Under the terms of the 2006 Softwood Lumber Agreement (SLA), the trigger for a reduction in the export tax rate for Canadian softwood products going to the United States will remain the same for the upcoming month.
Beginning on the 1st and continuing through the month of SEPTEMBER-2015, the export tax rates from the affected provinces will be as follows…
From BOTH the coastal and interior regions of British Columbia: 5%
From Alberta: 5%
From Saskatchewan: 2.5%
From Manitoba: 2.5%
From Ontario: 2.5%
From Quebec: 2.5%
The export charge rate is based on the region of origin of the softwood lumber product being exported to the United States. The region of origin is defined as where the product underwent its first primary processing. However, where sawlogs are harvested in an Option A or an Option B region and undergo first primary processing in a region whose exports are excluded, the resulting softwood lumber product is deemed to have been exported from the Option A or Option B region.
Option A regions: The British Columbia (BC) coast, BC interior and Alberta
Option B regions: Saskatchewan, Manitoba, Ontario and Quebec
The above-noted export tax rates, both current and past, may be reviewed on the Canada Revenue Agency website.
Questions about this regulatory update may be directed to your Livingston Client Service Team, or to Livingston’s U.S. Regulatory Affairs group.