Serial No. 825
Date: February 26, 2013
This Notice replaces Notice to Importers No. 801 dated October 14, 2011, 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.
Imports of turkey and turkey products 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 turkey and turkey products to enter Canada. Import permits for shipments of turkey and turkey products destined to the Canadian market are issued to allocation holders under Canada’s tariff rate quota (TRQ) for turkey and turkey products, which is administered by Foreign Affairs and International Trade Canada (DFAIT).
The Minister may, at his discretion, authorize imports of turkey and turkey products apart from the import access quantity, particularly if he judges that the importation of these products is required to meet Canadian market needs.
This Notice to Importers sets out the policies and practices pertaining to supplemental imports of turkey and turkey products. This Notice also explains how to apply for supplemental import permits.
1.1. The purpose of this Notice is:
1.2. The present Notice should be read with the Notice Turkey and Turkey Products (Items 105 to 113 on the Import Control List), which sets out the policies and practices pertaining to the administration of the turkey and turkey products TRQ. This Notice is available on the DFAIT website at: Controlled Products - Turkey and Turkey Products.
2.1. In accordance with its commitments under the North American Free Trade Agreement (NAFTA) and the World Trade Organization (WTO), Canada has in place a TRQ for imports of turkey and turkey products.
2.2. 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.
2.3. Subsection 8.3 (3) of the EIPA allows the Minister to issue permits apart from the access quantity. In exercising his discretion under subsection 8.3 (3), the Minister takes into consideration whether the importation of these products is required to meet Canadian market needs.
2.4. The within and over access rates of duty that apply to imports of turkey and turkey products can be found in Canada’s Customs Tariff.
2.5. Pursuant to the EIPA and its corresponding regulations, when deciding whether to authorize a request for supplemental 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 regulations made under the Act or by any condition of a supplemental import authorization, import allocation, or import permit during the 12-month period preceding the period in respect of which the supplemental import authorization is to apply. The Minister may attach conditions to supplemental authorizations and/or to supplemental import permits, and may amend, suspend, cancel or re-instate supplemental import authorizations and supplemental import permits.
3.1. This Notice pertains to Items 105 to 113 of the Import Control List (ICL); namely turkey and turkey products classified 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. 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 (see section 6 of Notice to Importers – Turkey and turkey Products and section 6 of this Notice). Appendix 1 provides a detailed list of the products covered and their associated EIPA products codes.
3.2. Chapter 16 of the Customs Tariff contains the following Supplementary Note concerning specially defined mixtures: Specially defined mixtures of tariff items 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.
3.3. Importers who require a determination as to whether the product they intend to import is eligible for a turkey and turkey products supplemental import authorization are encouraged to obtain an advanced tariff classification ruling from the appropriate regional client service office of the Canada Border Services Agency (CBSA).
4.1. There are five categories of supplemental import authorizations for turkey and turkey products:
The policies and procedures applicable to each category are set out below.
5.1. The following procedures are followed when processing applications for authorization for supplementary imports due to market shortages:
5.2.1. Applications for authorization for supplementary imports due to market shortages are assessed, among other factors, in terms of the DFAIT's analysis of the domestic supply and demand situation concerning whole birds. Applications for poultry parts will be authorized only when there is a shortage of whole birds. Shortages of poultry parts may exist even when there is an adequate supply of whole birds. Supplementary imports of parts when whole birds are available would interfere with the adjustment mechanisms in the market place. Exceptions will be considered when parts are used for the manufacture of end products that do not compete with poultry products (e.g., pet food).
5.2.2. Consideration of applications will, additionally, take into consideration any disruptions of customary arrangements between an applicant and his or her supplier(s).
5.3.1. Normally, an application may be made by a firm that meets the DFAIT definition of processor, distributor or foodservice operator.
5.3.2. An application must be made on the form “Application for Authorization for Supplementary Imports”, included as Appendix 2, and sent to the Turkey Farmers of Canada (TFC), with a copy sent to DFAIT. The application must identify the product required and the specific week for which the product is requested. An application shall include only one product.
