Closures and curtailments of facilities in the region have impacted the forestry industry, as has COVID-19.
In an effort to support the sector, the changes to the Manufactured Forest Products Regulation (MFPR) and the Coast-wide implementation of the variable fee-in-lieu of manufacture on log exports that were originally scheduled July 1st have been postponed until September and December, respectively.
The Provincial Government is reporting the forest industry has experienced global hardship because of the pandemic.
Delaying the MFPR and fee-in-lieu will provide B.C. forest companies with more time to adjust their business models in response to the regulatory changes.
Under the current MFPR regulations, logs that are squared off up to a maximum dimension of 43 by 43 centimetres (17 by 17 inches) are categorized as a sawn-wood product and may be exported without further manufacture.
As of September 30th, the amended regulation will change the maximum dimension of lumber to be considered a sawn-wood product to 30.5 by 30.5 centimetres (12 by 12 inches).
This means lumber will require more domestic processing before being exported.
Additionally, the in-lieu-of manufacture regulation will mean that lumber made from Western red cedar or cypress must be fully manufactured to be eligible for export, or the seller must get an exemption from the manufacturing requirement and pay a new fee-in-lieu of manufacture to the Province.
The complete announcement can be read online.
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