SHORT TITLE

Marginal note:Short title

1. This Act may be cited as the Softwood Lumber Products Export Charge Act, 2006.

INTERPRETATION

Marginal note:Definitions

2. The following definitions apply in this Act.

“Agency”

« Agence »

“Agency” means the Canada Revenue Agency continued by subsection 4(1) of the Canada Revenue Agency Act.

“assessment”

« cotisation »

“assessment” means an assessment or a reassessment under this Act.

“bank”

« banque »

“bank” means a bank as defined in section 2 of the Bank Act or an authorized foreign bank, as defined in that section, that is not subject to the restrictions and requirements referred to in subsection 524(2) of that Act.

“board foot”

« pied-planche »

“board foot” means a unit of measurement of lumber equal to 12 inches × 12 inches × 1 inch, and one thousand board feet is equal to 2.35974 cubic metres or 92.90227 square metres of lumber.

“calendar quarter”

« trimestre »

“calendar quarter” means a period of three months beginning on the first day of January, April, July or October.

“Commissioner”

« commissaire »

“Commissioner” means the Commissioner of Revenue appointed under section 25 of the Canada Revenue Agency Act.

“data”

« données »

“data” means representations, in any form, of information or concepts.

“judge”

« juge »

“judge”, in respect of any matter, means a judge of a superior court having jurisdiction in the province in which the matter arises or a judge of the Federal Court.

“Minister”

« ministre »

“Minister” means the Minister of National Revenue.

“person”

« personne »

“person” means an individual, partnership, corporation, or a body that is a union or association.

“prescribed”

Version anglaise seulement

“prescribed” means

• (a) in the case of a form or the manner of filing a form, authorized by the Minister;

• (b) in the case of the information to be given on or with a form, specified by the Minister; and

• (c) in any other case, prescribed by regulation or determined in accordance with rules prescribed by regulation.

“primary processing”

« première transformation »

“primary processing” means the production of softwood lumber products from softwood sawlogs.

“record”

« registre »

“record” means any material on which data are recorded or marked and that is capable of being read or understood by a person or a computer system or other device.

“region”

« région »

“region” has the same meaning as in subsection 6.3(1) of the Export and Import Permits Act.

“reporting period”

« période de déclaration »

“reporting period” means the month in respect of which a person is required to file a return under section 26.

“softwood lumber product”

« produit de bois d’oeuvre »

“softwood lumber product” means, other than in section 18, a product referred to in section 8.4 of the Export and Import Permits Act.

“United States”

« États-Unis »

“United States” means the customs territory of the United States and the foreign trade zones located in the United States.

Marginal note:Conversion

3. If a conversion of board feet to cubic metres or to square metres is required for the purposes of this Act, the conversion is to be made on a nominal measurement basis and shall not be rounded up to the nearest cubic metre or square metre.

Marginal note:Interest to be paid

• 4. (1) For the purposes of every provision of this Act that requires interest to be paid at a specified rate, the specified rate in effect during any particular calendar quarter is the total of

  • (a) the rate that is the simple arithmetic mean, expressed as a percentage per year and rounded to the next higher whole percentage where the mean is not a whole percentage, of all amounts each of which is the average equivalent yield, expressed as a percentage per year, of Government of Canada Treasury Bills that mature approximately three months after their date of issue and that are sold at auctions of Government of Canada Treasury Bills during the first month of the calendar quarter preceding the particular calendar quarter, and

  • (b) 4 %.

• Marginal note:Interest to be paid by the Minister

  (2) For the purposes of every provision of this Act that requires interest at a specified rate to be paid on an amount payable by the Minister to a person or applied by the Minister against an amount owed by a person, the specified rate in effect during any particular calendar quarter is the total of

  • (a) the rate determined under paragraph (1)(a) in respect of the particular calendar quarter, and

  • (b) 2 %.

Marginal note:Time of export

• 5. (1) For the purposes of this Act, the time at which an exported softwood lumber product is considered to be exported is the time at which the product was last loaded aboard a conveyance for export.

