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Notice to Importers
Chicken and Chicken Products (Items 96 to 104 on the Import Control List)
Serial No. 815
Date: October 15, 2012
This Notice replaces Notice to Importers No. 792 dated October 14, 2011, and will remain in effect until December 31, 2013.
This Notice is provided pursuant to the authority of the Export and Import Permits Act (EIPA) and its corresponding regulations.
In Brief
Imports of chicken and chicken products into Canada are subject to import controls under Canada’s Export and Import Permits Act (EIPA). Accordingly, an import permit is required for shipments of chicken and chicken products to enter Canada. Import permits for shipments of chicken and chicken products destined to the Canadian market are issued to allocation holders under Canada’s tariff rate quota (TRQ) for chicken and chicken products, which is administered by Foreign Affairs and International Trade Canada (DFAIT).
The access quantity for the chicken and chicken products TRQ is 39,900,000 kilograms or 7.5% of the previous year’s domestic production as reported by Statistics Canada, whichever is greater. The allocation period for the chicken and chicken products TRQ extends from January 1 to December 31, inclusive.
This Notice to Importers sets out the policies and practices pertaining to the administration of the TRQ, including the allocation, underutilization, return and transfer policies. This Notice also explains how to apply for import permits.
Table of Contents
- Purpose
- General Information
- Products Covered
- Allocation Policy
- Allocation to the Traditional Group
- Allocation to the Processor Pool
- Allocation to the Distributor Pool
- Allocation to the Food-Service Pool
- Allocation to processors of chicken products not on the Import Controls List (non-ICL Group)
- Related Applicants
- How to apply for an Allocation
- Under-Utilization and Return Policies
- Transfer Policy
- Supplemental Imports
- Import Permits
- Contact Us
- Appendix 1 - Application for a share of the chicken TRQ (PDF* 1.37 MB)
- Appendix 2 - Summary sheet for foodservice applicants (PDF* 1.07 MB)
- Appendix 3 - Application instructions for an allocation under the non-ICL group of the chicken TRQ
- Appendix 4 - Accountant's letter for applicants requesting an allocation under the processor or the distributor pool
- Appendix 5 - Accountant's letter for applicants requesting an allocation under the foodservice pool
- Appendix 6 - Affidavit by applicants requesting an allocation under the processor or the distributor pool
- Appendix 7 - Affidavit by applicants requesting an allocation under the foodservice pool
- Appendix 8 - Accountant's letter for applicants requesting an allocation under the non-ICL group
- Appendix 9 - Affidavit by applicants requesting an allocation under the non-ICL group
- Appendix 10 - List of EIPA commodity codes for chicken
- Appendix 11 - Information concerning related persons
1. Purpose
1.1. The purpose of this Notice is:
(a) to set out the policies and practices pertaining to the administration of Canada’s TRQ for chicken and chicken products;
(b) to invite applications for allocations under the TRQ for the next quota year; and
(c) to explain how to apply for import permits for imports of chicken and chicken products.
2. General Information
2.1. Background
2.1.1. In accordance with its commitments under the North American Free Trade Agreement (NAFTA) and the World Trade Organization (WTO), Canada has in place a TRQ for imports of chicken and chicken products.
2.1.2. Under Canadian TRQs, in any given year, a predetermined quantity of imports of a good controlled under the EIPA can enter Canada at a lower rate of duty, while imports over this quantity are subject to higher rates of duty. The TRQs therefore have three components: an import access quantity negotiated with Canada’s international trade partners; a within access commitment rate of duty that applies to imports up to the access level; and a higher, over access commitment rate of duty for imports over the access level.
2.1.3. The within and over access rates of duty that apply to imports of chicken and chicken products can be found in Canada’s Customs Tariff.
2.1.4. Pursuant to the EIPA and its corresponding regulations, when deciding whether to issue an import allocation or whether to consent to a transfer, the Minister shall take into account whether the import allocation holder has furnished false or misleading information in connection with any reports required by the Act or the regulations made under the Act or by any condition of an import allocation or import permit during the 12-month period preceding the period in respect of which the import allocation or transfer is to apply. Furthermore, the Minister may attach conditions to import allocations and/or to import permits, and may amend, suspend, cancel or re-instate import permits and allocations.
