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BC Timber Sales - Category 4 - Value-added

Last updated on March 8, 2024

Government is committed to sustainable forest management that includes an innovative, and competitive forest industry where businesses work together for mutual success and support a strong and diversified value-added forest manufacturing sector.

In Modernizing Forest Policy in British Columbia June 2021, the Province committed to increase and diversify forest sector participation through strengthening the value-added forest manufacturing sector. To meet this commitment, BC Timber Sales (BCTS) developed Category 4 - Value-added (also known as the the Value-added Manufacturing Program) that replaces Category 2. Category 2, a previous program within BCTS, provided opportunities for independent manufacturers, lumber producers, and residual fibre users to obtain a supply of timber through competitive auction. 

Category 4 – Value-added will support B.C. manufacturers and lumber producers of all sizes that produce value-added products used locally and internationally.

On this page:

About Category 4 - Value-added

The objective of Category 4 – Value-added is to offer timber harvest opportunities through competitive auction to minimally tenured or untenured processing facilities in British Columbia, promoting the manufacturing of value-added products. The focus will be on primary and secondary manufacturers that produce eligible value-added products. 

Eligible value-added products are considered to be products processed from timber, wood residue or both. Examples include mass timber, engineered wood products, plywood, veneer, posts, poles, mouldings, pallets, lumber, and flooring, etc.

BCTS will dedicate 10 percent of its available apportionment to the program for value-added registrants to bid on, and more volume is expected in the future.

Category 4 – Value-added is one of many government initiatives that support strengthening the value-added manufacturing sector in British Columbia. Other such initiatives include:

Who can register for Category 4 -Value-added

To register in Category 4 - Value-added, an applicant must:

  • Own or lease an eligible value-added processing facility in British Columbia
  • Produce an eligible value-added product
  • Not have a major licence(s) with a total allowable annual cut greater than 10,000 cubic metres
  • Operate the processing facility for a minimum of 1600 hours in each calendar year
  • Employ individuals who work directly in the production of an eligible value-added product

Additional criteria must be met to register in Category 4 - Value-added. To learn more about the criteria refer to the BCTS Regulation.

How to apply

To apply, complete the applicable registration form and Schedule A, and submit with supporting documentation to a local BCTS Business Area office.

As part of the registration process for Category 4 - Value-added, a site visit will be conducted by BCTS to verify the processing facility is eligible.

Annual report

A value-added registrant will be required to submit an Annual Report with information about:

  • The volume, prices and costs associated with processing the value-added product(s) produced at the facility
  • The number of production workers at the facility
  • The number of operating hours in a calendar year
  • Financial information regarding input materials, sales, etc.

Additional information may be requested as needed.

The Annual Report will be used to verify that registrants continue to meet eligibility and registration requirements of Category 4 – Value-added, and is due on June 1st of each year. The first Annual Report will be due after one full calendar year of being registered in the program.

For example, if an applicant registers in February 2024, then the first Annual Report will be due after one full calendar year of being registered (i.e., January 1, 2025 to December 31, 2025), that is, on June 1, 2026, to demonstrate that eligibility and registration requirements were met in the preceding calendar year.

If a registrant fails to provide the Annual Report on June 1st, their registration will automatically be suspended, and they will be unable to bid for a timber sale licence until they submit an annual report.

Submit annual report

The submission of the Annual Report is required from all Value-added registrants, regardless of the registrant having a Value-added timber sale licence.

A link to submit the Annual Report will be provided on this page once available.

Frequently asked questions

What is an eligible value-added product?

It is a product produced from the processing of timber or wood residue or both, or from the processing of products produced from timber or wood residue or both.

  • Examples of eligible value-added products are mass timber, engineered wood products, plywood, veneer, posts, poles, mouldings, pallets, lumber, and flooring etc.

Eligible value-added products do not include pulp, paper, newsprint, wood chips, wood pellets, ground wood, bioenergy, biochemicals, hog fuel, wood shavings, sawdust, bedding, firewood, mulch, and products made from component substances of wood (e.g., biofoam).

What is an eligible value-added processing facility?

It is a facility that processes products from timber or wood residue or both and meets the following requirements:

  • An eligible value-added product is produced at the facility
  • One or more production workers (i.e., manufacturing staff) work at the facility

Other criteria must be met to be an eligible value-added processing facility. To learn more about the criteria refer to section 1 of the BCTS Regulation.

Can an existing Category 2 registrant be automatically transferred into Category 4 - Value-added?

No.  All Category 2 registrants must apply to Category 4 – Value-added.

Will there be a transition period?

Yes.  There will be a transition period starting when Category 4 - Value-added goes live and ending on December 31, 2024. Timber sale licences will be dually advertised as Category 2/Category 4 - Value-added.

During the transition period, no new applications for registration in Category 2 will be processed. After the transition period elapses, Category 2 will cease to exist.

Can I bid on Value-added timber sale auctions immediately after I apply for registration in the program?

You must wait to receive confirmation of your registration status as a BCTS Category 4 – Value-added enterprise before you can bid.

Contact information

For more information on the Category 4-Value-added please contact:

BCTS Provincial Operations
BCTS.ValueAdded@gov.bc.ca