FEDERAL REG

SOR/2016-155: Expiry of Sections 10 to 12 and 13 to 15 of the Softwood Lumber Products Export Charge Act, 2006 Regulations

REGISTRATION OF FEDERAL REGULATION - VIA OIC DATABASE, PRIOR TO PART II OF THE GAZETTE

Registered
June 17, 2016


REGULATORY IMPACT ANALYSIS STATEMENT (This statement is not part of the Regulations.) Issues The Softwood Lumber Agreement between the Government of Canada and the Government of the United States of America (the Agreement) expired on October 12, 2015. As a result, Canada is no longer required to apply charges on softwood lumber products exported to the United States. Background On September 12, 2... (Click for more)


Published on June 17, 2016

Bill Summary

SOR/2016-155: Expiry of Sections 10 to 12 and 13 to 15 of the Softwood Lumber Products Export Charge Act, 2006 Regulations

REGULATORY IMPACT ANALYSIS STATEMENT (This statement is not part of the Regulations.) Issues The Softwood Lumber Agreement between the Government of Canada and the Government of the United States of America (the Agreement) expired on October 12, 2015. As a result, Canada is no longer required to apply charges on softwood lumber products exported to the United States. Background On September 12, 2006, the Minister of International Trade and the United States Trade Representative signed the Agreement between Canada and the United States. The Agreement entered into force on October 12, 2006. Under the terms of the Agreement, its duration was limited to a maximum period of nine years (the original term plus an additional two years). In 2013, Canada and the United States agreed to extend the Agreement until October 12, 2015. The Softwood Lumber Products Export Charge Act, 2006 (the Act) provides the legal and administrative framework to impose export charges on softwood lumber products exported from Canada to the United States. It sets out how the export charge will be calculated in accordance with the terms of the Agreement and provides certain exemptions from the application of the charge. Included in these exemptions are exports from the Atlantic Provinces and the Territories, if the exported products are produced from logs originating from these regions or from the State of Maine. The Minister of National Revenue is responsible for the administration and enforcement of the Act. On October 9, 2015, both the Canada Revenue Agency (CRA) and the former Department of Foreign Affairs, Trade and Development (DFATD) [now Global Affairs Canada] issued public notices informing stakeholders that the Agreement was to expire on October 12, 2015, and that, consequently, the export charges no longer apply. Section 102 of the Act provides that the Governor in Council may, by regulation, declare that any of sections 10 to 15 cease to be in force on a day or days fixed in the regulation. Objectives Consequential to the expiry of the Agreement, regulations are required to set October 12, 2015, as the last day on which the export charge and related administrative provisions of the Act apply. Description The Expiry of Sections 10 to 12 and 13 to 15 of the Softwood Lumber Products Export Charge Act, 2006 Regulations set October 12, 2015, as the date on which these sections of the Act cease to apply. “One-for-One” Rule The “One-for-One” Rule applies, as the Regulations reduce administrative burden on businesses. However, as these Regulations relate to tax administration, they are exempted from application of the Rule. Small business lens The small business lens does not apply to the Regulations, as there are no costs imposed on small business. Consultation The CRA and DFATD have kept provincial forestry officials and industry stakeholders aware of developments as the termination date approached and informed them on what would happen once the Agreement expired. No concerns were raised from any of the parties with respect to the timing of the expiry of the Agreement, including the termination of the export charge. The CRA and DFATD also issued public notices on their departmental Web sites on October 9, 2015, informing stakeholders that the Agreement was set to expire and that regulations would soon be proposed in order to cease the application of charges on exports of softwood lumber products to the United States as of the end of the day, October 12, 2015. No reactions were received pursuant to these notices. The only questions raised were regarding whether reporting requirements were still in place after October 12, 2015. Rationale The Agreement terminated on October 12, 2015. Consequently, the application of the charges on the export of certain softwood lumber products to the United States should also end on that date. Contact Darren Weiner Manager Softwood Lumber Unit Legislative Policy and Regulatory Affairs Branch Canada Revenue Agency 320 Queen Street, 20th Floor Ottawa, Ontario K1A 0L5 Telephone: 613-957-8154 Fax: 613-957-2226 Footnote a S.C. 2006, c. 13

This Bill does not amend any statutes.

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