Serial No.: 792
Date: October 14, 2011
Table of Contents
The purposes of this Notice are:
a) to outline the Minister’s policies and practices respecting tariff rate quota (TRQ) import allocations for chicken and chicken products for 2012. It should be read with the Import Allocation Regulations and the Import Permit Regulations. Where elements of the present Notice augment these Regulations, those elements are to be read as expressions of the Minister’s normal practices and procedures; and
b) to invite applications for shares of the chicken TRQ for the period January 1 to December 31, 2012, including shares of the non-Import Control List (non-ICL) portion (commonly referred to as the Free Trade Agreement (FTA) portion) of the chicken TRQ.
a) This Notice replaces Notice to Importers No. 777, dated October 15, 2010. It refers to Items 96 to 104 of the Import Control List (ICL), namely chicken and chicken products falling under heading Nos. 01.05, 02.07, 02.09, 02.10, 16.01 and 16.02 in the list of tariff provisions set out in the Schedule to the Customs Tariff and listed in Appendix 12. It also covers “specially defined mixtures” of chicken products falling under tariff item No. 1602.32.11 and 1602.32.92, and other non-ICL chicken products (see section 8 of this Notice).
b) This Notice to Importers should be read in conjunction with Notice to Importers No. 793, dated October 14, 2011, which sets out the Minister’s practices and policies concerning supplementary imports for chicken and chicken products.
c) Chapter 16 of the Customs Tariff contains the following Supplementary Note concerning specially defined mixtures: “Specially defined mixtures” of tariff items Nos. 1602.31.11, 1602.31.92, 1602.32.11 and 1602.32.92 means chicken or turkey or a product containing chicken or turkey, wherein 13% or more of the total weight of the product is comprised of goods other than the following: chicken, turkey, bread or breading, batter, oil, glazing, other coatings and bastes, and any added water (including that used in marination, glazing, other coatings, bastes, breading and batter). For the purposes of this definition, the weight of all ingredients shall be taken from the product specification sheets for that product required under the Meat Inspection Act for product labelling purposes.
d) Importers who require a determination as to whether the product they intend to import is within the scope of this Notice should obtain an advance ruling from the appropriate regional client service office of the Canada Border Services Agency (CBSA). Domestic manufacturers who wish to know whether the product they intend to manufacture using non-ICL chicken import allocations meets the definition of “specially defined mixtures” should obtain a determination from the CBSA.
Requests for determinations may be directed to: Ms. Kelly Bartlett, Canada Border Services Agency, Trade Programs Directorate 613-957-1468; fax: 613-952-3971.
e) With respect to products for which a non-ICL (i.e., “FTA”) chicken import allocation is being sought, only information about products for which a CBSA determination has been received, along with the corresponding Canadian Food Inspection Agency (CFIA) label registration number including the process and composition of the meat (see Appendix 3), can be submitted as part of this year's application.
This Notice will remain in effect until December 31, 2012.
a) 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.
b) 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.
c) Pursuant to subsection 6 (f) of the Import Allocation Regulations, when deciding whether to issue an import allocation or whether to consent to a transfer, the Minister shall take into account whether the import allocation holder 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 an import allocation or import permit during the 12-month period preceding the period in respect of which the import allocation or transfer is to apply.
d) Pursuant to subsection 10.(1) of the EIPA, the Minister may amend, suspend, cancel or re-instate any permit or import allocation issued or granted under the Act.
1.5 General information
a) There are three components to a TRQ: a low “within access commitment” duty rate, a minimum access level (or “import access quantity”) allowed entry at that rate, and a higher “over access commitment” rate of duty for over-access imports.
b) The annual import access quantity for chicken (i.e., the TRQ level) is calculated as 7.5% of the previous year's domestic chicken production (which includes regulated domestic, export and non-regulated production) as reported by Statistics Canada.
c) Access at the low rate, or within-TRQ access will be allocated to an applicant that is a resident of Canada.
2.1 Subject to the criteria outlined in this Notice, current participants in the Canadian chicken industry may apply for a share of the chicken TRQ.
