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 the 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 margarine, food preparations, 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[1]. 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.

Effective 1 July 2020, the Canada-United States-Mexico Agreement (CUSMA) entered into force, replacing the NAFTA. Consistent with its commitments, Canada introduced 14 new bilateral dairy TRQs with the United States.

New policies for the CUSMA dairy TRQs were implemented in 2022 and new policies for the CPTPP dairy TRQs were implemented in 2024.

[1] Regulations Defining "EU country of other CETA beneficiary", SOR/2017-178, https://laws-lois.justice.gc.ca.

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.

Import controls and licensing dairy products and margarine are established/maintained via the Export and Import Permits Act.

Individual products are not designated in the Act.

Products subject to control are identified on the Import Control List, a regulation established under the authority of the Governor-in-Council.

Once an item has been placed on the Import Control List, an import permit, either specific or general, is required by the Act to lawfully import such goods into Canada.

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.

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 licenses 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, 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, CPTPP and CUSMA TRQs, if an allocation holder uses less than 95% of its allocation (90% for CPTPP and CUSMA ice cream and mixes TRQs, and CPTPP and CUSMA yogurt and buttermilk TRQs), 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.

Information regarding TRQs and their related policies can be found on the Global Affairs Canada website. 

Permit applications input directly into the control system, with no errors, are issued immediately. Applications which require further information, or data entry at Global Affairs Canada are issued within 48 hours. Applications with complex issues may take longer.

The issuance of individual quota volumes to eligible allocation holders varies from TRQ to TRQ. However, eligible allocation holders receive quota in advance of the opening of the TRQ year. Some exceptions maybe required for those applicants that are subject to underutilization penalties or further verification of their eligibility.

Consideration of permits applications is affected by a single administrative organ.

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 are eligible to apply for an allocation, and permits are only granted to allocation holders. For first come, first serve TRQs, permits are only granted to residents of Canada.

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. Instructions and the information required to complete an import permit application and the form can be found here.

Import permits and normal customs entry forms are required in addition to health certificates as required under by the Canadian Food Inspection Agency.

Any applicant may apply directly to the Global Affairs Canada in Ottawa for a permit, for which the associated fee ranges from CAN 15.00 to CAN 31.00, according to the value of the goods. An applicant may also use the services of a custom brokers equipped with authorized computer terminals to apply for a permit. 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.

No.

Import permits normally have a validity of 30 days. Requests for extension on 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).

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.

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.