Foreign Affairs and International Trade Canada
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Foreign Affairs and International Trade Canada

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Notices

ITEMS 105 TO 113 - TURKEY AND TURKEY PRODUCTS

Serial No. 756
Date: November 6, 2009

Table of Contents

1.0 Purpose
2.0 Coverage
3.0 Duration
4.0 Authority
5.0 Issuance of authorization for supplementary imports
6.0 Import permits
7.0 Permit Fees
8.0 Further information
9.0 Allocation of the unallocated pool
10.0 Application by related or affiliated applicants
11.0 Import permit issuance
12.0 Conversion factors to eviscerated equivalent kilograms
13.0 Adjustment for under-utilization
14.0 Advances on import allocations
15.0 Submission of applications for an import allocation
16.0 Import allocations and import permits
17.0 Transferability of import allocations
18.0 Name on the permits
19.0 Weight reported on the permits
20.0 Permit fees
21.0 Further information

Appendix 1: Application form for a share of the turkey TRQ for the period January 1 2010 to December 31, 2010 | PDF* (91 KB)
Appendix 2: Accountant's letter for applicants to retain their share of the traditional turkey TRQ
Appendix 3: Affidavit for applicants to retain their share of the traditional turkey TRQ
Appendix 4: Application instructions for a share of the non-ICL portion of the turkey TRQ | PDF* (110 KB)
Appendix 5: Accountant's letter for applicants requesting a share of the non-ICL portion of the turkey TRQ
Appendix 6: Affidavit by an applicant for a share of the non-ICL portion of the turkey TRQ
Appendix 7: List of commodity codes for turkey | PDF* (24 KB)
Appendix 8: Information concerning "related persons"
Appendix 9: Listing of Turkey Items on the Import Control List
Appendix 10: Form EXT-1466, "Application for Permit " | PDF* (85 KB)
Appendix 11: Description of applying for an import permit
Appendix 12Our Service Pledge

1.0 Purpose

1.1 The purposes of the Notice are:

a) to outline the Minister’s policies and practices respecting the administration of the tariff rate quota (TRQ) for turkey and turkey products. It should be read with the Import Allocation Regulations and the Allocation Method Order - Turkey and Turkey Products. Where elements of the present Notice augment the Import Allocation Regulations and the Allocation Method Order - Turkey and Turkey Products, those elements are to be read as expressions of the Minister’s normal practices and procedures; and

b) to invite applications for shares of the turkey and turkey products TRQ for 2010, including shares of the non-ICL portion (commonly referred to as the FTA portion) of the TRQ.

2.0 Coverage

2.1 This Notice replaces Notice to Importers No. 739 dated November 7, 2008. It refers to items 105 to 113 of the Import Control List (ICL), namely turkey and turkey products falling under heading Nos. 01.05, 02.07, 02.09, 02.10, 16.01 and 16.02 in the list of tariff provisions set out in the Schedule to the Customs Tariff and summarized in Appendix 9. It also covers "specially defined mixtures" of turkey products falling under tariff item Nos. 1602.31.11 and 1602.31.92, and other non-ICL turkey products.

2.2 This Notice to Importers should be read in conjunction with Notice to Importers No. 758 dated November 6, 2009, which explains the administration of supplementary imports for chicken and chicken products, and turkey and turkey products.

2.3 Chapter 16 of the Customs Tariff contains the following supplementary note concerning specially defined mixtures: " 'Specially defined mixtures' of tariff item Nos. 1602.31.11, 1602.31.92, 1602.32.11 and 1602.32.92 means chicken or turkey or a product containing chicken or turkey, wherein 13% or more of the total weight of the product is comprised of goods other than the following: chicken, turkey, bread or breading, batter, oil, glazing, other coatings and bastes, and any added water (including that used in marination, glazing, other coatings, bastes, breading and batter). For the purposes of this definition, the weight of all ingredients shall be taken from the product specification sheets for that product required under the Meat Inspection Act for product labelling purposes."

