Notice to Importers

Ice Cream and Ice Cream Novelties (Item 134 on the Import Control List)

Serial No. 841
Date: October 30, 2013

Table of Contents


1.0 Purpose

1.1 The purpose of this Notice is:

a) to inform importers of the Minister's policies and practices respecting the administration of the 484,000 kg tariff rate quota (TRQ) for ice cream and ice cream novelties for 2014.  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 quota shares of the ice cream and ice cream novelties TRQ available for allocation for the period of January 1 to December 31, 2014.

2.0 Coverage

2.1 This Notice cancels and replaces Notice to Importers No. 819 of November 20, 2012.  It refers to Item 134 of the Import Control List (ICL), i.e. products falling under tariff item No. 2105.00.91 or 2105.00.92 in the list of tariff provisions set out in the schedule to the Customs Tariff, namely ice cream and ice cream novelties and other edible ice, whether or not containing cocoa, other than flavoured ice and ice sorbets.

2.2 This Notice should be read in conjunction with the most recent Notice to Importers governing the administration of supplementary imports for dairy products which is available on the Foreign Affairs, Trade and Development Canada (DFATD) Internet site: Controlled Products - Agriculture - Dairy Products (http://www.international.gc.ca/controls-controles/prod/agri/dairy-laitiers/index.aspx?lang=eng). 

2.3 Importers who require a determination as to whether the tariff classification of the product they intend to import is within the scope of this Notice are to contact the Canada Border Services Agency, Trade Programs and CARM Directorate at 613-957-1468, fax: 613-952-3971.

3.0 Duration

3.1 This Notice will remain in effect until December 31, 2014.

4.0 Authority

4.1 Each of the products covered by this Notice was added to the 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 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.

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 Size of the Ice Cream and Ice Cream Novelties TRQ for 2014

5.1 The ice cream and ice cream novelties TRQ for 2014 is set at 484,000 kilograms.

6.0 Allocation of the Ice Cream and Ice Cream Novelties TRQ

6.1 The ice cream and ice cream novelties TRQ will be allocated to historical allocation holders on the basis of historical import quota.  For purposes of this Notice, historical import quota means an allocation that was made in 1994 on the basis of an allocation made at the time of the initial imposition of import controls and allocations to importers, as adjusted since then (e.g., for under-utilization).

6.2 Once the requirements of those applicants described in section 6.1 have been met, the balance of the TRQ, if any, will be allocated on an equal-share basis to eligible  ice cream and ice cream novelties distributors.  Eligible distributor applicants may receive an allocation quantity on the basis of their specific request if the quantity requested is less than an equal share.  For the purposes of this Notice, ice cream and ice cream novelty distributors are defined as companies that sold ice cream or ice cream novelties to retailers in 2013; and retailers are defined as grocery stores, hotels, restaurants and institutions that sell or serve ice cream or ice cream novelties to consumers.

7.0 Under-utilization and Return Policies

7.1. Under-utilization Policy

7.1.1. An allocation holder with a utilization rate less than 90% in the previous quota year may have its allocation adjusted downward by an under-utilization penalty for the new quota year.Footnote 1

7.1.2. For allocation holders that under-utilized in the previous quota year, allocations in the new quota year will be reduced by the percentage of the allocation not utilized in the previous quota year. Footnote 2

7.1.3. Allocation holders that under-utilized during the previous quota year will be advised of the applicable under-utilization penalty before the allocations are finalized for the new quota year.

7.2. Return Policy

7.2.1. Allocation holders may return any portion of the balance of their allocation no later than October 1 of the quota year.  Any portion of an allocation that is returned by this date will be considered as having been used for purposes of administering the under-utilization policy in 7.1.1.

7.2.2. Returned TRQ quantities, if available, will be reallocated to eligible applicants on a first-come, first-served basis.

8.0 Related Persons

8.1 For the purpose of this Notice, where two or more applicants are related persons, they shall be eligible for only one allocation.  To determine which persons are related, an applicant for an allocation is asked to provide a brief profile of the company in part 16 of the application, which should include a list of related persons (see Appendix 1, Information Concerning Related Persons).

8.2 In the case of separate applications from related applicants involving a parent company and one or more subsidiaries, only the application nominated by the parent company will be considered. If the parent company does not make such a nomination in writing, it will be made by DFATD.

9.0 Supplemental Import Permits

9.1 The Minister may authorize imports of ice cream and ice cream novelties in excess of the 484,000 kg import access quantity, in particular when the importation of these products is required to meet Canadian market needs.

