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Notice to Importers
Items 114 TO 116: Beef and Veal Supplemental Imports
Serial No: 804
Date: October 17, 2011
Table of Contents
- 1.0 Purpose
- 2.0 Coverage
- 3.0 Duration
- 4.0 Authority
- 5.0 General principles for issuance of supplemental import authorizations.
- 6.0 Eligibility
- 7.0 Application instructions.
- 8.0 Domestic suppliers
- 9.0 Terms and conditions of supplemental authorizations and permits.
- 10.0 Import permits
- 11.0 Permit fees
- 12.0 Further Information
- Appendix 1 Form EXT1692E Application for a Supplementary Import Permit for Beef and Veal (PDF*, 43 KB)
- Appendix 2 Beef Sourcing List
- Appendix 2A Veal Sourcing List
- Appendix 3 Beef Product List
- Appendix 3A Veal Product List
- Appendix 4 List of EIPA Commodity Codes for Beef and Veal Products
- Appendix 5 Form EXT1466 Application for Import/Export Permit (PDF*, 45 KB)
- Appendix 6 Description of the Process of Applying for an import permit
- Appendix 7 Our Service Pledge
1.1 This Notice sets out the Minister's policies and practices respecting supplemental imports for beef and veal. It should be read with the Export and Import Permits Act (EIPA) and the EIPA Regulations. Where elements of the present Notice augment the EIPA and the EIPA Regulations, those elements are to be read as expressions of the Minister's normal practices and procedures.
1.2 This Notice replaces Notice to Importers No. 785, dated November 5, 2010, and is effective immediately.
2.1 This Notice refers to items 114 to 116 of the Import Control List (ICL) covering fresh, chilled and frozen beef and veal imported from countries other than the United States, Mexico, Chile or Peru under headings 02.01 and 02.02 in the List of Tariff Provisions set out in the Schedule to the Customs Tariff.
2.2 For purposes of this Notice, the term "non-FTA" should be read to mean countries other than the United States, Mexico, Chile and Peru.
3.1 This Notice will remain in effect until further notice.
4.1 Each of the products covered by this Notice was added to the Import Control List (ICL) pursuant to paragraphs 5(1)(a), (b), (d) and (e) and sections 5.3 and 6 of the Export and Import Permits Act (EIPA) in order to implement a Canadian commitment under the World Trade Organization (WTO) Agreement on Agriculture.
4.2 Under TRQs, imports are subject to low "within access commitment" rates of duty up to a predetermined limit (i.e., until the import access quantity has been reached); imports over this limit are subject to higher "over access commitment" rates of duty. Under section 6.2 of the EIPA, the Minister may: a) determine an import access quantity allowed entry at the low rate of duty; b) establish a method of allocating the import access quantity; and c) issue an import allocation to any resident of Canada that applies for an allocation, subject to the regulations and any terms and conditions the Minister may specify in the allocation. Also pursuant to section 6.2 of the EIPA, the Minister may consent to the transfer of import allocations. Having established an import access quantity, the Minister shall, under subsection 8.3(1) of the EIPA, issue import permits to allocation holders that apply for permits, up to the limit of that quantity, subject to compliance and application of regulations made under section 12 of the EIPA. These permits shall entitle the goods to which they apply to be subject to the low "within access commitment" rates of duty. Subsection 8.3(3) allows the Minister to issue permits in excess of the access quantity.
4.3 When deciding whether to authorize a request for supplementary imports, the Minister will take into account whether the applicant has furnished false or misleading information in connection with any reports required by the Act or the regulations made under the Act or by any condition of a supplementary import authorization or supplementary import permit during the 12-month period preceding the period in respect of which the supplementary import authorization is to apply.
4.4 Pursuant to subsection 10.(1) of the EIPA, the Minister may amend, suspend, cancel or reinstate any permit or import allocation issued or granted under the Act.
5.1 Supplemental imports of beef and veal will not be authorized unless neither the specific product nor a reasonable substitute is available at a competitive price from any Canadian supplier.
