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General information on the administration of TRQs for supply-managed products

Table of contents

  1. General information
  2. Applying for an allocation
  3. Eligibility criteria and activity tests
  4. Related persons
  5. Transfer, return and under-utilization
  6. Non-ICL products
  7. Contact us

1. General information

1.1 Definition of tariff rate quota (TRQ)

1.2 How a TRQ is administered

1.3 How an allocation works

1.4 Validity period of an allocation

1.5 Importing a product without an allocation

2. Applying for an allocation

2.1 How to apply for an allocation

2.2 Additional documents required to support your application

2.3 Communication of allocation decisions

3. Eligibility criteria and activity tests

3.1 Purpose of eligibility criteria

3.2 Purpose of activity tests

3.3 Demonstrating eligible activity regularly during the reference period and throughout / during the TRQ year

To see the activity tests that apply to the TRQ under which you wish to apply, review the relevant Notice to importers.

3.4 Distributor to distributor sales

3.5 Definition of market share

3.6 Definition of equal share

3.7 Definition of further food processing (secondary manufacturing)

3.8 Residency requirements to obtain an allocation

3.9 Applying for more than one allocation in a TRQ

4. Related persons

4.1 Information on related persons

4.2 Submission of applications by related persons

Related persons are normally eligible for only one allocation under a given TRQ.

5. Transfer, return and under-utilization

5.1 Transfer

5.2 Return

5.3 Application of under-utilization penalty

5.4 Calculation of the under-utilization penalty

The following example uses kilograms (kg) as the unit of measure.

Elements of Utilization Rate CalculationDefinitions
Utilization Rate (%)(Level of Use (kg) / Total Allocation Granted (kg)) X 100%
Level of Use (kg)Permits Used (kg) + Returns (kg) + Transfers Out (kg)
Total Allocation Granted (kg)Initial Allocation (kg) + Transfers In (kg) + Reallocation of returns (kg)
Elements of Under-utilization CalculationDefinitions
Under-utilization Penalty (kg)Pre-penalty Allocation (kg) X Under-utilization Rate (%)
Pre-penalty Allocation (kg)Allocation that the allocation holder would have been eligible for in the new quota year, if the allocation holder had not under-utilized in the previous quota year
Under-utilization Rate (%)100% - Utilization Rate (%)

For Example:

Company A TRQ Activities for 2023Remaining Quantities
Initial allocation for Company A1,000 kg
Accepted a transfer of 200 kg from Company B1,000 + 200 = 1,200 kg
Transferred 50 kg to Company C1,200 – 50 = 1,150 kg
Returned 50 kg1,150 – 50 = 1,100 kg
Used permits for a total of 900 kg1,100 – 900 = 200 kg
Level of Use (Permits Used (kg) + Returns (kg) + Transfers Out (kg))900+50+50 = 1,000 kg
Total Allocation Granted (Initial Allocation (kg) + Transfers In (kg)1,000 + 200 = 1,200 kg
Utilization Rate (%) = (Level of Use (kg) / Total Allocation Granted (kg)) X 100%1,000/1,200 X 100% = 83.33%
Unutilized TRQ at the end of 2023200 kg of 1,200 kg = 16.67%
How the Under-utilization Penalty is Applied in 2024
Quantity Company A is eligible for in 20241,500 kg
2024 allocation once under-utilization penalty is applied1,500 kg – 250kg = 1250 kg
Actual 2024 allocation1,250 kg

6. Non-ICL products

6.1 Description of Non-ICL products

6.2 SDMs

7. Contact us

Date Modified: