Vol. 149, No. 21 — October 21, 2015

Registration

SOR/2015-220 October 8, 2015

EXPORT AND IMPORT PERMITS ACT

Order Amending the Export Control List

P.C. 2015-1214 October 8, 2015

His Excellency the Governor General in Council, on the recommendation of the Minister of Foreign Affairs, pursuant to subsection 3(1) (see footnote a) and section 6 (see footnote b) of the Export and Import Permits Act (see footnote c), makes the annexed Order Amending the Export Control List.

ORDER AMENDING THE EXPORT CONTROL LIST

AMENDMENT

1. Item 5104 of the schedule to the Export Control List (see footnote 1) is replaced by the following:

5104. (1) Softwood lumber products, as described in Annex 1A to the Softwood Lumber Agreement Between the Government of Canada and the Government of the United States of America, signed on September 12, 2006, as it read on October 12, 2015, excluding those that are described in paragraphs 3 to 5 of that Annex 1A. (United States)

(2) Paragraph 5 of that Annex 1A is to be read without reference to the requirement set out in item (e) of that paragraph.

(3) The references to the Harmonized Tariff Schedule of the United States (HTSUS) tariff classifications in that Annex 1A are to be read as references to the corresponding Canadian tariff classifications set out in Annex 1B to the agreement referred to in subsection (1).

(4) The references to “imported”, “importer” and “importation” in that Annex 1A are to be read as “exported”, “exporter” and “exportation”, respectively, and the reference to “importés” in the French version of that Annex 1B is to be read as “exportés”.

COMING INTO FORCE

2. This Order comes into force on October 13, 2015.

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Order or the Regulations.)

Issues

The 2006 Softwood Lumber Agreement (the SLA) Between the Government of Canada and the Government of the United States of America is scheduled to expire on October 12, 2015. As a result, item 5104 —|mdash|} Softwood Lumber Products of the Export Control List (ECL) will become spent upon the expiry of the SLA absent re-listing. Similarly, the Export Permits Regulations (Softwood Lumber Products 2006) [EPR-SLP] will also need to be amended. Therefore, regulatory amendments to the ECL and the EPR-SLP are required to allow for the continuation of the export permit system to facilitate exports of softwood lumber from Canada to the United States.

Background

The SLA was signed by Canada and the United States on September 12, 2006, and entered into force on October 12, 2006. The SLA required Canada to establish an export permit system for all exports of softwood lumber products (SLP) to the United States, as set out in Annex 1A of the SLA.

In order to implement this intergovernmental arrangement or commitment, Canada listed SLP on the ECL under item 5104 — Softwood Lumber Products. As the SLA is scheduled to expire on October 12, 2015, item 5104 —|mdash|} Softwood Lumber Products, will become spent. Consequently, in order to ensure that export permits are still required for SLP after the expiration of the SLA on October 12, 2015, the amendment to the ECL will replace the existing item 5104 with an item that relates to the same products.

By continuing to require a permit for softwood lumber exports to the United States, the Government of Canada and the softwood lumber industry will have access to reliable, accurate data regarding SLP.

Objectives

Given the imminent expiry of the SLA on October 12, 2015, the Order Amending the Export Control List and the Regulations Amending the Export Permits Regulations (Softwood Lumber Products 2006) will ensure the continued issuance of export permits under the Export and Import Permits Act (EIPA) for the purpose of monitoring shipments of softwood lumber products to the United States from all provinces and territories of Canada, beginning on October 13, 2015.

Description

The Order Amending the Export Control List replaces the existing item 5104 with a new item 5104 relating to softwood lumber products exported to the United States. The new item 5104 makes reference to Annex 1A and Annex 1B of the SLA. Annex 1A specifies the scope of products covered by the SLA, while Annex 1B provides a table of concordance illustrating the equivalents of Canadian and U.S. tariff codes.

The Regulations Amending the Export Permits Regulations (Softwood Lumber Products 2006) make consequential amendments to the EPR-SLP to address the expiry of the SLA, including an amendment to the definition “permit.”

“One-for-One” Rule

The “One-for-One” Rule does not apply to these amendments, as there is no change in administrative costs to business.

Small business lens

The small business lens does not apply to these amendments, as there are insignificant costs to small business. Exporters will continue to pay the current cost of $9 per export permit if the permit is delivered by a person who is not employed in the public service of Canada (e.g. custom brokers). Exporters who apply directly to the Department of Foreign Affairs, Trade and Development will continue to pay $14 per export permit.

Consultation

The Government of Canada has conducted consultations with the Business Advisory Council and with provincial and territorial softwood lumber heads of delegation. Provincial and territorial ministers and senior officials were also informed of this proposal. No objections or concerns were raised during any of these consultations. Stakeholders are supportive of this initiative.

Rationale

The softwood lumber industry is an essential contributor to Canada’s economy. The proposed amendments enable the continuation of the export permitting system, which will facilitate the monitoring of exports of softwood lumber products to the United States. By monitoring these exports, the Government of Canada and the softwood lumber industry will have access to reliable, accurate data on the province or territory of origin, the volume and the pricing for exports of SLP to the United Sates from all Canadian provinces and territories.

Implementation, enforcement and service standards

The Department of Foreign Affairs, Trade and Development is responsible for administering export permits under the EIPA. The exportation or attempted exportation of goods included in the ECL without a valid permit issued by the Minister of Foreign Affairs is an offence and may lead to prosecution under the EIPA. A detailed description of offences and penalties can be found in the Export Controls Handbook (http://www.international.gc.ca/controls-controles/export-exportation/exp_ctr_handbook-manuel_ctr_exp-p4.aspx?lang=eng) available on the Web site of the Department of Foreign Affairs, Trade and Development.

Contact

Aaron Fowler
Director
Softwood Lumber Division
Foreign Affairs, Trade and Development Canada
111 Sussex Drive
Ottawa, Ontario
K1A 0G2