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Notice to Importers
Chicken and Chicken Products - Supplemental Imports (Items 96 to 104 on the Import Control List)
Serial No. 816
Date: February 1, 2013
This Notice replaces Notice to Importers No. 793 dated October 14, 2011, and will remain in effect until further notice.
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 Minister may, at his discretion, authorize imports of chicken and chicken products apart from the import access quantity, particularly if he judges that the importation of these products is required to meet Canadian market needs.
This Notice to Importers sets out the policies and practices pertaining to supplemental imports of chicken and chicken products. This Notice also explains how to apply for supplemental import permits.
Table of Contents
- 1. Purpose
- 2. General Information
- 3. Products Covered
- 4. Supplemental Import Policies
- 5. Authorization to Import Chicken for Resale Due to Domestic Market Shortages
- 6. Authorization to Import Dark Chicken Meat not Supplied by the Chicken Farmers of Canada’s Domestic Supply Program
- 7. Authorization to Import Chicken Under the Import-to-Compete Program
- 8. Authorization to Import Chicken Under the Import for Re-Export Program (IREP)
- 9. Authorization to Import Chicken and Chicken Products for the Purpose of Test Marketing
- 10. Authorization to Import Chicken and Chicken Products under Extraordinary or Unusual Circumstances
- 11. Import permits
- 12. Contact Us
- Appendices
- Appendix 1 - List of EIPA Commodity codes for Chicken and Chicken Products
- Appendix 2 - Form EXT1614-1E, Application for Supplementary Import Permit: Request for Domestic Sourcing (PDF*, 86 KB)
- Appendix 3 - Form EXT1614-E, Application for Authorization for Supplementary Imports - Continuation of Application (PDF*, 79 KB)
- Appendix 4 - Statement of Inventory Reconciliation
- Appendix 5 - Accountant Letter
- Appendix 6- IREP Forms:
To receive the IREP forms in a Microsoft Excel or Word format, when applicable, please submit your request by email to eics.scei@international.gc.ca- Application Form - Import for Re-Export Program (EXT1785) (PDF, 1.4 MB)
- Section 13 - Export Product(s) List (EXT2066) (PDF, 1.3 MB)
- Section 16 - Inventory Report - Import for Re-Export Program (EXT 2067) (PDF, 1.35 MB)
- Monthly Summary Export Report - Import for Re-Export
- Request for IREP Authorization Increase (EXT 2146) (PDF, 188 KB)
- CEO Letter
1. Purpose
1.1. The purpose of this Notice is:
- to set out the policies and practices pertaining to the authorization of supplemental imports for chicken and chicken products; and
- to explain how to apply for import permits for imports of chicken and chicken products.
1.2. The present Notice should be read with the Notice to Importers Chicken and Chicken Products (Items 96 to 104 on the Import Control List), which sets out the policies and practices pertaining to the administration of the chicken and chicken products TRQ. This Notice is available on the DFAIT website at Notice to Importers Chicken and Chicken Products (Items 96 to 104 on the Import Control List) (http://www.international.gc.ca/controls-controles/prod/agri/chicken-poulet/notices-avis/815.aspx?lang=eng)
2. General Information
2.1. 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.
2.2. 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.
2.3. Subsection 8.3.(3) of the EIPA allows the Minister to issue permits apart from the access quantity. In exercising his discretion under subsection 8.3. (3), the Minister takes into consideration whether the importation of these products is required to meet Canadian market needs.
2.4. 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.
2.5. Pursuant to the EIPA and its corresponding regulations, when deciding whether to authorize a request for supplemental imports, the Minister will take into account whether the applicant 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 a supplemental import authorization, import allocation, or import permit during the 12-month period preceding the period in respect of which the supplemental import authorization is to apply. The Minister may attach conditions to supplemental authorizations and/or to supplemental import permits, and may amend, suspend, cancel or re-instate supplemental import authorizations and supplemental import permits.
3. Products Covered
3.1. This Notice pertains to Items 96 to 104 of the Import Control List (ICL); namely chicken and chicken products classified under heading Nos. 01.05, 02.07, 02.09, 02.1.0, 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 Notice to Importers – Chicken and Chicken Products and section 7 of this Notice). Appendix 1 provides a detailed list of the products covered and their associated EIPA products codes.