5.2 Supplemental imports of fresh, chilled or frozen non-FTA beef and veal may be authorized if:
- a specific need for an imported product has been clearly identified and justified. Applicants must include with their application sufficient reasons and other information to substantiate their requirement for a specific type of beef or veal, a particular trim specification or a particular size requirement(including reasons why domestic products would not meet their requirements);
- neither the specific product nor a reasonable substitute is available from Canadian suppliers at competitive prices. That is, such product or a reasonable substitute is not offered by domestic firms at the same price or a lower price than the price of similar goods entering the United States from other countries (e.g., Australia, New Zealand);
- the price of the non-FTA beef and veal entering Canada is not less than the price of the similar goods entering the United States from other countries (e.g., Australia, New Zealand);
- the amount requested is limited to the amount of beef or veal which the applicant (or its customer) could reasonably be expected to process or use in the twelve weeks following delivery. Applicants must include with their application sufficient information and documentation regarding the normal amount processed or used during this period (e.g., quantities processed during this period in past years, plant's production capacity);
- and the application has a delivery date not later than twelve weeks from the date of application.
5.3 An application for a supplemental import authorization will not be approved for product that is differentiated from product available in Canada by "grass fed" (as compared to grain fed) or by "frozen" (as compared to fresh).
5.4 An application for a supplemental import authorization specifying narrow or rigid product specifications (e.g., age of animal) to differentiate the requested product from product available in Canada will not be approved.
5.5 With respect to an application for a supplemental import authorization, if one or more Canadian suppliers offer to supply portions (at least 18,000 kilograms or a "load" each) of the amount requested, then any supplemental import authorization quantity will be reduced by the amount offered by Canadian suppliers.
5.6 A supplemental import authorization quantity may not exceed the quantity that the applicant (or its customers) could reasonably expect to process or use in the twelve weeks following delivery.
5.7 The supplemental import policy will be reviewed when all countries eligible to ship to the U.S. have filled 90-95% of their country reserve.
5.8 Supplemental imports will not normally be authorized in a given calendar year after such time as all countries receiving a reserve under the U.S. beef TRQ, and which are eligible to ship to the United States in a given year, have filled 100% of their quota. For the purpose of this Notice, the United States TRQ reserve for "other countries" is not considered an "eligible" country.
5.9 Applications for supplemental permits will not normally be accepted after the close of business on October 31 of each year.
NOTE: Applicants are reminded of the 26.5% "over access commitment" rate of duty on non-FTA beef and veal and that Foreign Affairs and International Trade Canada (DFAIT) will not accept a request for a supplemental import authorization for which a contract has been signed prior to the application for an authorization if other conditions set out in this Notice are not met. Applicants may therefore wish to include in their contracts with offshore suppliers a provision indicating that the contract is subject to the importer obtaining a DFAIT import authorization.
6.1 All firms issued an import allocation under the beef and veal TRQ are eligible to apply for supplemental permits.
6.2 New entrants, who are Canadian residents that meet the following definitions of "processor", "retailer-processor" or "distributor" and do not have an allocation under the TRQ, are also eligible to apply.
- A "processor" is an establishment that substantially changes the appearance or nature of beef and veal. Such processes include: to de-bone, slice, comminute, thermally process, preserve, dehydrate, ferment, render, fractionate, defibrinate or add to the product. They do not include such activities as: to dress, trim, refrigerate, freeze, package, repackage or defrost.
- Retailers that engage in some of the processing activities outlined above may qualify as "retailer-processors".
- A "distributor" is an establishment that buys (i.e. takes ownership and financial responsibility therefor) beef and veal and re-sells it to other businesses. Distributors maintain warehouses and trucks in carrying on their trade. Either renting or purchasing warehousing and transportation services is considered to meet this objective. Commission brokers do not meet this definition.
6.3 Normally, quota-holders must have used 80% of their allocation before their applications for supplemental permits will be accepted. When assessing an application for supplemental imports, the allocations of affiliated companies will be taken into account.
