Notice to Exporters

Export of Logs from British Columbia

Serial No. 102
Date: April 1, 1998

Table of Contents

• 1.0 General
• 2.0 Procedures for Federal/Private Lands
• 3.0 When No Offers are Received
• 4.0 When Offers are Received
• 5.0 Logs from Indian Reserves
• 6.0 Procedures for Provincial Land
• 7.0 Export Permit and Certificate Fees
• 8.0 Addresses/Contacts fo Provincial Regional Offices
  • Appendix I: sample letter of an "Offer to Purchase"
  • Appendix II: Terms of Reference for the Federal Timber Export Advisory Committee (FTEAC)

Note: The Table of Contents and sections of this Notice have been renumbered to adhere to EPD's web publishing standards.

1.0 General

1.1 This Notice replaces Notice to Exporters, Serial No. 23 of January 1, 1986, entitled "Export of Logs from British Columbia".

1.2 While all logs exported from Canada require Federal export permits for all destinations, this Notice provides information with respect to the export of logs from British Columbia.

• Log exports are controlled for the purposes set out in Section 3(e) of the Export and Import Permits Act(EIPA):
  • "3(e) to ensure that there is an adequate supply and distribution of the article in Canada for defence or other needs."
• Logs are included in Item 5101 of Canada's Export Control List (ECL), as follows:
  • "5101. Logs of all species of wood (All destinations)".

1.3 In order to determine adequate supply, forest products defined in Group 5 of the Export Control List (ECL) and proposed for export from British Columbia undergo a surplus testing procedure in consultation with the Provincial government.

1.4 In remote areas of the Coast, applications may be made for a minimum export of 2800 m³ of logs. Volumes below this level will not be accepted and must be transported to the established log marketing areas before making applications. Normally, volumes above 15,000 m³ from any area will not be considered.

1.5 Only harvested logs will be considered for export. Logs must be sorted, boomed or decked to conform to normal log market practices of not less than 90% of a single species and recognized domestic end use sort by volume. Hemlock and balsam may be considered one species. For pulp log sort only, lodgepole pine and spruce may be included with hemlock and balsam.

1.6 All timber is subject to, and must be available for, inspection by the B.C. Ministry of Forests (BCMOF).

Note: All parcels of logs scaled for export purposes whether original scale for export or stock scale for export must be scaled by timber mark using the B.C. metric scale. In the case of stock scales it is imperative that the notation stock scale for export by mark be recorded in the remark section of the summary of scale as well as on the tally sheet. No other scale format will be acceptable.

1.7 Exporters moving logs, in-transit, through the Province of British Columbia with logs harvested from places other than B.C. should contact the B.C. Ministry of Forests in Nanaimo, B.C. at 250-751-7089 for information regarding supporting documentation required for in-transit shipments through B.C..

2.0 Procedures for Federal/Private Lands

2.1 Exporters wishing to export logs harvested from Federal or private lands not subject to control under Part 10 of the B.C. Forest Act⁽ⁱ⁾ must apply to the Export Controls Division (ECD) of the Department of Foreign Affairs and International Trade (DFAIT) at the address noted in Section 7 of this Notice. Initially, one form must be submitted to ECD/DFAIT: an "Application to Advertise Logs on the B.C. Federal Bi-Weekly List" (EXT 1718) which is available from ECD/DFAIT or from any of the B.C. Ministry of Forests (BCMOF) offices (see Section 8). This form must be accompanied by a metric stock scale by timber mark (Summary of Scale or FS 72) or a computer generated Summary of Scale (Scale detail by length and diameter must also accompany the Scale Summary). Copies of both the "Application" and the "Summary" must also be sent to the Regional BCMOF office where the logs will be advertised at the same time the originals are submitted to ECD/DFAIT.

(i) Booms or parcels containing any logs subject to Part 10 will not be accepted for export consideration.

2.2 Upon receipt and review of the EXT 1718, the ECD/DFAIT will request the B.C. Ministry of Forests (BCMOF) to notify potential domestic purchasers that the logs are available for domestic sale and that they may place written bids/offers on the logs, normally within fourteen days (14) of notification date. Appendix 1 contains a sample letter of an "Offer to Purchase".