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 for a chicken and chicken products supplemental import authorization are encouraged to obtain an advanced tariff classification ruling from the appropriate regional client service office of the Canada Border Services Agency (CBSA).
4. Supplemental Import Policies
4.1. There are six categories of supplemental import authorizations for chicken and chicken products:
- Authorization to Import Chicken for Resale Due to Domestic Market Shortages
- Authorization to Import Dark Chicken Meat not Supplied by the Chicken Farmers of Canada’s Domestic Supply Program
- Authorization to Import Chicken Under the Import-to-Compete program
- Authorization to Import Chicken Under the Import for Re-Export Program (IREP)
- Authorization to Import Chicken and Chicken Products for the Purpose of Test Marketing
- Authorization to Import Chicken and Chicken Products under Extraordinary or Unusual Circumstances
The policies and procedures applicable to each category are set out below.
5. Authorization to Import Chicken for Resale Due to Domestic Market Shortages
5.1. The following procedures are followed when processing applications for authorization for supplemental imports due to market shortages:
5.2. Market Assessment and the Whole Bird Policy
5.2.1. Applications for authorization for supplemental imports due to market shortages are assessed, among other factors, in terms of DFAIT’s analysis of the domestic supply and demand situation concerning whole birds. Applications for poultry parts will be authorized only when there is a shortage of whole birds. Shortages of poultry parts may exist even when there is an adequate supply of whole birds. Supplemental imports of parts when whole birds are available would interfere with the adjustment mechanisms in the market place. Exceptions will be considered when parts are used for the manufacture of end products that do not compete with poultry products (e.g., pet food).
5.2.2. Consideration of applications will, additionally, take into consideration any disruptions of customary arrangements between an applicant and his or her supplier(s).
5.3. Eligibility of Applications
5.3.1. An application may be made by a firm that meets the DFAIT definition of processor, distributor or foodservice operator.
5.3.2. An application must be made on form, “Application for Authorization for Supplemental Imports - Request for Domestic Sourcing”, included as Appendix 2, and sent by fax to the Chicken Farmers of Canada (CFC), with a copy sent to DFAIT (the fax numbers are indicated on the form). The application must identify the product required and the specific week for which the product is requested. An application shall include only one product.
5.3.3. An applicant shall demonstrate that normal supply sources have been exhausted before applying for an authorization for supplemental imports. The application shall describe the applicant's own procurement efforts and explain the basis for assessing that a shortage exists in the whole bird market. The application shall indicate the end use of the product and identify related customers.
5.3.4. Applicants who have been issued a global import allocation of less than 100,000 kilograms will be required to have exhausted this allocation before an application will be considered. Applicants with global import allocations of 100,000 kilograms or more must have used at least 25% of their allocation per calendar year quarter. An import allocation will be considered exhausted only if all permits issued have been used and the allocation balance is zero. When assessing an application for supplemental imports, the global quota of related companies will be taken into account.
5.3.5. Applicants are advised to allow the maximum possible lead-time for processing of applications and should, therefore, inform DFAIT and the CFC of anticipated shortages as soon as these are identified. Normally, applications will not be accepted if the proposed week of entry is more than three (3) weeks after the week of application.
5.3.6. Normally, officials will require eight (8) working days to process applications. However, the actual processing time required will vary with the nature and quantity of the product requested, market conditions and other factors.
5.4. Assessment of Application
5.4.1. Each application is assessed in terms of the product and quantities requested. The quantity requested should reflect the applicant's normal throughput and the product should be a product normally used by the applicant and should be consistent with end product(s) normally sold to the applicant's customer(s).
5.4.2. The applicant's own procurement efforts are also evaluated. While supplemental imports may be authorized when there are general market shortages as defined in sub-section 5.2.1. Supplemental imports will not be authorized if shortages are the result of the applicant's own procurement problems.
5.4.3. Applications may be made for any controlled chicken product that is normally traded in Canada. Product specifications shall conform to normally accepted trading classes of the product (e.g., as delineated in Appendix 1). Applications shall describe accurately the product required, the acceptable quality, level and size variations, and acceptable substitutes. A new application shall be made if specifications are changed after sourcing has begun.
5.4.4. Special product specifications will only be considered if the applicant is known to specialize in that product and if the lead-time is adequate.
