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Notice to Importers

Changes to Commodity Codes, Effective January 1, 2012

Serial No. 811
Date: December 16, 2011

1. Purpose

1.1 The purpose of this Notice is to inform importers of two sets of changes:

i) to regulations and regulatory instruments under the Export and Import Permits Act (EIPA), in accordance with changes to tariff item numbers in Canada's Customs Tariff Schedule;

ii) to Notices to Importers.

2. Context

2.1 Canada and over 160 countries are contracting parties to the International Convention on the Harmonized Commodity Description and Coding System, which governs the Harmonized Commodity Description and Coding System (generally referred to as “Harmonized System” or simply “HS”). The HS is an international product nomenclature developed by the World Customs Organization (WCO) that contributes to the harmonization of customs and trade procedures. It is used extensively by governments, international organizations, and the private sector for a range of purposes, including: internal taxes, trade policies, monitoring of controlled products, rules of origin, freight tariffs, transport statistics, price monitoring, quota controls, compilation of national accounts, and economic analysis. The HS guides the numbering and description of approximately 8,500 tariff items in Canada's Customs Tariff Schedule.

2.2 The WCO (through the HS Committee that represents contracting parties) updates the HS Codes every 5-6 years to reflect developments in technology and trade patterns. The current round of amendments is set to take effect on January 1, 2012. As a contracting party, Canada is required to adopt these amendments. Accordingly, Canada incorporated these amendments through the Order Amending the Schedule to the Customs Tariff (Harmonized System, 2012) (SOR/2011-191), which was adopted on September 22, 2011, was published in the Supplement Canada Gazette, Part II on October 12, 2011, and is set to enter into force on January 1, 2012.

2.3 Consequential to the changes to Canada's Customs Tariff Schedule implemented through Order 2011-191, the Government of Canada amended ten regulations made under the EIPA, namely:

the Import Control List (ICL);
the Allocation Methods Order – Hatching Eggs, Live Broilers, Eggs and Egg Products;
the Allocation Method Order – Turkey and Turkey Products;
the General Import Permit No. 1 –Dairy Products for Personal Use;
the General Import Permit No. 2 – Chickens and Chicken Products for Personal Use;
the General Import Permit No. 3 – Wheat and Wheat Products and Barley and Barley Products for Personal Use;
the General Import Permit No. 7 – Turkeys and Turkey Products for Personal Use;
the General Import Permit No. 8 – Eggs for Personal Use;
the General Import Permit No. 20 – Wheat and Wheat Products and Barley and Barley Products; and
the General Import Permit No. 100 – Eligible Agriculture Goods.

The amendments to these ten regulations are purely technical in nature: implementing the changes to tariff item numbers in the EIPA regulations consequential to the Order 2011-191. As with Order 2011-191, the amendments involve no changes in tariff or import policies, and are revenue neutral and tariff rate neutral. These amendments will serve to align the EIPA regulations with the amended Customs Tariff Schedule on January 1, 2012.

2.4 Consequential to the amendments to the ten regulations listed above, a number of Notices to Importers have been updated in order for those Notices to cite the correct tariff item numbers from the new, 2012 Customs Tariff Schedule.

3. Coverage

3.1 Effective January 1, 2012, this Notice modifies the following Notices to Importers:

No. 788 (Specialty Cream), dated May 19, 2011;
No. 791 (Wheat, Barley and their Products), dated August 9, 2011;
No. 792 (Chicken and Chicken Products) and 793 (Chicken and Chicken Products – Supplementary Imports), dated October 14, 2011;
No. 794 (Broiler Hatching Eggs and Chicks for Chicken Production) and 795 (Broiler Hatching Eggs and Chicks for Chicken Production – Supplemental Imports), dated October 21, 2011;
No. 799 (Eggs and Egg Products) and 802 (Eggs and Egg Products – Supplementary Imports), dated October 14, 2011;
No. 800 (Turkey and Turkey Products) and 801 (Turkey and Turkey Products – Supplementary Imports), dated October 14, 2011;
No. 803 (Dairy products on the import control list: supplementary import permits), dated October 14, 2011.

