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Ministry of Forests, Lands and Natural Resource Operations

Log and Residuals Export Policy and Administration

The Forest Act, Part 10 requires that Crown and private timber harvested in the province, and residuals from the timber, are used or manufactured in the province into products, as defined in the Manufactured Forest Products Regulation. Exemption from this requirement (permission to export) is given, under limited circumstances, using the procedures described below.

Log exports (legally referred to as exports of unmanufactured timber) play a key role in the development of B.C.’s economy, particularly on the coast, by supporting jobs and economic activity in the logging and transportation sectors. Exporting of residuals enables balancing sawmill outputs of chips and sawdust with the intake of domestic pulp mills.

This website describes the province’s log and residuals export policies and procedures. It includes links to the online application system, the Bi-Weekly Advertising List (current list as CSV or PDF), forms, notices, key contacts, and federal log export information. The federal government regulates exports of logs harvested from some private land and most First Nation lands using a similar procedure.

Log Exports

Residuals Exports

Ministry Contacts

1. Exemption (including advertising of timber)

The timber owner/agent either applies for exemption of harvested timber through a “surplus” test that includes advertising the timber, or uses a “blanket” exemption for standing timber. Domestic mill operators can make offers on advertised timber and notify FLNRO. The timber owner/agent should ensure relevant accounts are in good standing.

2. Provincial Permit (including payment of fee in lieu of manufacture)

The timber owner/agent with an exemption applies for a provincial permit and notifies FLNRO regional staff, is charged a fee in lieu of manufacture in the province, and ensures accounts are in good standing.

  • Fee in Lieu of Manufacture Rates, as of March 1, 2013 (January 17, 2013)
    • Effective March 1, 2013 to June 30, 2013, the multiplication factor 1.2 is used to calculate the fee.
      For example, for an $80/m3 spruce sawlog, the fee is: $80.00 x 10% x 1.2 = $9.60

      This multiplication factor applies to logs from Coast tenures, except those exported under a blanket exemption by Order in Council (fee rates are specified in each Order in Council). The factor is based on the average export value and average domestic value for the latest 3-month data available at the beginning of the quarter – see the Multiplication Factor table.

      The factor of 1.2 will be used for the April-June quarter, to provide certainty in the near term. Quarterly review and adjustment will begin effective July 1, 2013.
    • Effective March 1, 2013, Coast domestic log values are based on volume-weighted average prices, by grade, of old growth and second growth logs for the latest 3-month data available at the beginning of the month. The use of separate old growth and second growth log values is discontinued as of the end of the business day, February 28, 2013.

    • Effective April 1, 2013, individual species and grade values will be used to calculate the fee in lieu of manufacture for Coast hemlock and balsam. Previously, hemlock and balsam values were combined for each grade.

    • Domestic log value tables are updated monthly since March 2013 – see current month and archives. For earlier dates, please refer to the Market Pricing System (MPS) Parameters.

  • Forms:

    • In the Interior, application for a provincial permit is made through the Log Exemption Information System (LEXIS). On the Coast and in special situations, form FS38 is submitted by email or fax. If approved, the ministry issues a provincial permit (FS34).

    • FS 38: Application for Permit to Export Unmanufactured Timber (PDF) (Shana form)
    • FS 34: Permit to Export Unmanufactured Timber (PDF)
  • Notices to Exporters:

3. Federal Export Permit (including information for logs under federal jurisdiction)

The timber owner/agent with a provincial permit applies for a federal export permit. The Canada Border Service Agency oversees exports at loading docks or the border.

Timeline

The expected timeline of procedures for the export of timber is shown below. Individual steps may take more or less time, depending on circumstances.

  • Notices to Exporters:
    • Week STEPS
    0 1. Exemption
     
    Client applies for exemption; cut-off is Friday, 11:59 p.m. in LEXIS.
    1 FLNRO reviews applications and posts Bi-Weekly Advertising List.
    2 & 3 Bi-Weekly List is available for clients to view.
    Domestic mill operators can make offers and notify FLNRO.
    Offeror may withdraw an offer and notify FLNRO (continue as if No Offer Received).
    Week No Offer Received Week Offer Received
    4 If accounts are in good standing, FLNRO issues exemption within 3 business days.
     
    2. Provincial Permit
    Client applies for provincial permit and notifies region.     		4 FLNRO reviews offers.
    Offeror may withdraw an offer and notify FLNRO (continue as if No Offer Received).
    5 FLNRO calculates fee in lieu and issues provincial permit within 10 business days of receiving complete application.
    Inter-provincial transport can begin.     		5 to 9 FLNRO refers offer to TEAC.
    TEAC reviews offer.
    (TEAC may take up to 4 more weeks, depending on timing of next meeting.)
    6 2. Federal Export Permit
    Client applies for federal export permit.
    DFAIT issues federal export permit.     		6 to 10 Minister determines surplus or not.
    If surplus and accounts are in good standing, FLNRO issues exemption.

    2. Provincial Permit
    Client applies for provincial permit and notifies region.
    7 Loading of export ships can begin.
    Loaded trucks can cross border to USA.    		 7 to 11 FLNRO calculates fee in lieu and issues provincial permit within 10 business days of receiving complete application.
    Inter-provincial transport can begin.
        8 to 12 2. Federal Export Permit
    Client applies for federal export permit.
    DFAIT issues federal export permit.
        9 to 13 Loading of export ships can begin.
    Loaded trucks can cross border to USA.

    Log Export Policy in B.C.: A Chronology

    Ministry Contacts