2.1.5. Failure by an applicant to provide any information requested by DFAIT, or failure to comply with any condition of an allocation or permit issued pursuant to the EIPA may result in the rejection of the application for an allocation under the chicken TRQ, the reduction or cancellation of an allocation issued pursuant to the EIPA, or the cancellation of associated permits.
2.2. Access Quantity
2.2.1. The access level for the chicken and chicken products TRQ negotiated under NAFTA is 7.5% of the previous year’s domestic chicken production (which includes regulated domestic, export and non-regulated production) as reported by Statistics Canada.
2.2.2. The access level for the chicken and chicken products TRQ negotiated under the WTO is 39,900,000 Kilograms.
2.2.3. The access level for the chicken and chicken products TRQ that applies in a given quota year is the greater of the NAFTA or WTO quantity. DFAIT’s website will always present the TRQ access quantity that applies in a given year.
2.3. Allocation Period
2.3.1. The quota allocation year for the chicken and chicken products TRQ extends from January 1 to December 31, inclusive.
2.3.2. Eligibility for an allocation, and the size of that allocation, will be assessed on the basis of each applicant’s activities in the chicken industry during the reference period of September 1 to August 31 immediately preceding the new quota year. Applicants must be active in the chicken industry at the time of application, and must remain active throughout the quota year for which they are seeking an allocation.
3. Products Covered
3.1. This Notice pertains to items 96 to 104 of the Import Control List (ICL), namely chicken and chicken products falling under heading Nos. 01.05, 02.07, 02.09, 02.10, 16.01 and 16.02 in the list of tariff provisions set out in the Schedule to the Customs Tariff. It also covers specially defined mixtures of chicken products falling under tariff item Nos. 1602.32.11 and 1602.32.92, and other non-ICL chicken products (see section 9 of this Notice).
3.2. Chapter 16 of the Customs Tariff contains the following Supplementary Note concerning specially defined mixtures: Specially defined mixtures of tariff items Nos. 1602.31.11, 1602.31.92, 1602.32.11 and 1602.32.92 means chicken or turkey or a product containing chicken or turkey, wherein 13% or more of the total weight of the product is comprised of goods other than the following: chicken, turkey, bread or breading, batter, oil, glazing, other coatings and bastes, and any added water (including that used in marination, glazing, other coatings, bastes, breading and batter). For the purposes of this definition, the weight of all ingredients shall be taken from the product specification sheets for that product required under the Meat Inspection Act for product labelling purposes.
3.3. Importers who require a determination as to whether the product they intend to import is eligible under the chicken and chicken products TRQ are encouraged to obtain an advanced tariff classification ruling from the appropriate regional client service office of the Canada Border Services Agency (CBSA).
4. Allocation Policy
4.1. The chicken and chicken products TRQ is allocated to three groups:
(a) the traditional group;
(b) the processor, distributor and food-service group; and
(c) processors of chicken products not on the Import Controls List (non-ICL group)
4.2. A reserve (reserve) equivalent to the Chicken Farmers of Canada's (CFC) Market Development Program (MDP) level in the previous year, less the MDP level in 2001, multiplied by 7.5% is normally established.
4.3. The allocation to the traditional group is calculated first. The quantity allocated to this group is equal to the quantity that was allocated to this group in the previous quota year, as adjusted since (e.g., for under-utilization). The eligibility criteria for applicants in this group, and the method for allocating the quantity reserved for this group, are set out in section 5;
4.4. The quantity allocated to the processor, distributor and food-service group is calculated once the allocation to the traditional group has been completed. The quantity allocated to this group is equal to the quantity that was allocated to this group in the previous quota year, multiplied by the percentage of growth in the TRQ, minus the reserve.
4.5. The quantity allocated to this group is divided into three pools:
- the processor pool receives 62.55%,
- the distributor pool receives 26.81%, and
- the food-service pool receives 10.64%;
4.6. The eligibility criteria for applicants in the processor, distributor and processor pools, and the method for allocating the quantities reserved for these pools, are set out in sections 6, 7 and 8.
4.7. The quantity allocated to the non-ICL group is equal to the quantity of TRQ that is available once the allocation to the first two groups has been completed, plus the reserve. The intent of this policy is to assist Canadian manufacturers to compete with like imported products that can enter Canada duty-free or at a low rate of duty as a result of the NAFTA. These imported products, principally from the U.S., are required by the Canadian Food Inspection Agency (CFIA) to be manufactured within a HACCP-controlled environment.