3.2 This Notice refers to items 95, 99, 108, 117.1, 135, 161, and 182 of the ICL. These items cover, respectively:

hatching eggs for broilers;
fat of fowls of the species Gallus Domesticus, not rendered or otherwise extracted, fresh, chilled or frozen, salted, in brine, dried or smoked;
fat of turkey, not rendered or otherwise extracted, fresh, chilled or frozen, salted, in brine, dried or smoked;
cream, neither concentrated nor containing added sugar or other sweetening matter, of a fat content, by weight, exceeding 6 per cent;
eggs in the shell, fresh, preserved or cooked, other than hatching eggs for broilers;
wheat and meslin; and
barley.

3.3 Under the 2011, pre-HS conversion version of the Customs Tariff, these commodities were identified by the following tariff item numbers:

hatching eggs for broilers - 0407.00.11 or 0407.00.12;
fat of fowls of the species Gallus Domesticus - 0209.00.21 or 0209.00.22;
fat of turkey - 0209.00.23 or 0209.00.24;
cream - 0401.30.10 or 0401.30.20;
eggs in the shell - 0407.00.18 or 0407.00.19;
wheat and meslin - 1001.10.10, 1001.10.20, 1001.90.10 or 1001.90.20;and
barley - 1003.00.11, 1003.00.12, 1003.00.91 or 1003.00.92.

4. Authority

4.1 His Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to section 14 of the Customs Tariff, has authorized effective September 22, 2011 the Order Amending the Schedule to the Customs Tariff (Harmonized System Conversion, 2012) (SOR/2011-191).

4.2 His Excellency the Governor General in Council, on the recommendation of the Minister of Foreign Affairs, pursuant to section 6 of the Export and Imports Permit Act, has authorized effective December 15, 2011 the Order Amending the Import Control List (SOR/321).

5. Changes to Notices

5.1 Notice to Importers No. 788 (Specialty Cream), dated May 19, 2011, is modified as follows effective January 1, 2012 (changes in bold):

- Paragraph 2.1 of the Notice is replaced with “This Notice replaces Notice to Importers No. 764 dated May 7, 2010. It refers to Item 117.1 of the Import Control List (ICL), specialty creams falling under tariff item No. 0401.40.10, 0401.40.20, 0401.50.10 or 0401.50.20 in the list of tariff provisions set out in the Schedule to the Customs Tariff; namely sterilized cream, minimum 23% butterfat, in cans of a volume not exceeding 200 ml.

- Paragraph 11.1 of the Notice is replaced with “An import permits are issued, normally, pursuant to an import authorization and are required for each shipment of specialty creams falling within tariff Nos. 0401.40.10, 0401.40.20, 0401.50.10 or 0401.50.20 in the List of Tariff Provision set out in the Schedule to the Customs Tariff. Importers may either invoke General Import Permit (GIP) No. 100 - Eligible Agricultural Goods, a copy of which is available on request, or present an import permit issued to their firm for that shipment ("specific import permit"), in order to clear customs. Those citing the GIP will be authorized to import unlimited quantities of specialty creams, but such imports will be subject to the higher “over-access commitment” rate of duty. Those presenting a “specific import permit” to the Canada Border Services Agency at the time of final accounting may enter their shipments at the low “within access commitment” rate of duty. Note: “Specific import permits” will not be issued for shipments already imported into Canada under the authority of the General Import Permit, regardless of the importer's import allocation.”

5.2 Notice to Importers No. 791 (Wheat, Barley and their Products), dated August 9, 2011, is modified as follows effective January 1, 2012 (changes in bold):

- In Annex I - Product Coverage and Conversion Factors to the Notice, wheat HS code 1001.10.10 is replaced with 1001.11.10 and 1001.19.10; wheat HS code 1001.90.10 is replaced with 1001.91.10 and 1001.99.10; barley HS code 1003.00.11 is replaced with 1003.10.11 and 1003.90.11; and barley HS code 1003.00.91 is replaced with 1003.10.91 and 1003.90.91.