2.4 Importers who require a determination as to whether the product they intend to import is within the scope of this Notice, or as to whether the product they intend to manufacture using non-ICL turkey import allocations meets the definition of "specially defined mixtures", should obtain a tariff classification ruling from the Canada Border Services Agency. Requests for such rulings may be directed to: Ms. Kelly Bartlett, Canada Border Services Agency (CBSA), Trade Programs Directorate at 613-957-1468; fax: 613-952-3971.

2.5 With respect to products for which a non-ICL turkey import allocation is being sought, only products for which a CBSA ruling and the corresponding CFIA label registration number including the process and composition of the meat (see Appendix 4) has been received, or which have been previously approved by the Export and Import Controls Bureau (EICB), can be submitted as part of an application.

3.0 Duration

3.1 This Notice will remain in effect until December 31, 2010.

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), (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 responsible for the Act 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 rates of duty. Sub-section 8.3(3) allows the Minister to issue permits in excess of the access quantity. Pursuant to sub-section 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 General Information

5.1 There are three components to a TRQ: a low "within access commitment" duty rate, a minimum access level (or "import access quantity") allowed entry at that rate, and a higher "over access commitment" rate of duty for over-access imports.

5.2 The turkey TRQ is calculated at the higher of 3.5% of the current year's production quota (which includes commercial quota, multiplier breeder quota, and primary quota) as estimated by the Turkey Farmers of Canada, or the WTO access level. In 2010, the WTO access level is 5,588,000 kilograms, which is higher than 3.5% of the current year's estimated production quota, and will thus prevail.

5.3 Access at the low rate, or within-TRQ access, will be allocated to firms resident in Canada.

6.0 Allocation System

6.1 All Canadian-resident firms that are current participants in the turkey industry are eligible to apply for a share of the turkey TRQ, subject to the criteria outlined in this Notice.

6.2 The turkey TRQ will be allocated in priority to two groups: traditional allocation holders (i.e., firms importing turkey before the introduction of import controls in 1974) to the extent of their initial allocation, as adjusted since, where necessary, (e.g., for under-utilization); eligible processors producing non-ICL turkey products (such as, TV dinners) to the extent of their needs for such production. The remaining "unallocated pool", if any, will be used to meet specific needs, including "imports to compete" and imports to accommodate shortages, which are addressed in Notice to Importers No. 758. Any remaining balance will be allocated in accordance with section 9 of this Notice.

7.0 Traditional Allocation System

7.1 Traditional allocation holders may obtain an import allocation, subject to demonstrating their active involvement in the turkey or food industry. An activity test will be administered annually for traditional allocation holders.

7.2 All traditional allocation holders (i.e., firms importing turkey prior to the imposition of import controls in 1974 that have been allocated a traditional import allocation each subsequent year since then) are required to complete and return the application form provided in Appendix 1 in order to receive an allocation.

7.2.1 All applicants must submit a sworn affidavit certifying, inter alia, the firm's actual quantity of turkey bought and subsequently sold in the period September 1, 2008 to August 31, 2009.

7.2.2 All applicants must also provide an original letter from an independent qualified person, such as an accountant, certifying, inter alia, the firm’s actual quantity of turkey bought and subsequently sold in the period September 1, 2008 to August 31, 2009. 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 involving the applicant).

7.2.3 The affidavit and the letter from the accountant must be in the exact format of the models attached to this Notice (see Appendices 2 and 3). 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 the EICB.

7.3 Traditional allocation holders that have satisfied the activity test outlined in the application form may continue to receive an allocation (as adjusted, where necessary, for under-utilization).

8.0 Allocation of the non-ICL portion of the turkey TRQ

8.1 Only "federally-registered meat and poultry establishments in good standing, that have received hazard analysis critical control points (haccp) recognition or acknowledgement", will be eligible for a non-ICL turkey allocation.

8.1.1 Eligible processors of turkey products not on the ICL may receive up to one kilogram of import allocation for each kilogram of turkey input used in the production of non-ICL products in the period September 1, 2008 to August 31, 2009. The allocation of the non-ICL portion of the quota will be accommodated through the available room in the TRQ on a pro-rata basis.