5.3.3. An applicant shall demonstrate that normal supply sources have been exhausted before applying for an authorization for supplementary imports. The application shall describe the applicant's own procurement efforts and explain the basis for assessing that a shortage exists in the whole bird market. The application shall indicate the end use of the product and identify related customers.
5.3.4. Applicants who have been issued a global import allocation will be required to have exhausted this allocation before an application will be considered.
5.3.5. An import allocation will be considered exhausted only if all permits issued have been used and the allocation balance is zero.
5.3.6. Applicants are advised to allow the maximum possible lead-time for processing of applications and should, therefore, inform DFAIT and the TFC of anticipated shortages as soon as these are identified. Normally, applications will not be accepted if the proposed week of entry is more than three (3) weeks after the week of application.
5.3.7. Normally, officials will require eight (8) working days to process applications. However, the actual processing time required will vary with the nature and quantity of the product requested, market conditions and other factors.
5.4.1. Each application is assessed in terms of the product and quantities requested. The quantity requested should reflect the applicant's normal throughput and the product should be a product normally used by the applicant and should be consistent with end product(s) normally sold to the applicant's customer(s).
5.4.2. The applicant's own procurement efforts are also evaluated. While supplementary imports may be authorized when there are general market shortages as defined in section 5.2.1, supplementary imports will not be authorized if shortages are the result of the applicant's own procurement problems.
5.4.3. Applications may be made for any controlled turkey product that is normally traded in Canada. Product specifications shall conform to normally accepted trading classes of the product (e.g., as delineated in Appendix 1). Applications shall describe accurately the product required, the acceptable quality, level and size variations, and acceptable substitutes. A new application shall be made if specifications are changed after sourcing has begun.
5.4.4. Special product specifications will only be considered if the applicant is known to specialize in that product and if the lead-time is adequate.
5.4.5. Applicants must indicate the week in which they wish to import the product. Normally, the delivery period will be a six (6) day period from Monday through Saturday.
5.4.6. It is expected that the applicant will have made a reasonable effort to contact seven (7) potential suppliers to procure required materials from domestic sources prior to applying for an authorization for supplementary imports due to a market shortage. Officials will pay particular attention to the reasons for the shortage, such as: when the shortage could have been identified; when it was actually identified; and what steps were taken by the applicant to address the situation. It is recommended that applicants contact DFAIT and the TFC regarding possible medium to long-term supply shortages.
5.4.7. In case of product substitution, the applicant's ability to use the domestically-sourced product for the intended end use will be considered. Please see section 5.5.3 for information concerning product substitution.
5.5.1. The TFC will survey the domestic market for availability of the product requested and will inform the applicant of the results of this survey within three (3) working days from the time the application is received.
5.5.2. The sourcing results will identify suppliers and the quantities offered; after receiving this information, the applicant must contact each supplier identified within one (1) working day to negotiate price and delivery with these suppliers. The applicant is normally expected to purchase the sourced product up to the level of the requested quantity. The applicant shall notify the TFC as soon as procurement from domestic sources has been completed.
5.5.3. The sourcing results can include any commercially reasonable substitute product (e.g., eviscerated bird substitution for live bird) that can be used by the applicant to produce the identified end product (i.e., from a technical, quality, as well as economic view point).
5.6.1. If the applicant is not satisfied with the sourcing results, he/she may continue the application process using the form “Application for Authorization for Supplementary Imports - Continuation of Application”, included as Appendix 3 of this Notice.
5.6.2. Deadline for Continuation of Application: Any request to DFAIT for relief from the obligation to purchase the sourced product shall be made, in writing, within two (2) working days from the time that the applicant receives the sourcing list from the TFC.
5.6.3. The applicant shall state in writing to DFAIT the results of discussions with all the persons on the sourcing list, including the product offered, the price, product specifications and delivery date. The applicant shall confirm the sourcing results within two (2) working days.