2.2 Applicants under the distributor and processor pools are requested to complete and return the application form provided in Appendix 1 in order to receive an allocation.
Those in the food service pool are requested to complete Appendices 1 & 2. FTA applicants must provide the information in Appendix 3.
2.3 All applicants for a share of the 2012 TRQ are required to include as part of their application:
a) a sworn affidavit; and
b) a letter from an independent qualified professional (normally an accountant) verifying the information included in the application.
2.4 For the purposes of this Notice, an “accountant” is defined as a member in good standing of one of the three professional accounting bodies in Canada (C.A., C.G.A. or C.M.A.) who is registered with his/her provincial professional organization to provide accounting services and is independent from the applicant (i.e., is not an owner, or a partner, of the company applying for an import allocation and is not in an employee - employer relationship involving the applicant).
2.5 The affidavit and the letter from the accountant must be in the exact format of the models attached to this Notice (see Appendices 4 and 6 for processors and distributors; Appendices 5 and 7 for foodservice operators; Appendices 8 and 9 for FTA applicants). Any changes to the wording of the prescribed affidavit or letter are permitted only if required by professional standards. In the event that changes are made, the applicant or the accountant must discuss these, in advance, with Foreign Affairs and International Trade Canada (DFAIT).
2.6 The information that the accountant and the applicant provide will be considered when allocating the chicken TRQ. However, an applicant may also be required to provide evidence of the actual quantity of chicken bought and subsequently sold (final sales) in the previous year, such as originals of supplier invoices, proofs of payment and sales invoices. Accountants may be asked to explain the procedures used in greater detail and may be asked to provide DFAIT with copies of all working documents. Moreover, DFAIT retains the right to request additional information, including that of an independent public accountant (or an accountant named by DFAIT) certify the information provided on the application form. Should this prove necessary, all costs will be borne by the applicant.
2.7 Failure by an applicant to provide any information requested by DFAIT, or failure to comply with any condition of an authorization or permit issued pursuant to the EIPA may result in rejection of an application for a share of the chicken TRQ for 2012, reduction or cancellation of an authorization issued pursuant to the EIPA or cancellation of associated permits.
2.8 Applicants should be aware that section 17 of the EIPA forbids any person to furnish false or misleading information or knowingly make any misrepresentation in any application in order to procure an import authorization. Section 18 of the EIPA forbids any person to knowingly induce, aid or abet any other person to contravene any of the provisions of the EIPA. Such contraventions by an applicant or its accountant may lead to prosecution for offenses under the EIPA.
2.9 Applicants should note that the eligibility of accountants to sign the letter accompanying their application varies from province to province.
2.10 Applications by related or affiliated applicants
Except as per paragraphs 3.3 and 7.7, where two or more applicants are related or affiliated, they shall normally be eligible for only one import allocation. To assist in determining which persons are related or affiliated, applicants are asked to provide a list of affiliated companies and “related persons” (see Appendix 11). DFAIT may request additional information and may take other information into account in making determinations concerning affiliation, related persons and eligibility for shares of the chicken TRQ.
2.11 Conversion factors to eviscerated equivalent kilograms
Quantities of chicken and chicken products processed, bought and/or sold (final sales) are to be expressed by all applicants in eviscerated equivalent kilograms. Live and boneless product-weight should be converted to eviscerated equivalent weight using the following conversion factors:
Live - 0.75
Eviscerated bone-in whole and cut-up fresh - 0.99284
Eviscerated bone-in whole and cut-up frozen - 1.00
Boneless fresh - 1.989
Boneless frozen - 2.00
Eviscerated bone-in cooked, processed dried or smoked - 1.00
Eviscerated boneless cooked, processed dried or smoked - 2.00
Prepared meats - bone in - 1.00
- boneless - 2.00
Full list of conversion factors by commodity code available in Appendix 10.