8.1.2 Eligible processors of FTA products may apply for supplementary authorisation under Import to Compete, on a like for like basis, for production needs beyond the authorised allocation for 2010. (Detailed further in Notice 758.)

8.1.3 For purposes of this Notice, a "processor of turkey products not on the ICL" is defined as a processor that manufactures non-ICL products, such as TV dinners, using ICL products as inputs, and sells such products to buyers at the wholesale level.

8.1.4 Processors considered to be related to foodservice companies are not eligible for a share of the non-ICL portion of the turkey TRQ.

8.1.5 All import allocations expire at the end of each calendar year. All firms interested in receiving an import allocation must qualify each year and must demonstrate that they are active processors of non-ICL products at the time of application and that they intend to remain active during the allocation year

8.2 Eligible Products

8.2.1 Generally, turkey products that are identified as "specially defined mixtures" of tariff Nos. 1602.31.11 and 1602.31.92 are exempted from the ICL. Examples of such products include: turkey cordon bleu, breaded breast of turkey cordon bleu, turkey Kiev, breaded breast of turkey Kiev, boneless turkey with apples and almonds, turkey Romanoff Regell, turkey Neptune breast, boneless turkey Panache and turkey TV dinners.

8.2.2 Mechanically separated meat (MSM) used in the manufacture of non-ICL products is not normally eligible for non-ICL quota. In the event MSM is not available domestically at U.S.-competitive prices, the Minister may authorize supplementary imports for MSM.

8.2.3 Turkey products that are simply cooked and/or marinated and/or spiced are on the ICL.

8.2.4 In the case of non-ICL products that include marinated turkey, the weight of the turkey prior to marination must be used.

8.2.5 Added fat is not eligible to be included as part of the weight of the turkey in non-ICL products.

8.2.6 Added skin is not eligible to be included as part of the weight of the turkey in non-ICL products.

8.2.7 It is the responsibility of applicants, not accountants, to state that their products are not on the ICL.

8.2.8 In addition to "specially defined mixtures", turkey products are considered as non-ICL products if they are classified under headings No. 19.02 (Pasta), No. 19.05 (Pastry), No. 20.04 (Other vegetables prepared or preserved, frozen), No. 20.05 (Other vegetables prepared or preserved, not frozen), No. 20.06 (Fruits and vegetables preserved by sugar) No. 21.03 (Sauces and preparations), No. 21.04 (Soups), and No. 21.06 (Food preparations). Producers of these products may be eligible for a share of the non-ICL portion of the turkey TRQ.

8.3 Application for shares of the non-ICL portion of the turkey TRQ.

8.3.1 An applicant must provide the information requested in this Notice, following the instructions attached as Appendix 4, in support of an application. Applicants are advised that subsection (v) in section 2(b) of Appendix 4 requires applicants to provide information concerning the total amount of "ground meat", "finely textured meat" and "trim meat" used in the production of non-ICL turkey products. For purposes of this Notice, "trim meat" is defined as "any turkey meat, excluding mechanically separated meat and tenders, which (1) is the by-product of a trimming, boning, cutting or advanced meat recovery operation; (2) is used in a formulation; and (3) has been purchased or valued at a cost less than random (e.g., line run) whole muscle breast meat".

8.3.2 All applications for a share of the non-ICL portion of the turkey TRQ must submit a sworn affidavit certifying that firm's actual quantity of turkey used to manufacture products not on the ICL and the number of units produced and sold during the period September 1, 2008 to August 31, 2009.

8.3.3 All applicants must also provide an original letter from an independent qualified person, such as an accountant, in support of the application. For the purpose of this Notice, "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).

8.3.4 The letter from the accountant and the affidavit must be in the exact format of the models attached to this Notice (see Appendices 5 and 6 ). Changes to the wording of the prescribed affidavit or letter are permitted only if required by professional standards and, in the event that changes are made, the applicant or the accountant must discuss these, in advance, with the EICB.

