Implementation of the Softwood Lumber Agreement Between the USA and Canada (French)

Issue 536, November 6, 2006

The Softwood Lumber Agreement (SLA) between the governments of Canada and the United States went into effect on October 12, 2006. The agreement has two major effects on the importation of Canadian softwood lumber products into the USA.

Rescission of ADD/CVD Duties

Pursuant to the agreement, the U.S. has ceased the collection of antidumping (ADD) and countervailing (CVD) duties on softwood lumber from Canada, effective for U.S. importations with a duty computation date of 10/12/06 and after.

The United States has retroactively revoked the affected ADD Orders and CVD Orders in their entirety, as of May 22, 2002, without the possibility of their reinstatement. The United States is to begin to liquidate all covered entries made on or after May 22, 2002, without regard to ADD or CVD, and with interest. The United States will complete the liquidation of covered entries and the refund of all cash deposits as soon as possible, but not later than six (6) months after the revocation is published in the U.S. Federal Register. Export Development Canada (EDC), an agent of the Government of Canada, will facilitate the refund program which is expected to speed up the duty refund process for participating softwood lumber companies.

Canadian Export Permit Requirement

Pursuant to the agreement, Canada is now requiring an export permit for every shipment of subject softwood lumber products moving from Canada into the U.S., effective for U.S. importations with a duty computation date of 10/12/06 and after. The Export Permit number is required on the subsequent U.S. Entry Summary (CBP7501). As a result, the shipper’s import documents should clearly reflect the Export Permit Number.

The Canadian Export Control List (ECL), which will be amended, effective Oct. 1, to include all softwood lumber products described in Annex 1 to SLA. Annex 1 contains the list of softwood lumber products subject to the export permit requirement. Annex 1 can be accessed at the following URL: http://www.dfait-maeci.gc.ca/eicb/documents/SLA-ann1-en.pdf

Export permits are issued by the Minister of International Trade and can be obtained in two ways:

1. via the Export and Import Controls System (EICS), accessible by many Canadian Customs Brokers;
2. via the Export and Import Controls Bureau offices in Ottawa.

Detailed information on how to apply for an export permit is located in Annex 5 to SLA which can be accessed at the following URL: http://www.dfait-maeci.gc.ca/eicb/documents/SLA-ann5-en.pdf

Canadian exporters of softwood lumber will also pay an export charge when the price of lumber is at or below US$355 per thousand board feet (MBF), as determined by the Random Lengths Framing Composite lumber price. Detailed information on the export charge is available in Annex 4 to the SLA can be accessed at following URL: http://www.dfait-maeci.gc.ca/eicb/documents/SLA-ann4-en.pdf

Full details on the requirement is available on the Canadian Foreign Affairs website at the following URLs: http://www.dfait-maeci.gc.ca/trade/eicb/softwood/menu-en.asp or http://www.dfait-maeci.gc.ca/eicb/softwood/what-en.asp