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Notice to Importers

Items 135 to 139: Eggs and Egg Products - Supplementary Imports

Serial No. 802
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 of eggs and egg 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. 780 dated October 20, 2010 . It refers to Items 135 to 139 inclusive, of the Import Control List (ICL); namely eggs and egg products classified under heading Nos. 04.07, 04.08, 21.06 and 35.02 of Schedule I in the List of Tariff Provisions set out in the Schedule to the Customs Tariff.

2.2  Importers who require a determination as to whether or not the product they intend to import is within the scope of this Notice are to contact:

Canada Border Services Agency (CBSA)
Trade Programs 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 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 tariff rate quotas, 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.

4.3  Pursuant to subsection 8 (1) of the EIPA the Minister may issue to any resident of Canada applying therefor a permit to import goods included on the ICL, in such quantity and of such quality, by such persons, from such places or persons and subject to such other terms and conditions as are described in the permit or in the regulations. Accordingly, no person shall import or attempt to import any goods included on the ICL except under the authority of and in accordance with an import permit issued under this Act. Having established an import access quantity, the Minister shall under subsection 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 lower rates of duty.  Subsection 8.3(3) allows the Minister to issue permits in excess of the access quantity.

4.4 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 regulation 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 authorizationis to apply.

4.5  Pursuant to subsection 10.(1) of the EIPA, the Minister may, at his discretion, amend, suspend, cancel or re-instate any permit, import allocation or other authorization issued or granted under the Act.

5.0 Issuance of authorizations for supplementary imports

5.1 The Minister may, at his discretion, authorize the importation of quantities of eggs and egg 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 Application 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 procedures described in section 11.0 below. In all cases, the appropriate EIPA commodity codes should be used (see Appendix 3).

5.3 The various categories of authorization for supplementary imports, each subject to different policies and procedures, are outlined below.

6.0 To import shell eggs for resale in the domestic market due to market shortages

6.1 A market shortage is a short-term scarcity in the domestic supply of product required to serve existing overall Canadian market needs. Existing overall Canadian market needs are assessed on the basis of domestic production and global imports under the Tariff Rate Quota (TRQ) for eggs. 

6.2 Applicants who have been issued an import allocation will normally be required to have exhausted this allocation before an authorization for supplementary imports may be issued under this provision. An import allocation will be considered exhausted only if all permits issued have been used and the allocation balance is zero.

6.3 Before Foreign Affairs and International Trade Canada (DFAIT) will consider an application for a supplementary import permit, the applicant must make an offer to purchase domestic product by completing:

a)  Form EXT1791 “Application for Supplementary Imports - Request for Domestic Sourcing of Shell Eggs” included as Appendix 4 which must be faxed to the Egg Farmers of Canada (EFC) and DFAIT; and

b)  Form EXT1792 “Commercial Confidential Information Related to the Authorization of Supplementary Imports - Shell Eggs” included in Appendix 5 which must be faxed to DFAIT only.

6.4 The delivery date specified must provide the EFC with:

a)  a domestic sourcing period of at least three working days; and

b)  not less than four working days immediately following the EFC sourcing period during which delivery will be accepted.

6.5 With regard to application EXT 1791, the product specifications for grade and size of product required must conform to normally accepted trading classes of the product. 

6.6 The EFC must advise the applicant and DFAIT  not later than the end of the sourcing period whether the product is available from Canadian sources for delivery during the applicable period.

6.7 Should the applicant refuse to purchase domestic product sourced by the EFC at the formula-related market price in accordance with this procedure, a request for an authorization for supplementary imports will normally not be considered from the applicant in question for a period of 90 days from the date of application.

6.8 If, by the end of the sourcing period, the EFC has advised the applicant and DFAIT that the product is not available domestically, DFAIT will consider the applicant’s request for a supplementary import permit on the basis of the information provided in Form EXT 1792.

6.9 In form EXT 1792, the applicant must state:

a)  that he or she has a regular domestic source of production for the product requested;

b)  the quantities normally available on a weekly basis from the applicant’s regular source of domestic production: and

c)  the reason for the temporary disruption of supply of the product requested and the expected duration of disruption.

6.10 The quantity requested must take into account any quantities available domestically and the total of the two amounts should not exceed the quantity available on a weekly basis from the applicant’s regular source of domestic production.

6.11 Consideration of applications will take into account any short-term disruption of customary arrangement between an applicant and his or her domestic supplier(s).  

6.12 Import permits issued pursuant to such authorization will be valid only for the specified delivery period, and will not be extended.

7.0 To import eggs for breaking purposes and/or liquid eggs due to market shortages

7.1 A request for an authorization may be submitted at any time during the calendar year.

7.2 Applicants must state in their request that they have exhausted their normal sources of domestic supply.

7.3 Applicants who have been issued an import allocation will normally be required to have exhausted this allocation before an authorization for supplementary imports may be issued under this provision. An import allocation will be considered exhausted only if all permits issued have been used and the allocation balance is zero.

7.4 Applicants must make an offer to purchase domestic product in writing to: Egg Farmers of Canada (EFC), 21 Florence Street, Ottawa, Ontario K2P 0W6; telephone: 613-238-2514; fax: 613-2381967, e-mail import.requests@eggs.ca stating:

a)  the request is being made within the context of a request for an authorization for supplementary permits;

b)  the type of product required (product specifications must conform to normally accepted trading classes of the product);

c)  the quantity required; and

d)  the delivery period required:

  • the delivery period specified must provide the EFC with a domestic sourcing period of at least three working days; and
  • applicants must also specify a period of not less than four working days immediately following the EFC sourcing period during which delivery will be accepted.

7.5 A copy of the request to the EFC must also be forwarded to DFAIT.

7.6 The EFC must advise the applicant and DFAIT not later than the end of the sourcing period whether the product is available from Canadian sources for delivery during the applicable period.

