Wheat, barley and their products
- 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 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 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 wheat, barley and their products 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/).
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.
Effective 1 August 1995, wheat, barley, wheat products, and barley products were placed on the Import Control List, established under the Export and Import Permits Act; and existing import controls on these products were replaced with tariff rate quotas (TRQs).
Purposes and Coverage of Licensing
Q2. Identify each licensing system maintained and state what products, appropriately grouped, are covered.
In order to fulfil its WTO commitments for wheat, barley and their products, Canada removed the requirement under the Canadian Wheat Board Act and related regulations for import licences for wheat, barley and their products and replaced them with a system of TRQs. This required placing them on the Import Control List under the authority of Paragraph 5(1) (a), 5(1)(b) and Section 5.3 of the Export and Import Permits Act.
Q3. The system applies to goods originating in and coming from which countries?
The system applies to goods originating in and imported from all countries at the "within access" lower rate of duty. Once the TRQ levels are reached, the goods will be subject to the "over access" higher rate of duty, with the following exceptions:
(a) If the good originates in and is imported from a country with an applicable free trade agreement with Canada, the negotiated rate of duty applies even after the TRQ levels are reached.
(b) In the case of the wheat and barley products listed below, the "over access" rate of duty is equal to the "within access" rate when imported from any country:
(i) mixes and doughs, falling under tariff item No. 1901.20.14;
(ii) pasta products, falling under tariff items Nos. 1902.11.21, 1902.19.12, 1902.19.22, 1902.19.92, 1902.30.12 and 1902.30.31;
(iii) cereals, falling under tariff items Nos. 1904.10.21, 1904.10.41, 1904.20.21, 1904.20.41, 1904.30.21 and 1904.90.21;
(iv) bread products, falling under tariff item Nos. 1905.10.21, 1905.10.51, 1905.40.31, 1905.40.61 and 1905.90.32;
(v) biscuits, waffles and wafers falling under tariff item Nos. 1905.31.22, 1905.31.92, 1905.32.92 and 1905.90.43; and
(vi) pretzels of tariff No. 1905.90.62 in packages of a weight not exceeding 1.36 kg.
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?
This licensing system is used to implement TRQs for wheat, barley and their products in accordance with Canada's WTO commitments.
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 governed by the Export and Import Permits Act.
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 in the Canada Gazette and in Notices to Importers. The latter are distributed to customs brokers, associations and traders and are available upon request from Global Affairs Canada.
Notices to Importers and additional information are also available on the Global Affairs Canada's website at: http://www.international.gc.ca/controls- controles/prod/agri/index.aspx?menu_id=3&menu=R.
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?
The TRQ levels are: wheat - 226,883 tonnes, barley - 399,000 tonnes, wheat products - 123,557 tonnes (grain equivalent) and barley products - 19,131 tonnes (grain equivalent). There are no allocations to importers. The TRQ is administered on a first-come, first-served basis from 1 August to 31 July each year.
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.)
General Import Permits are issued to active importers of wheat, barley, wheat products and barley products on a first-come, first-served basis. After the TRQ levels are filled, importers may apply for Supplementary Imports Authorization at "within access" lower rate of duty if the item is not directly substitutable nor available in Canada. TRQ not used in any quota year will not be available for carry-over to the 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?
The General Import Permit number must be stated on the customs entry document. When the TRQ level for any product is reached, a different General Import Permit allows importation at the applicable over-access rate of duty.
Q6.V. What are the minimum and maximum lengths of time for processing applications?
Not applicable because the general import permits are issued on a first-come, first-served basis
Q6.VI. How much time remains, at a minimum, between the granting of licences and the date of opening of the period of importation?
Not applicable because the general import permits are issued on a first-come, first-served basis
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?
Not applicable because the general import permits are issued on a first-come, first-served basis
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?
See Section 6(II).
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?
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?
Q6.XI. Are there products for which licences are issued on condition that goods should be exported and not sold in the domestic market?
No.
Q7. Where there is no quantitative limit on importation of a product or on imports from a particular country:
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)?
Q7.b. Can a licence be granted immediately on request?
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.
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?
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?
Import permits are not normally refused if the criteria relating to issuance are met. If a permit is refused, for example, because of incomplete information on the application, the applicant is advised and given the opportunity to correct the anomaly.
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?
Permit applications must include information including where the product is coming from, which port it is being shipped to, and date of arrival.
Q11. What documents are required upon actual importation?
Normal customs entry forms indicating the appropriate General Import Permit are required.
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 email, from Global Affairs Canada 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?
Permits are valid for 30 days and cannot be extended.
Q15. Is there any penalty for the non-utilization of a licence or a portion of a licence?
No.
Q16. Are licences transferable between importers? If so, are any limitations or conditions attached to such transfer?
No.
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?
No.
Other Procedural Requirements
Q18. Are there any other administrative procedures, apart from import licensing and similar administrative procedures, required prior to importation?
No.