2.12 Submission of applications for an import allocation
Applications for a share of the chicken TRQ for 2012 must be made by fully completing the application form attached as Appendix 1. Applicants for a share of the non-ICL portion of the chicken TRQ must follow the application instructions attached as Appendix 3. All applications for a share of the chicken TRQ must be postmarked November 25, 2011, or earlier.
2.13 Applications sent by mail or by courier should be addressed to:
Mr. Guy Giroux
Trade Controls Policy Division (TIC)
Foreign Affairs and International Trade Canada
125 Sussex Drive
2.14 Applications sent by facsimile will not be accepted. Only original applications will be accepted.
2.15 Applications postmarked after November 25, 2011 will not be considered. Claims for lost applications will not normally be considered without acceptable proof of sending (e.g., courier receipt).
2.16 The declaration in the application form allows DFAIT and its representatives access to any information pertaining to the applicant in relation to the application for an import allocation or to subsequent applications for, or concerning the use of, import permits that is in the files of Agriculture and Agri-Food Canada or the Canadian Food Inspection Agency. Normally, applicants are informed of any such requests for information.
3.1 For 2012, the annual 7.5 % import access level for chicken will be allocated to three groups: 1) the traditional group (i.e., firms importing chicken before the introduction of import controls in 1979, as adjusted since, where necessary, for under-utilization); 2) members of the processor, distributor and food-service sectors (i.e., the processor, distributor and food-service group on the basis of the total amount allocated in 2011 multiplied by the % growth of the TRQ, minus the reserve); 3) with the remaining TRQ, plus the reserve, allocated to FTA applicants (including meat-on-meat applicants), that are eligible Federally-registered meat and poultry establishments in good standing and that have received Hazard Analysis recognition or acknowledgement (HACCP). If the FTA demand is greater than the remaining TRQ, the allocation will be made on a pro-rata basis. All TRQ allocated for eligible FTA products using trim, ground and/or diced meat chicken meat in their production will be authorized on a like-for-like basis.
NOTE THAT THE MINISTER WILL RECONSIDER THIS ALLOCATION METHOD IF THE FTA DEMAND EXCEEDS 4.8 MILLION KILOGRAMS.
3.2 A reserve equivalent to the Chicken Farmers of Canada's Market Development Program (MDP) level in 2011, less the MDP level in 2001, multiplied by 7.5%, is normally established. The reserve is used to accommodate applications for FTA allocation which could not be accommodated by the portion of the TRQ set aside for FTA allocations.
3.3 Applicants are eligible for a chicken TRQ allocation within only one pool, except for individual processor applicants that are eligible for both a share of the traditional or processor pool and a share of the FTA portion of the TRQ.
3.4 All Import Allocations expire at the end of each Calendar year and all firms interested in receiving an import allocation must reapply each year.
3.5 Quota holders with an import allocation of more than 100,000 kilograms may use up to 30% of their allocation in any one calendar year quarter. Any quota not utilized in one quarter may be carried over to successive quarters up to the cumulative carryover. Quota holders with allocations of less than 100,000 kilograms may use their allocation at any time during the year after receiving their final allocation. This subsection (3.5) does not apply to FTA allocations.
3.6 Transferability of import allocations
The Minister may allow the transfer of import allocations among quota holders. All requests for the transfer of import allocations must be referred to DFAIT for consideration. Sections 16 and 16.1 of the EIPA prohibit transfers of import authorizations or allowing import authorizations to be used by any person not so authorized by the Minister.
3.7 Adjustment for under-utilization
A company that uses less than 90% of its allocation in any one year may receive an allocation in the next year which reflects the actual level of use.
3.8 Advances on 2012 import allocations
To ensure an orderly transition to the following allocation year, allocation holders are normally issued advances pending the issuance of final allocations. Applicants will normally be issued, upon receipt of a complete application, an advance on the 2012 import allocation of up to 30% of their 2011 allocation pending the final issuance of the allocations in 2012. Requests for advances from firms likely to be subject to an under-utilization penalty (pursuant to section 3.7) will be evaluated on a case-by-case basis.
