Chicken, turkey and eggs

Document symbol
G/LIC/N/3/CAN/22
Original language
English
Published on
01/11/2023

Outline of Systems

Q1. Give a brief description of each licensing system as a whole and, with respect to each, reply to the following questions as relevant, placing all of the material with respect to a given system in sequence together, and using cross references as appropriate when elements which have already been described are also present in another system.

Effective 30 December 2018, the Comprehensive and Progressive agreement for Trans-Pacific Partnership (CPTPP) entered into force. Consistent with its commitments, Canada introduced 16 new plurilateral TRQs for dairy products and 4 for poultry products. Canada is implementing all CPTPP TRQs using interim allocation policies and expects to implement final allocation policies for the 2022 TRQ year.

Effective 1 July 2020, the Canada-United States-Mexico Agreement (CUSMA) entered into force, replacing the NAFTA. Consistent with its commitments, Canada introduced 16 new bilateral TRQs with the United States: 14 for dairy and two for poultry and egg products. Canada is implementing all CUSMA TRQs using interim allocation policies and expects to implement final allocation policies for the 2022 TRQ year.

Effective 1 April 2021, the Canada-UK Trade Continuity Agreement (Canada-UK TCA) entered into force. This agreement provides that the United Kingdom, and other beneficiaries of the Canada-UK TCA, continue to receive the same tariff treatment as was provided in CETA.

Canada has initiated a comprehensive review of Canada's supply managed tariff rate quotas (TRQs), including all of Canada's dairy and poultry TRQs and covering all aspects of TRQ allocation and administration.

Chicken, turkey, egg and egg products, and broiler hatching eggs and chicks remain on the Import Control List, established under the Export and Import Permits Act. Effective 1 January 1995, existing import controls on these products were replaced with TRQs.

Purposes and Coverage of Licensing

Q2. Identify each licensing system maintained and state what products, appropriately grouped, are covered.

Imports of chicken and chicken products, turkey and turkey products, eggs and egg products and broiler hatching eggs and chicks are subject to global TRQs and preferential TRQs under the CPTPP and CUSMA. All shipments within the TRQ access are administered using shipment specific permits and previous allocation of import quota, These products were placed on the Import Control List under the authority of Paragraph 5(1)(a) and (b) and Sections 5.3 and 6 of the Export and Import Permits Act.

Q3. The system applies to goods originating in and coming from which countries?

The system applies to: for global TRQs, goods originating in and imported from all countries; for CPTPP TRQs, goods originating in and imported from CPTPP Parties; and, for CUSMA TRQs, goods originating in and imported from the United States.

Q4. Is the licensing intended to restrict the quantity or value of imports, and if not, what are its purposes? Have alternative methods of accomplishing the purposes been considered and if so which? Why have they not been adopted?

The licensing system is used to implement TRQs on chicken and chicken products, turkey and turkey products, eggs and egg products and broiler hatching eggs and chicks in accordance with Canada's commitments under the WTO, the CPTPP and the CUSMA.

Q5. Cite the law, regulation and/or administrative order under which the licensing is maintained. Is the licensing statutorily required? Does the legislation leave designation of products to be subjected to licensing to administrative discretion? Is it possible for the government (or the executive branch) to abolish the system without legislative approval?

Licensing is maintained through regulations under the Export and Import Permits Act. Individual products are not designated in the Act.