5.4.5. Applicants must indicate the week in which they wish to import the product. Normally, the delivery period will be a six (6) day period from Monday through Saturday.
5.4.6. It is expected that the applicant will have made a reasonable effort to contact seven (7) potential suppliers to procure required materials from domestic sources prior to applying for an authorization for supplemental imports due to a market shortage. Officials will pay particular attention to the reasons for the shortage, such as: when the shortage could have been identified; when it was actually identified; and what steps were taken by the applicant to address the situation. It is recommended that applicants contact DFAIT and the CFC regarding possible medium to long-term supply shortages.
5.4.7. In case of product substitution, the applicant's ability to use the domestically-sourced product for the intended end use will be considered. Please see sub-section 5.5.3. of this Notice for information concerning product substitution.
5.5. Sourcing
5.5.1. The CFC will survey the domestic market for availability of the product requested and will inform the applicant of the results of this survey within three (3) working days from the time the application is received.
5.5.2. The sourcing results will identify suppliers and the quantities offered; after receiving this information, the applicant must contact each supplier identified within one (1) working day to negotiate price and delivery with these suppliers. The applicant is normally expected to purchase the sourced product up to the level of the requested quantity. The applicant shall notify the CFC as soon as procurement from domestic sources has been completed.
5.5.3. The sourcing results can include any commercially reasonable substitute product (e.g., eviscerated bird substitution for live bird) that can be used by the applicant to produce the identified end product (i.e., from a technical, quality, as well as economic view point).
5.6. Continuation of Application
5.6.1. If the applicant is not satisfied with the sourcing results, he/she may continue the application process using the form “Application for Authorization for Supplemental Imports - Continuation of Application”, included as Appendix 3 of this Notice.
5.6.2. Deadline for Continuation of Application: Any request to DFAIT for relief from the obligation to purchase the sourced product shall be made, in writing, within two (2) working days from the time that the applicant receives the sourcing list from the CFC.
5.6.3. The applicant shall state in writing to DFAIT the results of discussions with all the persons on the sourcing list, including the product offered, the price, product specifications and delivery date. The applicant shall confirm the sourcing results within two (2) working days.
5.6.4. Reasons for Continuation of Application: The applicant shall substantiate why some or all of the products sourced by the CFC cannot be used to meet associated requirements, stating the reasons for the request for continuation and the results of the negotiations with companies on the sourcing list.
5.6.5. A request to continue an application may be considered under the following circumstances:
- the sourcing results indicate a market shortage;
- the product offered does not meet industry standards of quality;
- the product is not a reasonable substitute;
- the product is offered at market prices which appear excessive in comparison to current regional market prices; or,
- the offer is subject to terms and conditions incompatible with industry standards.
5.7. DFAIT Assessment
5.7.1. DFAIT may require three (3) working days to assess the sourcing results, the application itself and current market conditions.
5.7.2. After the application has been assessed along with the relevant information described above, a decision will be communicated to the applicant, and also to the CFC. If supplemental imports are authorized, the applicant will also be advised as to products, quantities and related conditions.
5.7.3. Any credits due to global permits that are returned or due to unused permits, after supplemental imports have been authorized, will be deducted from the quantity authorised.
5.8. Supplemental Import Permits Pursuant to an Authorization under this Section
5.8.1. Eligible applicants are issued a unique EIPA authorization number for each approved request. As with other permit applications, the authorization number should be inscribed on the permit application in the box marked "document number". The applicant may apply for permits up to the total quantity authorized, for the product authorized and for the delivery period authorized. The supplemental import permit will be valid only during the delivery week requested by the applicant.
5.8.2. No substitution of product will be allowed other than those acceptable under CFC sourcing arrangements and no extension of the permit validity period will be made. Changes in product or validity period would require a new application for supplemental imports and a new sourcing effort by the CFC.
5.8.3. Unused permits shall be returned to DFAIT at the end of their validity periods.
5.8.4. Additional information concerning the issuance of supplemental import permits is included in Section 11.0.
5.9. Administrative measures which may be applied
5.9.1. Administrative measures will normally be applied to suppliers in the following cases:
- Normally, if product offered by a supplier in response to CFC sourcing efforts is found not to be available when the applicant contacts the supplier, the supplier will be removed from the sourcing list for a period of sixty (60) calendar days from the date when the product was offered for sale.
