Notice to Importers

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

Serial No. 862
Date: November 21, 2014

This Notice replaces Notice to Importers No. 841 dated October 30, 2013, and will remain in effect until further notice.

This Notice is provided pursuant to the authority of the Export and Import Permits Act (EIPA) and its corresponding regulations.

In Brief

Imports of ice cream and ice cream novelties into Canada are subject to import controls under Canada’s Export and Import Permits Act (EIPA).  Accordingly, an import permit is required for shipments of ice cream and ice cream novelties to enter Canada.  Import permits for shipments of ice cream and ice cream novelties destined to the Canadian market are issued to allocation holders under Canada’s tariff rate quota (TRQ) for ice cream and ice cream novelties, which is administered by Foreign Affairs, Trade and Development Canada (DFATD). 

The access quantity for the ice cream and ice cream novelties TRQ is 484,000 kg. The allocation period for the ice cream and ice cream novelties TRQ extends from January 1 to December 31, inclusive. 

This Notice to Importers sets out the policies and practices pertaining to the administration of the TRQ, including the allocation, under-utilization, return, reallocation, and transfer policies.  This Notice also explains how to apply for import permits.

Table of Contents

1. Purpose
2. General Information
3. Products Covered
4. Allocation Policy
5. How to Apply for an Allocation
6. Under-Utilization, Return and Reallocation Policies
7. Transfer Policy
8. Supplemental Imports
9. Import Permits
10. Contact Us
Appendix 1 Application form for a share of the ice cream and ice cream novelties TRQ (PDF 216 KB)
Appendix 2 Information concerning related persons


1. Purpose

1.1. The purpose of this Notice is:

  1. to set out the policies and practices pertaining to the administration of Canada’s TRQ for ice cream and ice cream novelties;
  2. to invite applications for allocations under the TRQ for the next quota year; and
  3. to explain how to apply for import permits for imports of ice cream and ice cream novelties.

1.2. Definitions:

"Distributor" means a company that sold ice cream or ice cream novelties to retailers in the previous calendar year.

“Historical applicant” means an applicant who holds a historical import quota.

“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 controls and allocations to importers, as adjusted since then (e.g., for under-utilization).

"Retailer" means a grocery store, hotel, restaurant or institution that sells or serves ice cream or ice cream novelties to consumers.

2. General Information

2.1. Background

2.1.1. In accordance with its commitments under the World Trade Organization (WTO), Canada has in place a TRQ for imports of ice cream and ice cream novelties.

2.1.2. Under Canadian TRQs, in any given year, a predetermined quantity of imports of a good controlled under the EIPA can enter Canada at a lower rate of duty, while imports over this quantity are subject to higher rates of duty. The TRQs therefore have three components: an import access quantity negotiated with Canada’s international trade partners; a within access commitment rate of duty that applies to imports up to the access level; and a higher, over access commitment rate of duty for imports over the access level.

2.1.3. The within and over access rates of duty that apply to imports of ice cream and ice cream novelties can be found in Canada’s Customs Tariff.

2.1.4. Pursuant to the EIPA and its corresponding 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. Furthermore, when issuing import permits to allocation holders the Minister may attach conditions to import allocations and/or to import permits, and may amend, suspend, cancel or re-instate import permits and allocations.

2.1.5. Failure by an applicant to provide any information requested by DFATD, or failure to comply with any condition of an allocation or permit issued pursuant to the EIPA may result in the rejection of the application for a share of the ice cream and ice cream novelties TRQ, the reduction or cancellation of an allocation issued pursuant to the EIPA, or the cancellation of associated permits.

2.2. Access Quantity

2.2.1. The access level for the ice cream and ice cream novelties TRQ negotiated under the WTO is 484,000 kilograms.

2.3. Allocation Period

2.3.1. The quota allocation year for the ice cream and ice cream novelties TRQ extends from January 1 to December 31, inclusive.

2.3.2. Eligibility for an allocation is assessed on the basis of each applicant’s activities in the ice cream industry during the reference period of August 1 to July 31 immediately preceding the new quota year. Applicants must be active in the ice cream industry at the time of application, and must be active during the quota year for which they are seeking an allocation.

3. Products Covered

3.1. This Notice pertains to Item 134 of the Import Control List (ICL), namely ice cream and ice cream novelties falling under heading Nos. 2105.00.91 and 2105.00.92 in the list of tariff provisions set out in the Schedule to the Customs Tariff.

3.2. Importers who require a determination as to whether the product they intend to import is eligible under the ice cream and ice cream novelties TRQ are encouraged to obtain an advanced tariff classification ruling from the appropriate regional client service office of the Canada Border Services Agency (CBSA).

4. Allocation Policy

4.1. The ice cream and ice cream novelties TRQ is allocated to two groups:

a) eligible historical applicants; and
b) other eligible distributor applicants.

4.2. The allocation to eligible historical applicants is calculated first. The quantity allocated to each eligible historical applicant is the equivalent of their historical import quota, adjusted as required (e.g., for under-utilization).

