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Notice to Importers

Items 96 To 104: Chicken and Chicken Products - Supplementary Imports

Serial No. 793
Date: October 14, 2011

Table of Contents


1.0 Purpose

1.1 This Notice sets out the Minister’s policies and practices respecting supplementary imports for chicken and chicken products.  

1.2 This Notice should be read with the Export and Import Permits Act (EIPA) and the EIPA Regulations.  Where elements of the present Notice augment relevant sections of the EIPA and Regulations, those elements are to be read as expressions of the Minister’s normal practices and procedures.

2.0 Coverage 

2.1 This Notice replaces Notice to Importers No. 778 dated October 15, 2010, “Chicken and Chicken Products and Turkey and Turkey Products - Supplementary Imports”.  It refers to Items 96 to 104, inclusive, of the Import Control List (ICL); namely chicken and chicken products classified 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 3.

2.2 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 Canada Border Services Agency (CBSA). Domestic manufacturers who wish to know whether the product they intend to manufacture using non-ICL chicken or import allocations meets the definition of "specially defined mixtures" should obtain a decision from the CBSA. Requests for decisions may be directed to: Canada Border Services Agency (CBSA), Trade Programs Directorate, Tariff Policy Division: contact 613-954-7019; fax: 613-952-397. 

3.0 Duration 

3.1 This Notice will remain in effect until further notice.

4.0 Authority 

4.1 Each of the products covered by this Notice was added to the Import Control List pursuant to paragraphs 5(1)(a) and 5(1)(b) and section 5.3 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 re-instate any permit or import allocation issued or granted under the Act. 

5.0 Issuance of authorization for supplementary imports 

5.1 The Minister may, at his discretion, authorize the importation of chicken and chicken products in excess of the import access quantity, particularly if he judges that the importation of these products is required to serve overall Canadian market needs.

5.2 Applications for an authorization for supplementary imports should follow the applicable procedures set out in this Notice.  Applications for supplementary import permits, made pursuant to such authorization, should be made according to the procedure described in Section 12.0.  In all cases the appropriate EIPA commodity code(s) should be used (see Appendix 4).

5.3 The various categories of supplementary import permits, each subject to different policies and procedures, are outlined below.

6.0 To Import Chicken for resale due to Domestic Market Shortages

6.1 The following procedures are followed when processing applications for authorization for supplementary imports due to market shortages:

6.2 Market Assessment and the Whole Bird Policy

6.2.1 Applications for authorization for supplementary imports due to market shortages are assessed, among other factors, in terms of Foreign Affairs and International Trade Canada’s (DFAIT) analysis of the domestic supply and demand situation concerning whole birds.  Applications for poultry parts will be authorized only when there is a shortage of whole birds.  Shortages of poultry parts may exist even when there is an adequate supply of whole birds.  Supplementary imports of parts when whole birds are available would interfere with the adjustment mechanisms in the market place.  Exceptions will be considered when parts are used for the manufacture of end products that do not compete with poultry products (e.g., pet food).

6.2.2 Consideration of applications will, additionally, take into consideration any disruptions of customary arrangements between an applicant and his or her supplier(s).

6.3 Eligibility of Applications

6.3.1 An application may be made by a firm that meets the DFAIT definition of processor, distributor or foodservice operator.

6.3.2 An application must be made on form, “Application for Authorization for Supplementary Imports”, included as Appendix 5, and sent to the Chicken Farmers of Canada (CFC), with a copy sent to DFAIT.  The application must identify the product required and the specific week for which the product is requested.  An application shall include only one product.

6.3.3 An applicant shall demonstrate that normal supply sources have been exhausted before applying for an authorization for supplementary imports.  The application shall describe the applicant's own procurement efforts and explain the basis for assessing that a shortage exists in the whole bird market.  The application shall indicate the end use of the product and identify related customers.

6.3.4 Applicants who have been issued a global import allocation of  less than 100,000 kilograms will be required to have exhausted this allocation before an application will be considered.  Applicants with global import allocations of 100,000 kilograms or more must have used at least 25% of their allocation per calendar year quarter. An import allocation will be considered exhausted only if all permits issued have been used and the allocation balance is zero.  When assessing an application for supplementary imports, the global quota of related companies will be taken into account.

