Lumber Provisions in New British-American Trade Agreement

The new trade agreements between the United States, Great Britain and Canada were signed on November 17. They become effective on January 1. A summary of the detailed lumber provisions is as follows:

United Kingdom

The United Kingdom reduces its duty on rough so{twood lumber, except box shooks and railroad ties, valued at eighteen pounds or more per standard landed value or eleven inches or more wide from 10 per cent ad valorem to sixteen shillings per standard. For rough sottwoocl lumber at landed value of eighteen down to seventeen pounds, the rate is fixed at ten per cent ad valorem less one per cent for each four shillings value over sixteen pounds sixteen shillings.

Further, if and when the American excise tax on imported lumber is removed and so long as the American duty of fifty cents ,per M on Par. 401 species from Canada* is not raised, the United Kingdom shall grant free entry to rough softwood lumber, except box shooks and ties, valued at eighteen pounds or more, or nine inches or wider and fifteen feet or longer, and for other rough softrvood lumber valued at sixteen pounds four shillings to eighteen pounds per standard duty is fixed at ten per cent less one per cent for each four shillings value exceeding sixteen pounds.

Adjustment of value limitations is provided in the event that the average value of British imports of all rough softwood lumber either exceeds fourteen pounds or is less than ten pounds per standard. (All values are per standard of 1,980 board feet, landed value.)

The British duty on Softwood Plywood is bound against increase. Doors 6' x 2' or larger are reduced to one shilling six pence each or twenty per cent, whichever greater. Lesser size doors continue at 15 per cent.

Except hickory, persimmon, dogwood, which continue and are bound free, the British ten per cent duty on Hardwood not further prepared than square sawn (rough) is bound against increase. Hardwood flooring including parquet sections is reduced from twenty per cent to seventeen and one-half per cent ad valorem.

coloNrEs (AND TNVTTATTON TO DOMTNTONS)

Canada agrees to modification of preferences in the British Caribbean colonies except Bahamas to equivalent of $2.00 per fhousand feet with nearly all of those now less than that bound against increase. Throughout the Colonial Empire, sixteen Colonial preferences are reduced and nineteen are bound against increase. Canada will not object to reduction of preferences in the Dominions or Colonies to $2.00 per thousand feet and to abolition of such preferences if and when the American import tax on Canadian lumber is abolished.

CANADA _ UNITED STATES

The nerv Canadian agreement continues the American duty concessions on imported lumber, except the Par. 404 Cabinet Woods (which are not produced in Canada). The quota limitation on fir and hemlock imports into the U. S. is removed. Lumber imported into the United States need not be marked to show country of origin. The American excise tax is to apply to sawed timber. Veneers of birch arrd maple are reduced f.rom ?O per cent to 10 per cent by the United States.

Regarding shingle imports, the United States reserves the right, by Congressional enactment, to impose a duty not exceeding twenty-five cents per square on inports exceeding thirty per cent of average annual consumption during the three preceding years.

The Canadian three per cent excise tax on imports of lumber is removed. The Canadian duty on hardwood flooring of beech, birch, maple and oak is reduced frorn twenty per cent to seventeen and one-half per cent. Other SIS or S2S jointed or T&G is reduced from twenty per cent to ten per cent. Shingles are free into Canada.

Lumber Declaration Of Governments Of Canada And United States

The following is appended to the new agreement between the United States and Canada:

Lumber Declaration

"The Governments of Canada and the United States of America, desiring to proceed toward the removal of those restrictions on the international trade in lumber which have operated to the disadvantage of their respective lttmber industries;

"Recognizing that as a first step towards this objective the duties and taxes levied on lumber imported into the United States frorn Canada were reduced by 50 per cent to $2 per thousand feet in the Trade Agreement concludecl between Canada and the United States of America on November 15, 1935;

"Noting that as a consequence of the coming into force of the Trade Agreements signed this day:

"(1) the United Kingdom duty on softwood lumber in those forms of which the United States is an important supplier of the United Kingdom's requirements rvill not exceed 16 shillings per standard (approximately $2 per thousand feet), rvithout any restriction as to the quantity that may be im,ported at the reduced rate of duty;

"

(2) the preferential margins enjoyed by lumber of Empire origin in the British West In<lian Colonies will not exceed $2 per thousand feet;

"(3) the Canadian duty on planed or dressed lumber imported from the United States will be reduced by 50 per cent and the special excise tax of 3 per cent will be removed from rough and dressed lumber, without any restriction as to the quantity that may be imported either at the reduced rates of duty or free;

"(4) the quantitv of red cedar shingles that nray be im- ported into the United States free of duty will be fixed at 30 per cent of United States consumption and imports in excess of this quantity will not be dutiable at more than 25 cents per square;

"(5) the quantitative restriction on the importation into the United States of lumber of Douglas fir and Western Hemlock at the reduced rates of duty and tax in effect since January L, 1936, and confirmed by the Trade Agreemeut signed today, will be removed; and that

"(6) lumber and timber imported from Canada rvill not be required to be rnarked to indicate their country of origin.

"Noting further that the Governments of Canada, the United Kingdom, and the United States of America are, for their part, prepared to give effect to the arrangement envisaged in the Trade Agreement between the United Kingdom and the United States whereby lumber of the values and sizes therein set forth shall on its importation into the United Kingdom from the United States of America be admitted free of duty as soon as the import excise tax norv levied on Canadian lumber imported into the United States is removed.

"Have resolved to record their readiness to cooperate, as opportunity occurs, in restoring the reciprocal advantages enjoved by the timber products of their respective countries prior to the general resort to retaliatory restrictions on the importation of lumber and to confirm their understanding that the Governmer-rt of Canada will interpose no objection to the reduction by Empire Governments other than the United K'ingdom of differential duties now levied on United States lumber to a point at rvhich the margin of preference enjoyed by Canadian lumber will not exceed the tluties and taxcs now irnposed on Canadian lumber on importation into the United States and that rvhen, and for so long as, the United States import excise tax ceases to apply to lumber imported into (from) Canada, Canada will concur in any request it may receive from such Empire Government for the extension to United States lumber of the tariff treatment enioyed by Canadian 1umber."

Management Changes Announced in Hammond Organization

Announcement is made by the Hammond Redwood Company that H. E. Bailey, who has been in charge of the company's operations in Humboldt County will become comptroller of the entire Hammond organization, effective December 15. His headquarters will be in the San Francisco office.

Earl Birmingham will succeed Mr. Bailey, assuming his ne'rv duties December 15. Mr. Birmingham is a Californian by birth, a graduate in engineering of the University of California, and for the past 1.5 years has been in charge of the lumber operations of the Fruit Growers' Supply Company at Hilt and Susanville.

WESTERN RETAILERS WILL HOLD ANNUAL FEBRUARY 23.25

The Western'Retail Lumbermen's Association will hold its thirty-sixth annual convention on February 23-25 at the Multnomah Hotel, Portland, Oregon.

Ilh. Lumhennan,

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It mckes hqndsome hqrdwood wqlls at a nomincrl cost.

It's new and becutilul,

It sells like hotcckes.

Ask our sclesmen for scrmples.