3.9 Return Policy
Companies that cannot utilize their 2012 allocation of chicken will be given the option to return any unused quota by October 1, 2012. Quota returned to DFAIT on or before the above deadline will not be considered as unused quota for purposes of administering the adjustment for under-utilization in section 3.7.
4.1 Traditional allocation holders may obtain an import allocation, subject to demonstrating their active involvement in the chicken industry by meeting the same criteria as the “processor”, “distributor”, and “food-service” pool. (For criteria please see Section 5 for processors, Section 6 for distributors and Section 7 for food-service operators.)
4.2 The maximum quantity of the TRQ to be allocated to the traditional group is 21,373,217 kg.
4.3 Eligible traditional TRQ holders will receive their full allocation, adjusted for under-utilization.
4.4 Eligible traditional allocation holders may choose to remain in the traditional group or to transfer permanently to either the processor, distributor or food-service pool. On request, DFAIT will advise a traditional importer of his or her prospective share under the other pools.
4.5 Traditional pool applicants that fail to apply for a TRQ, or that do not meet the eligibility criteria, will not be eligible for TRQ allocation and will not be eligible for a traditional allocation in subsequent quota years. These firms can, however, apply under the processor, distributor or food-service pool in future years.
5.1 The allocation to the processor pool in 2012 will be equivalent to 62.55% of the import access level allocated to the processor, distributor and food-service group.
5.2 Applicants must meet all the criteria set out in this section to be eligible for a share of the processor pool. The proportion of the processor pool allocated to market-share applicants and to equal-share applicants was fixed in 2002 at the 2001 ratio of 30.5 : 69.5. DFAIT will calculate applicants’ allocations based on either market-share or equal-share depending on which is most advantageous to each applicant.
5.3 For purposes of this Notice, a “processor” carries on activities that involve the slaughtering of chicken, cutting up of eviscerated chicken, de-boning of eviscerated or cut up chicken, or further processing of chicken meat in federally or provincially registered Canadian plants owned and operated by the applicant. Further processing includes, but is not limited to, the manufacturing of such products as patties, nuggets, fingers, rolls or roasts produced from chicken meat. This also includes the further processing function of marinating, smoking or drying, coating or seasoning chicken meat. Only processed products on the ICL are eligible.
5.4 A processor applicant must have been active in the processing sector of the chicken industry during the period September 1, 2010 to August 31, 2011, buying at least 250,000 kilograms of chicken and subsequently selling at least 250,000 kilograms of processed chicken and chicken products that are on the ICL. Applicants must also be active in the processing sector at the time of application and throughout the allocation year. Only products that have been processed in Canada in federally or provincially registered plants owned and operated by the applicant can be included.
5.5 Joint applications by related or affiliated firms submitted by the parent company for the processor pool will be considered in calculating the allocations. However, if the parent company or a related or affiliated company does not meet the 250,000 kilograms threshold, the chicken purchases or sales of that company cannot be included in the parent company’s calculation of its total chicken purchases or sales.
5.6 Market share is calculated on the basis of the dollar difference between purchases and sales of processed product only.
5.7 Distribution sales by processors, i.e., where they do not process the product bought and sold, must be excluded from the market share calculation.
5.8 Processed product bought and sold for the export market, as well as non-ICL products, sales at the retail level to consumers and any products which contain meat from old roosters or spent fowl, must be excluded from the market share calculation.
5.9 The term “final sales”, as used in this Notice, includes final sales revenues from sales to any third party. It does not include revenue from any intra-company transfers.
6.1 The allocation to the distributor pool in 2012 will be equivalent to 26.81% of the import access level allocated to the processor, distributor and food-service group.
6.2 An applicant must meet all the criteria set out in this section to be eligible for a share of the distributor pool. Shares are allocated on an equal-share basis.
6.3 An applicant must meet a minimum volume threshold requirement and activity requirements in order to be eligible for a share of the pool. In particular, a distributor must have been active in the distribution sector of the chicken industry during the period September 1, 2010 to August 31, 2011, buying at least 220,000 kilograms and subsequently selling at least 220,000 kilograms of chicken. An applicant must also be active in the distribution sector at the time of application and throughout the allocation year.