6.3.5 Applicants are advised to allow the maximum possible lead-time for processing of applications and should, therefore, inform DFAIT and the CFC of anticipated shortages as soon as these are identified.  Normally, applications will not be accepted if the proposed week of entry is more than three (3) weeks after the week of application.

6.3.6 Normally, officials will require eight (8) working days to process applications.  However, the actual processing time required will vary with the nature and quantity of the product requested, market conditions and other factors.

6.4 Assessment of Application

6.4.1 Each application is assessed in terms of the product and quantities requested.  The quantity requested should reflect the applicant's normal throughput and the product should be a product normally used by the applicant and should be consistent with end product(s) normally sold to the applicant's customer(s).

6.4.2 The applicant's own procurement efforts are also evaluated.  While supplementary imports may be authorized when there are general market shortages as defined in sub-section 6.2.1. Supplementary imports will not be authorized if shortages are the result of the applicant's own procurement problems.

6.4.3 Applications may be made for any controlled chicken product that is normally traded in Canada.  Product specifications shall conform to normally accepted trading classes of the product (e.g., as delineated in Appendix 4).  Applications shall describe accurately the product required, the acceptable quality, level and size variations, and acceptable substitutes.  A new application shall be made if specifications are changed after sourcing has begun.

6.4.4 Special product specifications will only be considered if the applicant is known to specialize in that product and if the lead-time is adequate.

6.4.5 Applicants must indicate the week in which they wish to import the product.  Normally, the delivery period will be a six (6) day period from Monday through Saturday.

6.4.6 It is expected that the applicant will have made a reasonable effort to contact seven (7)  potential suppliers to procure required materials from domestic sources prior to applying for an authorization for supplementary imports due to a market shortage.  Officials will pay particular attention to the reasons for the shortage, such as:  when the shortage could have been identified; when it was actually identified; and what steps were taken by the applicant to address the situation.  It is recommended that applicants contact DFAIT and the CFC regarding possible medium to long-term supply shortages.

6.4.7 In case of product substitution, the applicant's ability to use the domestically-sourced product for the intended end use will be considered.  Please see sub-section 6.5.3 of this Notice for information concerning product substitution.

6.5 Sourcing

6.5.1 The CFC will survey the domestic market for availability of the product requested and will inform the applicant of the results of this survey within three (3) working days from the time the application is received.

6.5.2 The sourcing results will identify suppliers and the quantities offered; after receiving this information, the applicant must contact each supplier identified within one (1) working day to negotiate price and delivery with these suppliers.  The applicant is normally expected to purchase the sourced product up to the level of the requested quantity.  The applicant shall notify the CFC as soon as procurement from domestic sources has been completed.

6.5.3 The sourcing results can include any commercially reasonable substitute product (e.g., eviscerated bird substitution for live bird) that can be used by the applicant to produce the identified end product (i.e., from a technical, quality, as well as economic view point).

6.6 Continuation of Application

6.6.1 If the applicant is not satisfied with the sourcing results, he/she may continue the application process using the form “Application for Authorization for Supplementary Imports - Continuation of Application”, included as Appendix 6 of this Notice.

6.6.2 Deadline for Continuation of Application: Any request to DFAIT for relief from the obligation to purchase the sourced product shall be made, in writing, within two (2) working days from the time that the applicant receives the sourcing list from the CFC.

6.6.3 The applicant shall state in writing to DFAIT the results of discussions with all the persons on the sourcing list, including the product offered, the price, product specifications and delivery date.  The applicant shall confirm the sourcing results within two (2) working days.

6.6.4 Reasons for Continuation of Application: The applicant shall substantiate why some or all of the products sourced by the CFC cannot be used to meet associated requirements, stating the reasons for the request for continuation and the results of the negotiations with companies on the sourcing list.

6.6.5 A request to continue an application may be considered under the following circumstances:

a. the sourcing results indicate a market shortage;

b. the product offered does not meet industry standards of quality;

c. the product is not a reasonable substitute;

d. the product is offered at market prices which appear excessive in comparison to current regional market prices; or,

e. the offer is subject to terms and conditions incompatible with industry standards.