4.8. The eligibility criteria for applicants in the non-ICL group, and the method for allocating the quantity reserved for this group, are set out in section 9.
4.9. IF THE NON-ICL DEMAND EXCEEDS 4.8 MILLION KILOGRAMS, THE MINISTER WILL RECONSIDER THE ALLOCATION METHOD SET OUT IN THIS NOTICE.
4.10. Applicants are eligible for only one allocation, except for individual processor applicants that are eligible for an allocation under both the traditional group or processor pool and the non-ICL group.
4.11. Quota holders with an import allocation equal to or greater than 100,000 kilograms may use up to 30% of their allocation in any one allocation year quarter. Any portion of an allocation not utilized in one quarter may be carried over to successive quarters up to the cumulative carryover. Allocation holders with allocations of less than 100,000 kilograms may use their allocation at any time during the year after receiving their final allocation. This section does not apply to allocations in the non-ICL group.
4.12. All import allocations expire at the end of each allocation year and all applicants interested in receiving an import allocation must reapply each year.
4.13. To ensure an orderly transition between quota years, eligible applicants may receive, upon DFAIT's receipt of a complete application, advances of up to 30% of their initial allocation in the previous year for the first quarter of the new quota year. Advances to applicants likely to be subject to an under-utilization penalty (pursuant to section 12.1) will be evaluated on a case-by-case basis.
5. Allocation to the Traditional Group
5.1. The quantity allocated to the traditional group is allocated to eligible applicants who were allocation holders under this group in the previous year. Eligible applicants will normally receive their full allocation from the previous year, as adjusted since (e.g., for under-utilization).
5.2. Traditional allocation holders may obtain an import allocation subject to demonstrating their active involvement in the chicken industry by meeting the same criteria as applicants under the processor, distributor, or food-service pools. (The relevant criteria are set out in section 6 for processors, section 7 for distributors and section 8 for food-service operators.)
5.3. Eligible traditional allocation holders may choose to remain in the traditional group or to transfer permanently to the processor, distributor or food-service pool. On request, DFAIT will advise a traditional allocation holder of its prospective share under the other pools.
5.4. Applicants in this group that fail to apply for an allocation, or that do not meet the eligibility criteria, will not be eligible for an allocation and will not be eligible for a traditional allocation in subsequent quota years. These applicants may, however, apply under the processor, distributor or food-service pools in future years.
6. Allocation to the Processor Pool
6.1. For purposes of this Notice, a processor carries on activities that involve the slaughtering of chicken, cutting up of eviscerated chicken, de-boning of eviscerated or cut up chicken, or further processing of chicken meat in federally or provincially registered Canadian plants owned and operated by the applicant. Further processing includes, but is not limited to, the manufacturing of such products as patties, nuggets, fingers, rolls or roasts produced from chicken meat. This also includes the further processing function of marinating, smoking or drying, coating or seasoning chicken meat. Only processed products on the ICL are eligible.
6.2. A processor applicant must have been active in the processing sector of the chicken industry during the reference period, buying at least 250,000 kilograms of chicken and subsequently selling at least 250,000 kilograms of processed chicken and chicken products that are on the ICL.
6.3. The proportion of the processor pool allocated to market-share applicants and to equal-share applicants was fixed in 2002 at the 2001 ratio of 30.5 : 69.5. DFAIT will calculate applicants’ allocations based on either market-share or equal-share depending on which is most advantageous to each applicant.
6.4. Only products that have been processed in Canada in federally or provincially registered plants owned and operated by the applicants may be included in their market-share calculation.
6.5. Market-share is calculated on the basis of the dollar difference between purchases and sales of processed product only.
6.6. Distribution sales by processors, i.e., where they do not process the product bought and sold, must be excluded from the market-share calculation.
6.7. Processed product bought and sold for the export market, as well as non-ICL products, sales at the retail level to consumers and any products which contain meat from old roosters or spent fowl, must be excluded from the market-share calculation.
