The US Customs and Border Protection (CBP) and Foreign Affairs and International Trade Canada (DFAIT) have announced that they will implement the Canada/USA Softwood Lumber Agreement on October 12, 2006

TRADE ALERT

New Softwood Lumber Agreement Implementation Date Set

(October 10, 2006)

US Customs and Border Protection (CBP) and Foreign Affairs and International Trade Canada (DFAIT) have announced that they will implement the Canada/USA Softwood Lumber Agreement. Originally scheduled for October 1, 2006, the new agreement will go into effect October 12, 2006—ending a two-decade long dispute. Additionally, Minister of International Trade, David Emerson stated that Export Development Canada’s Refund Mechanism is in place and moving forward. Please refer to EDC’s Documents Website, www.edc.ca/documents, for a complete listing of the Operative Documents required for participation in the Deposit Refund Mechanism. Some of the significant changes resulting from the Softwood Lumber Agreement include:

Affected parties must apply for a softwood lumber permit prior to the shipment’s arrival at the border.

Importers of Record are required to include the export permit number with the consumption entry (CF7501). Therefore, Deringer recommends that exporters who are applying for the lumber permit themselves legibly write the export permit number on their invoice that is faxed to Deringer and subsequently presented to US Customs & Border Protection (CBP). Deringer will then transmit the export permit number to CBP along with other required entry information.

If Deringer is obtaining the softwood lumber permit on your behalf, then the following information must be included on your invoice at the time of shipment as defined in the Softwood Lumber Agreement:

Manufacturer’s Canada Revenue Agency Business Number

Export and Import Control Bureau Company File Number

Canadian Customs tariff number (10 digits)

Export price as defined in the SLA

Canadian Shipment Date as defined in the SLA

Maritime Lumber Bureau Certificate of Origin serial number if applicable.

This information must be sent to Deringer well in advance of the shipment date, so that we can apply for the permit prior to the shipment arrival at the border.

Deringer is relying on information provided to them by its clients and assumes no liability for origin or value as implied under the Softwood Lumber Agreement. These are matters that should be reviewed by attorneys and other legal advisors.

Affected persons should be aware that nothing in the SLA shall prevent a party from imposing criminal, civil, or administrative penalties for violations of its laws and regulations relating to the matters in the agreement. All interested parties are encouraged to review the agreement in its entirety at http://www.dfait-maeci.gc.ca/trade/eicb/softwood/SLA-main-en.asp.

Deringer, continues to monitor this issue and will provide more information as it becomes available. For more information, please contact your local Deringer branch at 800-448-8108.