B.C.'s Softwood Lumber has no Export Taxes

Due to strong lumber prices, effective June 1, B.C.'s softwood lumber producers will no longer pay any tax on their shipments to the U.S., Forests and Range Minister Pat Bell announced.

Under the 2006 Softwood Lumber Agreement, companies exporting softwood lumber to the United States are required to pay an export tax on their shipments. The formula for determining the tax is based on the average price over a four-week period 21 days before the start of the month. The higher the average lumber price is, the lower the export tax.

In this case, since the four-week average lumber price, as given by the Random Lengths Framing Composite Price Index, is now $US361 per thousand board feet, the export tax rate that will be in effect June 1, will be zero. If lumber prices decrease again, the export tax will be re-applied.

The tax will be reinstated if prices fall again. The U.S. is B.C.'s largest market for softwood lumber, followed by China and Japan. The rise in lumber prices means British Columbia's lumber producers will not have to pay export taxes under the Canada/U.S.