An Import Control List has been established by regulation by the Governor-in-Council. The list includes goods, the import of which it is deemed necessary to control for any of the following purposes, namely:

- to ensure, in accordance with the needs of Canada, the best possible supply and distribution of an article that is scarce in world markets or in Canada or is subject to government controls in the countries of origin or to allocation by intergovernmental arrangement;
- to restrict, for the purpose of supporting any action taken under the Farm Products Marketing Agencies Act, the importation in any form of a like article to one produced or marketed in Canada the quantities of which are fixed or determined under that Act;
- to implement any action taken under the Agricultural Marketing Programs Act or the Canadian Dairy Commission Act, with the object or effect of supporting the price of the article;
- to implement an intergovernmental arrangement or commitment; and
- where at any time it appears to the satisfaction of the Governor-in-Council on a report of the Minister made pursuant to an inquiry made under section 20 or 26 of the Canadian International Trade Tribunal Act by the Canadian International Trade Tribunal in respect of any goods, that goods of any kind are being imported or are likely to be imported into Canada at such prices, in such quantities and under such conditions as to cause or threaten serious injury to the production in Canada of like or directly competitive goods, any goods of the same kind may, by order of the Governor-in-Council, be included on the Import Control List in order to limit the importation of such goods to the extent and for the period that, in the opinion of the Governor-in-Council, is necessary to prevent or remedy the injury.

Once an item has been placed on the Import Control List, an import permit, either specific or general, is required by the Act to import such goods into Canada. Specific products can be made subject to either individual licensing or open general licensing by the Minister.

Licensing requirements may be abolished by the Governor-in-Council by removing an item from the Import Control List. Only Parliament can alter or amend the Export and Import Permits Act.

The Minister may also decide to allocate shares of the within-TRQ access for any product in advance. Where this system is used, import permits (licences) are normally issued automatically up to the level of an importer's share.

Procedures

Q6. For products under restriction as to the quantity or value of imports (whether applicable globally or to a limited number of countries or whether established bilaterally or unilaterally):

Q6.I. Is information published, and where, concerning allocation of quotas and formalities of filing applications for licences? If not, how is it brought to the attention of possible importers? Of governments and export promotion bodies of exporting countries and their trade representatives? Is the overall amount published? The amount allocated to goods from each country? The maximum amount allocated to each importer? How to request any exceptions or derogations from the licensing requirement?

Information on TRQs and related formalities is published on the Global Affairs Canada website. Some TRQ-specific information is published in the Notices to Importers published individually for each TRQ, and which are available through the same website.

Q6.II. How is the size of the quotas determined: on a yearly, six-monthly or quarterly basis? Are there cases where the size of quota is determined on a yearly basis but licences are issued for imports on a six-monthly or quarterly basis? In the latter case, is it necessary for importers to apply for fresh licence on a six-monthly or quarterly basis?

TRQ size and import license allocations are determined on a yearly basis.

Q6.III. Are licences allotted for certain goods partly or only to domestic producers of like goods? What steps are taken to ensure that licences allocated are actually used for imports? Are unused allocations added to quotas for a succeeding period? Are the names of importers to whom licences have been allocated made known to governments and export promotion bodies of exporting countries upon request? If not, for what reason? (Indicate products to which replies relate.)

If an allocation holder for these products uses less than 90% of its allocation (95% in the case of egg products), the allocation in the next year will be reduced by the percentage of the allocation not utilized in the previous quota year. Allocation not used in one quota year is not available for carry-over to the next quota year.

Q6.IV. From the time of announcing the opening of quotas, as indicated in I above, what is the period of time allowed for the submission of applications for licences?

Individual import permits are required for each shipment at the within-TRQ rates of duty.

Q6.V. What are the minimum and maximum lengths of time for processing applications?

Import permits are issued through an on-line automated system either (a) in the offices of customs brokers in major cities across Canada, or (b) at the Permit Operations, Client Services and Reporting Division of Global Affairs Canada in Ottawa. Requests for permits are accepted 30 days prior to the expected date of arrival of the shipment to Canada. Import permits are normally issued with a validity period of 30 days around the date of arrival specified by importers (five days prior to and 24 days after). Utilization of permits for one quota year is not allowed in the next quota year.

Q6.VI. How much time remains, at a minimum, between the granting of licences and the date of opening of the period of importation?