- Normally, if product offered by a supplier and purchased by the applicant is not delivered within the delivery period specified or does not meet the agreed specifications, the supplier will be removed from DFAIT supplier's list for a period of one (1) year.
5.9.2. Administrative measures will normally be applied to applicants in the following cases:
- Normally, if an applicant does not contact suppliers by the deadline indicated by the CFC (a minimum of one (1) working day from the time the sourcing information was received from the CFC) the application will be rejected.
- Normally, when two applications from an applicant have been rejected for incompleteness within a ninety (90) day period, no further applications will be accepted from that applicant for a period of sixty (60) calendar days after the second rejection.
- Normally, if an application is fully sourced and the applicant does not purchase the sourced product up to the level of the request, no further applications will be accepted from that applicant for a period of sixty (60) days from the date when he/she proposed to import the chicken.
- Normally, if an application is partially sourced by the CFC and supplemental imports are authorized for some or all of the shortfall on condition that some or all of the CFC sourced product be purchased and this obligation is not fulfilled, no further applications will be accepted from that applicant for a period of sixty (60) calendar days from the date when he/she proposed to import the chicken. Applicants should be ready to provide evidence that they have purchased, or offered to purchase product sourced in the domestic market pursuant to an application for supplemental imports.
- Normally, if an applicant withdraws an application after sourcing has been started by the CFC for reasons other than having procured his requirements, no further applications will be accepted for a period of thirty (30) days during which that applicant normally would have been eligible to apply for supplemental imports.
- Normally, if an applicant applies for, and receives, a supplemental import permit pursuant to an authorization under this Section and offers that same product, or a reasonable substitute, for sale on the CFC sourcing list for the same week, no further requests for supplemental import permits will normally be considered for a period of sixty (60) days after the product was offered for sale on the sourcing list.
6. Authorization to Import Dark Chicken Meat not Supplied by the Chicken Farmers of Canada’s Domestic Supply Program
6.1. If the product sought is not available from a processor, at a landed price competitive with U.S. product, the Non-ICL manufacturer shall notify DFAIT who in turn will request CFC to proceed with the sourcing process. Supplemental imports will be authorized if the requested product cannot be sourced domestically at a competitive price. The landed price formula is based on a twelve (12) week rolling average Urner Barry Wholesale Price (Northeast, boneless/skinless thigh meat, special trim) plus relevant transportation costs, custom brokerage fees, and exchange rate conversions.
7. Authorization to Import Chicken Under the Import-to-Compete Program
7.1. Supplemental imports of chicken under Import-to-Compete are authorized under three circumstances:
- for the manufacture of new products that are not on the Import Control List (non-ICL Products);
- for the difference between an allocation under the non-ICL group of the chicken and chicken product TRQ and the allocation holder’s production during the reference period of September 1 to August 31 immediately preceding the new quota year (the shortfall); or
- for increased production of non-ICL products during the quota year.
7.2. A request for authorization for supplemental imports may be submitted to the chicken and chicken products quota manager at DFAIT at any time during the calendar year. The name and mailing address of the chicken and chicken products quota manager can be obtained on the DFAIT website, under Contact Us. Eligible applicants whose non-ICL chicken products have a dark meat component will be referred to the CFC’s Domestic Supply Program for eligible quantities of chicken pursuant to this portion of their application.
7.3. Manufacturers who have been issued an import allocation for production of non-ICL chicken products will normally be required to have exhausted this allocation before supplemental imports may be authorized under this provision. An allocation will be considered exhausted only if all permits issued have been used and the allocation balance is zero.
7.4. Manufacturers applying to DFAIT for import permits for chicken under this provision must state the quantity and the specification of the product to be manufactured and the anticipated production and delivery dates.
7.5. Manufacturers importing chicken under this provision are subject to the condition that they agree to subsequently provide the information listed in Appendices 4 and 5 of this Notice. This information is used to confirm that the specified chicken products were produced, that the associated sales were made, and that payment was received. Normally, if a manufacturer applies solely for the "shortfall", only the information listed in Appendix 4 accompanied by an affidavit sworn by the Chief Executive Officer (CEO) will be required.
7.6. Should a company fail to provide the required information in section 7.5 or should the information provided indicate that it did not both produce and sell the agreed-upon chicken products in the prescribed period, any future allocations to that company may be reduced and other action taken under the EIPA.