6.4 For purposes of this Notice, a “distributor” is an establishment that buys (i.e., takes ownership of and financial responsibility for) chicken and re-sells it to other businesses. Note that product bought and sold for the export market, FTA products, sales at the retail level to consumers, live chickens, any products which contain meat from old roosters or spent fowl, and products bought from or sold to other distributors must all be excluded from the minimum volume threshold calculation. In addition, a “distributor” is an establishment that uses warehouses and trucks in carrying on its trade (either the renting or purchasing of warehousing and transportation services is considered to meet this criterion). Applicants must be able to substantiate that they meet the relevant criteria for the entire period covered by their application.
6.5 Commission brokers do not meet the distributor definition and are not eligible for a share of the TRQ. For purposes of this Notice, commission brokers procure or sell on behalf of others without taking ownership of or financial responsibility for the chicken or chicken products.
6.6 Retail companies that have separate divisions that purchase and distribute chicken to non-affiliated companies may qualify as distributors. A company that qualifies as a distributor under this definition may apply for a portion of the distributor pool and must state on the application form that the applicant is a distributor as well as a retailer.
6.7 Retail companies that have central buying operations and sell to corporate or franchise stores (or co-op members in the case of cooperatives), who arrange the delivery (in owned or contracted trucks) and charge the individual store for warehousing and for the chicken product may also qualify as distributors.
7.1 The allocation to the food-service pool in 2012 will be equivalent to 10.64% of the import access level allocated to the processor, distributor and food-service group.
7.2 The food-service pool will be allocated according to the following formula: 70% allocated to restaurant and food-service companies whose volume of chicken purchases is equal to at least 50% of their total volume of meat purchases (i.e., including poultry, fish, beef and pork, but excluding vegetables, french fries, beverages, etc.), and 30% allocated to restaurant and foodservice companies whose volume of chicken purchases is less than 50% of their total volume of meat purchases.
7.3 These two segments of the foodservice pool will be allocated to companies in the foodservice sector on the basis of market share to larger foodservice operators and on the basis of a minimum equal share of 18,144 kilograms to smaller foodservice operators.
7.4 An applicant must meet a minimum volume threshold requirement and the activity requirements outlined below in order to be eligible for a share of the foodservice pool. In particular, a foodservice applicant must have been active in the foodservice sector of the chicken industry during the period September 1, 2010 to August 31, 2011, buying and subsequently selling at least 220,000 kilograms of chicken. An applicant must also be active as a foodservice operator at the time of application, and must continue to do business as a foodservice operator during the allocation year.
7.5 Market shares within the foodservice pool are calculated on the basis of total purchase volumes excluding FTA products and excluding non-chicken purchases.
7.6 In the case of foodservice chains, applications for a share of the foodservice pool will only be considered from the system-wide brand owners of such chains. DFAIT will not entertain separate requests from entities (e.g., franchisees) within the same brand organization, even if they individually or in combination meet the 220,000 kilogram threshold.
7.7 In the case of entities comprised of a parent company and one or more subsidiaries, one application is required by the parent company. This request should be accompanied by individual application forms and accountant letters and affidavits for the different affiliates or business brands. Based on this information, the amount of TRQ the parent company is eligible for in each of the categories will be calculated, after which the parent company will be advised of its total import allocation. If an affiliate or business brand does not meet the 220,000 kilogram threshold, the chicken purchases of that affiliate or business brand cannot be included in the parent company's calculation of its total chicken purchases.
8.1 The allocation to the FTA group will be accommodated through the available room in the TRQ on a pro-rata basis and allocated to eligible Federally-registered meat and poultry establishments in good standing that have received Hazard Analysis Critical Control Points (HACCP) recognition or acknowledgement, and that produce chicken products not on the Import Control List (non-ICL), also called FTA products.
