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About the Manufactured Forest Products Regulation (MFPR)

Last updated on June 27, 2024

Wood products that do not meet specifications in the Manufactured Forest Products Regulation (i.e., logs and lumber) must obtain an exemption from the manufacturing requirement and pay a fee-in-lieu of manufacture to the Province.

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Forest Act requirements

The Forest Act requires timber (and any wood residue produced from the timber) harvested from Crown land, from private land granted by government after March 12, 1906, or from land granted by government before March 12, 1906, in a tree farm licence area, must be:

  • Used in British Columbia, or
  • Manufactured into wood products as specified in the MFPR

Manufactured Forest Products Regulation (MFPR)

View the MFPR here

Orders in Council (OIC)

The OIC dated January 21, 2020 revising the MFPR effective July 1, 2020 can be viewed at: OIC #007-2020 (PDF, 672KB).

The regulation was also updated as of September 30, 2020 to reflect the requirement to fully manufacture western redcedar (WRC) and cypress (yellow cedar) will only apply to the Coast Area. View the amendment at: OIC #312-2020 (PDF, 636KB).

A further update, effective February 1, 2024 expands the fully manufactured requirements to the Interior Area. View the amendment at: OIC #660-2023 (PDF, 661KB)

Changes to the MFPR

The Province made changes to the MFPR effective July 1, 2020 to ensure more accessibility to fibre for local manufacturers, supporting local employment and encouraging more value for British Columbians for timber harvested from public resources. These changes came into effect September 30, 2020.

When timber is manufactured into a sawn-wood product, it may be exported without being advertised to the domestic market. Under the amended regulation, the maximum dimension of lumber to be considered a sawn-wood product is now reduced to 0.1m2 (roughly 12”x12”), requiring further domestic processing of lumber prior to being eligible for export.

Under the previous regulation, logs that were squared off up to a maximum dimension of up to a maximum of 0.2m2 (roughly 17”x17”) were categorized as a sawn-wood product and could be exported without further manufacture. This larger maximum dimension reduced the amount of lumber made available to local mills and domestic processing, which can affect employment through mill closures and/or curtailments.

Reduced fibre availability was particularly concerning for western redcedar and cypress, where much of this high-value, minimally processed lumber was being shipped out of the province for further processing.

Further, the regulation amendments require that in the Coast Area, lumber that is made from western redcedar or cypress to be fully manufactured to be eligible for export, which will promote local manufacture of added value products from these species and support B.C. jobs. Western redcedar or cypress that is not fully manufactured requires an exemption in order to be eligible for export and payment of a fee-in-lieu of manufacture to the Province. The regulation was amended again on December 5, 2023 which made the Interior Area subject to the same manufacturing criteria as the Coast Area. This change is effective February 1, 2024.

How to implement September 2020 and February 2024 changes

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Products requiring an exemption and permit:

  • Coast area lumber that has a cross-section area greater than 0.1m2 (all species other than western redcedar (WRC) or cypress)
  • Coast area lumber (WRC and cypress) as defined in the table below:
    • Product categories A, B and C require an exemption and provincial export permit to be exported from B.C. 
    • Finished or “deemed” finished products, categories D, E, F and G do not require an exemption or permit
  • Interior area lumber that has a cross-section area greater than 0.1m2 (all species)
  • Effective February 1, 2024, Interior area will be subject to the same requirements as the Coast area

Manufacturing processes

“Processes” in the table below are performed on lumber at a B.C. processing facility and are defined as any of the following:

  • A change in thickness, width, length, profile, texture, or moisture content
  • A joining together by finger jointing, edge gluing, laminating, or other means
  • Turning
  • Chopping, or
  • Other processes that produce components for finished western red cedar/pacific coast yellow cedar products
Fee-in-Lieu by Product Category

Product Category (Coast Area WRC and cypress)

Effective Feb. 1, 2024, this table is applicable to both Coast and Interior area WRC/Cypress

Grade

Processes

Finished

Fee -In-Lieu

Products subject to Exemption and Fee-In-Lieu

A

Zero processes – exported direct from sawmill

All Grades1

Zero

No

Full Fee

B

One process and exported from B.C.

All Grades

One

Partially

2/3  Fee

C

Two processes and exported from B.C.   

All Grades

Two

Partially

1/3  Fee

No Fee-In-Lieu for Products Finished or “deemed” finished

D

Three or more processes and exported from B.C.

All grades

Three +

Yes

No Fee

E

Products exported over 3000 miles

All grades

N/A

Yes

No Fee

F

Rough or surfaced products used in appearance /decorative/architectural end uses as is2

All grades

Zero to Two

Yes

No Fee

G

Products less than 6mm in thickness

All grades

N/A

Yes

No Fee

1 Except those products direct from the sawmill included under category “F” deemed finished and used by the customer as is.

2 May include products deemed finished with less than three processes. Examples would include posts and timbers, beams and stringers, fascia boards, surfaced and run to pattern products. These products are ready for retail sale when exported from B.C.

 

Fee in Lieu of Manufacture (FIL):

  • The FIL will be due on all permits as of October 30, 2020
  • Fee in Lieu amount for WRC and cypress lumber = (0.67)*(softwood lumber “all others duty”%)*(lumber value)
  • Softwood Lumber "all others" duty % as of August 1, 2023 is 8.05%
  • Coast Area lumber made from species other than WRC and cypress that has a cross-section area greater than 0.1m2 has a FIL of $1.00 per m3
  • All non-WRC and cypress interior lumber that requires an exemption and permit has a FIL of $1.00 per m3
  • Effective February 1, 2024 the Interior area will be subject to the same FIL policy as the Coast area
 

Process and Forms:

 

Questions and Answers on the MFPR changes

Contact info for MFPR exemptions and permits

Email: LogExportPolicy@gov.bc.ca