5.3 Notice to Importers No. 792 (Chicken and Chicken Products), dated October 14, 2011, is modified as follows effective January 1, 2012 (changes in bold):

- In Appendix 10 – List of EIPA commodity codes for chicken to the Notice, HS tariff number 0209.00.21.00 (Chicken fat, unrendered, fresh or frozen/smoked or dried) is replaced with 0209.90.10.00 (n.b. the description for these products are not changing). In all cases, the four digit EIPA suffixes remain the same.

- In Appendix 12 - Listing of chicken items on the Import Control List - Selected Excerpt to the Notice, paragraph 99 is replaced with “Fat of fowls (not rendered or otherwise extracted) of the species Gallus domesticus, fresh, chilled or frozen, salted, in brine, dried or smoked, that is classified under tariff item No. 0209.90.10 or 0209.90.20 in the list of tariff provisions set out in the Schedule to the Customs Tariff.”

5.4 Notice to Importers No. 793 (Chicken and Chicken Products – Supplementary Imports), dated October 14, 2011, is modified as follows effective January 1, 2012 (changes in bold):

- In Appendix 3 - Listing of chicken items on the Import Control List to the Notice, paragraph 99 is replaced with “Fat of fowls (not rendered or otherwise extracted) of the species Gallus domesticus, fresh, chilled or frozen, salted, in brine, dried or smoked, that is classified under tariff item No. 0209.90.10 or 0209.90.20 in the list of tariff provisions set out in the Schedule to the Customs Tariff.”

- In Appendix 4 – List of EIPA Commodity Codes for Chickens and Chicken Products to the Notice, HS tariff number 0209.00.21.00 (Chicken fat, unrendered, fresh or frozen/smoked or dried) is replaced with 0209.90.10.00 (n.b. the description for these products are not changing). In all cases, the four digit EIPA suffixes remain the same.

5.5 Notice to Importers No. 794 (Broiler Hatching Eggs and Chicks for Chicken Production), dated October 21, 2011, is modified as follows effective January 1, 2012 (changes in bold):

- Paragraph 2.1 of the Notice is replaced with “This Notice replaces Notice to Importers No. 773 of October 22, 2010. It refers to Items 94 and 95 of the Import Control List (ICL), namely live broilers for domestic production, being fowls of the species Gallus domesticus, weighing not more than 185 grams, that are classified under tariff item No. 0105.11.21 or 0105.11.22 in the List of Tariff Provisions set out in the Schedule to the Customs Tariff; and hatching eggs, for broilers, of fowls of the species Gallus domesticus, that are classified under tariff item No. 0407.11.11 or 0407.11.12 in the List of Tariff Provisions set out in the Schedule to the Customs Tariff.”

- Paragraph 13.1 of the Notice is replaced with “Import permits are required for each shipment of broiler hatching eggs and chicks falling under tariff item Nos. 0407.11.11 or 0407.11.12 and 0105.11.21 or 0105.11.22, respectively, in the List of Tariff Provisions set out in the Schedule to the Customs Tariff. Importers may either invoke General Import Permit (GIP) No. 100 - Eligible Agricultural Goods, a copy of which is available on request, or present an import permit issued by DFAIT to their firm for that shipment ("specific import permit") in order to clear Canada Customs. The specific import permit must also be presented to Canada Border Services Agency at the time of accounting for the shipment to be eligible for classification under tariff item No. 0407.11.11 or 0105.11.21. Goods imported without a specific import permit (i.e. those invoking the GIP) will be subject to classification under tariff item No. 0407.11.12 (broiler hatching eggs), for which the duty in 2012 is 238% (but not less than 2.91$/dzn), or under tariff item No. 0105.11.22 (chicks), for which the duty in 2012 is 238% (but not less than 30.8¢ each). Note: Specific permits will not be issued for shipments already imported into Canada under the authority of the General Import Permit, regardless of the importer's import allocation.”

- The first bullet of Paragraph 15.2 of the Notice is replaced with “Broiler Hatching Eggs (hatching eggs import allocation): 0407.11.11.00.0000 (Dozen).”