6.8. Joint applications by affiliated firms submitted by the parent company for the processor pool will be considered in calculating the allocations. However, if the parent company or an affiliated company does not meet the 250,000 kilograms threshold, the chicken purchases or sales of that company cannot be included in the parent company’s calculation of its total chicken purchases or sales.
6.9. The term final sales, as used in this Notice, includes final sales revenues from sales to any third party. It does not include revenue from any intra-company transfers.
7. Allocation to the Distributor Pool
7.1. For purposes of this Notice, a distributor is an establishment that buys (i.e., takes ownership of and financial responsibility for) chicken and re-sells it to other businesses. Note that product bought and sold for the export market, non-ICL products, sales at the retail level to consumers, live chickens, any products which contain meat from old roosters or spent fowl, and products bought from or sold to other distributors must all be excluded from the minimum volume threshold calculation. In addition, a distributor is an establishment that uses warehouses and trucks in carrying on its trade (either the renting or purchasing of warehousing and transportation services is considered to meet this criterion). Applicants must be able to substantiate that they meet the relevant criteria throughout the entire reference period covered by their application.
7.2. Commission brokers do not meet the distributor definition and are not eligible for an allocation under the TRQ. For purposes of this Notice, commission brokers procure or sell on behalf of others without taking ownership of or financial responsibility for the chicken or chicken products.
7.3. Retail companies that have separate divisions that purchase and distribute chicken to non-affiliated companies may qualify as distributors. A company that qualifies as a distributor under this definition may apply for a portion of the distributor pool and must state on the application form that the applicant is a distributor as well as a retailer.
7.4. Retail companies that have central buying operations and sell to corporate or franchise stores (or co-op members in the case of cooperatives), who arrange the delivery (in owned or contracted trucks) and charge the individual store for warehousing and for the chicken product may also qualify as distributors.
7.5. The allocation to the distributor pool is allocated on an equal-share basis.
7.6. An applicant must meet a minimum volume threshold requirement and activity requirements in order to be eligible for an allocation under the pool. In particular, a distributor must have been active in the distribution sector of the chicken industry during the reference period, buying at least 220,000 kilograms and subsequently selling at least 220,000 kilograms of chicken.
8. Allocation to the Food-Service Pool
8.1. The food-service pool is allocated according to the following formula: 70% allocated to restaurant and food-service companies whose volume of chicken purchases is equal to at least 50% of their total volume of meat purchases (i.e., including poultry, fish, beef and pork, but excluding vegetables, french fries, beverages, etc.), and 30% allocated to restaurant and foodservice companies whose volume of chicken purchases is less than 50% of their total volume of meat purchases.
8.2. These two segments of the foodservice pool will be allocated to eligible applicants in the foodservice sector on the basis of market-share to larger foodservice operators and on the basis of a minimum equal-share of 18,144 kilograms to smaller foodservice operators.
8.3. An applicant must meet a minimum volume threshold requirement and the activity requirements outlined below in order to be eligible for an allocation under the foodservice pool. In particular, a foodservice applicant must have been active in the foodservice sector of the chicken industry during the reference period, buying and subsequently selling at least 220,000 kilograms of chicken.
8.4. Market-shares within the foodservice pool are calculated on the basis of total purchase volumes excluding non-ICL products and excluding non-chicken purchases.
8.5. In the case of foodservice chains, applications for an allocation under the foodservice pool will only be considered from the system-wide brand owners of such chains. DFAIT will not entertain separate requests from entities (e.g., franchisees) within the same brand organization, even if they individually or in combination meet the 220,000 kilogram threshold.
8.6. In the case of entities comprised of a parent company and one or more subsidiaries, one application is required by the parent company. This request should be accompanied by individual application forms and accountant letters and affidavits for the different affiliates or business brands. Based on this information, the amount of TRQ the parent company is eligible for in each of the categories will be calculated, after which the parent company will be advised of its total import allocation. If an affiliate or business brand does not meet the 220,000 kilogram threshold, the chicken purchases of that affiliate or business brand cannot be included in the parent company's calculation of its total chicken purchases.
9. Allocation to processors of chicken products not on the Import Control List (non-ICL Group)
9.1. For purposes of this Notice, a processor of chicken products not on the ICL is a processor that:
(a) carries on activities in eligible Canadian Federally-registered meat and poultry establishments in good standing that have received Hazard Analysis Critical Control Points (HACCP) recognition or acknowledgment, which are owned and operated by the applicant;
(b) manufactures non-ICL products (such as, but not limited to, TV dinners), using ICL products as input; and
(c) sells such products to wholesalers.
