Notice to Exporters

Butter, Dairy Spreads, Fats and Oils Derived From Milk, Other Than Butter Or Dairy Spreads (Items 159, 159.1 and 160 on the Import Control List)

Serial No. 854
Date: December 10, 2013

Table of Contents

  1. Purpose
  2. Coverage
  3. Duration
  4. Authority
  5. Size and Duration of the Butter, Dairy Spreads, and Fats and Oils Derived from Milk, Other Than Butter or Dairy Spreads TRQ for 2013-2014
  6. Allocation of the TRQ
  7. Supplemental Imports
  8. Import Permit Issuance
  9. Name of the Permits
  10. Permit fees
  11. Further information

1.0 Purpose

1.1 The purposes of this Notice are:

  • a. To inform importers of the Ministers policies and practices respecting the administration of the 3,274,000 kilogram tariff rate quota (TRQ) for butter, dairy spreads, and fats and oils derived from milk, other than butter or dairy spreads. 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 inform importers that the TRQ for butter, dairy spreads, and fats and oils derived from milk, other than butter or dairy spreads for the 2013-2014 marketing year has been entirely allocated to the Canadian Dairy Commission (CDC).

2.0 Coverage

2.1 This Notice cancels and replaces Notice to Importers No. 805, dated October 18, 2011. It refers to Items 159, 159.1 and 160 of the Import Control List (ICL), butter falling under tariff items 0405.10.10 or 0405.10.20, dairy spreads falling under tariff items 0405.20.10 or 0405.20.20, and fats and oils derived from milk, other than butter or dairy spreads falling under tariff items 0405.90.10 or 0405.90.20 in the list of tariff provisions set out in the schedule to the Customs Tariff.

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 Internet site: Controlled Products - Agriculture - Dairy Products

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

3.0 Duration

3.1 This Notice will remain valid until further notice.

4.0 Authority

4.1 Each of the products covered by this Notice was added to the Import Control List (ICL) pursuant to paragraphs 5(1)(a), (b), (d) and (e) and sections 5.3 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 and Duration of the Butter, Dairy Spreads, and Fats and Oils Derived from Milk, Other Than Butter or Dairy Spreads TRQ for 2013-2014

The butter, dairy spreads, and fats and oils derived from milk, other than butter or dairy spreads TRQ for 2013-2014 is set at 3,274,000 kg, within which 2,000,000 kg is a country-specific reserve to New Zealand, and extends from August 1, 2013 to July 31, 2014, inclusive.

5.1 The butter, dairy spreads, and fats and oils derived from milk, other than butter or dairy spreads TRQ for 2013-2014 is set at 3,274,000 kg, within which 2,000,000 kg is a country-specific reserve to New Zealand, and extends from August 1, 2013 to July 31, 2014, inclusive.

6.0 Allocation of the TRQ

6.1 The marketing year for the TRQ that applies to butter, dairy spreads, fats and oils derived from milk, other than butter or dairy spreads extends from August 1 to July 31, inclusive.

6.2 The Minister has approved the allocation of the TRQ that applies to butter, dairy spreads, and fats and oils derived from milk, other than butter and dairy spreads, to the Canadian Dairy Commission (CDC) for the 2013-2014 marketing year for the benefit of further processors. For further information, please contact the CDC at 613-792-2000.

7.0 Supplemental Imports

7.1 The Minister may, at his discretion, authorize imports of butter, dairy spreads, and fats and oils derived from milk, other than butter and dairy spreads in excess of the 3,274,000 kg import access quantity, in particular when the importation of these products is required to meet Canadian market needs.

7.2 Requests for authorization for supplementary imports may be submitted to Ms. Lynn Matthew at the address indicated in section 11.1 below. In deciding whether to issue a supplementary permit, the Minister will consider, amongst other criteria, the availability of like or directly substitutable products in the Canadian market.

8.0 Import Permit Issuance

8.1 Import permits are issued, normally, pursuant to an import authorization and are required for each shipment of products falling within tariff item Nos. 0405.10.10 or 0405.10.20 (butter), 0405.20.10 or 0405.20.20 (dairy spreads) and 0405.90.10 or 0405.90.20 (fats and oils derived from milk, other than butter or dairy spreads) 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 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 butter, dairy spreads, and fats and oils derived from milk, other than butter and dairy spreads , but such imports will be subject to the higher over-access commitment rate of duty. Those presenting a specific import permit to the Canada Border Services Agency at the time of final accounting may enter their shipments at the 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 General Import Permit, regardless of the importer's import allocation.

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

  • 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 1).
  • A description of the process of applying for a permit is attached as Appendix 2, 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 Foreign Affairs, Trade and Development Canada.

9.0 Name on the Permits

9.1 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.

10.0 Permit fees

10.1 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).

11.0 Further information

11.1 Enquiries about import allocations may be addressed to:

Ms. Lynn Matthew
Trade Controls Policy Division (TIC)
Trade Controls Bureau (TID)
Foreign Affairs, Trade and Development Canada
125 Sussex Drive
Ottawa, Ontario
K1N 0G2
Tel: 613-944-1807
Fax: 613-996-0612
E-mail: lynn.matthew@international.gc.ca

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

Mrs. Adèle Brisson
Trade Controls Policy Division (TIC)
Trade Controls Bureau (TID)
Foreign Affairs, Trade and Development Canada
125 Sussex Drive
Ottawa, Ontario
K1N 0G2
Tel: 613-995-8104
Fax: 613-996-0612
E-mail: adele.brisson@international.gc.ca

11.3 A copy of this Notice and related information are available on Foreign Affairs, Trade and Development Canada's internet site: http://www.international.gc.ca/controls-controles/prod/agri/dairy-laitiers/index.aspx?lang=eng.