CBP Clarifies Incorrect SLA Export Charges Posted on ITA Website
U.S. Customs and Border Protection has issued a memorandum to clarify confusion surrounding the U.S.-Canada Softwood Lumber Act of 2008 (SLA) export charge rates reflected on the International Trade Administration Web page. Recently, some of the posted export charge rates were inaccurate and did not reflect the additional collections as a result of arbitration1 between the U.S. and Canada.
Sign up for a free preview to unlock the rest of this article
If your job depends on informed compliance, you need International Trade Today. Delivered every business day and available any time online, only International Trade Today helps you stay current on the increasingly complex international trade regulatory environment.
(Under the SLA, importers of subject softwood lumber or softwood lumber products are required to consult the ITA Web page to calculate the appropriate export charge. The export charge rates are posted on a monthly basis.)
Correct Rate for Imports from 4 Canadian Provinces is 15%, Not 5%
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.
Any Entries Held for the Additional 10% Charge Should be Processed as Entered
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 reasons associated with the additional 10% export charge should be processed as entered, since CBP will be updating the information during the reconciliation process.
CBP Will Advise Trade When 10% Charge is No Longer Required
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 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 additional 10% export charge is no longer required. Subsequent guidance to the field will be issued once collection is terminated.
(In addition, CBP sources state that, as a result of separate arbitration2, the Canadian Government is now accepting additional export charges of 0.1% and 2.6% for softwood lumber from Ontario and Quebec, respectively, on a voluntary basis. The sources add that imports from these two provinces may or may not have the additional export charges reported in the export charge rate because Canada has yet to enact legislation on this issue. However, once legislation is enacted by the Canadian government, the additional charges for Ontario and Quebec will be mandatory.)
Questions concerning softwood lumber should be directed to Katrina Chang or Christina Alvez at SWL2008@dhs.gov.
1In March 2008, a London Court of International Arbitration (LCIA) tribunal determined that Canada breached the SLA 2006 by failing to make downward adjustments for the Ontario, Quebec, Manitoba, and Saskatchewan provinces during the first half of 2007. The U.S. Trade Representative claimed this resulted in greater levels of shipments from Canada than were allowed under the SLA 2006. As a result of the tribunal's decision, the U.S. imposed additional 10% ad valorem duties on imports of softwood lumber products from these provinces. If Canada does not take action in accordance with the tribunal's decision within 30 days, the U.S. is authorized by the SLA to impose additional import duties on softwood lumber from Canada. (See ITT's Online Archives or 09/30/09 and 03/02/09 news, 09093015 and 09030230, for BP summaries of this arbitration.)
2In January 2008, the U.S. requested arbitration on assistance programs put into place by the provinces of Quebec and Ontario to aid the Canadian softwood lumber industry. These include grant, loan, loan guarantee, and tax credit programs, as well as "forest management" programs and programs that promote wood production. (See ITT's Online Archives or 01/24/11, 01/23/08, and 02/14/11 news, 11012429, 08012305, and , 11021449, for BP summaries of this arbitration and on Canada announcing it would add additional export charges to Ontario and Quebec starting March 1, 2011.)