Effective 1 January 1995 (or 1 August 1995, for wheat, barley and their products, butter, dry whey and cream), in compliance with its World Trade Organization (WTO) commitments, Canada converted its agricultural import controls to a system of tariff rate quotas (TRQs). Under these TRQs, imports within the TRQ level, i.e., within the access commitment, require a permit issued through either the Supply-Managed Trade Controls or the Non-Supply Managed Trade Controls division of Global Affairs Canada in order to benefit from the lower rate of duty. Imports over the quota level, subject to higher rates of duty, may enter under a General Import Permit. For wheat, barley and their products, the TRQ is administered on a first-come, first served basis. All other TRQs require an allocation to be eligible to use the TRQ.

Effective 8 September 2008, Canada implemented import controls for milk protein substances with a milk protein content of 85% or more by weight, calculated on the dry matter, that do not originate in a NAFTA country, Chile; Costa Rica; or Israel. Import controls were established to implement a change in Canada's WTO obligations subsequent to a re-negotiation of a tariff concession, outlined in Joint Letters, as concluded with New Zealand, Switzerland and the EC under GATT Article XXVIII. A TRQ for milk protein substances with a milk protein content of 85% or more by weight, calculated on the dry matter, that do not originate in a NAFTA country, Chile; Costa Rica; or Israel, was established effective 1 April 2009. Certification of these changes to Canada's Schedule V became effective 6 July 2011.

Effective 21 September 2017, the date of the entry into force of the Comprehensive Economic and Trade Agreement (CETA) between Canada and the European Union, import controls for milk protein substances were amended to remove controls for such products originating from an EU country or other CETA beneficiaries. (Regulations defining "EU country or other CETA beneficiary", SOR/2017-178, https://laws-lois-justice.gc.ca/). Consistent with its commitments, Canada also introduced two new bilateral cheese TRQs.

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.

Dairy products (hereafter including margarine) 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 tariff rate quotas (1 August 1995 for butter, cream and dry whey).

Dairy products were added to the Import Control List under the authority of Paragraph 5(1) (a) and (d) and Section 5.3 of the Export and Import Permits Act. This includes fluid milk, cream, milk and cream powders, condensed milk, yoghurt and buttermilk, powdered buttermilk, whey powder, products consisting of natural milk constituents, butter, cheese of all types, dairy-based products falling within tariff item number 1901.90.33, ice cream and ice cream products, milk protein substances, and margarine and butter substitutes, excluding liquid margarines. All TRQs for dairy products are administered under an import licensing regime based on shipment specific permits and previous allocation of import quota, with the exception of the WTO TRQ for fluid milk for personal consumption, which is administered by way of a general import permit.

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

This licensing system is used to implement TRQs for dairy products in accordance with Canada's commitments under the WTO, CETA, CPTPP and CUSMA.

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.

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.

TRQ size is determined on a yearly basis. There is no case where licences are issued for import on a quarterly basis.

For WTO TRQs, if an allocation holder uses less than 90% of its allocation (95% for cheese, products of natural milk constituents, dry whey, milk protein substances with a milk protein content of 85 per cent or more by weight, calculated on the dry matter, that do not originate in a NAFTA country, an EU country or other CETA beneficiary, Chile, Costa Rica, or Israel, and cream), the allocation in the next year will normally reflect the actual level of use. Allocations not used in a quota year cannot be carried into the next quota year.

For CETA and CPTPP TRQs, if an allocation holder uses less than 95% of its allocation (90% for CPTPP ice cream and mixes, and CPTPP yogurt and buttermilk), the allocation in the next year will be reduced downwards by the percentage of the allocation not utilized in the previous year. Allocations not used in a quota year cannot be carried into the next quota year.

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

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.

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.

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.

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.

Supplementary imports may also be authorized for re-export or to meet domestic market shortages.

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.

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

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.

Documents required upon actual importation: import permit, customs entry documents and food certificates as required under the Canadian Dairy Products Act and Regulations.

Any applicant may directly apply for a permit via customs brokers equipped with authorized computer terminals. Permits 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).

No.

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.

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

Permits are not transferable between importers.

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).

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.