CSMS Message: 11-000140

Under the U.S.-Canada Softwood Lumber Act of 2008 (SLA), importers of subject softwood lumber or softwood lumber products are required to consult the Department of Commerce's International Trade Administration (ITA) webpage http://ia.ita.doc.gov/sla2008/sla-index.html to calculate the appropriate export charge. The export charge rates are posted on a monthly basis.

This memo serves to clarify confusion surrounding the SLA export charge rates reflected on the ITA web page. Recently, some of the posted export charge rates on the ITA webpage were inaccurate and did not reflect the additional collections as a result of arbitration between the United States and Canada. Specifically, the export charge rate for imports from the Canadian Provinces of Quebec, Ontario, Manitoba and Saskatchewan was listed as 5% instead of the correct rate of 15%. The information on the ITA web page has now been updated to reflect appropriate export charges. Importers and CBP personnel should continue to reference the ITA web page per the SLA when determining export charges. Any Softwood lumber entries that are held by the ports for the reasons associated with the additional 10% export charge should be processed as entered as we will be updating the information during the reconciliation process.

The Canadian Government has advised CBP of the near termination of the additional collections under the arbitration. In the upcoming weeks, CBP will be working closely with the appropriate corresponding agencies to advise field personnel and the trade community as to when the settled amount under the arbitration has been satisfied and collection of the 10% export charge is no longer required. Subsequent guidance to the field will be issued once collection is terminated.

In addition, the Canadian Government has commenced its collection of additional export charges for the regions of Ontario and Quebec. The proposed amendments to the SLA require all exporters of softwood lumber products to the United States having a region of origin of Ontario to pay an additional export charge of 0.1% and those having a region of origin of Quebec to pay an additional export charge of 2.6%. Thus far, added collections for Ontario and Quebec have been remitted on a voluntary basis as the necessary legislation in Canada has not been enacted. These added collections should be accepted if included in the export charge rate, but are not required to be included until the amendments to the Act become law in Canada.

Questions concerning Softwood Lumber should be directed to Katrina Chang, Chief, Trade Agreements Branch at SWL2008@dhs.gov or Christina Alvez, Trade Agreements Branch.