6.7 DFAIT Assessment

6.7.1 DFAIT may require three (3) working days to assess the sourcing results, the application itself and current market conditions.

6.7.2 After the application has been assessed along with the relevant information described above, a decision will be communicated to the applicant, and also to the CFC.  If supplementary imports are authorized, the applicant will also be advised as to products, quantities and related conditions. 

6.7.3 Any credits due to global permits that are returned or due to unused permits, after supplementary imports have been authorized, will be deducted from the quantity authorised.

6.8 Supplementary Import Permits Pursuant to an Authorization under this Section

6.8.1 Eligible applicants are issued a unique EIPA authorization number for each approved request.  As with other permit applications, the authorization number should be inscribed on the permit application in the box marked "document number".  The applicant may apply for permits up to the total quantity authorized, for the product authorized and for the delivery period authorized.  The supplementary import permit will be valid only during the delivery week requested by the applicant.

6.8.2 No substitution of product will be allowed other than those acceptable under CFC sourcing arrangements and no extension of the permit validity period will be made.  Changes in product or validity period would require a new application for supplementary imports and a new sourcing effort by the CFC.

6.8.3 Unused permits shall be returned to DFAIT at the end of their validity periods.

6.8.4 Additional information concerning the issuance of supplementary import permits is included in Section 12.0.

6.9 Administrative measures which may be applied

6.9.1 Administrative measures will normally be applied to suppliers in the following cases:

a. Normally, if product offered by a supplier in response to CFC sourcing efforts is found not to be available when the applicant contacts the supplier, the supplier will be removed from the sourcing list for a period of sixty (60) calendar days from the date when the product was offered for sale.

b. Normally, if product offered by a supplier and purchased by the applicant is not delivered within the delivery period specified or does not meet the agreed specifications, the supplier will be removed from DFAIT supplier's list for a period of one (1) year.

6.9.2 Administrative measures will normally be applied to applicants in the following cases:

a. Normally, if an applicant does not contact suppliers by the deadline indicated by the CFC (a minimum of one (1) working day from the time the sourcing information was received from the CFC) the application will be rejected.

b. Normally, when two applications from an applicant have been rejected for incompleteness within a ninety (90) day period, no further applications will be accepted from that applicant for a period of sixty (60) calendar days after the second rejection.

c. Normally, if an application is fully sourced and the applicant does not purchase the sourced product up to the level of the request, no further applications will be accepted from that applicant for a period of sixty (60) days from the date when he/she proposed to import the chicken.

d. Normally, if an application is partially sourced by the CFC and supplementary imports are authorized for some or all of the shortfall on condition that some or all of the CFC sourced product be purchased and this obligation is not fulfilled, no further applications will be accepted from that applicant for a period of sixty (60) calendar days from the date when he/she proposed to import the chicken. Applicants should be ready to provide evidence that they have purchased, or offered to purchase product sourced in the domestic market pursuant to an application for supplementary imports.

e. Normally, if an applicant withdraws an application after sourcing has been started by the CFC for reasons other than having procured his requirements, no further applications will be accepted for a period of thirty (30) days during which that applicant normally would have been eligible to apply for supplementary imports.

f. Normally, if an applicant applies for, and receives, a supplementary import permit pursuant to an authorization under this Section and offers that same product, or a reasonable substitute, for sale on the CFC sourcing list for the same week, no further requests for supplementary import permits will normally be considered for a period of sixty (60) days after the product was offered for sale on the sourcing list.

7.0 To import dark chicken meat not supplied by the Chicken Farmers of Canada’s domestic supply program:

7.1 If the product sought is not available from a processor, at a landed price competitive with U.S. product, the Non-ICL manufacturer shall notify Foreign Affairs and International Trade Canada (DFAIT) who in turn will request CFC to proceed with the sourcing process.  Supplementary imports will be authorized if the requested product cannot be sourced domestically at a competitive price.  The landed price formula is based on a twelve (12) week rolling average Urner Barry Wholesale Price (Northeast, boneless/skinless thigh meat, special trim) plus relevant transportation costs, custom brokerage fees, and exchange rate conversions.