8.2 The intent of the current FTA policy is to assist Canadian manufacturers to compete with “like” imported products that can enter Canada duty-free or at a low rate of duty as a result of the NAFTA. These imported products, principally from the U.S., are required by CFIA to be manufactured within a HACCP-controlled environment.
8.3 Only products that have been processed in Canada in federally registered plants owned and operated by the applicant can be included.
8.4 Applicants for a share of the FTA portion of the chicken TRQ must follow the instructions given in subsection 1.2 d) to ensure that their product is eligible for a FTA chicken import allocation.
8.5 Applicants are advised that subsection (v) in section 2(b) of Appendix 3 requires applicants to provide information concerning the total amount of ground meat, trim meat and diced meat used in the production of FTA chicken products, as TRQ allocated for eligible FTA products using this type of chicken meat will be authorized on a like-for-like basis.
8.6 Subject to section 8.1, eligible processors of chicken products not on the ICL may receive up to one kilogram of import allocation for each kilogram of chicken inputs used in the production of FTA products in the period September 1, 2010 to August 31, 2011 and continue to produce FTA products in 2012.
8.7 All chicken input requirements for production of FTA products beyond the authorized allocation will need to be supplemented through the Import-to-Compete program on a like-for-like basis. (Detailed further in Notice 793)
8.8 For purposes of this Notice, a processor of chicken products not on the ICL is a processor that carries on activities in federally registered Canadian plants, owned and operated by the applicant, and manufactures FTA products, (such as, but not limited to, TV dinners), using ICL products as input, and sells such products to wholesalers. For purposes of this Notice, “wholesalers” buy a product at the wholesale level and sell to hotels, institutions and restaurant outlets and to retailers.
8.9 Processors considered to be related to foodservice companies are not normally eligible for a share of the FTA portion of the chicken TRQ.
8.10 All import allocations expire at the end of each calendar year. All firms interested in receiving an import allocation must qualify each year and must show that they are active processors of FTA products at the time of application and throughout the allocation year.
8.11 Eligible Products and Ingredients
a) Generally, chicken products that are identified as “specially defined mixtures” of tariff Nos. 1602.32.11 and 1602.32.92 are exempted from the ICL. Examples of such products include: chicken cordon bleu, breaded breast of chicken cordon bleu, chicken Kiev, breaded breast of chicken Kiev, boneless Rock Cornish hen with rice, stuffed Rock Cornish hen, boneless chicken with apples and almonds, chicken Romanoff Regell, chicken Neptune breast, boneless chicken Panache and chicken TV dinners.
b) Chicken products produced from old roosters and “spent fowl”, commonly called “stewing hens”, are not eligible for FTA quota because these products are not on the ICL.
c) All chicken products exported from Canada, and the production of eligible products for which only packaging was performed, must be excluded.
d) Mechanically separated meat (MSM) and finely textured meat used in the manufacture of FTA products is not normally eligible for FTA quota. In the event MSM or finely textured meat are not available domestically at U.S.-competitive prices, the Minister may authorize supplementary imports for MSM or for finely textured meat.
e) Chicken products that are merely cooked and/or marinated and/or spiced are on the ICL.
f) In the case of non-ICL products that include marinated chicken, the weight of the chicken prior to marination must be used.
g) Both naturally occurring and added skin are ineligible to be included as part of the weight of the chicken in FTA products.
h) Added fat is not eligible to be included as part of the weight of the chicken in FTA products.
i) In addition to “specially defined mixtures”, chicken products are considered as FTA products if they are classified under headings No. 19.02 (Pasta), No. 19.04 (Rice Preparations), No. 19.05 (Pastry), No. 20.04 (Other vegetables prepared or preserved, frozen), No. 20.05 (Other vegetables prepared or preserved, not frozen), No. 20.06 (Fruits and vegetables preserved by sugar) No. 21.03 (Sauces and preparations), No. 21.04 (Soups), and No. 21.06 (Food preparations). Producers of these products may be eligible for a share of the FTA portion of the chicken TRQ.