2.3 Information on Applications/Advertised Listings

Detailed information on individual applications will not be supplied over the telephone by the ECD/DFAIT or Provincial Ministry staff. However, a copy of the Bi-Weekly List is available to the public at the Provincial Regional Office where a copy of the application was sent, and directly from the Vancouver Regional Office located in Nanaimo (see Section 8 for addresses).

2.4 Offers to Purchase

• Offers to purchase (see Appendix 1) must be in writing, on company letterhead, dated and signed by an official of the company/person making the offer. All offers must be sent to the Applicant (vendor), with copies to the ECD/DFAIT and BCMOF and must include:
  • 1. application number(s);
  • 2. species;
  • 3. unit of measure on which prices are based, and on the coast, the boom number;
  • 4. the offer FOB location;
  • 5. expiry date of offer;⁽ⁱⁱ⁾
  • 6. name/address of anticipated/intended processing facility; and
  • 7. any other conditions of sale between the buyer and the seller.
  (ii) Each Bi-Weekly List will specify the period during which offers must remain valid.
• In the case of Vancouver and the Coast, the last day of receipt of offers to purchase is noted in the Bi-Weekly List. For the Interior, the applicable Regional Manager will advise as to the last day for receipt of offers.
• Withdrawal/Local Sale Notification:
  • Once offers to purchase are made, they cannot be withdrawn unless notification is provided by the offeror(s), in writing, to the ECD/DFAIT and the appropriate Provincial Regional Office setting out the reason why the offer(s) is being withdrawn.
  • If the logs were sold locally, the Applicant must notify, in writing, the ECD/DFAIT and the appropriate Provincial Regional Office. Such notification will stop further processing of the application.
• In those cases where offers are made, the offers, together with the pertinent details, will be forwarded by the ECD/DFAIT and/or the BCMOF to the Federal Timber Export Advisory Committee (FTEAC).

2.5 Re-Sort or Processing Subsequent to Advertising

• Once the logs have been advertised for sale, they may not be re-sorted or moved to another place or location until the advertising period has expired. Where logs are moved or re-sorted before the expiry of the advertising period, such logs will no longer be considered for that particular advertising period.
• After expiry of the advertising period, where re-sorting is required, the Applicant must submit a written request to, and receive written approval to do so from the Provincial Regional Office prior to re-sorting the logs. Upon completion of the re-sorting, the applicant must ensure that aprocessing report is forwarded to the Provincial Regional Office where a copy of the application was first sent, as well as to the ECD/DFAIT.

Note: A metric stock scale by timber mark must be done on the export portion when the volume or piece count differs from that of the original parcel.

3.0 When No Offers are Received

If no offer to purchase the logs is submitted within the required time period, the ECD/DFAIT will consider this and any other factors before informing the Exporter/Applicant as to whether or not the logs are surplus to domestic requirements. If the logs are determined to be surplus, the exporter will be requested to submit two forms: An "Application for Permit to Export Goods" (EXT 1042) and the form "Information on Logs in Support of Federal Application EXT 1042" (EXT 1719) to the ECD/DFAIT with copies to the BCMOF. Upon receipt of this documentation, the ECD/DFAIT will undertake to process the Federal export permit application.

4.0 When Offers are Received

4.1 As indicated in 2.4.b), offers to purchase the logs must be received within the required time period as determined by the Regional BCMOF office. This period is normally 14 days from date of notification.

4.2 Each Bi-Weekly List will specify the period during which offers must remain valid.

4.3 When considering offers, FTEAC proceeds as follows:

• The FTEAC will not consider offers to purchase logs by any person who has exported logs directly or indirectly from Canada within the previous 90 days. The 90 day period covers the period between the day on which the export took place and the day on which the offer to purchase is made.
• Conversely, the FTEAC will not consider any Application from a company or individual who has submitted a valid offer for logs being advertised during the preceding 90 days. The 90 day period covers the period between the date on which the offer(s) was made and the date on which the Federal Form, "Application to Advertise Logs on the B.C. Federal Bi-Weekly List" (EXT 1718), was submitted.
• For the purposes of surplus testing, normally the FTEAC will consider offers only from persons who are involved in log processing. That is, those persons who own or operate log processing facilities.
• Incomplete offers to purchase may be considered invalid by FTEAC.

