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BC Timber Sales - Category 4 - Value-added Program

Last updated on April 21, 2026

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 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 declaration

A value‑added registrant must submit an Annual Declaration that is due each year, on June 1st, confirming that they continue to meet the eligibility and registration requirements of Category 4. The first declaration is required after completing one full calendar year in the program.

For example, if an applicant registers in February 2024, their first declaration must be submitted after completing one full calendar year in the program (i.e., January 1, 2025, to December 31, 2025). Accordingly, they must submit the declaration on or before June 1, 2026.

Submit annual declaration

The submission of the annual declaration is required from all value-added registrants, regardless of the registrant having a timber sales licence.

Please submit the Annual Declaration to BCTS.Valueadded@gov.bc.ca

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.  A transition period has commenced and will end on December 31, 2024.  During the transition period timber sale licences will be dually advertised as Category 2/Category 4 - Value-added and 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