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Infant Formula Export Thresholds – Serial No. 994

Date: June 3, 2020

This Notice to Exporters sets out the policies and practices pertaining to the administration of Canada’s export thresholds for infant formula under the Canada-United States-Mexico Agreement (CUSMA).

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.

In brief

In accordance with its commitments under CUSMA, Canada has established a charge of $4.25 per kg on global exports of infant formula above a set export threshold.

Exports of infant formula below the threshold will not incur a charge.

For the 2019-2020 dairy year, the below-threshold quantity (BTQ) has been set at 13,333,000 kg. This threshold increases to 40,000,000 kg for the 2020-2021 dairy year. For each subsequent dairy year, the threshold will increase by a cumulative 1.2%.

Table of contents

1. Definitions

“Dairy year” means August 1 to July 31.

“Distributor” means an establishment that buys infant formula and re-sells it to other businesses.

“Infant formula” means a product that is included in Item 5200 of the Export Control List (ECL), namely products that are classified under subheading 1901.10 containing more than 10% on a dry weight basis of cow milk solids.

“Market share” means an allocation method that apportions an allocation on the basis of an applicant’s level of planned production in proportion to the activity levels of other similar eligible applicants.

“On demand” means export permits are issued on a shipment-by-shipment basis until the specified below-threshold quantity is reached (there is no official application/allocation).

“Processor” means an establishment that carries on the manufacture of infant formula in its own facility and is licenced under the Safe Food for Canadians Act.

“Year 1” means July 1, 2020 to July 31, 2020.

“Year 2” means August 1, 2020 to July 31, 2021.

2. Allocation policy

3. Calculation of allocations

4. Transfer, return and under-utilization policies

Starting August 1, 2020 (Year 2):

5. Applications for allocation

6. Export permits

7. Payment of the export charge

8. Contact us

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