About the Manufactured Forest Products Regulation (MFPR)
Last updated on May 7, 2025Wood 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.
On this page:
- Forest Act requirements
- Manufactured Forest Products Regulation
- Changes to the Manufactured Forest Products Regulation
- How to implement the changes
- Q & A on the MFPR amendments
- Contact info
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)
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
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
|
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 September 24, 2024 is 14.40%
- 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:
- Companies applying for a permit will be required to submit a declaration, FS 1491 (PDF, 334KB), that confirms the processes applied to the lumber, the volume and total value of the shipments. In addition, companies will be required to submit an annual report, FS 1492 (PDF, 135KB) that may be used for reconciliation and audit purposes
- Exemptions and permits will be applied for and issued online through LEXIS
- Training manual: Exemption and permitting process in LEXIS (PDF, 1006KB)
- Training videos:
Questions and Answers on the MFPR changes
Contact info for MFPR exemptions and permits
Email: LogExportPolicy@gov.bc.ca
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