8.0 To import chicken for the manufacture of new products exempt from the Import Control List (also known as FTA products), for the difference between the company's allocation and its previous year's production during the reference period (the "shortfall") or due to increased production of products exempt from the Import Control List during a given year (Import  to Compete).

8.1 A request for authorization for supplementary imports may be submitted at any time during the calendar year. Eligible applicants whose chicken Free-Trade Agreement (FTA) products have a dark meat component will be referred to the CFC’s Domestic Supply Program for eligible quantities of chicken pursuant to this portion of their application.

8.2 Manufacturers who have been issued an import allocation for production of chicken products that are not on the Import Control List (ICL), also referred to as "FTA quota", will normally be required to have exhausted this allocation before supplementary imports may be authorized under this provision.  An allocation will be considered exhausted only if all permits issued have been used and the allocation balance is zero.

8.3 Manufacturers applying to DFAIT for import permits for chicken under this provision must state the quantity and the specification of the product to be manufactured and the anticipated production and delivery dates.

8.4 Manufacturers importing chicken under this provision are subject to the condition that they agree to subsequently provide the information listed in Appendices 7 and 8 of this Notice.  This information is used to confirm that the specified chicken products were produced, that the associated sales were made, and that payment was received. Normally, if a manufacturer applies solely for the "shortfall", only the information listed in Appendix 7 accompanied by an affidavit sworn by the  Chief Executive Officer (CEO) will be required.

8.5 Should a company fail to provide the required information in section 8.4 or should the information provided indicate that it did not both produce and sell the agreed-upon chicken products in the prescribed period, any future quota allocations to that company may be reduced and other action taken under the EIPA.

8.6 Chicken meat-on-meat products:

8.6.1 MEAT-ON-MEAT PRODUCTS ARE NOT BE ELIGIBLE FOR AN FTA SUPPLEMENTARY ALLOCATION UNDER THE IMPORT TO COMPETE PROGRAM.

9.0 To import Chicken or Chicken Products for Further Processing and Re-export (Import For Re-Export Program or IREP)

9.1 This program is limited to processors. For the purposes of the IREP, a processor carries on activities in federally registered Canadian plants owned and operated by the applicant that involve the slaughtering of chicken, cutting up of eviscerated chicken, de-boning of eviscerated or cut up chicken, or further processing. The latter includes, but 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.

9.1.1 Processors of chicken under the IREP can import chicken or chicken products for processing in Canada, and subsequently re-export the associated processed product. Companies who hold an authorization to import  chicken, or chicken products under IREP must be the importer of record of those products. Product imported under IREP must be used to manufacture products that are subsequently exported. Diversion of product imported under IREP to the Canadian market is prohibited.

9.2 Application Process

9.2.1 To be eligible to participate in IREP, a company must apply for an authorization for supplementary imports each authorization year commencing June 1 to May 31 of the following year. An application form is included as Appendix 9. With respect to products to be manufactured, applications must indicate the ingredient specifications, the HS code, loss factors (if any) and the U.S. Department of Agriculture product code or the company product code for non-U.S. destinations. The USDA product code can be obtained by completing the U.S. Department of Agriculture Food Safety and Inspection Service FSIS FORM 7234-1 (10/03/2002) “Application for Approval of Labels, Marking or Device”. With respect to imports, the applicant must indicate the type (using the 14 digit EIPA product codes) and quantity of product sought. The applicant must also provide a copy of the CFIA label registration for the imported products, the CFIA-registered process (if applicable) and a breakdown of the meat block into its components (if applicable). Also, for retail packaged products the USDA Nutrition Facts labels must be provided.

9.2.2 Applicants are apprised in writing concerning the result of their application. Companies accepted into the program for a given year must comply with the specific conditions of import permit issuance under IREP.

9.3 Permit Conditions

9.3.1 The Minister may issue import permits to participating companies, subject to conditions, including:

9.3.2 Re-Export of Imported Product: All products imported under IREP must be exported by the company authorized to import under IREP within three months of the date of entry indicated on the associated supplementary import permit. Import authorizations under IREP do not include authority to sell the imported goods within Canada. Any diversion of products imported under IREP to the domestic market (e.g., sale of such products within Canada) may lead either to prosecution or to suspension or cancellation of import authorizations (see section 9.5 below).