5.6.4. Reasons for Continuation of Application: The applicant shall substantiate why some or all of the products sourced by the TFC cannot be used to meet associated requirements, stating the reasons for the request for continuation and the results of the negotiations with companies on the sourcing list
5.6.5. A request to continue an application may be considered under the following circumstances:
5.7.1. DFAIT may require three (3) working days to assess the sourcing results, the application itself and current market conditions.
5.7.2. After the application has been assessed along with the relevant information described above, a decision will be communicated to the applicant, and also to the TFC. If supplementary imports are authorized, the applicant will also be advised as to products, quantities and related conditions.
5.7.3. Any credits due to global permits that are returned or due to unused permits, after supplementary imports have been authorized, will be deducted from the quantity authorized.
5.8.1. Eligible applicants are issued a unique EIPA authorization number for each approved request. As with other permit applications, the authorization number should be inscribed on the permit application in the box marked "document number". The applicant may apply for permits up to the total quantity authorized, for the product authorized and for the delivery period authorized. The supplementary import permit will be valid only during the delivery week requested by the applicant.
5.8.2. No substitution of product will be allowed other than those acceptable under TFC sourcing arrangements and no extension of the permit validity period will be made. Changes in product or validity period would require a new application for supplementary imports and a new sourcing effort by the relevant Agency.
5.8.3. Unused permits shall be returned to DFAIT at the end of their validity periods.
5.8.4. Additional information concerning the issuance of supplementary import permits is included in Section 10.
5.9.1. Administrative measures will normally be applied to suppliers in the following cases:
5.9.2. Administrative measures will normally be applied to applicants in the following cases:
6.1. Supplemental imports of turkey under Import-to-Compete are authorized under three circumstances:
6.2. A request for authorization for supplemental imports may be submitted to the turkey and turkey products quota manager at DFAIT at any time during the calendar year. The name and mailing address of the turkey and turkey products quota manager can be obtained on the DFAIT website, under Contact Us (http://www.international.gc.ca/controls-controles/contact-contactez.aspx?lang=eng).
6.3. Manufacturers who have been issued an import allocation for production of turkey products that are not on the Import Control List (ICL) will normally be required to have exhausted this allocation before supplementary imports may be authorized under this provision. An allocation will be considered exhausted only if all permits issued have been used and the allocation balance is zero.
6.4. Manufacturers applying to DFAIT for import permits for turkey under this provision must state the quantity and the specification of the product to be manufactured and the anticipated production and delivery dates.
6.5. Manufacturers importing turkey under this provision are subject to the condition that they agree to subsequently provide the information listed in Appendices 4 and 5 of this Notice. This information is used to confirm that the specified turkey products were produced, that the associated sales were made, and that payment was received. Normally, if a manufacturer applies solely for the "shortfall", only the information listed in Appendix 4 accompanied by an affidavit sworn by the Chief Executive Officer (CEO) will be required.
6.6. Should a company fail to provide the required information in section 6.4 or should the information provided indicate that it did not both produce and sell the agreed-upon turkey products in the prescribed period, any future quota allocations to that company may be reduced and other action taken under the EIPA.
7.1. This program is limited to processors. For the purposes of the IREP, a processor carries on activities in federally registered Canadian plants owned and operated by the applicant that involve the slaughtering of turkey, cutting up of eviscerated turkey, de-boning of eviscerated or cut up turkey, or further processing. The latter includes, but is not limited to, the manufacturing of such products as patties, stuffed hens, rolls and roasts produced from turkey. This also includes the further processing function of smoking or drying, coating or seasoning turkey.
7.1.1. Applicants approved for participation in the program for a given year must comply with program terms and conditions, permit conditions, as well as reporting requirements. Normally, failure to comply with program terms and conditions, permit conditions as well as reporting requirements, or failure to provide updated and accurate information, could result in the application of sanctions as set out in Section 7.8.
7.2. An IREP participant:
7.2.1. As the importer of record, the name of the IREP participant should correspond to the importer name on customs release documentation (e.g. B3, section 1), and the IREP participant owns the imported turkey or turkey products. As the exporter of record, the name of the IREP participant should correspond to the importer name on foreign customs release documentation (e.g. US Entry Summary, box 26).