7.1 To ensure an orderly transition to the 2011 quota year, processors, retailer-processors and distributors holding shares of the 2010 beef and veal TRQ will be issued advances on their 2011 import allocations up to a maximum of 30% of their 2010 import allocations or a minimum of 18,144 kg. Requests for advances from firms likely to be subject to an under-utilization penalty (pursuant to paragraph 10.0) will be evaluated on a case-by-case basis.
7.2 Applicants must include with their application information and documentation that substantiates their requirement for a specific type of beef or veal, a particular trim specification or a particular size requirement, including reasons why domestic products (e.g. identical, similar or reasonable substitutes) would not meet their requirements. After the justification is received, DFAIT officials may request additional information. Applications for permits will not normally be approved until this justification and any additional information requested by the department is received. Applicants are advised that an application for product differentiated from product available in Canada by "grass fed" (as compared to grain fed) or by "frozen" (as compared to fresh) will not be approved. Applicants are also advised that an application specifying narrow or rigid product specifications (e.g., age of animal) to differentiate the requested product from product available in Canada will not be approved.
7.3 Applicants must include with their application sufficient information and documentation to substantiate that the amount requested is limited to the amount of beef or veal that the applicant (or its customer) could reasonably be expected to process or use in the twelve weeks following delivery, including information and documentation regarding the amount normally processed or used during this period (e.g., quantities processed during this period in past years, plant's production capacity). DFAIT officials may request additional information regarding the amount requested. Applications for permits will not normally be approved until any additional information requested by the department is received.
7.4 Applicants must also attach to their application a copy of their purchase confirmations for the imported product indicating the price, quantity, country of origin and delivery date of the product to be imported.
7.5 Applications for supplemental import permits with a delivery date later than twelve weeks from the date of application will not be approved.
7.6 Beef applicants must contact all designated domestic suppliers of beef in order to determine whether product is available in Canada. Veal applicants must contact all designated domestic suppliers of veal in order to determine whether product is available in Canada. The list of designated beef and veal suppliers as of the date of issue of this Notice, including the contact names, addresses, telephone and fax numbers of these suppliers, is provided in Appendix 2 and 2A of this Notice. Also included in Appendixes 3 and 3A are product lists available by domestic suppliers. Since the list of designated domestic beef and veal suppliers is subject to periodic change (see section 8 below), applicants are required to contact all designated domestic suppliers identified as of the date of the applicant's application for a supplemental import permit. Applicants are therefore advised to check the DFAIT website or contact DFAIT directly (see paragraph 12.0) to confirm the list of designated domestic beef and veal suppliers to be contacted. (See paragraph 8.3 regarding response time for domestic suppliers.)
7.7 Notwithstanding paragraphs 7.5 and 7.6 above, importers of New Zealand bull meat are not required to contact Canadian beef suppliers. However, applications for imports of bull meat must clearly demonstrate with sufficient information and documentation an absolute need for the product (e.g. a previous history of such imports to support a particular product line) and that the amount requested is reasonable (i.e., reflects the applicant's, or its customer's, normal purchases, usage or processing). In addition, applications must meet other specified requirements, including those specified in paragraph 7.11.
7.8 A copy of the requests for domestic sourcing and responses received, indicating the goods, prices and quantities offered by the domestic firms, must be attached to the application form. Evidence of the date and time of the requests for domestic sourcing (e.g. fax transmission report) must also be attached to the application form. Applications not having such evidence will normally be declared incomplete and the application will be refused. If one or more domestic suppliers offers to supply a portion of the amount requested (at least 18,000 kilograms or a "load each"), then the request for supplemental import authorization will be reduced by the amount offered.
7.9 Applicants will normally be asked to justify their requests in writing for supplemental permits when their application, taken together with their current year's allocation and all previous supplemental permit authorizations for the current year, exceeds their previous year's imports. After the justification is received, DFAIT officials may request additional information. Applications for permits will not normally be approved until this justification and any additional information requested by the department is received.