Import permits are issued through an on-line automated system either (a) in the offices of customs brokers in major cities across Canada, or (b) at the Permit Operations, Client Services and Reporting Division of Global Affairs Canada in Ottawa. Requests for permits are accepted 30 days prior to the expected date of arrival of the shipment to Canada. Import permits are normally issued with a validity period of 30 days around the date of arrival specified by importers (five days prior to and 24 days after). Utilization of permits for one quota year is not allowed in the next quota year.

Q6.VII. Is consideration of licence applications effected by a single administrative organ? Or must the application be passed on to other organs for visa, note or approval? If so, which? Does the importer have to approach more than one administrative organ?

Import permits are issued through an on-line automated system either (a) in the offices of customs brokers in major cities across Canada, or (b) at the Permit Operations, Client Services and Reporting Division of Global Affairs Canada in Ottawa. Requests for permits are accepted 30 days prior to the expected date of arrival of the shipment to Canada. Import permits are normally issued with a validity period of 30 days around the date of arrival specified by importers (five days prior to and 24 days after). Utilization of permits for one quota year is not allowed in the next quota year.

Q6.VIII. If the demand for licences cannot be fully satisfied, on what basis is the allocation to applicants made? First come, first served? Past performance? Is there a maximum amount to be allocated per applicant and, if so, on what basis is it determined? What provision is made for new importers? Are applications examined simultaneously or on receipt?

Allocation methods vary by TRQ. Please refer to the Notices to Importers referred to in response I for allocation and administration policies for individual TRQs.

Q6.IX. In the case of bilateral quotas or export restraint arrangements where export permits are issued by exporting countries, are import licences also required? If so, are licences issued automatically?

N/A

Q6.X. In cases where imports are allowed on the basis of export permits only, how is the importing country informed of the effect given by the exporting countries to the understanding between the two countries?

N/A

Q6.XI. Are there products for which licences are issued on condition that goods should be exported and not sold in the domestic market?

A supplementary import policy is in place to allow supplementary imports in certain situations, including market shortages. Supplementary imports may also be authorized for re-export.

Q7. Where there is no quantitative limit on importation of a product or on imports from a particular country:

N/A

Q7.a. How far in advance of importation must application for a licence be made? Can licences be obtained within a shorter time-limit or for goods arriving at the port without a licence (for example, owing to inadvertency)?

N/A

Q7.b. Can a licence be granted immediately on request?

N/A

Q7.c. Are there any limitations as to the period of the year during which application for licence and/or importation may be made? If so, explain.

N/A

Q7.d. Is consideration of licence applications effected by a single administrative organ? Or must the application be passed on to other organs for visa, note or approval? If so, which? Does the importer have to approach more than one administrative organ?

N/A

Q8. Under what circumstances may an application for a licence be refused other than failure to meet the ordinary criteria? Are the reasons for any refusal given to the applicant? Have applicants a right of appeal in the event of refusal to issue a licence and, if so, to what bodies and under what procedures?

Permit applications that are complete and meet the general requirements are not normally refused. If eligibility criteria have not been met (e.g., no quota entitlement) or the application contains errors, the applicant will be informed; in such event the applicant may correct the application or request reconsideration, or the applicant may choose to pay the over-access tariff and import the goods under a General Import Permit, which is automatically applicable.

Eligibility of Importers to Apply for Licence

Q9. Are all persons, firms and institutions eligible to apply for licences: (If not, is there a system of registration of persons or firms permitted to engage in importation? What persons or firms are eligible? Is there a registration fee? Is there a published list of authorized importers?) a) under restrictive licensing systems? b) under non-restrictive systems?

All residents of Canada are eligible to apply for an allocation, and permits are only granted to allocation holders.

Documentational and Other Requirements for Application for Licence

Q10. What information is required in applications? Submit a sample form. What documents is the importer required to supply with the application?

The applicant is required to provide the information requested on the application for an import permit. For certain products, additional information and/or documentation may be required, as indicated in the specific product group responses.

Q11. What documents are required upon actual importation?

Import permits and normal customs entry forms are required in addition to health certificates as required under the Canada Agriculture Products Act.

