applies for an export allocation is determined by the formula is the Ontario quantity; 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 is the total volume of primary producers’ and remanufacturers’ products that were exported from Ontario 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 for 2012. Allocation of remainder 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. Exhaustion of an allocation for a month 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). Remanufacturers 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). Primary producers without export history 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, 2008 and ending on December 31, 2010 and it applies for an export allocation, the primary producer may only receive the allocation of the Quebec quantity determined by the formula in subsection 10(1) (which is based on its historic production volume). Primary producers with export history 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 determined by the formula in section 12 (which is based on their historic export volume) or the formula in subsection 10(1) (which is based on their historic production volume). Allocation to remanufacturers 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 is the Quebec quantity; 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 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 for 2012. Minimum of total allocations The sum of the allocations of the Quebec quantity to remanufacturers must be equal to or greater than 7.5% of the Quebec quantity. Reserve pool The reserve pool is determined by the formula is the total volume of primary producers’ 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 who relinquish their export allocations for 2012; 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 for 2012; and is the amount of additional allocations required to meet the minimum 7.5% threshold referred to in subsection 8(2) if the sum of the allocations to all remanufacturers is less than 7.5% of the Quebec quantity. Allocation to primary producers — historic production volume The allocation of the Quebec quantity to a primary producer that is based on its historic production volume is determined by the formula is the reserve pool determined under section 9; is the volume of Quebec softwood lumber products that the primary producer produced during the period beginning on January 1, 2008 and ending on December 31, 2010; and 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. Maximum allocation The allocation referenced in subsection (1) is not to exceed 40% of the primary producer’s average monthly volume of Quebec softwood lumber products produced during the period beginning on January 1, 2008 and ending on December 31, 2010. Records of production volume 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. Residual non-allocated quantity The residual non-allocated quantity of the reserve pool is determined by the formula is the reserve pool determined under section 9; and is the total volume of softwood lumber products allocated to primary producers determined under section 10. 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 determined by the formula 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; 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 export allocations based on historic export volume, excluding the volume of products of primary producers who relinquish their export allocations for 2012; 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 for 2012; is the amount of additional allocations required to meet the minimum 7.5% threshold referred to in subsection 8(2) if the sum of the allocations to all remanufacturers is less than 7.5% of the Quebec quantity; and is the residual non-allocated quantity of the reserve pool determined under section 11. The allocation of the Manitoba quantity to a primary producer or remanufacturer who applies for an export allocation is determined by the formula is the Manitoba quantity; 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 is the total volume of primary producers’ and remanufacturers’ products that were exported from Manitoba 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 for 2012. Subject to subsection (2), the allocation of the remainder of the Manitoba 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 Manitoba quantity is fully allocated. An applicant who has received an allocation of the Manitoba 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). The allocation of the Saskatchewan quantity to a primary producer or remanufacturer who applies for an export allocation is determined by the formula is the Saskatchewan quantity; 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 is the total volume of primary producers’ and remanufacturers’ products that were exported from Saskatchewan 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 for 2012. Subject to subsection (2), the allocation of the remainder of the Saskatchewan 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 Saskatchewan quantity is fully allocated. An applicant who has received an allocation of the Saskatchewan 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). Coming into Force This Order comes into force on the day on which it is registered.