9.3.3 Reconciliation methodology for imports of bone-in breast for processing and re-export of boneless chicken products:  A conversion rate of 63% is used when reconciling IREP participants’ imports and exports for this product.

9.3.4 Reconciliation methodology for determining the quantity of chicken in the exports of marinated, frozen boneless chicken parts (i.e., breast and thigh meat):   The reconciliation methodology for determining the quantity of chicken in the exports of marinated, frozen, boneless chicken parts is based on Health Canada’s Canadian Nutrient Files, that includes the base meat protein content of chicken parts and, where applicable, information contained within the finished product labels. DFAIT will calculate the weight of IREP chicken in the export product as follows:

((protein content per serving as declared on retail label/serving size as declared on retail label)-added protein*100) /Health Canada base meat protein percentage= percentage of IREP chicken in export chicken product

For example, Health Canada’s base meat protein content for raw, water chilled, broiler breast meat is currently 22.74%:

((19g protein content / 100g serving size)* 100) / 22.74% = 83.55%

9.3.5 Should the protein details as presented on the label of the export chicken product be incorrect for any reason, or where these details are not mandatory, only the total protein content analysis of an accredited, independent laboratory will be accepted.  DFAIT will oversee the collection and delivery of all export product to the laboratory with all costs borne by the applicant.  Additionally, all new IREP marination export products will be subject to sampling and analysis to ensure compliance with the total protein content methodology.  Please note that if the laboratory results differ from the declaration on the export label, DFAIT will apply the laboratory results for its calculation of the percentage of IREP chicken in export product, effective the date of laboratory analysis.  DFAIT WILL ONLY ACCEPT RESULTS OF LABORATORY ANALYSES WHERE DFAIT HAS OVERSEEN THE COLLECTION AND DELIVERY OF THE EXPORT CHICKEN PRODUCT IN QUESTION; SAMPLES ANALYZED BY LABORATORIES UNDER DIRECT INSTRUCTION OF PARTICIPANTS WILL NOT BE ACCEPTED.

9.3.6 Authorization Validity:  An IREP authorization is valid within the authorization year in which it is issued.

9.3.7 Monthly Reporting of Exports: All companies authorized to participate under IREP must submit, electronically, monthly summary export reports for all IREP product exports (including a nil report if applicable) to DFAIT (irep@international.gc.ca) by the end of the following month. A company has 30 days following the end of the month to send in the monthly summary export report. A monthly summary export report is included as Appendix 9. These reports must be prepared in the prescribed format and include the following information for each export shipment:

  • shipment date;
  • transaction number and the U.S. Customs Entry Number for shipments to the United States (or the Bill of Lading or Canada Customs export declaration B13A number for non-U.S. destinations);
  • for exports to the United States, the Canadian Food Inspection Agency(CFIA) “Official Meat Inspection Certificate for Fresh Meat, Meat By-Products, Meat Food Products, and Poultry Products” (CFIA/ACIA 4546 2002/01) Certificate No; for other destinations, “Certificate of Inspection Covering Meat Products” (CFIA/ACIA 1454 2004/08) Foreign Export Stamp Numbers;
  • finished product name and HS code;
  • for exports to the United States, the USDA Product Code Number; for other destinations the company Finished Product Code No.;
  • quantity, kg from CFIA Export Certificate;
  • value, Canadian dollars;
  • destination country;
  • HS code and name of imported chicken ingredient(s) contained in the exported product;
  • net weight in kilograms of imported product contained in exported product excluding marination; and
  • eviscerated equivalent weight in kilograms of imported chicken input.

9.3.8 Only products manufactured with inputs imported under IREP are eligible to be reported as exports under IREP. Products manufactured using controlled inputs imported under the TRQ or obtained from other sources are not eligible to be reported as exports under IREP, and products exported prior to the import of a corresponding quantity of controlled inputs under IREP are not eligible to be reported as exports under IREP.

