Friday, September 22, 2006

First taste of softwood deal will be border tax higher than US ...

VANCOUVER (CP) - Canada's lumber exporters will get their first taste of the new softwood lumber agreement with the United States starting next month and it won't be pleasant. The current 10.8 per cent combined anti-dumping and countervailing duties levied by U.S. Customs will be replaced by a 15 per cent Canadian export tax. That's because the agreement, which is headed for implementation Oct. 1, bases the export tax on the prevailing composite market price of framing lumber set by Random Lengths, an industry news service. The price this month, which will be the basis for October's tax rate, is well below the US$315 per thousand board feet that triggers the maximum 15 per cent border tax. Random Lengths' mid-week price Thursday was US$294.

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