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CPTPP: Chicken TRQ – Serial No. 987

Date: October 1, 2020

This Notice replaces Notice to Importers No. 945 dated October 1, 2019 and sets out the policies and practices pertaining to the administration of Canada’s tariff rate quota (TRQ) for chicken under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

This Notice is provided pursuant to the authority of the Export and Import Permits Act (EIPA) and its corresponding regulations, and remains in effect until further notice.

Table of contents

1. Definitions

Chicken means a product that is included in Items 96 to 104 on the Import Control List (ICL), namely chicken and chicken products falling under tariff items 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.

Further processing means the manufacturing of products that are on the ICL. Such products include, but are not limited to, patties, nuggets, fingers, rolls or roasts produced from chicken meat; it also means marinating, smoking or drying, coating or seasoning chicken meat.

Food service operator means a restaurant or food service company that is active in the Canadian food service sector in the chicken industry.

Processing means the slaughtering of chicken, cutting up of eviscerated chicken, de-boning of eviscerated or cut up chicken, or further processing of chicken meat.

2. Allocation policy

3. Eligibility criteria

You are eligible to apply for an allocation if you are a:

Processor
  • that bought at least 250,000 kg of chicken and subsequently sold at least 250,000 kg of chicken and chicken products processed or further processed in the reference period in federally or provincially registered Canadian plants owned and operated by you.
  • You must exclude the following from your application:
    • products that were not processed in federally or provincially registered Canadian plants owned and operated by you;
    • products bought and sold for the export market;
    • non-ICL products;
    • products sold at the retail level to consumers;
    • products containing meat from old roosters or spent fowl; and
    • intra-company transfers and transactions.
  • If you are a parent company submitting joint applications by affiliated firms, you must exclude the purchases and sales of any company, whether it’s the parent company or an affiliated company, that does not meet the 250,000 kg purchase, production and sales criteria as set out above.
Distributor
  • that bought (i.e., took ownership of and financial responsibility for) at least 220,000 kg and subsequently sold at least 220,000 kg of chicken and chicken products in the reference period, using warehouses and trucks in carrying out this activity.
    • Note: Companies that procure or sell chicken and chicken products on behalf of others without taking ownership of or financial responsibility for the products are not eligible to apply for an allocation.
    • Note: Retailers are not eligible to apply for an allocation. A retailer is an establishment that is primarily engaged in retailing food, and which buys chicken and chicken products and sells it directly to final consumers.
  • You must exclude the following from your application:
    • products bought and sold for the export market;
    • non-ICL products;
    • products sold to related persons;
    • products sold at the retail level to consumers;
    • products containing meat from old roosters or spent fowl;
    • products bought from or sold to other distributors; and
    • live chickens.
Food Service Operator
  • that bought and subsequently sold at least 220,000 kg of chicken in the reference period.
  • You must exclude the following from your application:
    • non-ICL products;
    • products containing meat from old roosters or spent fowl; and
    • non-chicken purchases.
  • If you are a food service operator comprised of a parent company and various subsidiaries, the parent company must submit an application, accompanied by individual application forms for each individual affiliate or business brand.
    • Note: You must exclude any individual affiliate or business brand that did not buy and subsequently sell at least 220,000 kg of chicken in the reference period.
  • In the case of food service chains, only the application submitted by the system-wide brand owner of the chain is considered for an allocation. Individual entities within that chain (e.g., franchisees) are not eligible to apply for an allocation.

4. Calculation of allocations

Processors
  • 85% is allocated to processors on a market share basis based on the kilograms of chicken and chicken products processed or further processed in federally or provincially registered Canadian plants owned and operated by the processor, and subsequently sold, in the reference period.
Distributors
  • 10% is allocated to distributors on an equal share basis.
Food Service Operators
  • 5% is allocated to food service operators on an equal share basis.
    • Note: In the case of a parent company with subsidiaries, the parent company’s allocation is the sum total of its eligible subsidiaries’ calculated allocations.

5. Transfer, return, and under-utilization of allocations

6. Related links

Date Modified: