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Item 140 - Margarine

Serial No. 562
Date: December 5, 1997

Table of Contents

1.0 Coverage

1.1 This Notice supersedes Notice to Importers No. 520 dated November 27, 1995; it refers to item 140 of the Import Control List. This item covers margarine falling under tariff item Nos. 1517.10.10 or 1517.10.20 (margarine, excluding liquid margarine), and 1517.90.21 or 1517.90.22 (substitutes for butter), in the List of Tariff Provisions set out in the schedule to the Customs Tariff.

1.2 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, Trade Programs Directorate 613-957-1468; fax: 613-952-3971.

2.0 Purpose

2.1 The purpose of this Notice is to inform importers of the rules and procedures governing the issuance of import permits for margarine in 1998.

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 (TRQs), imports are subject to low "within access commitment" rates of duty up to a predetermined limit (i.e. until the limit of the import access quantity has been reached), while imports over this limit are subject to significantly higher "over access commitment" rates of duty. By section 6.2 of the EIPA, the Minister responsible for the Act may determine an import access quantity allowed entry at the low rate of duty and may allocate it to residents of Canada. Having established an import access quantity, the Minister shall issue import permits up to the limit of that quantity (to allocation holders, where that is the approach taken) under section 8.3 of the EIPA; these permits shall entitle the goods to which they apply to be subject to low rates of duty. Subsection 8.3(3) allows the Minister to issue import permits for imports in excess of the import access quantity. Pursuant to subsection 10.(1) of the EIPA, the Minister may, at his discretion, amend, suspend, cancel or re-instate any permit or import allocation issued or granted under the Act.

5.0 Import permit issuance

5.1 Import permits are required for EACH shipment of margarine falling within tariff item Nos. 1517.10.10 or 1517.10.20 and 1517.90.21 or 1517.90.22 of 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 issued to their firm for that shipment ("specific import permit") in order to clear Canada Customs. The specific import permit must also be presented to Canada Customs at the time of accounting for the shipment to be eligible for the lower "within access" rate of duty provided under tariff item No. 1517.10.10 or 1517.90.21. Goods imported without a specific import permit (i.e. those invoking the GIP) will be subject to the higher "over access" rate of duty provided under tariff item No. 1517.10.20 or 1517.90.22 which will be 87.12¢/kg and 231% (but not less than $2.61/kg) respectively in 1998.

Note: Specific permits will not be issued for shipments already imported into Canada under the authority of the general import permit.

5.2 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" and transmit it to DFAIT or to a customs broker.

(b) A description of the process of applying for an import permit is attached as Appendix 2; it includes fees, 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.

6.0 Import Access Level

6.1 Under the WTO the TRQ level established for margarine for the period January 1, to December 31, 1998 (1998 quota year) is 6,348,800 kilograms. This TRQ is administered on a first-come, first-served basis. Importers will receive permits in order of receipt of applications.

7.0 Principles of TRQ allocation

7.1 The following guidelines will apply for the issuance of import permits for margarine.

(a) The import access level (i.e. 6,348,800 kg) will be allocated on an annual basis. However, should there be a substantial increase in imports of margarine, DFAIT may allocate on a quarterly basis.

(b) Import permits that will be issued to any one company and its affiliates in any quota year will not exceed 500,000 kilograms. In this regard, at the first application only, applicants are requested to send a letter to DFAIT providing the names of any affiliated companies or stating that they are not affiliated with any other company. For the purpose of this Notice, affiliation is defined as follows: Companies are affiliated if they are, or could be, controlled directly or indirectly, by another company (e.g. if the same General Manager manages two companies). To establish which companies are affiliated applicants are asked to provide a list of "associated persons" (see Appendix 1).

(c) Permits for "Kosher for Passover" margarine will be issued by DFAIT in consultation with the Remission Policy Unit within Revenue Canada. This will enable duty-free entry to be provided under the Excise Tax Act payable on Passover foods and products. Importers will be required to demonstrate to the Remission Policy Unit of Revenue Canada that the margarine they are supplying to the Kosher market is clearly marked with the appropriate symbols at the time of importation.

7.2 Applications sent by mail should be addressed to:

Keltie Findlay Leclair
Trade Controls Policy Division (TIC)
Foreign Affairs and International Trade
P.O. Box 481, Station "A"
Ottawa, Ontario
K1N 9K6

7.3 Applications sent by courier or fascimile should be addressed to:

Keltie Findlay Leclair
Trade Controls Policy Division (TIC)
Foreign Affairs and International Trade
125 Sussex Drive
Ottawa, Ontario
K1A 0G2

Facsimile: (613) 996-0612

7.4 DFAIT will grant import permits in order of receipt of permit applications, whether sent through customs brokers, by mail, by courier or by facsimile.

8.0 Permit fees

8.1 A fee will be levied for each permit or certificate issued in accordance with the Export and Import Permits and Certificates Fees Order (Notice to Importers No. 508 dated May 16, 1995).

9.0 Further information

9.1 Requests for additional information should be addressed to:

Keltie Findlay Leclair (Policy)
Telephone: (613) 996-4333
Facsimile: (613) 996-0612
(Address as indicated in paragraph 7.3)

Adèle Brisson(Permits)
Telephone: (613) 995-8104
Facsimile: (613) 996-0612
(Address as indicated in paragraph 7.3)