For purposes of this Notice, wholesalers buy a product at the wholesale level and sell to hotels, institutions and restaurant outlets and to retailers.
9.2. Processors considered to be related to foodservice companies are not normally eligible for an allocation under the non-ICL portion of the chicken TRQ.
9.3. Applicants for an allocation under the non-ICL portion of the chicken TRQ must follow the instructions given in section 3.3 to ensure that their products are eligible for a non-ICL chicken import allocation.
9.4. Subject to section 4.7, eligible processors of non-ICL chicken products may receive up to one kilogram of import allocation for each kilogram of chicken inputs used in their production of non-ICL products in the reference period. If non-ICL demand exceeds the quantity available to the non-ICL group within the TRQ, the allocation will be done on a pro-rata basis. Only products that have been processed in Canada in federally-registered, HACCP-approved plants owned and operated by the applicant may be included.
9.6. All chicken input requirements for production of non-ICL products beyond the authorized allocation will need to be supplemented through the Import-to-Compete program on a like-for-like basis. (Detailed further in Notice to Importers Chicken and Chicken Products - Supplemental Imports)
9.7.Processors of eligible non-ICL chicken products must continue to produce non-ICL products throughout the quota year to maintain their eligibility under this group.
9.8.Applicants are advised that section (e) in section 2(b) of Appendix 3 requires applicants to provide information concerning the total amount of ground meat, trim meat and diced meat used in the production of non-ICL chicken products, as TRQ allocated for eligible non-ICL products using this type of chicken meat will be authorized on a like-for-like basis.
9.9. Eligible Products and Ingredients
(a) Generally, chicken products that are identified as specially defined mixtures of tariff Nos. 1602.32.11 and 1602.32.92 are exempted from the ICL. Examples of such products include: chicken cordon bleu, breaded breast of chicken cordon bleu, chicken Kiev, breaded breast of chicken Kiev, boneless Rock Cornish hen with rice, stuffed Rock Cornish hen, boneless chicken with apples and almonds, chicken Romanoff Regell, chicken Neptune breast, boneless chicken Panache and chicken TV dinners.
(b) Chicken products produced from old roosters and spent fowl, commonly called stewing hens, are not eligible for allocations.
(c) All chicken products exported from Canada, and the production of eligible products for which only packaging was performed, must be excluded.
(d) Mechanically separated meat (MSM) and finely textured meat are normally not eligible for non-ICL allocations. In the event MSM or finely textured meats are not available domestically at U.S.-competitive prices, the Minister may authorize supplemental imports for MSM or for finely textured meat.
(e) Chicken products that are merely cooked and/or marinated and/or spiced are on the ICL.
(f) In the case of non-ICL products that include marinated chicken, the weight of the chicken prior to marination must be used.
(g) Both naturally occurring and added skin are ineligible to be included as part of the weight of the chicken in non-ICL products.
(h) Added fat is not eligible to be included as part of the weight of the chicken in non-ICL products.
(i) In addition to specially defined mixtures, chicken products are considered as non-ICL products if they are classified under headings No. 19.02 (Pasta), No. 19.04 (Rice Preparations), No. 19.05 (Pastry), No. 20.04 (Other vegetables prepared or preserved, frozen), No. 20.05 (Other vegetables prepared or preserved, not frozen), No. 20.06 (Fruits and vegetables preserved by sugar) No. 21.03 (Sauces and preparations), No. 21.04 (Soups), and No. 21.06 (Food preparations). Producers of these products may be eligible for an allocation under the non-ICL group.
9.10. Applicants requesting dark meat under the non-ICL portion of the chicken TRQ will not normally receive a TRQ allocation. Applicants must nevertheless continue to include volumes of both white and dark meat in their applications. The dark meat portion is to be supplied by the CFC Market Development Program (MDP). A description of the program is available from the CFC. In order to acquire the supply from a primary processor under the MDP, processors should contact DFAIT to obtain a numbered and dated letter for each purchase order. Access to supplementary imports will continue to be made available in circumstances where the MDP is not able to meet specific processor needs at prices competitive with U.S. product landed in Canada. (Further details in Notice to Importers Chicken and Chicken Products - Supplementary Imports.)