7.2.2. Diversion of product imported under the IREP to the Canadian market is prohibited. Specifically, the transfer or sale of products imported under the IREP, or of finished goods containing products imported under the IREP, within Canada or to a Canadian resident or company is prohibited.
7.3.1. The IREP authorization year extends from June 1 to May 31 inclusive.
7.4.1. To be eligible to continue to participate in the IREP, IREP participants must apply for an authorization for supplemental imports each authorization year. IREP participants must submit their applications to DFAIT no later than the 31st of March immediately preceding the start of the IREP year for their continued participation to be approved by June 1st. A new applicant may submit an application at any point during the authorization year.
7.4.2. Should an IREP participant wish to modify any information in its original application (including, but not limited to, a change in a recipe or additional products), an amendment request must be submitted for approval by DFAIT prior to implementation of the change by the IREP participant.
7.4.3. The application form and related documents are included in Appendix 6. They must be submitted electronically to the DFAIT IREP mailbox (email@example.com).
7.4.4. Applicants and/or IREP participants will be apprised in writing of the result of their application.
7.5.1. IREP participants will be eligible to receive import permits subject to certain conditions, including:
7.5.2. IREP participants must export all products imported under the IREP within 90 calendar days of the date of entry indicated on the associated supplemental import permit.
7.5.3. IREP permits issued in a given authorization year will be valid only for that authorization year.
7.6.1. Monthly export reports: IREP participants must submit, electronically, monthly export reports for all IREP product exports in a given month (including a nil report if applicable) to DFAIT (firstname.lastname@example.org) by the end of the following month. These reports must be prepared in the prescribed format using the template in Appendix 6. All fields in the template must be filled for each export shipment. DFAIT may at any time request supporting export documentation for any reported shipment (see section 7.7.1.).
7.6.2. Bi-monthly inventory reports: IREP participants must submit, electronically, bi-monthly inventory reports. These reports must be prepared in one of the prescribed format using the template in Appendix 6. The inventory report must be an account, on the first day of the month (starting August 1 of the authorization year), of any product imported under the IREP and any intermediary, finished product or product in the processing phase containing the product imported under the IREP, that has not yet been exported. It must include quantities at the manufacturing facility and, if applicable, quantities stored offsite.
7.6.3. Only products manufactured with inputs imported under the IREP are eligible to be reported under the IREP. Products manufactured using controlled inputs imported under the TRQ or obtained from other sources are not eligible to be reported under the IREP, and products exported prior to the import of a corresponding quantity of controlled inputs under the IREP are not eligible to be reported as exports under the IREP. An IREP participant who submits erroneous reports may be subject to sanctions (see section 7.8.).
7.6.4. IREP participants must provide a declaration, using the template in Appendix 6, from their CEO, stating that all products imported under the IREP during the authorization year have been exported in accordance with all program terms and conditions, permit conditions, and that reporting requirements were met. This letter should only be submitted once it has been determined that all of these criteria have been fulfilled. This letter may not be submitted prior to May 31 of the relevant authorization year, but must be provided no later than September 30 of the following authorization year.
7.7.1. IREP participants must retain, for a period of seven years, and provide to DFAIT on demand, copies of the following documents:
7.7.2. DFAIT may request additional information, and may also request that an independent public accountant (or an accountant named by DFAIT) certify information provided to it by the IREP participant.
7.7.3. IREP participants may be subject to unannounced onsite verification by DFAIT. In accordance with section 10.2 of the EIPA, DFAIT inspectors may, at all reasonable times, have access to facilities, warehouses and any other location where IREP products may be processed or stored. Accordingly, IREP participants are required to cooperate fully in the event of an inspection, audit or examination. This may also include a request that a product be tested by an independent accredited laboratory. Should any such request prove necessary, all costs will be borne by the applicant.
