Surge and Export Charge Rate Monitoring 2014 to 2015
Last updated on February 21, 2017Export Charge Rate
The export charge rate in a month is based on the prevailing monthly price which is the four-week average of the industry standard Random Lengths Framing Lumber Composite Price.
As shown in the following table, when the prevailing monthly price is above USD $355/mbf there is no export charge, and the export charge rises as the prevailing monthly price falls.
|
Prevailing Monthly Price for Agreement (USD/mbf) |
B.C. Export Charge Rate |
|
Over 355 |
No Export Charge |
|
336-355 |
5% |
|
316-335 |
10% |
|
315 or under |
15% |
The table below shows the British Columbia export charge rate for recent months. For a historical time series see Surge and Export Charge Rates 2006-2009, 2010-11 and 2012-13. Export charge rates for other provinces are available at the Canada Revenue Agency website.
|
Month |
Prevailing Monthly Price for Agreement (USD/mbf) |
B.C. Export Charge Rate |
|
January 2014 |
396 |
No Export Charge |
|
February 2014 |
389 |
No Export Charge |
|
March 2014 |
401 |
No Export Charge |
|
April 2014 |
388 |
No Export Charge |
|
May 2014 |
380 |
No Export Charge |
|
June 2014 |
368 |
No Export Charge |
|
July 2014 |
380 |
No Export Charge |
|
August 2014 |
377 |
No Export Charge |
|
September 2014 |
386 |
No Export Charge |
|
October 2014 |
405 |
No Export Charge |
|
November 2014 |
386 |
No Export Charge |
|
December 2014 |
379 |
No Export Charge |
|
January 2015 |
365 |
No Export Charge |
|
February 2015 |
382 |
No Export Charge |
| March 2015 | 367 | No Export Charge |
| April 2015 | 352 | 5% |
| May 2015 | 336 | 5% |
| June 2015 | 324 | 10% |
| July 2015 | 315 | 15% |
| August 2015 | 347 | 5% |
| September 2015 | 336 | 5% |
| October 1-12, 2015 | 313 | 15% |
Export Volume Monitoring
The following link is to the Federal Foreign Affairs, Trade and Development Canada (DFATD) website where provincial statistics on lumber exports are updated daily. The table also shows the surge limit for each region for the current month.
British Columbia Surge Limits
The table below shows surge limits for recent months. For historical time series see Surge and Export Charge Rates 2006-2009, 2010-11 and 2012-13.
British Columbia Monthly Surge Limits, million board feet
|
Expected U.S. Consumption |
B.C. Coast Surge Limit |
B.C. Coast Actual Exports |
B.C. Interior Surge Limit |
B.C. Interior Actual Exports |
|
|
January 2014 |
3,036 |
|
40 |
|
439 |
|
February 2014 |
2,924 |
|
42 |
|
324 |
|
March 2014 |
3,295 |
|
51 |
|
403 |
|
April 2014 |
3,557 |
|
52 |
|
473 |
|
May 2014 |
3,559 |
|
52 |
|
535 |
|
June 2014 |
3,460 |
|
52 |
|
526 |
|
July 2014 |
3,493 |
|
50 |
|
540 |
|
August 2014 |
3,497 |
|
44 |
|
480 |
|
September 2014 |
3,346 |
|
46 |
|
495 |
|
October 2014 |
3,625 |
|
48 |
|
534 |
|
November 2014 |
3,244 |
|
35 |
|
417 |
|
December 2014 |
3,088 |
|
44 |
|
472 |
|
January 2015 |
3,239 |
|
43 |
|
459 |
| February 2015 | 3,142 | 44 | 430 | ||
| March 2015 | 3,507 | 64 | 515 | ||
| April 2015 | 3,794 | 98 | 40 | 727 | 463 |
| May 2015 | 3,813 | 84 | 48 | 731 | 469 |
| June 2015 | 3,756 | 87 | 48 | 720 | 521 |
| July 2015 | 3,831 | 69 | 26 | 735 | 392 |
| August 2015 | 3,827 | 80 | 55 | 734 | 588 |
| September 2015 | 3,616 | 79 | 52 | 693 | 625 |
| October 1-12, 2015 | 1,507 | 28 | 3 | 289 | 116 |
* Export levels are based on export permit data and are subject to change.
Background on Surge Provisions and Calculations
Under the export tax option chosen by British Columbia in the 2006 Softwood Lumber Agreement (SLA2006), there is provision for a retroactive penalty amounting to 50% of the applicable tax rate if exports during a month are greater than 110% of a defined market share.
The Coast and Interior regions of British Columbia are treated separately under the agreement. Exporters report the “Region of Origin” of the primary mill for lumber they ship so that exports are allocated to the appropriate region for surge and quota calculations.
Read more:
The surge limit for each region is calculated based on defined market shares of Expected U.S. Consumption. Each region's market share is laid out in the Agreement in Annex 8.
Expected U.S. Consumption is a 12-month rolling average of U.S. consumption, 3 months lagged, and adjusted by monthly seasonal adjustments as laid out in Annex 8 of the Agreement. For example, the Expected U.S. Consumption for calculating the November 2006 surge limit is based on U.S. consumption data for August 2005-July 2006.
The federal government's Department of Foreign Affairs, Trade and Development Canada (DFATD) has committed to publish lumber statistics daily on their website.
B.C. Market Share in SLA 2006
|
|
2004-05 Share of Expected U.S. Consumption |
Surge Limit Share = 110% * Share |
|
Coast |
1.86% |
2.046% |
|
Interior |
17.43% |
19.173% |
Source: Annex 8 of SLA 2006