Q12. Is there any licensing fee or administrative charge? If so, what is the amount of the fee or charge?

Any applicant may directly apply for a permit via customs brokers equipped with authorized computer terminals. Permit fees range from CAN$10.00 to CAN$26.00 (according to the value of the goods). This fee does not cover the cost of any additional services provided by such issuers. Permits may also be requested, by fax, from Global Affairs Canada in Ottawa for which the associated fees range from CAN$15.00 to CAN$31.00 (according to the value of the goods).

Q13. Is there any deposit or advance payment requirement associated with the issue of licences? If so, state the amount or rate, whether it is refundable, the period of retention and the purpose of the requirement.

No.

Conditions of Licensing

Q14. What is the period of validity of a licence? Can the validity of a licence be extended? How?

Import permits normally have a validity of 30 days. Requests for extension of the validity period submitted prior to the original expiry date are considered on their merits, e.g., supporting documentation outlining extraordinary circumstances that prevented the importation of goods within the time frame of the permit. If a permit has not been used, the importer may apply for its cancellation.

Q15. Is there any penalty for the non-utilization of a licence or a portion of a licence?

There is no penalty for non-utilization of import permits that are returned for cancellation.

Q16. Are licences transferable between importers? If so, are any limitations or conditions attached to such transfer?

Permits are not transferable between importers.

Q17. Are any other conditions attached to the issue of a licence? a) for products subject to quantitative restriction? b) for products not subject to quantitative restriction?

Under very particular circumstances, special conditions may be attached from time to time.

Additional information required under CETA, CPTPP and CUSMA - Under Annex 2-A of Chapter 2 of the CETA, Canada reserved its right to apply an end-use requirement to imports under the TRQ for industrial cheese; namely, that all imports under this TRQ be used as ingredients for further food processing (secondary manufacturing) imported in bulk (not for retail sale),

Under Appendix A to Chapter 2-D of Chapter 2 of the CPTPP, Canada reserved its right to apply end-use requirements to imports under certain CPTPP TRQs; specifically, that all imports under the TRQ for concentrated milk be for retail sale only; that specified percentages of the TRQs for milk, butter, yogurt and buttermilk be reserved for goods in bulk (not for retail sale) to be processed into ingredients for further food processing (secondary manufacturing).Additionally, that the industrial cheese TRQ be reserved for goods in bulk (not for retail sale) used as ingredients for further food processing (secondary manufacturing); and, that the imports under the TRQ for eggs be used in priority for the importation of eggs for breaking purposes for further food processing (secondary manufacturing).

Under Section A to Appendix 2 of Chapter 2 of the CUSMA, Canada reserved its right to apply end-use requirements to imports under certain CUSMA TRQs; that specified percentages of the milk, cream, and butter and cream powder TRQs, be reserved for goods in bulk (not for retail sale) to be processed into ingredients for further food processing (secondary manufacturing). Additionally, that the entire industrial cheeses TRQ be reserved for goods in bulk (not for retail sale) for further food processing and, that the imports under the TRQ for eggs and egg products be used in priority for the importation of eggs for breaking purposes for further food processing (secondary manufacturing).

Other Procedural Requirements

Q18. Are there any other administrative procedures, apart from import licensing and similar administrative procedures, required prior to importation?

Additional information required under CETA, CPTPP and CUSMA - Where Canada allocates shares of the within-TRQ access, obtaining a shipment-specific import licence depends upon having received an allocation in advance. As part of TRQ allocation processes, Canada does not impose any of the following conditions: membership in an industry association; approval by an industry association of the request for an import licence; a minimum importer or end user registered capital; or contractual or other relationship between the importer and a distributor in the Party's territory.

Q19. Is foreign exchange automatically provided by the banking authorities for goods to be imported? Is a licence required as a condition to obtaining foreign exchange? Is foreign exchange always available to cover licences issued? What formalities must be fulfilled for obtaining the foreign exchange?

N/A