7.7.4 Eligibility under the TFC's Export Policy: TFC advises that IREP exports are not eligible under their export policy.
7.8.1. Failure to comply with any term or condition of the IREP or any of its reporting requirements will normally result in suspension from participation in the IREP, cancellation of import permits, reduction of an IREP participant's TRQ allocation(s) and/or prosecution for offences against the EIPA. An IREP participant that is suspended from participation in the IREP is not eligible to receive IREP import permits.
7.8.2. If an IREP participant fails to comply with any term or condition of the IREP or any of its reporting requirements on multiple occasions, that IREP participant may be suspended from participation in the IREP for the remainder of the authorization year.
7.8.3. Should DFAIT's reconciliation of an IREP participant’s imports and exports under the IREP indicate that product imported by that IREP participant under the IREP has been in Canada for more than 90 calendar days, the IREP participant will normally be suspended from the program until DFAIT determines that the situation has been rectified and that the IREP participant is in compliance with program terms and conditions.
7.8.4. Should there be unresolved discrepancies in the information provided by an IREP participant, that IREP participant may be suspended from the program until DFAIT determines that the situation has been rectified and that the IREP participant is in compliance with program terms and conditions.
8.1. Supplementary imports may be authorized 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.
8.2. Authorization for supplementary imports for purposes of test marketing may be issued only for products that are marketed directly to consumers.
8.3. Companies that intend to conduct test marketing of a specific product must normally plan the activity within their annual TRQ allocations. Companies that have been issued a quota allocation will normally be required to have exhausted this allocation before supplementary imports may be authorized under this provision.
8.4.Applications made on company letterhead may be submitted to the turkey and turkey products quota manager at DFAIT and should contain the following information:
The name and mailing address of the turkey and turkey products quota manager can be obtained on the DFAIT website, under Contact Us.
8.5. Companies are required to commence production in Canada as soon as is feasible after the successful completion of the test marketing program.
8.6. Imports pursuant to an authorization issued under this provision shall only be made for the products to be test marketed, for the prescribed test marketing period, and for the approved quantities.
8.7. Once these quantities or the period have been exhausted, further permits may be authorized 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 permits will be allowed for either the test market product or for required raw materials. An applicant may submit only one test marketing application for a given product.
8.8. 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.
9.1. Other applications for authorization for supplementary imports due to extraordinary or unusual circumstances will be evaluated on their individual merits.
10.1.1. An import permit issued by DFAIT is required for every shipment of turkey and turkey products 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).
10.2.1. Shipment-specific import permits are normally issued on demand to holders of a supplemental import authorization for turkey and turkey products, up to the amount authorized. Shipments entering Canada under a shipment-specific import permit can normally do so at the within access rate of duty.
10.2.2. 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.
10.2.3. 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 recipient of 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.
10.3.1. The GIP that applies for turkey and turkey products is General Import Permit No. 100 – Eligible Agricultural Goods. There is no limit to the quantities of turkey and turkey products that can enter Canada under the GIP; however, such imports will be subject to the higher over access rate of duty.
10.3.2. Shipment-specific import permits will not be issued for shipments already imported into Canada under the authority of the GIP, regardless of the importer's supplemental authorization.
10.4.1. Information about the permit application process, including information about fees, the monthly billing system, and information required from applicants, is available on the DFAIT website: Applying for an Import Permit.
10.4.2. Importers that wish to apply for an import permit are required to submit Form EXT1466, "Application for Permit", which can be obtain on the DFAIT website (a paper copy will be provided upon request): Application for Import/Export Permit (PDF*, 95 KB)
11.1. Names and direct phone numbers for quota manager(s), permit officer(s), and the Help Desk are available on the DFAIT website: Contact Us
11.2. For directory assistance, you may call 613-944-0773.
11.3. Questions concerning the sourcing of domestic product can be addressed to the TFC at:
Turkey Farmers of Canada (TFC)
7145 West Credit Avenue
Building 1, Suite 202
Tel: (905) 812-3140
Fax: (905) 812-9326
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