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July 28, 2010

Canada will collect export tax on lumber to replace U.S. import tax

The United States had agreed to transfer to Canada the collection of a 10-percent customs duty currently imposed on softwood lumber products imported into the United States from Ontario, Quebec, Manitoba and Saskatchewan.

As of September 1, 2010, Canada will begin collecting this duty on softwood lumber exports to the U.S. from the four provinces. This export charge stems from a London Court of International Arbitration Tribunal Award under the Softwood Lumber Agreement.

The revenue collected from this tax will stay in Canada and be distributed back to the four provinces.

The announcement was made by Minister of International Trade, Peter Van Loan, who met last week with U.S. Trade Representative, Ron Kirk, to discuss greater economic cooperation between Canada and the United States.