- Paragraph 16.1 of the Notice is replaced with “Effective January 1, 1995, hatching eggs of the species Gallus domesticus (chicken) other than for broilers are captured under Item 135 of the Import Control List. They are classified under tariff item No. 0407.11.91 or 0407.11.92 in the List of Tariff Provisions set out in the Schedule to the Customs Tariff. Import permits are required for EACH shipment of hatching eggs falling within these tariff items. Importers may either invoke General Import Permit (GIP) No. 100 - Eligible Agricultural Goods, a copy of which is available on request, or present an import permit issued to their firm for that shipment ("specific import permit") to clear Canada Customs. The specific import permit must also be presented to Canada Border Services Agency at the time of accounting for the shipment to be eligible for classification under tariff item No. 0407.11.91 and allowed entry at the low rate of duty. Those without a specific import permit (i.e. those invoking the GIP) will be subject to classification under tariff item No. 0407.11.92, for which the duty is 163.5% (but not less than 79.9¢/dzn) in 2012. Note: Specific permits will not be issued for shipments already imported into Canada under the authority of the General Import Permit.

- Paragraph 16.3 of the Notice is replaced with “In completing the "Application for Permit" form, importers are requested to use code 0407.11.91.00.0000 to describe the product to be imported.”

5.6 Notice to Importers No. 795 (Broiler Hatching Eggs and Chicks for Chicken Production – Supplemental Imports), dated October 21, 2011, is modified as follows effective January 1, 2012 (changes in bold):

- Paragraph 1.1 of the Notice is replaced with “This Notice cancels and replaces Notice to Importers No. 767 of September 21, 2010. It refers to items 94 and 95 of the Import Control List (ICL), namely live broilers for domestic production, being fowls of the species Gallus domesticus, weighing not more than 185 g, that are classified under tariff item No. 0105.11.21 or 0105.11.22 in the List of Tariff Provisions set out in the Schedule to the Customs Tariff and hatching eggs, for broilers, of fowls of the species Gallus domesticus, that are classified under tariff item No. 0407.11.11 or 0407.11.12 in the List of Tariff Provisions set out in the Schedule to the Customs Tariff.”

- The first bullet of Paragraph 14.4 of the Notice is replaced with “Broiler Hatching Eggs (Supplemental for shortage): 0407. 11. 11. 00. 0300 (Dzn)”

- The third bullet of Paragraph 14.4 of the Notice is replaced with “Broiler Hatching Eggs (Import for re-export): 0407. 11. 11. 00. 0500 (Dzn)”

5.7 Notice to Importers No. 799 (Eggs and Egg Products), dated October 14, 2011, is modified as follows effective January 1, 2012 (changes in bold):

- In Appendix 3 - List of EIPA commodity codes for eggs and egg products to the Notice, tariff number 0407.00.18.21 (shell eggs, white, grade A varied sizes) is replaced with 0407.21.10.10; tariff item number 0407.00.18.22 (shell eggs, specialty, grade A varied sizes) is replaced with 0407.21.10.20; 0407.00.18.23 (shell eggs for breaking purposes only) is replaced with 0407.21.10.30; and 0407.00.18.90 (shell eggs, white/specialty, preserved or cooked, grade A varied sizes) is replaced with 0407.90.11.00 (n.b. the description for these products are not changing). In all cases, the four digit EIPA suffixes remain the same.

5.8 Notice to Importers No. 802 (Eggs and Egg Products – Supplementary Imports), dated October 14, 2011, is modified as follows effective January 1, 2012 (changes in bold):

5.9 Notice to Importers No. 800 (Turkey and Turkey Products), dated October 14, 2011, is modified as follows effective January 1, 2012 (changes in bold):

- In Appendix 7 – List of EIPA commodity codes for turkey to the Notice, HS tariff number 0209.00.23.00 (Turkey fat, fresh or frozen/smoked or dried) is replaced with 0209.90.30.00 (n.b. the description for these products are not changing). In all cases, the four digit EIPA suffixes remain the same.

- In Appendix 9 – Listing of turkey items on the Import Control List to the Notice, paragraph 108 is replaced with “Turkey fat (not rendered or otherwise extracted), fresh, chilled or frozen, salted, in brine, dried or smoked, that is classified under tariff item No. 0209.90.30 or 0209.90.40 in the list of tariff provisions set out in the Schedule to the Customs Tariff.”

