Serial No. 152
Date: October 19, 2007
Table of Contents
1.1 The purposes of this Notice are :
2.1 This Notice replaces Notice to Exporters No. 133 dated October 18, 2002. It refers to Item 5201 of the Export Control List (ECL): "peanut butter".
2.2 Peanut butter is defined as goods that are classified under tariff item No. 2008.11.10 in the List of Tariff Provisions set out in the Schedule to the Customs Tariff. The applicable U.S. tariff item number for peanut butter is 2008.11.05 of the Harmonized Tariff Schedule of the United States (HTSUS).
2.3 Exporters who require a determination as to whether or not the product they intend to export is within the U.S. peanut butter tariff rate quota (TRQ) are encouraged to obtain a binding ruling from U.S. Customs and Border Protection. Requests for binding rulings may be directed to: Director, National Commodity Specialist Division, United States Customs and Border Protection, Attn: CIE/Ruling Request, One Penn Plaza, 10th Floor, New York, N.Y. 10119.
3.1 This Notice will remain in effect until further notice.
4.1 The product covered by this Notice was added to the Export Control List pursuant to section 3.1 of the Export and Import Permits Act (EIPA), in order to ensure the orderly export marketing of peanut butter that is subject to a limitation imposed by the United States in 1995. The Minister may issue export permits for goods on the ECL under authority of subsection 7.(1) of the EIPA. The Minister may, at his discretion, amend, suspend, cancel or re-instate any permit or export allocation issued or granted under the Act.
5.1 In 1995, as part of its WTO commitments, the U.S. established a global tariff rate quota on peanut butter imports. Canada obtained a country-specific reserve of 14,500,000 kilograms. Export permits will be issued up to that level, in accordance with the criteria set out in sections 6 and 7 below. Peanut butter exports up to that level are subject to low rates of duty, and exports over that level are subject to higher rates of duty.
5.2 There are no quantitative restrictions on the exportation of peanut butter to destinations other than the United States. Exporters wishing to export peanut butter to countries other than the U.S. may invoke General Export Permit (GEP) No. 31.
6.1 Individual export permits are required for each shipment of peanut butter to the United States classified under tariff item No. 2008.11.10 in the List of Tariff Provisions set out in the Schedule to the Customs Tariff. These export permits normally allow Canadian exporters to export peanut butter at the low rate of duty.
6.2 DFAIT has in place the following procedures for receiving applications for “individual” export permits :
7.1 The quota year for peanut butter extends from January 1 to December 31, inclusive.
7.2 The peanut butter export quota is allocated on an individual quota-share basis to traditional exporters that are resident of Canada and remain active in the manufacturing and export of peanut butter. Export permits will normally be issued on request to firms having a quota-share, up to the limits of that share, subject to compliance with conditions described in paragraphs 7.3 and 7.4 below.
7.3 Exporters are required to submit monthly summary export reports on all exports made under the authority of permits issued. The following information should be provided in the report: name of exporter, date of export, export permit number, U.S. consignee, U.S. Customs Entry number, invoice number and quantity exported (in kilograms). A sample form is contained in Appendix 3 and for your convenience an electronic version may be requested and will be provided either by e-mail or on a diskette. This report is required by the 15th day of the month following the month that the actual export took place in and should be forwarded to the attention of Laurie Wheeler at the e-mail address listed in paragraph 12.2 of this Notice. Exporters are required to retain copies of all associated documentation related to these exports and produce such records upon request.
8.1 “Traditional” exporters must complete an application form each year to receive a share of the peanut butter quota. The information that an applicant provides will be considered when allocating quota-shares of the U.S. peanut butter TRQ. Applicants may also be required to provide evidence of the actual quantity of peanut butter produced and exported in previous years, such as originals of sales orders and export invoices stating the name and address of the purchaser and the amount of peanut butter sold, export contracts, bills of lading, U.S. Customs Declarations and production records.
8.2 All information provided by applicants is subject to verification by officials of DFAIT. If the applicant fails to provide any information requested by DFAIT, the application may be declared incomplete and the applicant may be denied a share of the U.S. peanut butter TRQ.
9.1 Companies that use less than 98% of the quota allocated to them in any one year may receive a correspondingly lower allocation in the following year. Affected companies will be advised of the adjustments made to their allocation prior to the final allocation of the quota.
9.2 Quota holders may return to DFAIT any unused peanut butter quota issued to them on or before August 1st each year. Future quota allocations will not be affected by such under-utilization.
9.3 DFAIT will notify quota holders in writing should quota become available as a result of returns or under-utilization.
10.1 The Minister may approve the transfer of export quota allocations to companies that are active in the manufacturing of peanut butter. All requests for transfer must be referred to DFAIT for approval. Unauthorized transfers may result in the cancellation of all or a portion of a company’s export allocation.
11.1 The exportation of goods on the Export Control List without an export permit issued by the Department of Foreign Affairs and International Trade is an offence and may lead to prosecution under the Export and Import Permits Act.
12.1 Enquiries about quota allocations may be addressed to:Keltie Findlay Leclair
Telephone: (613) 996-4333
Facsimile: (613) 996-0612
Email : email@example.com
12.2 Enquiries about permit issuance, reporting and utilization of export quota allocations may be addressed to:Laurie Wheeler
Telephone: (613) 944-1804
Facsimile: (613) 996-0612
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