9.3.9 Year-End Letter from the Company’s Chief Executive Officer: Participating companies must send a letter from their Chief Executive Officer (CEO) for each authorization year of participation in IREP, no later than August 31 each year, confirming that all imported product was exported in accordance with program conditions. The CEO letter must be in the exact format of the letter in Appendix 9 of this Notice.

9.3.10 Documents Retained by the Applicant: Participating companies must retain, for a period of six years, and provide to DFAIT on demand, copies of the following documents:

a. Purchase Documents for the imported product:

  • Purchase orders;
  • Proof of payment (e.g., banking records); and
  • Descriptive literature which indicates the imported good’s composition.

b. Import Documents:

Copies of complete release and accounting packages submitted to CBSA. Packages include:

  • Cargo control documents (e.g., Bill of Lading) as required by CBSA’s D3 Memorandum series;
  • CBSA Form B3;
  • Commercial invoice as described in CBSA’s Memorandum D1-4-1; and
  • Any required permits, licences, or certificates (e.g., CFIA inspection certificate).

c. Export documents:

  • Transportation documents relating to the exportation of the finished product (e.g., Bill of Lading, freight invoices);
  • Accounting documents related to the sale of exported product (e.g., Purchase Order, sales contracts, commercial invoices, proof of payment);
  • Any required permits, licences, or certificates (e.g., CFIA inspection certificate);
  • Copies of the importing country’s Customs documentation, completed and certified by a Customs officer of the country to which the goods were exported, which fully describes the goods; and
  • For export destinations other than the United States, a copy of CBSA’s B13A export declaration.
  • Letter of intent from customers

d. Documents concerning domestic processing of imported products:

  • Packaging and labelling for product(s) exported under IREP;
  • Monthly production records to allow tracking of imported product(s), including inventory levels, quantities of raw materials used, and quantities of finished product(s) produced;
  • Descriptive literature related to manufacturing processes and products manufactured; and
  • If applicable, records related to subcontracting.
  • Current recipes.

e. Raw materials and finished products documents:

  • Inventory levels of imported and finished product(s) under IREP

9.3.11 Participating companies may be subject to an on site verification by DFAIT.

9.4 Additional Information

9.4.1 DFAIT may request additional information, including that an independent public accountant (or an accountant named by DFAIT) certify information provided to it. THIS MAY ALSO INCLUDE A REQUEST BY DFAIT THAT A PRODUCT BE TESTED BY AN INDEPENDENT ACCREDITED LABORATORY. Should any such request prove necessary, all costs will be borne by the applicant.

9.5 Sanctions: suspension and cancellation of import authorizations, and prosecution

9.5.1 Failure to comply with program conditions may result in suspension from participation in IREP, cancellation of associated import permits, reduction of a company’s TRQ allocation(s) or prosecution for offences against the Export and Import Permits Act. A company that is suspended from participation in IREP is not eligible to receive IREP import permits.

9.5.2 Should DFAIT not receive a monthly export report, in the format prescribed by DFAIT, from a company for a given month by the end of the following month, the company may be suspended from the program. A company may be reinstated to the program if DFAIT determines that the situation has been rectified and that the company is in compliance with programme requirements. However if a company fails to provide a monthly export report on multiple occasions, the company may be suspended from participation in the IREP program for the remainder of the year.

9.5.3 Should DFAIT not receive the requested communication (i.e., the CEO year-end letter) from a company for a given year by August 31 of the following year, the company will be suspended from the program.

9.5.4 Should DFAIT's reconciliation of a company's exports and imports under IREP indicate that product imported by that company under IREP has been in Canada for more than three months, the company will be suspended from the program until DFAIT determines that the situation has been rectified and that the company is in compliance with programme requirements.

9.5.5 Eligibility under the Chicken Farmers of Canada’s Market Development Program: Exports of finished products where poultry is procured under the CFC’s Market Development Program are not eligible to be reported as exports under IREP.

10.0 To import chicken and chicken products for the purpose of test marketing

10.1 Supplementary imports may be authorized to facilitate test marketing in the Canadian market of new products that are, for example, unique or are produced with unique processes and require a substantial capital investment for their production.

