Questions and Answers Regarding M-208

1. Q. Does this order cover cypress?

A. Yes, this order covers all softwood lumber of all species, grades and sizes, except shingles and lath, plywood, veneer or used lumber. Cypress is a softwood.

2. Q. Should fabricators of lumber who are operating under PRP use the ratings, if any, assigned to deliveries of lumber in their PRP certificates?

A. Yes, they may also, however, apply ratings assigned in M-208 for their lumber requirements for uses covered by the lists attached to and made a part of the order.

3. Q. Does M-208 and the ratings assigned in it apply to hardwood lumber?

A. No.

4. Q. How will a person who desires to place an order for 'softwood lumber, apply or extend a preference rating to his order?

A. The purchaser may have a rating which he can use. This rating may have been assigned on a PRP certificate, a preference rating order or a PD-la or PD3a certificate, either to the purchaser himself, or extended to him by the person to whom it was assigned by WPB or other Governmental authority. He may use this rating by endorsing upon his purchase order the highest rating included within the class which embraies this ra[ing. For instance, if the rating which he has is A-l-j, he endorses A-l-a on his purchase order. This will simplify matters for distributors and producers of softwood lumber. If he does not have a rating which he may apply or extend, or if his rating is lower than the one which is assigned in M-208 fbr the particular use to which he intends to put the lumber, he may use rating assigned in M-208. He will apply this by placing a ceitificate on his purchase order in accordance with the provisions of Priorities Regulation No. 3.

5. Q. How should a distributor operale under this order?

A. tf a distributor receives an A-1-j rating, for instance, he should treat it as if it bore a rating of A-l-a because it falls within Class 3. If the distributor does not have sufficient lumber on hand to fill the clrder without reducing his inventory below a 60 day supply, he may extend the rating to a producer of softwood lumber; but he may extend only for an amount which will enable him, with lumber in inventory, to fill the order and still have a 60 day supply. He will extend by endorsing on his purchase order a certification in accordance with the provisions of Priorities Regulation No. 3. He will not state, however, that the order bears a rating of A-l-j ; he will state instead that the order bears the rating of A-l-a. This method of handling ratings will simplily matters for the producer of softwood lumber.

6. Q. Must rated orders be accepted and filled?

A. Yes, this is governed by Priorities Regulation No. 1. This regulation, and Priorities Regulation No. 3 are basic rules of the priorities system. They should be carefully read and digested.

7.Q,May lumber for uses not specified in one of the lists, be assigned a preference rating?

A. Ratings for such uses may be assigned in proper cases on Forms PD-la and PD-3a, and by certain preference rating orders, to perqons not under PRP, and on the proper PRP forrtr to persons operating under PRP.

8. Q. Are wood products covered by this order?

A. Wood products such as flooring, cross arms, railroad ties, etc. are covered by the order, if they are a product of sawing and if they are softwood. Telephone poles and piling are not covered by the order.

9. Q. Are products fabricated of softwood, covered by the provisions of M-208?

A. No.

10. Q. How about lumber for export?

A. This order does not differentiate lumber for domestic use and lumber for export. Therefore, lumber for export is to be treated the same as though it was for domestic use.

11.Q. Is a person who finances the cut of a sawmill prohibited, under Paragraph (e), from accumulating more than a 60 day supply at the mill?

A. No, paragraph (e) restricts the delivery of softwood lumber: For the purposes of this order, a person does not accept delivery of such lumber merely by financing its production or taking title to it at the saw mill. To "accept delivery" means to take possession of the lumber when it is removed from the mill for sale or use.

12.Q.Is application or extension of preference ratings done by classes or by preference ratings?

A. Preference ratings are applied or extended by means of a certification endorsed on purchase orders pursuant to the provisions of Priorities Regulation No.

3. The classes set up in the order are simply for the purposes of grouping preference ratings so as to reduce to four the number of preference ratings which a producer of softwood lumber will have to handle.

13. Q. Must a person replace in inventory only items similar to those he used or sold?

A. No, he may replace an equivalent footage, but it need not necessarily consist of the same items.

14. Q. What is meant by the term "6O day supply?"

,4'.60 days supply is the amount that, according to a person's best judgment aided by past experience he will use (if he is a consumer) or sell (if he is a distributor) within the ensuing sixty-day period.

15. Q. What is rneant by the re.aiittg frovisi6ns contained in Paragraph (d),?

A. This paragraph means two things. First, that no order placed after September 1 may have a different preference rating applied or extended to it than the rating upon the order when placed. Second, purchase orders placed prior to Sept'ember 1, may be rerated according to the provisions of Prioiities Regulation No. 12 prior to September 17.

16. Q. Should a producer or distribulor of softwood lumber classify his present order file according to the business of his customer as set out in Lists A, B and C or should he send back his orders and ask his customers to indicate the priority rating or class?

A. Neither. A particular ordei is entitled to priority only if a preference rating is applied or extended to the order in accordance with the provisions of Regu- lation No. 3. This is true equally-of ratings assigned on a PRP certificate, or on a preference rating certificate or order, and of ratings assigned on M-208. A producer may not assume from the business of his customer that the lumber ordered bears a particular rating, or any rating at all.

17.Q.A producer or distributor has an order in his order file which is not specifically rated but is for a project carrying an A-1-a rating. If the project raling is raised after September 1, but befoie Septembei-17, can the new rating be applied or extended to the lumber order?

A. The new rating can be applied or extended lumber order only if it is applied or extended September 17.

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Mr. Lrumber Dealer: to the before l9;Q. If a distributor or producer receives an order for softwood lumber rated A-l-j from X on September 1, and one rated A-l-a from Y on Septembef 2, both (Continued on Page 26)

18. Q. Replacement to a 60 day inventory of stocks to fill rated orders is permitted under M-208. How does a retailer or wholesaler indicate that his order is for . llplacement of stock sold under priority?

A. The retailer or wholesaler indicat6s thaf his order is for replacement of stock sold under priority by extending the preference rating on whith he -supplied the softwood lumber, or by applying the appliiable preference rating assigned for thi pulpose in-M-208. The provisions of Priorities Regulation No.3 governing_ application and extension of preference iatings, and replacement of inventory should be carefully noted.

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