8.12 Applicants requesting dark meat under the FTA portion of the chicken TRQ for 2012 will not normally receive a TRQ allocation. Applicants must nevertheless continue to include volumes of both white and dark meat in their applications. The dark meat portion is to be supplied by the Chicken Farmers of Canada's (CFC) “domestic supply program”. A description of the program is available from the CFC. In order to acquire the supply from a primary processor under the “domestic supply program”, processors should contact DFAIT to obtain a numbered and dated letter for each purchase order. Access to supplementary imports will continue to be made available in circumstances where the “domestic supply program” is not able to meet specific processor needs at prices competitive with U.S. product landed in Canada. (For further details on the supplementary process, please see Notice 793.)
8.13 It is the responsibility of applicants, not accountants, to state that their products are not on the ICL.
8.14 Meat-on-Meat Policy Provision
a) There will be no increase in the TRQ level for FTA products containing meat other than chicken and turkey, unless such product also contains at least 7% non-meat ingredients (for purposes of this policy provision, non-meat ingredients do not include spices and seasonings). Product identified in annex 706 of the Canada-U.S. FTA are exempt from this policy provision.
b) The chicken TRQ level available for the production of meat-on-meat products that are not on the Import Control List (non-ICL) will be capped at 3.9 million kg annually, equal to the production level for such products in 2011. Eligible companies that received an allocation in 2011 for the production of meat-on-meat products not on the Import Control List may receive up to 100 percent of their 2011 meat-on-meat qualifying demand, or the amount on their 2012 application, whichever is lower. If the demand exceeds the established level, producers of meat-on-meat products will be reduced to the 2011 production level of 3.9 million kg before calculating the FTA allocation.
c) Meat-on-Meat products are not eligible for an FTA supplementary allocation under the Import-to-compete program.
NOTE: The policy concerning the eligibility of certain FTA products that contain meat other than chicken is currently under review and may be further modified. Any modifications will be reflected in subsequent Notices to Importers.
8.15 DFAIT will consider the information that the applicant provides along with any other relevant information when allocating the FTA portion of the chicken TRQ so as to ensure that the FTA portion of the chicken TRQ is allocated in conformity with the underlying policy intent as indicated in section 8.2 of this Notice. Applicants may be required to provide additional information to support their application. Such additional information may include evidence of the actual quantity of poultry used to manufacture products not on the ICL, the number of units produced in the period September 1, 2010 to August 31, 2011, information concerning supply arrangements, and customer information. Evidence, such as product specifications, original supplier invoices, proofs of payment and production records, may be requested. In some circumstances, it may be necessary to review the product specification sheets and the accountant's working papers. Moreover, DFAIT retains the right to request laboratory analysis of FTA products and certification by an independent public accountant (or an accountant named by DFAIT) of the information provided on the application form. Should this prove necessary, all costs will be borne by the applicant.
8.16 If either the applicant or the accountant fails to provide any information requested of them by DFAIT, the application may be declared incomplete and the applicant may be denied a share of the chicken TRQ. Applicants should note that the eligibility of accountants to sign the letter accompanying their application varies from province to province.
9.1 The Minister issues import permits to allocation holders in accordance with the Import Permit Regulations and may attach conditions to import allocations and/or to import permits, and may amend, suspend, cancel or re-instate import permits and allocations.
9.2 Firms with a share of the TRQ (or “import allocation”) may apply for “specific import permits” issued by DFAIT for access at the low “within access commitment” rate of duty. Subject to subsection 9.1, such permits are normally issued on demand to allocation holders up to the amount of their import allocation.
9.3 Import permits are required for each shipment of chicken and chicken products falling within heading Nos. 01.05, 02.07, 02.09, 02.10, 16.01 and 16.02 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, 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 Canada Customs. Those citing the GIP will be authorized to import unlimited quantities of chicken and chicken products, but such imports will be subject to the higher, “over access commitment” rate of duty. Those presenting a specific import permit to the CBSA 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.