10.2 Authorization for supplementary imports for purposes of test marketing may be issued only for products that are marketed directly to consumers.

10.3 Companies that intend to conduct test marketing of a specific product must normally plan the activity within their annual TRQ allocations.  Companies that have been issued a quota allocation will normally be required to have exhausted this allocation before supplementary imports may be authorized under this provision.

10.4 Applications made on company letterhead should contain the following information:

a. a description of the product and related production processes, with indications respecting unique features of same;

b. a description of a proposed test marketing program, identifying test market areas, market channels, timing, promotion plans and marketing costs, product quantities required for the proposed test marketing program, and an analysis showing the minimum test market results required to decide in favour of the capital investment in Canadian production facilities; and,

c. a detailed outline of the resulting minimum capital investment and job creation; proposed financing required to produce the product, e.g., facilities, equipment, production capacity; and the time required to bring such facilities on line from the time of a DFAIT decision to approve the test marketing program.

10.5 Companies are required to commence production in Canada as soon as is feasible after the successful completion of the test marketing program.

10.6 Imports pursuant to an authorization issued under this provision shall only be made for the products to be test marketed, for the prescribed test marketing period, and for the approved quantities.

10.7 Once these quantities or the period have been exhausted, further permits may be authorized only for the same product in quantities sufficient to continue serving the test marketing areas during a period reasonably required for the construction of the domestic production facilities.  Once such facilities have been established, no further permits will be allowed for either the test market product or for required raw materials.  An applicant may submit only one test marketing application for a given product.

10.8 Successful applicants will be required to provide monthly statistics on the sales of imported products by test area.  Failure to submit these statistics may result in suspension of import privileges under this provision.

11.0 Other Situations

11.1 Other applications for authorization for supplementary imports due to extraordinary or unusual circumstances will be evaluated on their individual merits.

12.0 Import permits

12.1 Import permits are issued pursuant to an import authorization and are required for each shipment of chicken and chicken products imported to Canada and classified 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.  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 chicken and chicken products, but such imports will 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.

12.2 In accordance with the Import Permit Regulations, DFAIT has in place the following procedures for receiving applications for import permits:

a. 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 1), and transmit it to DFAIT.

b. A description of the process of applying for a permit is attached as Appendix 2, and includes information concerning fees, the monthly billing system, and information required from applicants. “Specific import permits” are issued either

  1. through an on-line automated delivery system in the offices of customs brokers in major centres across Canada or;
  2. in the offices of DFAIT. 

c. A list of the EIPA commodity codes for chicken and chicken products are attached as Appendix 4. All applications must include the appropriate commodity code.

13.0 Permit fees

13.1 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).

14.0 Further Information

14.1 Concerning the sourcing of domestic product:

Chicken Farmers of Canada (CFC)
1007-350 Sparks Street
Ottawa, Ontario
K1R 7S8
Telephone: (613) 241-2800
Facsimile:   (613) 241-5999

14.2 Concerning supplementary imports:

A) Domestic Market Shortages, dark chicken meat, Import to Compete and test marketing

Foreign Affairs and International Trade Canada
Trade Controls Policy Division
125 Sussex Drive
Ottawa, Ontario
KlA 0G2

Mr. Guy Giroux (Trade Officer)
Telephone: (613) 995-8108
Facsimile:   (613) 996-0612
e-mail: guy.giroux@international.gc.ca

Mrs Adèle Brisson (Import Control Officer)
Telephone: (613) 995-8104
Facsimile:   (613) 996-0612
e-mail: adele.brisson@international.gc.ca

B) Import For Re-Export Program (IREP)

Foreign Affairs and International Trade Canada
Trade Controls Policy Division
125 Sussex Drive
Ottawa, Ontario
KlA 0G2

Mrs. Ann Marie Broadbent (Trade Officer)
Telephone: 613-996-2385
Facsimile:   613-996-0612
Email: annmarie.broadbent@international.gc.ca

Mrs. Jessie Richer (Trade Officer)
Telephone: 613-995-8358
Facsimile:   613-996-0612
Email: jessie.richer@international.gc.ca 

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Date Modified:
2012-06-25