9.11. It is the responsibility of applicants, not accountants, to state that their products are not on the ICL. Domestic manufacturers who wish to know whether the product they intend to manufacture using chicken imported under a non-ICL allocation meets the definition of specially defined mixtures should obtain a determination by contacting the CBSA.
9.12. With respect to products for which an applicant is seeking an allocation under the non-ICL group, only information about products for which a CBSA determination has been received, along with the corresponding Canadian Food Inspection Agency (CFIA) label registration number including the process and composition of the meat (see Appendix 3), may be submitted as part of the application.
9.13. Meat-on-Meat Policy
- There will be no increase in the TRQ level for non-ICL products containing meat other than chicken and turkey, unless such product also contains at least 7% non-meat ingredients (for purposes of this policy provision, non-meat ingredients do not include spices and seasonings). Product identified in annex 706 of the Canada-U.S. FTA are exempt from this policy provision.
- The chicken TRQ level available for the production of meat-on-meat non-ICL products will be capped annually, equal to the production level for such products in the preceding quota year. Eligible companies that received an allocation in the previous quota year for the production of eligible non-ICL meat-on-meat products not on the ICL may receive up to 100 percent of their previous quota year meat-on-meat qualifying demand, or the amount for which they apply for the subsequent quota year, whichever is lower. If the demand exceeds the established level, producers of meat-on-meat products will be reduced to the previous year’s production level before calculating their allocations under the non-ICL portion of the chicken TRQ.
- Meat-on-Meat products are not eligible for non-ICL supplementary allocation under the Import-to-Compete program.
NOTE: The policy concerning the eligibility of certain non-ICL products that contain meat other than chicken is currently under review and may be further modified. Any modifications will be reflected in subsequent Notices to Importers.
9.14. DFAIT will consider the information that the applicant provides along with any other relevant information when allocating the non-ICL portion of the chicken TRQ so as to ensure that the non-ICL portion of the chicken TRQ is allocated in conformity with the underlying policy intent as indicated in section 4.7 of this Notice. Applicants may be required to provide additional information to support their application. Such additional information may include evidence of the actual quantity of poultry used to manufacture non-ICL products, the number of units produced in the reference period information concerning supply arrangements, and customer information. Evidence, such as product specifications, original supplier invoices, proofs of payment and production records, may be requested. In some circumstances, it may be necessary to review the product specification sheets and the accountant's working papers. Moreover, DFAIT retains the right to request laboratory analysis of non-ICL products and certification by an independent public accountant (or an accountant named by DFAIT) of the information provided on the application form. Should this prove necessary, all costs will be borne by the applicant.
10. Related Applicants
10.1. Except as per sections 4.10 and 8.6, where two or more applicants are considered to be related, they shall normally be eligible for only one allocation. Applicants for an allocation are required to provide a list of related persons. Applicants should consult Appendix 11 for the definition of related persons as it applies for the purpose of this Notice.
11. How to apply for an Allocation
11.1. Applicants who wish to apply for an allocation under the chicken and chicken products TRQ are invited to submit their application form and any other relevant documents no later than the 30th of November immediately preceding the opening of the quota year.
- Applicants under the processor and distributor pools must submit the form provided in Appendix 1.
- Applicants under the food service pool must submit the forms provided in Appendix 1 and 2.
- Applicants under the Non-ICL group must submit the information specified in Appendix 3.
11.2 All quantities of chicken and chicken products reported on the application and supporting documents must be expressed in eviscerated equivalent kilograms using the conversion factors by commodity codes, which are set out in Appendix 10.
11.3. All applicants for an allocation are required to include as part of their application:
- a sworn affidavit; and
- a letter from an independent qualified professional (normally an accountant) verifying the information included in the application.
11.4. For the purposes of this Notice, an accountant is defined as a member in good standing of one of the three professional accounting bodies in Canada (C.A., C.G.A. or C.M.A.) who is registered with his/her provincial professional organization to provide accounting services and is independent from the applicant (i.e., is not an owner or a partner of the company applying for an import allocation and is not in an employee - employer relationship involving the applicant).