4.3. The balance of the TRQ, if any, is allocated to other eligible distributor applicants on an equal-share basis. The quantity allocated to each eligible distributor applicant is the equal share or the quantity requested, whichever is lower.

4.4. To be eligible, a historical or distributor applicant must have been active in the ice cream industry during the reference period, selling ice cream and ice cream novelties to retailers.

4.5. 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 must provide a “list of related persons” (see definition of “related persons” set out in Appendix 2).

4.6. 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 shall be determined by DFATD.

4.7. All Import Allocations expire at the end of each quota year and all firms interested in receiving an import allocation must reapply each year.

5. How to Apply for an Allocation

5.1. Applicants who wish to apply for an allocation under the ice cream and ice cream novelties TRQ are invited to submit their fully completed application form (see Appendix 1) no later than the 7th of December immediately preceding the opening of the quota year.

Note:  For the 2015 quota year only, the deadline for submitting a complete application form is December 22, 2014.

5.2. Applications sent by MAIL or COURIER should be addressed to the ice cream and ice cream novelties quota manager at DFATD. The name and mailing address of the ice cream and ice cream novelties TRQ manager can be obtained on the DFATD website, under Contact Us.

5.3. Applications sent by EMAIL should be sent to Dairy-Laitier@international.gc.ca. Applicants sending their application by email should be prepared to present the original version of their application at DFATD’s request. Failure to do so may lead to the cancellation of any allocation issued pursuant to the application and/or the cancellation of associated permits.

5.4. For legibility reason, applications sent by facsimile will not be accepted.

5.5. Applications postmarked after the deadline, or in a format other than that required, will not be considered. Claims of lost applications will not normally be considered without acceptable proof that they were sent before the deadline (e.g., courier receipt).

6. Under-Utilization, Return and Reallocation Policies

6.1. Under-utilization Policy

6.1.1. 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

6.1.2. 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

6.1.3. 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.

6.2. Return Policy

6.2.1. 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 6.1.

6.2.2. Returned quota available for re-allocation will be re-allocated to eligible applicants on a first-come, first-served basis.

7. Transfer Policy

7.1. The Minister may allow the transfer of allocations between allocation holders. All requests for transfer of allocations must be referred to DFATD for consideration.

8. Supplemental Imports

8.1. The Minister may, at his discretion, authorize imports of ice cream and ice cream novelties apart from the import access quantity. The Notice to Importers Dairy Products - Supplementary Imports explains the administration of supplemental imports for dairy products, including ice cream and ice cream novelties.  The Notice is available on the DFATD website at Dairy Products.

9. Import Permits

9.1. Types of Permits

9.1.1 An import permit issued by DFATD is required for every shipment of ice cream and ice cream novelties covered by this Notice to enter Canada. For a given shipment, importers may either present a shipment-specific import permit or invoke the appropriate General Import Permit (GIP).

9.2. Shipment-Specific Import Permits

9.2.1. Shipment-specific import permits are normally issued on demand to allocation holders up to the amount of their allocation under Canada’s ice cream and ice cream novelties TRQ. Shipments entering Canada under a shipment-specific import permit can normally do so at the within access rate of duty.

9.2.2. To claim the within access rate of duty for a shipment, the importer must present the shipment-specific import permit to CBSA at the time of final accounting.

9.2.3. Shipment-specific import permits will not normally be issued retroactively for shipments that have already been imported into Canada, including under the authority of a GIP, regardless of the importer’s allocation.

9.2.4. For a shipment-specific import permit to be considered valid, the name on the permit must match exactly the name of the importer on CBSA’s B3 Customs entry and related documents at time of final accounting. Furthermore, the quantity on the permit must be the same as the net quantity on the Customs invoice. It is incumbent on the party granted the permit to ensure that a permit application is made in the name of the importer of record and includes the correct quantity. Questions about the proper procedures to fill out customs entry documents should be addressed to local CBSA officials.

9.3. General Import Permits

9.3.1. The GIP that applies for ice cream and ice cream novelties is General Import Permit No. 100 – Eligible Agricultural Goods. There is no limit to the quantities of ice cream and ice cream novelties that may enter Canada under the GIP; however, such imports will be subject to the higher over access rate of duty.

9.4. How to Apply for a Permit

9.4.1. Information about the permit application process, including information about fees, the monthly billing system, and information required from applicants, is available on the DFATD website: Applying for an Import Permit.

9.4.2. Importers that wish to apply for an import permit are required to submit Form EXT1466, "Application for Permit", which can be obtained on the DFATD website (a paper copy will be provided upon request): Application for Import/Export Permit.

10. Contact Us

10.1.  Names and direct phone numbers for TRQ manager(s), permit officer(s), and the Help Desk are available on the DFATD website: Contact Us.

10.2.  For directory assistance, you may call 343-203-4372.

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) + Reallocation of returns (kg) + Transfers In (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 footnote 2 referrer