Serial No. 799
Date: October 14, 2011
Table of Contents
1.1 The purposes of this Notice are:
2.1 This Notice replaces Notice to Importers No. 774 dated October 15, 2010. It refers to Items 135 to 139, inclusive, of the Import Control List, namely eggs and egg products classified under heading Nos. 04.07, 04.08, 21.06 or 35.02 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 Notice to Importers No. 802 of October 14, 2011, which describes the Minister’s policies and practices concerning supplemental imports of these products.
2.3 Importers who require a determination as to whether or not the product they intend to import is within the scope of this Notice should obtain a tariff classification ruling from Canada Border Services Agency. Requests for such rulings may be directed to: Canada Border Services Agency, Trade Programs Directorate at 613-957-1468; fax 613-952-3971.
3.1 This Notice will remain valid until December 31, 2012.
4.1 Each of the products covered by this Notice was added to the Import Control List 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), while 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 who 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 sub-section 8.3(1) of the EIPA, issue import permits to allocation holders who 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 low “within access commitment” rates of duty. Sub-section 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 sub-section 10.(1) of the EIPA, the Minister may amend, suspend, cancel or reinstate any permit, import allocation issued or granted under the Act.
5.1 Under the North American Free Trade Agreement (NAFTA), Canada provides an import access level for eggs and egg products of 2.988% of the previous year's domestic egg production as determined by Agriculture and Agri-Food Canada. This amount is split among shell eggs (1.647%), frozen, liquid and further processed eggs (0.714%) and powdered eggs (0.627%).
5.2 Under the WTO, the TRQ level established for global imports of eggs and egg products for 2012 is 21,370,000 dozen (egg equivalent). Based on current estimates of domestic egg production, the WTO access level is expected to be higher than Canada's NAFTA commitment. The amount by which the WTO access level exceeds that under NAFTA will be allocated to eligible applicants in the breaking egg segment of the sector to import eggs for breaking purposes.
6.1 Shell Eggs
6.1.1 The shell egg portion of the TRQ will be allocated as follows:
6.1.2 Traditional allocation holders
6.1.3 Federally Registered Egg Stations
Eligible federally-registered egg stations may receive an allocation under the shell egg portion of the TRQ proportional to each station's market share, adjusted for surplus declarations. The market share for the 2012 quota year will be calculated based on the applicant's number of eggs sold from October 1, 2010 to September 30, 2011 divided by the total number of eggs sold by all applicants who receive an allocation for 2012.
6.1.4 Under-utilization Policy
A company that uses less than 90% of its shell egg allocation in any one year may receive an allocation in the next year that reflects the actual level of use.
6.1.5 Monthly Import Distribution Schedule
6.1.6 Additional Conditions
Prior to importation, the importer must inform the Regional Office of the Canadian Food Inspection Agency (CFIA) in writing of the quantity of eggs expected to be imported, the date of importation and the identity of the federally registered establishment to which the eggs are to be delivered.
6.2 Egg Products - Frozen, liquid and further processed eggs
6.2.1 The frozen, liquid and further processed egg portion of the TRQ will be allocated as follows:
6.2.2 Traditional allocation holders
6.2.3 Processors, Wholesalers and Distributors
Eligible applicants involved in the egg products industry as processors, wholesalers or distributors applying for a share of the frozen, liquid and further processed egg portion of the TRQ may receive an allocation proportional to each applicant’s market share.
The market share for the 2012 quota year will be calculated based on the applicant's quantity of egg products sold from October 1, 2010 to September 30, 2011 divided by the total quantity of egg products sold by all applicants who receive an allocation for 2012.
6.2.4 Under-utilization Policy
A company that uses less than 95% of its egg products allocation in any one year may receive an allocation in the next year that reflects the actual level of use.
6.2.5 Return Policy
Quota holders may return any unused egg products quota issued to them for 2012 on or before September 1, 2012. Any amounts so collected will be used to accommodate requests for supplemental imports. Quota returned on or before the above deadline will not be considered as unused allocations for purposes of administering the under-utilization penalty in section 6.2.4.
6.2.6 The frozen, liquid and further processed egg allocations are normally issued in four quarterly installments during the year.
6.2.7 Under the frozen, liquid and further processed egg portion of the TRQ, importers may have the option of importing, in addition to liquid or frozen eggs, shell eggs identified as breaking stock, provided they are directed to a registered processed egg station for breaking. Quota holders must meet the following additional conditions in order to be granted an import permit for breaking eggs.
6.2.8 Conversion Factors
The frozen, liquid and further processed egg portion of the TRQ is expressed in kilograms. For purposes of administering the eggs and egg products TRQ, one dozen ungraded, nest-run or Grade C shell eggs is equal to 0.575 kilograms of frozen or liquid eggs.
6.3 Eggs for Breaking Purposes
6.3.1 The eggs for breaking purposes portion of the TRQ will be available only to registered processed egg stations. It will be allocated in proportion to each station’s market share.
The market share for the 2012 quota year will be calculated based on the applicant's number of eggs sold from October 1, 2010 to September 30, 2011 divided by the total number of eggs sold by all applicants who receive an allocation for 2012.
6.3.2 Under-utilization Policy
A company that uses less than 95% of its eggs for breaking purposes allocation in any one year may receive an allocation in the next year that reflects the actual level of use.
6.3.3 Return Policy
Quota holders may return any unused eggs for breaking purposes quota issued to them for 2012 on or before September 1, 2012. Any amounts so collected will be used to accommodate requests for supplemental imports. Quota returned on or before the above deadline will not be considered as unused allocations for purposes of administering the under-utilization penalty in section 6.3.2.