9.4 In accordance with the Import Permit Regulations, DFAIT has in place the following procedures for receiving applications for import permits:
a) When requesting an import permit, an applicant submits a completed Form EXT-1466, “Application for Permit” (a copy of which is attached as Appendix 13).
b) A description of the process of applying for a permit is attached as Appendix 14, including information about fees, the monthly billing system and information required from applicants. All import permits are issued either (i) through an on-line automated system in the offices of customs brokers in major centres across Canada or (ii) in the offices of DFAIT.
c) A list of the EIPA commodity codes for chicken and chicken products is attached as Appendix 10. The appropriate code must be used in order to expedite the issuance of the import permit.
9.5 Name on the permits
Quota holders should take note that the name on the specific import permit must match exactly the name of the importer on CBSA’s B3 Customs entry and related documents at the time of final accounting. Where the name on the import permit and the name on the B3 are not the same entity, the permit will be declared invalid. It is incumbent on the allocation holder to ensure that applications for permits are made in the name of the importer of record. Questions about the proper procedures to fill out Customs entry documents should be addressed to local CBSA officials.
9.6 Weight reported on the permit
For all products on the Import Control List, the weight on the permit must be the same as the net weight quantity on the Customs invoice.
9.7 Permit fees
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).
9.8 Chicken products that are partially deboned are considered to be “boneless” for import control purposes and the corresponding boneless EIPA chicken codes must be used when requesting import permits. As examples, fresh chicken breasts that have been partially deboned so that only the keel bone or cartilage remains will be considered “boneless” for import control purposes. A boneless chicken breast with or without skin with part or all of the wing bone attached (generally referred to as Chicken Supreme) will also be considered “boneless” for import control purposes. In these cases, the corresponding EIPA code that should be entered into the related application would be 0207.13.91.00.9238. Importers who are unsure as to whether or not the product they intend to import is considered “bone-in” or “boneless” should obtain guidance from DFAIT.
9.9 Unless otherwise specified by the applicant, DFAIT officials communicate with an EIPA authorization applicant in the official language of Canada which the applicant has utilized on his or her application.
9.10 Applicants will be assigned a (new or designated pre-existing EIPA file) number based on the company profile submitted as part of the formal application. The (federal, 9 digit core) GST/Business number is required as an essential identifier. The company name must be provided in a format consistent with that under which the GST/Business number is registered.
9.11 Processed Chicken - Adjustment for Non-Chicken Ingredients
a) Importers may take advantage of a provision whereby only the chicken portion of processed chicken products (i.e., those beginning with product codes 1601or 1602) on the ICL will be deducted from an applicant’s global quota allocation at the time the import permit is issued. For the purposes of this section (9.11), non-chicken ingredients include breading, battering, salt and spices ONLY. Water, including that used in marination, is considered part of the chicken.
b) Applicants wishing to make use of this provision must list the gross and net weight of the chicken, in actual weight, on the import permit application form. The gross weight should be entered in the box marked “QUANTITY” and the net weight should be entered in the box market “DOCUMENT QUANTITY”. Please note that for products that consist only of chicken (i.e., containing no breading or battering), the “DOCUMENT QUANTITY” and the “QUANTITY” should be the same. Applications for permits to import processed chicken that do not contain both the gross and net weight will not be accepted.
c) Importers of non-processed chicken (i.e., those beginning with product codes 0105, 0207, 0210) need to fill out only the QUANTITY box on the import permit application form.
d) Applicants making use of this provision to deduct non-chicken ingredients must submit the following documents:
- Label approval documentation approved by the CFIA;
- Product recipe and production procedures;
e) Applicants making use of this provision must also indicate the CFIA product registration number in the box marked “COMMENT” on the import permit application form. Failure to provide this information will result in the rejection of the permit application.
9.12 Contact Information
Enquiries about import allocations or supplementary requests may be addressed to:
(Address as in paragraph 2.12 above)
Enquiries about permit issuance and utilization of import allocations may be addressed to:
Telephone: (613) 944-1808
Facsimile: (613) 996-0612
(Address as in paragraph 2.12 above)
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