7.7 If the product is not available domestically, DFAIT may authorize supplementary imports. Import permits issued pursuant to such authorization will be valid only for the specified delivery period, and will not be extended.

7.8 Should the applicant refuse to purchase domestic product sourced by the EFC at the formula-related market price in accordance with this procedure, a request for an authorization for supplementary imports will normally not be considered from the applicant in question for a period of 90 days from the date of application.

8.0 To import eggs and egg products for further processing and re-export under the Import for Re-Export Program (IREP):

8.1 General

a)  This program is limited to Canadian processors that import eggs and/or egg products for processing in Canada, and subsequently re-export the product. The company that holds an authorization to import eggs and/or egg products under IREP must be the importer of record of those products. Product imported under IREP must be used exclusively to manufacture products that are subsequently exported. Diversion of product imported under IREP to the Canadian market is prohibited.

8.2 Application Process

a)  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, using the form included as Appendix 6, should indicate: import quantities sought; information concerning products to be manufactured, including ingredient specifications, HS code, the U.S. Department of Agriculture product code (or the company product code for non-U.S. destinations); and other information.

b)  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.

8.3 Permit Conditions

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

a)  Re-Export of Imported Product - All product imported under IREP must be exported within six 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 (e) below).

b)  Authorization Validity - An IREP authorization is valid within the authorization year in which it is issued.

c)  Monthly Reporting of Exports - All companies authorized to participate under IREP must submit, electronically, a monthly summary export report for all IREP product exports (including a nil report if applicable) to (irep@international.gc.ca) by the end of the following month in a format prescribed by the EICB. This report must include the following information for each export shipment:

  • shipment date; 
  • U.S. Customs Entry Number or the Bill of Lading number; 
  • finished product name and HS code;
  • quantity, kg; 
  • value, C$; 
  • destination country; 
  • HS code and name of imported egg ingredient(s) contained in the exported product; 
  • proportion (%) of total product weight comprised by (each) imported egg ingredient; and
  • amount (kg) of total export shipment weight comprised by (each) imported egg ingredient.

d)  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 from domestic 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.

e)  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 November 30 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 6 of this Notice.

f)  Documents Retained by the Applicant - Participating companies must retain, for a period of seven years, and provide DFAIT on demand, copies of the following documents:

g)  Purchase Documents for the imported product :

  • Purchase orders 
  • Proof of payment (e.g. banking records) 
  • Descriptive literature which indicates the imported good’s composition
  • If available, classification rulings issued by Canada Border Services Agency (CBSA) related to imported product

h)  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
  • Any required permits, licences, or certificates

i)  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 orders, sales contracts, commercial invoices, proof of payment)
  • Any required permits, licences or certificates
  • If available, 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.
  • For export destinations other than the United States, a copy of CBSA’s B13A export declaration

j)  Documents concerning domestic processing of imported eggs and/or egg products :

  • Monthly production records to allow tracking of imported eggs and/or egg 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 
  • If applicable, records related to subcontracting

8.4 Additional Information

DFAIT may request additional information, including that an independent public accountant (or an accountant named by DFAIT) certify information provided to it. Should DFAIT consider this to be necessary, all costs will be borne by the applicant.

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

a)  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) and 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.

b)  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 will 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.

c)  Should DFAIT not receive the requested communication (i.e. the CEO year-end letter) from a company for a given year by November 30 of the following year, the company will be suspended from the program.

d)  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 six 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.

9.0 To import eggs and egg products for the purpose of test marketing

9.1 An authorization for supplementary imports may be issued 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.

9.2 Normally, authorization for supplementary imports for purposes of test marketing may  be issued only for products that are marketed directly to consumers.

9.3 Companies that intend to conduct test marketing of a specific product must normally plan the activity within their annual TRQ allocations. Applicants who have been issued an import allocation will normally be required to have exhausted this allocation before an authorization for supplementary imports may be issued under this provision. An import allocation will be considered exhausted only if all permits issued have been used and the
allocation balance is zero.

9.4 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, i.e. facilities, equipment, production capacity; and the time required to bring such facilities on line from the time a DFAIT decision to approve a test marketing program is made.

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

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

9.7 Once these quantities or the period have been exhausted, a further authorization for supplementary imports may be issued 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 authorization for supplementary imports will be issued for either the test marketed product or for required raw materials. An applicant may submit only one test marketing application for a given product.

9.8 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.

10.0 Other Situations

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

11.0 Supplementary Import permits

11.1 Supplemental import permits are issued, normally, pursuant to an import authorization and are required for each shipment of eggs and egg products imported into Canada and classified under heading Nos. 04.07, 04.08, 21,06 and 35.02 in the List of Tariff Provision 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 by DFAIT for that shipment (a "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.

11.2 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.

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

a)  When requesting an import permit, applicants are to complete the Form EXT-1466, "Application for Permit” (see Appendix 1).

b)  A description of the process of applying for a permit is attached as Appendix 2. It includes information concerning 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 DFAIT.

c)  A list of the EIPA commodity codes for eggs and egg products is attached as Appendix 3. The appropriate code must be used in order to expedite the issuance of the import permit.

12.0 Permit fees

12.1 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).

13.0 Further information

13.1 Concerning the sourcing of domestic product:

Egg Farmers of Canada (EFC)
21 Florence Street
Ottawa, Ontario
K2P 0W6

Telephone: 613-238-2514
Facsimile: 613-238-1967

13.2 Concerning supplementary imports:

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

Keltie Findlay Leclair (Policy)
Telephone: 613-996-4333
Facsimile: 613-996-0612

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

Adèle Brisson (Import Control Officer)
Telephone: 613-995-8104
Facsimile: 613-996-0612

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