In July, Canadian lumber exporters will see a tax increase on shipments to the United States. The export taxes are imposed unde the 2006 Softwood Lumber Agreement between the two countries, and are determined by four-week averages of the Random Lengths Framing Lumber Composite Price.
In the applicable period (May 15 – June 5), the composite averaged US$315 per thousand board ft. (mbf). An average in a range of $316-335/mbf triggers a 10% tax for shippers in Western Canada, but an average of $315/mbf or less results in the highest tax rates of 15% for Western Canadian shippers, Random Lengths said.
The US$315/mbf average means that shippers in British Columbia and Alberta will pay taxes of 15%, while exporters in Quebec, Ontario, Manitoba, and Saskatchewan will pay 5% and face more restrictive quota allotments.