11.5. The affidavit and the letter from the accountant must be in the exact format of the models attached to this Notice (see Appendices 4 and 6 for processors and distributors; Appendices 5 and 7 for foodservice operators; Appendices 8 and 9 for non-ICL applicants). Any changes to the wording of the prescribed affidavit or letter are permitted only if required by professional standards. In the event that changes are made, the applicant or the accountant must discuss these, in advance, with DFAIT.
11.6. The information that the accountant and the applicant provide will be considered when allocating the chicken TRQ. However, an applicant may also be required to provide evidence of the actual quantity of chicken bought and subsequently sold (final sales) in the previous year, such as originals of supplier invoices, proofs of payment and sales invoices. Accountants may be asked to explain the procedures used in greater detail and may be asked to provide DFAIT with copies of all working documents. Moreover, DFAIT retains the right to request additional information, including that of an independent public accountant (or an accountant named by DFAIT) certify the information provided on the application form. Should this prove necessary, all costs will be borne by the applicant.
11.7. Section 18 of the EIPA forbids any person to knowingly induce, aid or abet any other person to contravene any of the provisions of the EIPA. Such contraventions by an applicant or its accountant may lead to prosecution for offenses under the EIPA.
11.8. Applications sent by MAIL or COURIER should be addressed to the chicken and chicken products quota manager at DFAIT. The name and mailing address of the chicken and chicken products quota manager can be obtained on the DFAIT website, under Contact Us.
11.9. Applications sent by facsimile will not be accepted. Only original applications will be accepted.
11.10. Applications postmarked after the 30th of November immediately preceding the opening of the quota year, or in a format other than that required, will not be considered. Lost applications will not normally be considered without acceptable proof that they were sent before the deadline (e.g., courier receipt).
11.11. The declaration in the application form allows DFAIT access to any information in the files of Agriculture and Agri-Food Canada or the CFIA pertaining to the applicant in relation to the application for an import allocation or to subsequent applications for, or concerning the use of, import permits. Normally, applicants are informed of any such requests for information.
12. Under-Utilization and Return Policies
12.1. Under-Utilization Policy
12.1.1. An allocation holder with a utilization rate less than 90% in the previous quota year may have its allocation adjusted downward by an under-utilization penalty for the new quota year.1
12.1.2. For allocation holders that under-utilized in the previous quota year, allocations in the new quota year will be reduced by the percentage of the allocation not utilized in the previous quota year.2
12.1.3. Allocation holders that under-utilized during the previous quota year will be advised of the applicable under-utilization penalty before the allocations are finalized for the new quota year.
12.2. Return Policy
12.2.1. Allocation holders may return any portion of the balance of their allocation no later than October 1 of the quota year. Any portion of an allocation that is returned by this date will be considered as having been used for purposes of administering the under-utilization policy in 12.1.1.
13. Transfer Policy
13.1. The Minister may allow the transfer of allocations between allocation holders. All requests for transfer of allocations must be referred to DFAIT for consideration.
14. Supplemental Imports
14.1. The Minister may, at his discretion, authorize imports of chicken and chicken products in excess of the import access quantity. The Notice to Importers Chicken and Chicken Products - Supplemental Imports, explains the administration of supplemental imports for chicken and chicken products. The Notice is available on the DFAIT website at Chicken And Chicken Products – Supplemental Imports (Items 96 To 104 On The Import Control List).
15. Import Permits
15.1. Types of Permits
15.1.1. An import permit issued by DFAIT is required for every shipment of chicken and chicken products covered by this Notice to enter Canada. For a given shipment, importers may either present a shipment-specific import permit or invoke the appropriate General Import Permit (GIP).
15.2. Shipment-Specific Import Permits
15.2.1. Shipment-specific import permits are normally issued on demand to allocation holders up to the amount of their allocation under Canada’s chicken and chicken products TRQ. Shipments entering Canada under a shipment-specific import permit can normally do so at the within access rate of duty.
15.2.2. To claim the within access rate of duty for a shipment, the importer must present the shipment-specific import permit to CBSA at the time of final accounting.
15.2.3. For a shipment-specific import permit to be considered valid, the name on the permit must match exactly the name of the importer on CBSA’s B3 Customs entry and related documents at time of final accounting. Furthermore, the quantity on the permit must be the same as the net quantity on the Customs invoice. It is incumbent on the recipient of the permit to ensure that a permit application is made in the name of the importer of record and includes the correct quantity. Questions about the proper procedures to fill out customs entry documents should be addressed to local CBSA officials.