8.3.5 The EICB will consider the information that the applicant provides along with any other relevant information when allocating the non-ICL portion of the turkey TRQ so as to ensure that the non-ICL portion of the turkey TRQ is allocated in conformity with the underlying policy intent, which is to support the competitiveness of Canadian processors of eligible non-ICL turkey products that are competing directly with turkey products that may enter Canada quota free and at low or zero rates of duty. Applicants may be required to provide additional information to support their application. Such additional information may include evidence of the actual quantity of turkey used to manufacture products not on the ICL, the number of units produced in the period September 1, 2008 to August 31, 2009, information concerning supply arrangements, and customer information. Product specifications, original supplier invoices, proofs of payment and production records, may also be requested. In some circumstances, it may be necessary to review the product specification sheets and the accountant's working papers. Moreover, the EICB retains the right to request laboratory analysis of the non-ICL products and certification by an independent public accountant (or an accountant named by the EICB) of the information provided on the application form. Should this prove necessary, all costs will be borne by the applicant.

8.3.6 If either the applicant or the accountant fails to provide any information requested of them by the EICB, the application may be declared incomplete and the applicant may be denied a share of the turkey TRQ. Applicants should note that the eligibility of accountants to sign the letter accompanying their application varies from province to province

9.0 Allocation of the unallocated pool

9.1 As indicated in paragraph 6.2, the unallocated pool, if any, will be used to meet supplementary needs during the first half of the year. Any balance remaining on June 30, 2010 will be allocated to traditional allocation holders on a pro-rata basis.

9.2 The term “pro-rata”, as used in paragraph 9.1, refers to a traditional importer's proportion of the sum of all traditional importers’ allocations.

10.0 Application by related or affiliated applicants

10.1  Except for individual traditional applicants who are eligible for both a share of the traditional pool and a share of the non-ICL portion of the TRQ, where two or more applicants are related or affiliated, they shall normally be eligible for only one import allocation. To assist in determining which persons are related or affiliated, applicants are asked to provide a list of affiliated companies and "persons related" (see Appendix 8). The EICB may request additional information and may take other information into account in making determinations concerning affiliation, related persons and eligibility for shares of the turkey TRQ.

11.0 Import permit issuance

11.1 Firms with a share of the TRQ (or "import allocation") may apply for "specific import permits" issued by the EICB for access at the low, "within-access commitment" rates of duty, which, subject to Paragraph 16.1, are normally issued on demand to allocation holders up to the amount of their import allocation.

11.2 Import permits are required for each shipment of turkey and turkey products falling within heading Nos. 01.05, 02.07, 02.09, 02.10, 16.01 and 16.02 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, a copy of which is available on request, or present an import permit delivered to their firm for that shipment ("specific import permit") in order to clear Canada Customs. Those citing the GIP will be permitted to import unlimited quantities of turkey and turkey products, but such imports will be subject to the higher, "over-access commitment" rate of duty. Those presenting a specific import permit to CBSA at the time of final accounting may enter their shipments at the low "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.

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

(a) When requesting an import permit an applicant submits a completed Form EXT-1466, "Application for Permit" (a copy of which is attached as Appendix 10).

(b) A description of the process of applying for a permit is attached as Appendix 11, 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 the EICB.

(c) A list of the EICB commodity codes for turkey and turkey products is attached as Appendix 7. The appropriate code must be used in order to expedite the issuance of the import permit.

