BC Timber Sales - Value-added Manufacturing Program

Government is committed to sustainable forest management and to expanding and diversifying participation in the forest sector by strengthening value‑added manufacturing. This includes fostering a competitive forest industry where businesses work together for shared success and support a diverse value‑added manufacturing sector.

In support of these objectives, BC Timber Sales (BCTS) established the Value‑added Manufacturing Program, which includes Category 4 – Value‑added and Category 5 – Custom Cutters and Processors. The program provides support to B.C.’s lumber producers, value‑added manufacturers, custom cutters and custom processors that supply value‑added wood products to domestic and international markets.

On this page:

• BCTS Value-added Manufacturing Program
• Who can register
• How to apply
• Annual declaration
• Submit annual declaration
• List of value-added registrants
• Frequently asked questions

BCTS Value-added Manufacturing Program

The objective of the BCTS Value-added Manufacturing Program is to support the production of value-added products by offering minimally tenured or untenured value-added manufacturers in B.C. with opportunities to bid on timber sale licences through competitive auction. The focus is on primary and secondary manufacturers and custom cutters and processors that produce eligible value-added products. 

Value-added products that are eligible for the BCTS Value-added Manufacturing Program are those processed from timber, wood residue or both. Examples include mass timber, engineered wood products, plywood, veneer, posts, poles, mouldings, pallets, lumber, flooring, and similar products.

BCTS has dedicated 20 per cent of its available apportionment to the program for value-added registrants to bid on. Since the inception of Category 4 – Value-added in 2023, BCTS has offered value-added timber sale licence opportunities across its 12 Business Areas throughout the Province.

Who can register

There are two registration categories within the BCTS Value-added Manufacturing Program: 

• Category 4 – Value-added
• Category 5 – Custom Cutters and Processors

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 hold a major licence(s) with a total allowable annual cut greater than 10,000 cubic metres per year
• Operate the processing facility for a minimum of 1,600 hours in each calendar year
• Employ at least one individual who works directly in the production of an eligible value-added product

Category 5 – Custom Cutters and Processors

To register in Category 5 – Custom Cutters and Processors, an applicant must:

• Produce an eligible value-added product
• As a custom cutter, process at least 60,000 cubic meters of logs in British Columbia each calendar year
• As a custom processor, process at least 3,000 cubic meters of eligible value-added products, e.g., lumber, in British Columbia each calendar year
• Not hold a major licence(s) with a total allowable annual cut greater than 10,000 cubic metres per year

Additional criteria must be met to register in Category 4 - Value-added or Category 5 – Custom Cutters and Processors. Refer to the BCTS Regulation for more information.

How to apply

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

• FS 590A – Individual (PDF, 284KB)
• FS 590B – Corporation (PDF, 288KB)
• Schedule A: Category 4 – Value-added (PDF, 129KB)
• Schedule A: Category 5 – Custom Cutters and Processers (PDF, 264KB)

As a requirement of the registration process, BCTS will conduct a site visit to verify that the eligibility criteria are met.

Annual declaration

A value‑added registrant (Category 4 and Category 5) must submit an Annual Declaration that is due each year, on June 1st, confirming that they continue to meet the eligibility and registration requirements for their category. 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, the declaration would be due on June 1, 2026, to confirm that the eligibility and registration requirements were met in the preceding calendar year.

Submit annual declaration

Submission of the Annual Declaration is required from all value-added registrants, regardless of whether they hold a timber sale licence.

If a registrant fails to submit the Annual Declaration by June 1, their registration may be suspended, and they will be unable to bid on a timber sale licence until the declaration is submitted.

• Annual declaration (PDF, 73KB)

Submit the Annual Declaration to BCTS.ValueAdded@gov.bc.ca

List of Value-added registrants

Collaboration among value-added registrants plays a key role in strengthening and growing the value-added manufacturing sector. To help foster these connections, see the list of companies registered in the BCTS Value-added Manufacturing Program:

• Registered companies in the BCTS Value-added Manufacturing Program (PDF, 108KB)

Frequently asked questions

What qualifies as an eligible value-added product under the BCTS Value-added Manufacturing Program?

For the purpose of the BCTS Value-added Manufacturing Program, eligible value-added products are defined in section 1 of the BCTS Regulation as products created from processing timber or wood residue, or from materials that originate from them.

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).

Can I bid on timber sale licences immediately after applying for registration in the program?

You may only bid once you have received confirmation of your registration as a BCTS enterprise.

What is the Performance Obligation, and how much timber is a value-added timber sale licence holder required to process?

The Performance Obligation is the defining feature of the Value-added Manufacturing Program and supports the program’s objectives. This obligation is included as a requirement in a value-added timber sale licence and requires the licence holder to:

• Process a specified value of timber or wood fibre that is measured in dollars
• Produce a specified value of products that is measured in dollars

The specified values are expressed in dollars and vary by licence based on the timber profile within the licence area. These value-added requirements must be fulfilled within the licence term. Before bidding on a value‑added timber sale licence, registrants are encouraged to review all licence requirements, including the Performance Obligation to support informed bidding decisions.

What is the Shared Performance Obligation?

Under the Shared Performance Obligation option, the licence holder may work with up to three other Category 4 registrants to collectively meet the performance obligation. This means that any processing completed by those registrants during the licence term can be counted toward the licence holder’s required Performance Obligation values.

The licence holder however, is still accountable for ensuring all licence requirements including the Performance Obligation are met during the licence term.

What happens if a value-added timber sale licence holder does not meet their licence obligations including the Performance Obligation?

If a licence holder fails to meet licence or legislative requirements, the Timber Sales Manager may take action under BC Timber Sales Regulation section 21 or Forest Act section 78. Section 21 authorizes the realization of the licence security deposit, and section 78 authorizes the disqualification, suspension, or cancellation of a person’s rights under a timber sale licence.

What is a Category Any timber sale licence and who can bid on them?

Category Any indicates that registrants from any BCTS category are eligible to bid on the timber sale licence.  Registrants in the Value-added Manufacturing Program (i.e., Categories 4 and 5) are eligible to bid alongside Category 1 registrants on timber sale licences posted as Category Any.  Category Any timber sale licences do not include the Performance Obligation as this obligation applies only to value-added timber sale licences.