7.10 New entrants seeking to obtain supplemental permits will be required to provide confirmation of their previous year's beef and veal throughput level. Following such confirmation, they may be issued supplemental permits to a level equivalent to that which has been granted to quota-holders with similar throughput levels, up to a maximum of five loads (i.e. approximately 100,000 kilograms).
7.11 Applications for supplemental permits will be denied if the price of the goods landed in Canada is below the prevailing range of prices of similar product entering the United States. In making this assessment, DFAIT will monitor prices on the basis of the daily Urner-Barry Yellow Sheet, the daily USDA National Carlot Meat Report, the weekly Meat and Livestock Australia Statistical Bulletin, brokers' prices in Canada and the U.S. and other relevant data sources. Where applicable, prices will be adjusted to take into account exchange rates and transportation costs.
7.12 Applications for supplemental permits will be denied if the price of the goods offered by one or more domestic firm is the same or less than the prevailing range of prices for similar goods entering the United States from other countries. In making these assessments, DFAIT will monitor prices on the basis of the daily Urner-Barry Yellow Sheet, the daily USDA National Carlot Meat Report, the weekly Meat and Livestock Australia Statistical Bulletin, brokers' prices in Canada and the United States and other relevant data sources.
7.13 Further to paragraph 7.11 and 7.12, where regular, independently published prices are not readily available for the specific product for which a supplemental import permit has been requested, DFAIT will use prices for similar goods obtained from the data sources identified in paragraphs 7.11and 7.12 or other data sources. In addition, where regular, independently published prices are not readily available for goods imported into the United States from a particular country (e.g., non-Oceanic countries), DFAIT will use comparable data for other origins (e.g. Australia and New Zealand) or other data sources in processing applications.
7.14 DFAIT endeavours to inform applicants of decisions concerning their application within four working days of receiving a completed application. However, processing time for applications may vary depending on the volume of applications and other factors (e.g. if applicants are requested to supply additional information, processing time may be longer).
7.15 THE FOLLOWING IS A SUMMARY OF DOCUMENTS APPLICANTS SHOULD ATTACH TO THEIR APPLICATION:
- A COMPLETED AND SIGNED APPLICATION FORM;
- REQUESTS FOR DOMESTIC SOURCING, INCLUDING THE DATES AND TIMES WHEN SOURCING REQUESTS WERE SENT, ALONG WITH THE RESPONSES FROM ALL DOMESTIC SUPPLIERS FOR BEEF (OR VEAL) INDICATING THE PRODUCTS, PRICES AND QUANTITIES OFFERED;
- REASONS AND JUSTIFICATION FOR REQUIRING THE SPECIFIC CUT, SIZE, SPECIFICATION OR TYPE OF BEEF OR VEAL, A PARTICULAR TRIM SPECIFICATION OR A PARTICULAR SIZE REQUIREMENT (INCLUDING REASONS WHY DOMESTIC PRODUCTS WOULD NOT MEET THEIR REQUIREMENTS);
- SUFFICIENT INFORMATION AND DOCUMENTATION TO SUBSTANTIATE THAT THE AMOUNT REQUESTED IS LIMITED TO THE AMOUNT OF BEEF OR VEAL THAT COULD REASONABLY BE EXPECTED TO BE PROCESSED OR USED BY THE APPLICANT (OR ITS CUSTOMERS) DURING THE TWELVE WEEKS FOLLOWING THE DELIVERY; AND
- PURCHASE CONFIRMATIONS INDICATING THE WEIGHT AND TYPE OF BEEF OR VEAL TO BE IMPORTED, THE PRICE, THE DELIVERY DATE AND THE COUNTRY OF EXPORT.