12.0 Conversion factors to eviscerated equivalent kilograms

12.1 Quantities of turkey and turkey products bought, processed and/or sold (final sales) are to be expressed in eviscerated equivalent kilograms, i.e., live and boneless product-weight should be converted to eviscerated equivalent weight using the following conversion factors:

Live - 0.82
Eviscerated bone-in whole and cut-up fresh - 0.99284
Eviscerated bone-in whole and cut-up frozen - 1.00
Boneless fresh - 1.989
Boneless frozen - 2.00
Eviscerated bone-in cooked, processed dried or smoked - 1.00
Eviscerated boneless cooked, processed dried or smoked - 2.00
Prepared meats bone-in - 1.00
Prepared meats boneless - 2.00

12.2 Turkey products that are partially deboned are considered to be "boneless" for import control purposes and the corresponding boneless EICB turkey codes must be used when requesting import permits. As an example, fresh turkey breasts that have been partially deboned so that only the keel bone or cartilage remain will be considered "boneless" for import control purposes. In this case, the corresponding EICB code that should be entered into the related application would be 0207.26.10.00.7240.

Importers who are unsure as to whether the product they intend to import is considered "bone-in" or "boneless" for import control purposes should obtain guidance from the Export and Import Controls Bureau (EICB).

13.0 Adjustment for under-utilization

13.1 A company that uses less than 90% of its allocation in any one year may receive an allocation in the next year which reflects the actual level of use. Affected companies will be advised of the adjustments made to their allocation prior to the final allocation of the TRQ.

14.0 Advances on import allocations

14.1 To ensure an orderly transition to the 2010 allocation year, traditional allocation holders that have satisfied the activity test outlined in section 7.0 may receive advances of up to 30% of their traditional import allocation for the first quarter of 2010. A company without a traditional import allocation will normally be issued, upon receipt of an application, an advance on the 2010 import allocation of up to a maximum of 30% of its 2009 imports. Requests for advances from firms likely to be subject to an under-utilization penalty (pursuant to paragraph 13.0) will be evaluated on a case-by-case basis.

15.0 Submission of applications for an import allocation

15.  Applications for a share of the turkey TRQ for 2009 must be made by fully completing the application form attached as Appendix 1 and must be postmarked December 18, 2009, or earlier.

15.2 Applications sent by mail or by courier should be addressed to:

Mrs. Keltie Findlay Leclair
Agriculture Section (TICA)
Trade Controls Policy Division
Export and Import Controls Bureau
Foreign Affairs and International Trade Canada
Lester B. Pearson Bldg.
125 Sussex Drive
Ottawa, Ontario
K1A 0G2

15.3 Applications sent by facsimile will not be accepted. Only original applications will be accepted.

15.4 Applications postmarked after December 18, 2009, 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). Claims for lost applications will not normally be considered without acceptable proof of the application having been sent (, courier receipt).

15.5 The declaration in the application form allows representatives of the Export and Import Controls Bureau (EICB) 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.

15.6 Unless otherwise specified by the applicant, EICB officials communicate with an EIPA authorization applicant in the official language of Canada which the applicant has utilized on its application.

Additional Information

16.0 Import allocations and import permits

16.1 The Minister issues import permits to allocation holders in accordance with the Import Permit Regulations and may attach conditions to import allocations and/or to import permits, and may amend, suspend, cancel or re-instate import permits and allocations.

16.2 In completing import permit applications, the EICB commodity codes listed in Appendix 7 of this Notice should be used to describe the product to be imported.

16.3 All import allocations expire at the end of each calendar year and all firms interested in receiving an import allocation must qualify each year.

17.0 Transferability of import allocations

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

18.0 Name on the permits

18.1 Firms with import allocations should take 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 allocation 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 Canada Border Services Agency's officials.

19.0 Weight reported on the permits

19.1 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

20.0 Permit fees

20.1 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).

21.0 Further information

21.1 Enquiries about import allocations may be addressed to:

Mrs. Keltie Findlay Leclair
Telephone: (613) 996-4333
Facsimile:   (613) 996-0612
e-mail: keltie.findlay@international.gc.ca
(Address as in paragraph 15.2)

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

Mr. Eric Conlon
Telephone: (613) 944-0777
Facsimile:   (613) 996-0612
e-mail: eric.conlon@international.gc.ca
(Address as in paragraph 15.2)

21.3  All applicants will be assigned a (new or designated pre-existing EICB file) number based on the company profile submitted as part of the formal application. The (Federal, 9 digit code) 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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Date Modified:
2009-11-13