• Marginal note:Export by rail

  (2) However, if the softwood lumber product is exported by rail, the time at which it is considered to be exported is the time at which the railcar that contains it was released to the railway for assembly to form part of a train for export.

• Marginal note:Clarification

  (3) For greater certainty, if a softwood lumber product is transshipped through a Canadian reload or other inventory location, the time at which it is considered to be exported is the time at which the product last leaves a reload or other inventory location for export.

Marginal note:Arm’s length

• 6. (1) For the purposes of this Act,

  • (a) related persons are deemed not to deal with each other at arm’s length; and

  • (b) it is a question of fact whether persons not related to each other were, at any particular time, dealing with each other at arm’s length.

• Marginal note:Related persons

  (2) For the purposes of this Act, persons are related to each other if they are related persons within the meaning of subsections 251(2) to (6) of the Income Tax Act, except that

  • (a) a reference in those subsections to “corporation” shall be read as a reference to “corporation or partnership”; and

  • (b) a reference in those subsections to “shares” or “shareholders” shall, in respect of a partnership, be read as a reference to “rights” or “partners”, respectively.

Marginal note:Person resident in Canada

7. For the purposes of this Act, a person is deemed to be resident in Canada at any time

• (a) in the case of a corporation, if the corporation is incorporated or continued in Canada and not continued elsewhere;

• (b) in the case of a partnership or an association, or a branch of one of them, if the member, or a majority of the members, having management and control of it is or are resident in Canada at that time;

• (c) in the case of a union, if it is carrying on activities as such in Canada and has a local union or branch in Canada at that time; and

• (d) in the case of an individual, if the individual is deemed under any of paragraphs 250(1)(b) to (f) of the Income Tax Act to be resident in Canada at that time.

HER MAJESTY

Marginal note:Binding on Her Majesty

8. This Act is binding on Her Majesty in right of Canada or a province.

APPLICATION

Marginal note:Exceptions

• 9. (1) This Act does not apply to a softwood lumber product that is exported to a country other than the United States but that passes in transit through the United States.

• Marginal note:For greater certainty

  (2) For greater certainty, this Act applies in respect of a softwood lumber product that is exported to the United States but that passes in transit through a country other than the United States.

SOFTWOOD LUMBER PRODUCTS EXPORT CHARGE

Export Charge

Marginal note:Charge imposed

• 10. (1) Subject to the exclusions provided for in subsection 11(1), every person who exports a softwood lumber product to the United States after October 11, 2006, shall pay to Her Majesty in right of Canada a charge as determined under this Act in respect of the export.

• Marginal note:When charge payable

  (2) The charge becomes payable at the time that the softwood lumber product is exported.

Marginal note:Exclusions

• 11. (1) The following exports of softwood lumber products are excluded from the charge referred to in section 10:

  • (a) exports from Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador;

  • (b) exports from Yukon, the Northwest Territories or Nunavut; and

  • (c) exports by a person referred to in section 16.

• Marginal note:Deemed export from Atlantic provinces

  (2) An exported softwood lumber product is deemed to be exported from Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador if the product underwent its first primary processing in one of those provinces from softwood sawlogs originating in one of those provinces or in the State of Maine.

• Marginal note:Deemed export from territories

  (3) An exported softwood lumber product is deemed to be exported from Yukon, the Northwest Territories or Nunavut if the product underwent its first primary processing in one of those territories from softwood sawlogs originating in one of those territories.

Marginal note:Export from a region

• 12. (1) If a softwood lumber product is exported from a region in a particular month, the amount of the charge in respect of that export is the amount calculated by applying the rate applicable for the month under subsection (3) or (4) to the export price of the product as determined under section 13.

• Marginal note:Deemed export from a region

  (2) An exported softwood lumber product is deemed to be exported from the region where the product underwent its first primary processing. If, however, the exported product underwent its first primary processing in Nova Scotia, New Brunswick, Prince Edward Island, Newfoundland and Labrador, Yukon, the Northwest Territories or Nunavut from softwood sawlogs originating in a particular region, it is deemed to be exported from that region.

