EXPORT AND IMPORT PERMITS ACTAllocation Method Order (2008) – Softwood Lumber ProductsThe Minister of Foreign Affairs, pursuant to paragraph 6.3(3)(a)a of the Export and Import Permits Act hereby makes the annexed Allocation Method Order (2008) – Softwood Lumber Products.S.C. 2006, c. 13, s. 111Ottawa, December 14, 2007MAXIME BERNIERMinister of Foreign AffairsDefinitionsThe following definitions apply in this Order.Act means the Export and Import Permits Act. (Loi)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 has the meaning set out in section 6.4 of the Act. (exporté)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, 2004 and ending on October 11, 2006. (anciens produits de bois d’oeuvre)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 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 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 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 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 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 means,in the case of Ontario, the period beginning on January 1, 2007 and ending on October 31, 2007,in the case of Quebec, the period beginning on November 1, 2004 and ending on October 31, 2007, andin the case of Manitoba, the period beginning on November 1, 2006 and ending on October 31, 2007. (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 — 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 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 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)Transfer of export allocationIf 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.ApplicationThis 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 2008 for the purposes of paragraph 6.3(3)(a) of the Act.OntarioAllocationThe allocation of the Ontario quantity to a primary producer or remanufacturer who applies for an export allocation is calculated in accordance with the formulaOQ × (EO/TEO)whereOQis the Ontario quantity;EOis 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; andTEOis 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, excluding the volume of products of primary producers and remanufacturers who indicate in writing to the Minister before December 14, 2007 that they relinquish their allocation of the Ontario quantity for 2008.QuebecPrimary producers with an export historyIf 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 method described in section 5 (which is based on their historic export volume) or the method described in subsection 6(1) (which is based on their historic production volume).Primary producers without an export historyIf 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, 2004 and ending on December 31, 2006 and they apply for an export allocation, the primary producer may only receive the allocation calculated using the method described in subsection 6(1) (which is based on their historic production volume).RemanufacturersIf 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 method described in section 9 (which is based on their historic export volume).Allocation to primary producers — historic export volumeThe allocation of the Quebec quantity to a primary producer that is based on their historic export volume is calculated in accordance with the formula(PPE/TPPE) ×{[QQ × (TPPE/TEQ) × 94%] + RNA}wherePPEis the volume of the primary producer’s products that were exported from Quebec to the United States under export permits during the reference period;TPPEis the total volume of primary producer’s products that were exported from Quebec to the United States under export permits during the reference period;QQis the Quebec quantity;TEQis 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, excluding the volume of products of primary producers and remanufacturers who indicate in writing to the Minister before December 14, 2007 that they relinquish their allocation of the Quebec quantity for 2008; andRNAis the residual non-allocated quantity of the reserve pool calculated in accordance with section 8.Allocation to primary producers — historic production volumeThe allocation of the Quebec quantity to a primary producer that is based on their historic production volume is calculated in accordance with the formulaRP × (PPPV/TPV)whereRPis the reserve pool calculated in accordance with section 7;PPPVis the volume of Quebec softwood lumber products that the primary producer produced during the period beginning on January 1, 2004 and ending on December 31, 2006; andTPVis 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.Maximum allocationThe allocation may not exceed 40% of the primary producer’s average monthly volume of Quebec softwood lumber products produced during the period beginning January 1, 2004 and ending on December 31, 2006.Records of production volumesThe 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.Reserve poolThe reserve pool is calculated in accordance with the formulaQQ × (TPPE/TEQ) × 6%whereQQis the Quebec quantity;TPPEis the total volume of primary producers’ products that were exported from Quebec to the United States under export permits during the reference period; andTEQis 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, excluding the volume of products of primary producers and remanufacturers who indicate in writing to the Minister before December 14, 2007 that they relinquish their allocation of the Quebec quantity for 2008.Residual non-allocated quantityThe residual non-allocated quantity of the reserve pool is calculated in accordance with the formulaRP - APwhereRPis the reserve pool; andAPis the total volume of current softwood lumber products allocated to primary producers calculated in accordance with section 6.Allocation to remanufacturersThe allocation of the Quebec quantity to a remanufacturer that is based on their historic export volume is calculated in accordance with the formulaQQ × (RE/TEQ)whereQQis the Quebec quantity;REis the volume of the remanufacturer’s products that were exported from Quebec to the United States under export permits during the reference period; andTEQis 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, excluding the volume of products of primary producers and remanufacturers who indicate in writing to the Minister before December 14, 2007 that they relinquish their allocation of the Quebec quantity for 2008.ManitobaAllocationThe allocation of the Manitoba quantity to a primary producer or remanufacturer who applies for an export allocation is calculated in accordance with the formulaMQ × (EM/TEM)whereMQis the Manitoba quantity;EMis 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; andTEMis 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, excluding the volume of products of primary producers and remanufacturers who indicate in writing to the Minister before December 14, 2007 that they relinquish their allocation of the Manitoba quantity for 2008.SaskatchewanAllocationThe allocation of the Saskatchewan quantity to a primary producer or remanufacturer 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.Coming into ForceRegistrationThis Order comes into force on the day on which it is registered.