6.3.4 Additional Conditions
Quota holders must meet the following conditions in order to be granted an import permit for eggs for breaking purposes:
a) Prior to importation, the importer must inform the Regional Office of the CFIA in writing of the quantity of eggs expected to be imported, the date of importation and the identity of the federally registered establishment to which the eggs are to be delivered.
6.3.5 The eggs for breaking purposes allocations are normally issued in four quarterly installments during the year.
6.4 Egg powder
6.4.1 The egg powder portion of the TRQ will be allocated on an equal-share basis to federally-registered processed egg stations and further processors that use egg powder in their manufacturing and production formulations. Related or affiliated companies may apply for separate allocations, but no combination of such allocations will be permitted to exceed 25% of the total amount available for allocation unless the total of all applications is less than the access level.
6.4.2 Under-utilization Policy
A company that uses less than 95% of its egg powder allocation in any one year may receive an allocation in the next year that reflects the actual level of use.
6.4.3 The egg powder allocations are normally issued in four quarterly installments during the year.
7.1 Individual allocations may be credited for shipments which are returned to the exporting country because of rejection by the CFIA. Importers wishing to avail themselves of this provision must submit to Foreign Affairs and International Trade Canada (DFAIT), within two weeks from the date of the rejection, the inspection certificate and related export documents showing that the shipment has been exported from Canada. These documents must bear the applicable import permit number. No credit will be made after the end of the quota year.
8.1 The Minister may allow the transfer of allocations. All requests for transfer of allocations must be submitted in writing to DFAIT for consideration.
9.1 Although import permits may be required for importing certain inedible egg products into Canada, there are no restrictions on the quantities that can be imported.
The procedures to be followed for permit application and issuance are described in section 10 of this notice. Please ensure the applicable EIPA commodity code is used when making application for import permits (see Appendix 3).
10.1 Firms with a share of the TRQ (or "import allocation") may apply for “specific import permits” for access at the low, “within-access commitment” rates of duty, which, subject to paragraph 12.1, are normally issued on demand to allocation holders up to the amount of their import allocation.
10.2 Import permits are required for each shipment of eggs and egg products classified under heading Nos. 04.07, 04.08, 21.06 or 35.02 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 - 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 eggs and egg 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 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 allocation.
10.3 The name on a 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 is not the same entity, the permit will be declared invalid. It is incumbent on the quota 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.
10.4 In accordance with the Import Permit Regulations, the procedures for receiving applications for import permits are the following:
11.1 Applicants must provide all necessary documents and details in support of their application. Please note in particular the application form in Appendix 4, the accountant’s letter in Appendix 5 and the Affidavit in Appendix 6. All applications must be postmarked by December 2, 2011.
11.2 To assist in determining which persons are related or affiliated, applicants must provide a list of affiliated companies and “persons related” (see Appendix 7) 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 eggs and egg products TRQ.
11.3 An application for a share of the shell egg, the egg products and/or the eggs for breaking purposes portion of the TRQ must be accompanied by a sworn affidavit certifying inter alia the firm's actual sales during the relevant base period.
11.4 In addition to the requirement in section 11.3, all applicants must provide an original verification of the application by an independent qualified person, such as an accountant. For the purpose 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 which involves the applicant).
11.5 The affidavit and the verification letter must be in the exact format of the models attached to this Notice (see Appendices 5 and 6). Any changes to the wording of the prescribed affidavit or letter are only permitted if required by professional standards and in the event that changes are made, the applicant or the accountant must discuss these, in advance, with DFAIT.
11.6 Applications for a share of the eggs and egg products TRQ for 2012 must be made by fully completing the application form attached as Appendix 1 and must be postmarked December 2, 2011, or earlier.
11.7 Applications sent by Mail or Courier should be addressed to:
Mrs. Keltie Findlay Leclair
Trade Controls Policy Division (TIC)
Foreign Affairs and International Trade Canada
Lester B. Pearson Bldg
125 Sussex Drive
11.8 Applications received by facsimile will not be accepted. Only original applications will be accepted.
11.9 Applications postmarked after December 2, 2011, will not be considered. Claims for lost applications will not normally be considered without acceptable proof of the application having been sent (e.g. courier receipt).
11.10 The declaration in the application form allows representatives of DFAIT access to any information on the company that is in the files of Agriculture and Agri-Food Canada or the Canadian Food Inspection Agency relating to the application for an import allocation or to subsequent applications for, or the use of, import permits. Applicants will normally be informed of any such requests for information.
11.11 Unless otherwise specified by the applicant, DFAIT officials communicate with an EIPA authorization applicant in the official language of Canada which the applicant has used on the application.
12.1 The TRQ allocation policy described in this Notice may be modified by the Minister. The Minister issues import permits to allocation holders in compliance with the Import Permit Regulations and subject to any conditions attached to import allocations, and may amend, suspend, cancel or re-instate import permits.
12.2 Subject to paragraph 12.1, firms with an import allocation will normally be issued import permits up to the limit of their allocation.
12.3 In completing import permit applications, the EIPA commodity codes listed in Appendix 3 of this Notice should be used to describe the product to be imported.
12.4 All import allocations expire at the end of each calendar year and all firms interested in receiving an import allocation must qualify each year.
13.1 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.
14.1 A fee will be levied for each permit or certificate issued in accordance to the Export and Import Permits and Certificates Fees Order (Notice to Importers No. 508 dated May 16, 1995).
15.1 Enquiries about import allocations may be addressed to:
Mrs. Keltie Findlay Leclair
(Address listed in paragraph 11.7 above)
15.2 Enquiries about permit issuance and utilization of import allocations may be addressed to:
Mrs. Adèle Brisson
(Address listed in paragraph 11.7 above)
15.3 A copy of this notice and related information are available on our internet site.
15.4 All 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.
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