• Marginal note:Applicable rate — export allocation

  (3) In the case of an export for which an export allocation issued under paragraph 6.3(3)(b) of the Export and Import Permits Act is required, the applicable rate of charge for the particular month is

  • (a) 0% if the reference price for the month is more than US$355;

  • (b) 2.5% if the reference price for the month is at least US$336 but not more than US$355;

  • (c) 3% if the reference price for the month is at least US$316 but not more than US$335; or

  • (d) 5% if the reference price for the month is not more than US$315.

• Marginal note:Applicable rate — other cases

  (4) In the case of an export for which an export allocation referred to in subsection (3) is not required, the applicable rate of charge for the particular month is

  • (a) 0% if the reference price for the month is more than US$355;

  • (b) 5% if the reference price for the month is at least US$336 but not more than US$355;

  • (c) 10% if the reference price for the month is at least US$316 but not more than US$335; or

  • (d) 15% if the reference price for the month is not more than US$315.

• Marginal note:Reference price

  (5) The reference price for a particular month is the most recent four-week average of the weekly Framing Lumber Composite Price, published by Random Lengths Publications Incorporated, that is available at least 21 days before the start of the particular month.

• Marginal note:Reference price by regulation

  (6) If Random Lengths Publications Incorporated changes, at any time after April 27, 2006, the weights it uses to calculate the Framing Lumber Composite Price or ceases to publish the Framing Lumber Composite Price or any of its constituent prices, the reference price for a particular month is to be calculated according to a prescribed formula.

• Marginal note:Rounding

  (7) Each reference price shall be rounded to the nearest multiple of one dollar or, if the amount is equidistant from two multiples of one dollar, to the higher multiple.

Marginal note:Definitions

• 13. (1) The following definitions apply in this section.

  “FOB value”

  « valeur franco à bord »

  “FOB value” means a value consisting of all costs payable by a purchaser, including those incurred in the placement aboard the conveyance for shipment, but not including the actual shipping costs and the amount of a charge payable under section 10.

  “independent remanufacturer”

  « entreprise indépendante de seconde transformation »

  “independent remanufacturer” means a person who is certified under section 25.

  “remanufactured”

  « seconde transformation »

  “remanufactured” means, in relation to a softwood lumber product, that the softwood lumber product, in order to produce a semi-finished or finished softwood lumber product, has been subjected to changes including changes in thickness, width, length, profile, texture, moisture or grading, has been joined together by finger jointing or has been turned.

• Marginal note:Export price

  (2) The export price of a softwood lumber product is to be determined in accordance with the following rules:

  • (a) if the product has undergone only primary processing, the export price is the FOB value that is determined at the facility where the product underwent its last primary processing before export;

  • (b) if the product was last remanufactured before export by an independent remanufacturer, the export price is the FOB value that is determined at the facility where the softwood lumber used to make the remanufactured product underwent its last primary processing before export;

  • (c) if the product was last remanufactured before export by a remanufacturer that is not an independent remanufacturer, the export price is the FOB value that is determined at the facility where the product underwent its last processing before export;

  • (d) for a product described in paragraph (a), (b) or (c) in respect of which an FOB value cannot be determined, the export price is the market price for identical products sold in Canada at approximately the same time and in one of the following arm’s length transactions, listed in order of precedence:

    • (i) a transaction at substantially the same trade level but in different quantities,

    • (ii) a transaction at a different trade level but in similar quantities, or

    • (iii) a transaction at a different trade level and in different quantities; and

  • (e) if the export price determined in accordance with any of paragraphs (a) to (d) is greater than US$500 per thousand board feet, the export price is deemed to be US$500 per thousand board feet.

• Marginal note:Exchange rate

  (3) For the purposes of subsection (2), the rate of exchange in order to determine the export price in Canadian dollars of a softwood lumber product is the rate of exchange as quoted by the Bank of Canada at noon on the day before the day on which the charge referred to in section 10 becomes payable.