Changes in reporting for the Canadian US Softwood Lumber Agreement

Issue 15, April 25, 2008

Customs and Border Protection (CBP) has made some minor, but important, changes to the requirements for filing entries of Canadian softwood lumber imported under the Canadian Softwood Lumber Agreement (SLA).

The SLA controls the requirements for the importation of softwood lumber from Canada. Among other requirements the SLA requires a Canadian export permit for lumber and certain lumber products from Canada, except for lumber from the Maritime Provinces, the Yukon, Northwest Territories or Nunavut, and from certain Canadian mills.

CBP has made changes to the US Code of Federal Regulations to better define the entry requirements under the SLA. Most of the changes involve the way the information is transmitted to Customs, but some involve documentation.

The most important change from the importer’s point of view is that, after the Customs release of the merchandise, the importer now has only ten days rather than twenty days to prove to CBP that an export permit has been issued by the Canadian government. This matches the time period for filing an entry summary after release. Failure to provide the permit information will result in a penalty in the amount of $100 per 1000 board feet.

All shipments requiring permits under SLA must now be filed via the Automated Broker interface (ABI) with CBP and have the Export Permit number included. Customs has also established a “permit” number of P88888888 for shipments of merchandise that, although having the same tariff number as shipments that fall under the SLA, are specifically excluded from the SLA. This dummy number will serve as a disclaimer and statement to CBP that the SLA does not apply.

The only entries and documentation that must be submitted in paper are shipments of lumber from the Maritimes. These entries require the original Maritime Certificate of Origin, which must specifically state that the corresponding CBP entries are for softwood lumber products first produced in the Maritimes from logs originating in the Maritimes or the state of Maine.

The new regulations also require the importer to retain copies of all export permits, certificates of origin and any other substantiating documentation issued by the Canadian Government.

For more information, contact Karl Krueger, DHL Regulatory Compliance at karl.krueger@dhl.com.

Sincerely,

Karl F. Krueger
Regulatory Compliance Consultant
Licensed Customs Broker
NCBFAA Certified Customs Specialist