4.4 Logs Deemed Surplus/Not Surplus

• Once FTEAC has completed its review as to whether or not offers were fair, it will inform the ECD/DFAIT. The ECD/DFAIT will review the FTEAC recommendation and other relevant factors in determining whether or not adequate supply exists. The Minister will then decide on whether a permit will be issued and the ECD/DFAIT will notify both the Exporter/Applicant and the offeror(s), in writing, of the decision.
• Where the Minister finds that the logs are surplus, the Exporter/Applicant will be requested to submit the two Federal application forms, EXT 1042 and EXT 1719 to the ECD/DFAIT with a copy to the BCMOF. Upon receipt of this documentation, the ECD/DFAIT will process the Federal export permit application.

4.5 Expiry Dates/Amendments

Once a Federal permit has expired it cannot be amended. However, a permit holder may request an extension (amendment) to an existing permit. The request must be in writing, addressed to the Director, Export Controls Division. This should be done at least two weeks prior to the expiry date.

5.0 Logs from Indian Reserves

5.1 For logs harvested from Indian Reserves and surrendered lands as defined in the Indian Act and the Indian Timber Regulations, the applicant must apply to the B.C. Ministry of Forests Provincial Regional Office and submit the following documents:

• The Federal form, "Information on Logs in Support of Federal Application EXT 1042" (EXT 1719);
• Written letter of consent from DIAND; and
• A stock scale in approved format.

5.2 Pursuant to the Department of Indian Affairs and Northern Development (DIAND) British Columbia Region export policy for unmanufactured forest products, the Exporter must obtain a written letter of consent from DIAND in Vancouver. Once the letter of consent is issued by DIAND, it is sent by DIAND to the ECD/DFAIT at the address noted in Section G, with copies to the BC Ministry of Forests (BCMOF) and the applicable Indian Band. For information contact:

Note: All parcels of logs scaled for export purposes, whether original scale for export or stock scale for export must be scaled by timber mark using the B.C. metric scale. In the case of stock scales it is imperative that the notation stock scale for export by mark be recorded in the remark section of the summary of scale as well as on the tally sheet. No other scale format will be acceptable.

5.3 Upon receipt of the documentation noted above, the BCMOF Provincial Regional Office will return copies of the documents to the Applicant. The Applicant must then apply for a Federal export permit by completing an "Application For Permit To Export Goods" (EXT-1042) and submitting it to the ECD/DFAIT together with copies of all documents noted in paragraph 5.1.

5.4 Upon receipt of the documents noted in paragraph 5.1 above, the ECD/DFAIT will undertake to process the Federal export permit application.

5.5 All timber is subject to, and must be available for, inspection by the BCMOF. As well, all logs must be marked to identify their origin.

6.0 Procedures for Provincial Land

6.1 Exporters wishing to export logs harvested from Provincial lands located in B.C. and subject to control under Part 10 of the B.C. Forest Act must follow the procedures as detailed in "Province of B.C. Procedures for the Export of Timber". These Procedures are available from any of the offices noted in Section 8.

7.0 Export Permit and Certificate Fees

7.1 Exporters are advised that under the authority of the Export and Import Permits and Certificates Fees Order, a fee of $14.00 will be levied for each Federal export permit for the export of goods included on the Export Control List (ECL) under Group 5 except Items 5400, 5401 and 5500. Exporters applying for permits are required to submit with their Federal application a cheque or bank money order, payable to the Receiver General for Canada (no cash) in the amount of $14.00 for each permit requested.

7.2 Exporters wanting to submit their applications by facsimile may do so on the understanding that the original application must be sent immediately by mail together with a cheque or money order in the amount of $14.00. Exporters who do not include the cheque or money order with their original applications will be placed on monthly billing.

7.3 Federal export permit applications and supporting documentation, as well as all enquiries, should be directed to:

The Department of Foreign Affairs and International Trade (DFAIT)
Export Controls Division (EPE)
125 Sussex Drive
Ottawa, Ontario K1A 0G2
Telephone: 613-995-0268
Facsimile: 613-944-2491

8.0 Addresses/Contacts of Provincial Regional Offices