9.2 Requests for such supplemental permits may be addressed to Mr. Hugues Leroux at the address below.  In deciding whether to issue a supplemental permit, the Minister will consider, amongst other criteria, the availability of like or directly substitutable products on the Canadian market. 

10.0 Application for Shares of the Ice Cream and Ice Cream Novelties TRQ

10.1 Applications for a share of the ice cream and ice cream novelties TRQ for 2014 must be made by fully completing the application form, attached as Appendix 2, and must be postmarked on or before December 6, 2013.

10.2 Applications sent by MAIL or by COURIER should be addressed to:

Mr. Hugues Leroux
Trade Controls Policy Division (TIC)
Foreign Affairs, Trade and Development Canada
125 Sussex Drive
Ottawa, Ontario
K1A 0G2

10.3 Applications sent after December 6, 2013, will not be considered. Claims for lost applications will not be considered without acceptable proof of sending (e.g., courier receipt).

10.4 Applications received by facsimile will not be accepted. Only original applications will be accepted.

10.5 Unless otherwise specified by the applicant, DFATD communicates with an EIPA authorization applicant in the official language of Canada which the applicant has utilized on its application.

11.0 Transferability of Import Allocations

11.1 Under the EIPA, the Minister may allow the transfer of import allocations between import allocation holders. All requests for the transfer of import allocations must be referred to the quota manager at DFATD for consideration.

12.0 Import Permit Issuance

12.1 Import permits are issued, normally, pursuant to an import authorization and are required for each shipment of ice cream and ice cream novelties falling within tariff item Nos. 2105.00.91 or 2105.00.92 in the List of Tariff Provisions set out in the schedule to the Customs Tariff.  Importers may either invoke General Import Permit (GIP) No. 100 - Eligible Agricultural Goods, a copy of which is available on request, or present an import permit issued by DFATD to their firm for that shipment (specific import permit), in order to clear customs.  Those citing the GIP will be authorized to import unlimited quantities of ice cream and ice cream novelties, but such imports will be subject to the higher over-access rate of duty.  Those presenting a specific import permit to the Canada Border Services Agency at the time of final accounting may enter their shipments at the lower 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 GIP, regardless of the importer’s import allocation.

12.2 In accordance with the Import Permit Regulations, the procedures for receiving applications for import permits are as follows:

a) When requesting an import permit an applicant must submit a completed Form EXT-1466, “Application for Permit” (a copy of which is attached as Appendix 3).

b) A description of the process of applying for a permit is attached as Appendix 4, 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 DFATD.

13.0 Name on the Permits

13.1   Please note that the name on the specific import permit must match exactly the name of the importer on Canada Border Services Agency's B3 Customs entry and related documents at time of final accounting. Where the name on the import permit and the name of the importer on the B3 is not the same entity, the permit will be declared invalid. It is incumbent on the party granted an import authorization 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 Canada Border Services Agency's officials.

14.0 Permit fees

14.1 A fee will be levied for each permit issued in accordance with the Export and Import Permits and Certificates Fees Order (Notice to Importers No. 508 dated May 16, 1995).

15.0 Further information

15.1 Enquiries about import allocations may be addressed to:

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

(Address as indicated in paragraph 10.2)

15.2 Enquiries about permit issuance and utilization of import allocations may be addressed to:

Mrs. Adèle Brisson
Tel: 613-995-8104
Fax: 613-996-0612
e-mail: adele.brisson@international.gc.ca      

(Address as indicated in paragraph 10.2)

15.3 A copy of this Notice and related information are available on the DFATD Internet site: Controlled Products - Agriculture - Dairy Products (http://www.international.gc.ca/controls-controles/prod/agri/dairy-laitiers/index.aspx?lang=eng)

Footnotes

Footnote 1

The utilization rate (%) will be calculated for every allocation holder as follows:

Utilization Rate (%) = (Actual Level of Use (kg) / Total Allocation Granted (kg)) X 100%

Where:
Actual Level of Use (kg) = Permits Used (kg) + Returns (kg) + Transfers Out (kg)

And:
Total Allocation Granted (kg) = Initial Allocation (kg) + Transfers In (kg) + Reallocation of Returns (kg)

Return to footnote 1 referrer

Footnote 2

The under-utilization penalty will be calculated as follows:

Underutilization Penalty (kg) = Pre-penalty Allocation (kg) X Underutilization Rate (%)

Where:
“Pre-penalty Allocation (kg)” is the allocation that the allocation holder would have been eligible for in the new quota year, if the allocation holder had not under-utilized in the previous quota year.

And:

Underutilization Rate (%) = 100% - Utilization Rate (%)

Return to first footnote 2 referrer

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