8.1 Processors wishing to be included on the designated domestic suppliers list (or "sourcing list") should contact DFAIT and must provide them with the total weight of beef and veal slaughtered or de-boned in the previous year by type of meat. This list will be updated periodically on DFAIT's website. Information provided by domestic suppliers is for the sole use of the department, and will not be released without the express consent of suppliers. The declaration in the application form for supplemental imports authorizes DFAIT officials to access any information pertaining to the applicant that is in the files of the Canadian Food Inspection Agency and of Agriculture and Agri-Food Canada relating to the application for supplemental imports or to subsequent applications for, or the use of, import permits. An applicant will normally be informed of a request for such information.
8.2 Domestic suppliers may not offer non-FTA beef or veal against requests for domestic product.
8.3 After receiving a request for domestic sourcing, domestic suppliers have up to two working days to respond for both grinding meat and cuts.
8.4 Suppliers who fail to respond to a request for product will be deemed to not have product available. Should a supplier repeatedly fail to respond to sourcing requests, the supplier will be removed from the sourcing list. DFAIT, however, will contact a supplier in advance of removing the firm from the list.
9.1 Import authorizations and import permits are subject to terms and conditions established by the Minister, including, but not limited to, those specified in this Notice. Any authorization or permit issued to a firm that does not meet all applicable terms and conditions will normally be cancelled.
9.2 The information on purchase confirmations must match exactly the information included on the permit application form with respect to the weight and type of product imported, the cost of the goods and the country of export. Where information on purchase confirmations does not match exactly the information included on the application form, any permits issued will normally be cancelled.
9.3 Permits are normally valid only for the product requested in supplemental permit applications with respect to the type, weight and price of goods imported and the country of export. Where data on import permits does not match exactly that on supplemental permit applications, any permits issued will normally be cancelled.
9.4 Supplemental import authorizations are normally valid for a period of twelve weeks from the date an application is approved. Importers may be granted an extension if DFAIT considers that their shipment was delayed due to extraordinary circumstances. Requests for an extension must be provided in writing to the department prior to expiration of the twelve-week validity period and must include reasons and justification, as well as supporting documentation, as to why an extension is needed. DFAIT officials may request additional information in considering a request for an extension.
10.1 Import permits are issued pursuant to an import authorization and are required for each shipment of beef and veal imported to Canada from countries other than the United States, Mexico Chile or Peru and classified under heading Nos. 02.01 and 02.02 in the list of tariff provisions set out in the Schedule to the Customs Tariff. Importers may invoke General Import Permit (GIP) No. 100, a copy of which is available on request, or may present an import permit issued to their firm for that shipment ("specific import permit") in order to clear customs. Those citing GIP No. 100 will be authorized to import unlimited quantities of beef and veal, but such importswill be subject to the higher, over-access rate of duty. Those presenting a "specific import permit" to Canada Border Services Agency at the time of final accounting may enter their shipments at the low rate of duty. Specific import permits will not be issued for shipments already imported into Canada under the authority of the GIP No. 100, regardless of the importer's import allocation.
10.2 The following procedures are in place for receiving applications for import permits:
- To request an import permit, applicants are required to complete the Form EXT-1466, "Application for Import/Export Permit" (a copy of which is attached as Appendix 5), and transmit it to DFAIT.
- A description of the process of applying for a permit is attached as Appendix 6, and includes information concerning fees, the monthly billing system, and information required from applicants. "Specific import permits" are issued either (i) through an on-line automated delivery system in the offices of customs brokers in major centres across Canada or (ii) in the offices of DFAIT.
- A list of the EIPA supplemental commodity codes for beef and veal are included in this ice as Appendix 4. All applications for an import permit must include the appropriate EIPA commodity code, authorization number (in Box 38 "Document No." of the import permit application) and a description of the product being imported ("in the other terms and conditions" box of the permit application).
11.1 A fee will be levied for each permit or certificate issued in accordance with the Export and Import Permits and Certificates Fees Order (Notice to Importers No. 508 dated May 16, 1995).
For further information, please contact:
Mr. Michael Assad
Beef and Veal Quota Manager
Mrs. Adèle Brisson
Trade Controls Policy Division (TIC)
Foreign Affairs and International Trade Canada
125 Sussex Drive
Ottawa, Ontario K1A 0G2
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