5.10 Notice to Importers No. 801 (Turkey and Turkey Products – Supplementary Imports), dated October 14, 2011, is modified as follows effective January 1, 2012 (changes in bold):

- In Appendix 3 – Listing of Turkey items on the Import Control List to the Notice, paragraph 108 is replaced with “Turkey fat (not rendered or otherwise extracted), fresh, chilled or frozen, salted, in brine, dried or smoked, that is classified under tariff item No. 0209.90.30 or 0209.90.40 in the list of tariff provisions set out in the Schedule to the Customs Tariff.”

- In Appendix 4 – List of EIPA Commodity Codes for Turkey and Turkey Products to the Notice, HS tariff number 0209.00.23.00 (Turkey fat, fresh or frozen/smoked or dried) is replaced with 0209.90.30.00 (n.b. the description for these products are not changing). In all cases, the four digit EIPA suffixes remain the same.

5.11 Notice to Importers No. 803 (Dairy products on the import control list: supplementary import permits), dated October 14, 2011, is modified as follows effective January 1, 2012 (changes in bold):

- In Appendix 3 – Listing of Dairy Products on the Import Control List to the Notice, paragraph 117.1 is replaced with “Cream, neither concentrated nor containing added sugar or other sweetening matter, of a fat content, by weight, exceeding 6 per cent, that is classified under tariff item No. 0401.40.10, 0401.40.20, 0401.50.10 or 0401.50.20 in the List of Tariff Provisions set out in the Schedule to the Customs Tariff.”

- In Appendix 4 - List of EIPA commodity codes for cheese and other dairy products on the Import Control List to the notice, the row containing:

Commodity Code Global: 0401.30.10.00.0000
Supplementary: 0401.30.10.00.5800
Import For Re-Export: 0401.30.10.00.4700
Description: Cream, neither concentrated nor containing added sugar or other sweetening matter, of a fat content, by weight, exceeding 6 per cent

is to be replaced by the following two rows:

Commodity Code Global: 0401.40.10.00.0000
Supplementary: 0401.40.10.00.5800
Import For Re-Export: 0401.40.10.00.4700
Description: Cream, > 6% but less than or equal to 10% fat, neither concentrated nor containing added sugar or other sweetening matter

and

Commodity Code Global: 0401.50.10.00.0000
Supplementary: 0401.50.10.00.5800
Import For Re-Export: 0401.50.10.00.4700
Description: Cream, neither concentrated nor containing added sugar or other sweetening matter, of a fat content, by weight, exceeding 10 per cent

5.12 The changes to commodity codes for agricultural products are summarized in Appendix 1 to this Notice .

6. Coming Info Force

6.1 The amendments to Canada's Customs Tariff Schedule and to the ten regulations listed under paragraph 2.3, including the ICL, are effective on January 1, 2012. The modifications to the Notices to Importers listed in section 5.0 are effective on the same date.

6.2 Under Foreign Affairs and International Trade Canada's policies, quota holders may make requests for import permits 30 days prior to the expected date of arrival of the shipment in Canada. Therefore, while the modifications to the notices listed above are to come into effect only in 2012, permit requests made in 2011 for 2012 imports must be submitted using the new tariff item numbers. Permit requests for 2011 imports must be made using pre-amendments numbers.

7. Further Information

7.1 For further information regarding these modifications please contact the respective Quota managers:

a) Dairy

Mr. Hugues Leroux
Tel: 613-996-2594
Fax: 613-996-0612
E-mail: hugues.leroux@international.gc.ca

b) Wheat and Barley

Ms. Lynn Matthew
Tel: 613-944-1807
Fax: 613-996-0612
Email: lynn.matthew@international.gc.ca

c) Chicken and Chicken Products

Mr. Guy Giroux
Telephone: 613-995-8108
Facsimile: 613-996-0612
E-mail: guy.giroux@international.gc.ca

d) Broiler Hatching Eggs

Mr. Edouard Huot
Telephone: 613-944-1742
Facsimile: 613-996-0612
Email: Edouard.Huot@international.gc.ca

e) Eggs and Egg Products

Mrs. Keltie Findlay Leclair
Telephone: 613-996-4333
Facsimile: 613-996-0612
E-mail: keltie.findlay@international.gc.ca

f) Turkey and Turkey Products