15.3. General Import Permit
15.3.1. The GIP that applies for chicken and chicken products is General Import Permit No. 100 – Eligible Agricultural Goods. There is no limit to the quantities of chicken and chicken products that can enter Canada under the GIP; however, such imports will be subject to the higher over access rate of duty.
15.3.2. Shipment-specific import permits will not be issued for shipments already imported into Canada under the authority of the GIP, regardless of the importer's allocation.
15.4. How to Apply for a Permit
15.4.1. Information about the permit application process, including information about fees, the monthly billing system, and information required from applicants, is available on the DFAIT website: Applying for an Import Permit.
15.4.2. Importers that wish to apply for an import permit are required to submit Form EXT1466, "Application for Permit", which can be obtain on the DFAIT website (a paper copy will be provided upon request): Application for Import/Export Permit (PDF*, 95.2 KB).
15.5. Quantity to Report on Shipment-Specific Import Permit
15.5.1. Chicken and chicken product quantities reported on a shipment-specific import permit must be declared in eviscerated equivalent. The list of conversion factors by commodity code is available in Appendix 10.
15.5.2. Chicken products that are partially deboned are considered to be boneless for import control purposes and the corresponding boneless EIPA chicken codes must be used when requesting import permits. As examples, fresh chicken breasts that have been partially deboned so that only the keel bone or cartilage remains will be considered boneless for import control purposes. A boneless chicken breast with or without skin with part or all of the wing bone attached (generally referred to as Chicken Supreme) will also be considered boneless for import control purposes. In these cases, the corresponding EIPA code that should be entered into the related application would be 0207.13.91.00.9238. Importers who are unsure as to whether or not the product they intend to import is considered bone-in or boneless should obtain guidance from DFAIT.
15.5.3. Processed Chicken - Adjustment for Non-Chicken Ingredients
- Importers may take advantage of a provision whereby only the chicken portion of processed chicken products (i.e., those beginning with product codes 1601or 1602) on the ICL will be deducted from an applicant’s global quota allocation at the time the import permit is issued. For the purposes of this section, non-chicken ingredients include breading, battering, salt and spices ONLY. Water, including that used in marination, is considered part of the chicken.
- Applicants wishing to make use of this provision must list the gross and net weight of the chicken, in actual weight, on the import permit application form. The gross weight should be entered in the box marked QUANTITY and the net weight should be entered in the box market DOCUMENT QUANTITY. Please note that for products that consist only of chicken (i.e., containing no breading or battering), the DOCUMENT QUANTITY and the QUANTITY should be the same. Applications for permits to import processed chicken that do not contain both the gross and net weight will not be accepted.
- Importers of non-processed chicken (i.e., those beginning with product codes 0105, 0207, 0210) need to fill out only the QUANTITY box on the import permit application form.
- Applicants making use of this provision to deduct non-chicken ingredients must submit the following documents:
- Label approval documentation approved by the CFIA;
- Product recipe and production procedures;
- Applicants making use of this provision must also indicate the CFIA product registration number in the box marked COMMENT on the import permit application form. Failure to provide this information will result in the rejection of the permit application.
16. Contact Us
16.1. Names and direct phone numbers for quota manager(s), permit officer(s), and the Help Desk are available on the DFAIT website: Contact Us.
16.2. For directory assistance, you may call 613-944-0773.
Notes
1 The utilization rate (%) will be calculated for every allocation holder as follows:
Utilization Rate (%) = (Actual Level of Use (kg) / Total Allocation Granted (kg)) X 100%
Where:
Actual Level of Use (kg) = Permits Used (kg) + Returns (kg) + Transfers Out (kg)
And:
Total Allocation Granted (kg) = Initial Allocation (kg) + Transfers In (kg)
2 The under-utilization penalty will be calculated as follows:
Underutilization Penalty (kg) = Pre-penalty Allocation (kg) X Underutilization Rate (%)
Where:
“Pre-penalty Allocation (kg)” is the 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.
And:
Underutilization Rate (%) = 100% - Utilization Rate (%)
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