7.7. Meat-on-meat products are not eligible for supplemental authorization under the Import-to-Compete Program.
8. Authorization to Import Chicken Under the Import for Re-Export Program (IREP)
8.1. This program is limited to processors. For the purposes of the IREP, a processor carries on activities in federally registered Canadian plants owned and operated by the applicant that involve the slaughtering of chicken, cutting up of eviscerated chicken, de-boning of eviscerated or cut up chicken, or further processing. The latter includes, but is not limited to, the manufacturing of such products as patties, nuggets, fingers, rolls or roasts produced from chicken meat, as well as the further processing function of smoking or drying, coating or seasoning chicken meat.
8.1.1. Applicants approved for participation in the program for a given year must comply with program terms and conditions, permit conditions, as well as reporting requirements. Normally, failure to comply with program terms and conditions, permit conditions as well as reporting requirements, or failure to provide updated and accurate information, could result in the application of sanctions as set out in Section 8.8.
8.1.2. Effective June 1, 2014, marinated, uncooked, individually- or bulk-frozen chicken products exported under Chapters 2 and 16 of the Customs Tariff Schedule will normally not be authorized. For the 2012-2013 and 2013-2014 IREP years, processors that manufacture these types of products will normally have their authorizations for this type of production capped at their 2010-2011 production levels. New applications for the production of these types of chicken products, or from processors that are currently suspended for non-compliance related to this type of production, will normally not be accepted.
8.2. An IREP participant:
- must be the importer of record of those products;
- must be the sole processor of those products; and
- must subsequently re-export the associated rocessed product as the exporter of record.
8.2.1. As the importer of record, the name of the IREP participant should correspond to the importer name on customs release documentation (e.g. B3, section 1), and the IREP participant owns the imported chicken or chicken products. As the exporter of record, the name of the IREP participant should correspond to the importer name on foreign customs release documentation (e.g. US Entry Summary, box 26).
8.2.2. Diversion of product imported under the IREP to the Canadian market is prohibited. Specifically, the transfer or sale of products imported under the IREP, or of finished goods containing products imported under the IREP, within Canada or to a Canadian resident or company is prohibited.
8.3. The IREP Authorization Year
8.3.1. The IREP authorization year extends from June 1 to May 31 inclusive.
8.4. Application Process
8.4.1. To be eligible to continue to participate in the IREP, IREP participants must apply for an authorization for supplemental imports each authorization year. IREP participants must submit their applications to DFAIT no later than the 31st of March immediately preceding the start of the IREP year for their continued participation to be approved by June 1st. A new applicant may submit an application at any point during the authorization year.
8.4.2. Should an IREP participant wish to modify any information in its original application (including, but not limited to, a change in a recipe or additional products), an amendment request must be submitted for approval by DFAIT prior to implementation of the change by the IREP participant.
8.4.3. The application form and related documents are included in Appendix 6. They must be submitted electronically to the DFAIT IREP mailbox (irep@international.gc.ca).
8.4.4. Applicants and/or IREP participants will be apprised in writing of the result of their application.
8.5. Permit Conditions
8.5.1. IREP participants will be eligible to receive import permits subject to certain conditions, including:
8.5.2. IREP participants must export all products imported under the IREP within 90 calendar days of the date of entry indicated on the associated supplemental import permit.
8.5.3. IREP permits issued in a given authorization year will be valid only for that authorization year.
8.5.4. For imports of bone-in breast for processing and re-export of boneless chicken products, a conversion rate of 63% is used for reconciling the IREP participants’ imports and exports for this product.
8.5.5. For marinated, individually- or bulk-frozen chicken, the quantity of chicken in the finished product is determined by total protein content analysis, based on Health Canada’s Canadian Nutrient Files, conducted at an accredited, independent laboratory. DFAIT will calculate the quantity of chicken in the finished product as follows:
- ((protein content per serving as declared on label/serving size as declared on label)-added protein*100) /Health Canada base meat protein percentage= percentage of IREP chicken in the finished product
For example, Health Canada’s base meat protein content for raw, water chilled, broiler breast meat is 22.74%.
((19g protein content / 100g serving size)* 100) / 22.74% = 83.55%
The percentage of imported chicken included in the finished product is calculated based on the net weight of the finished product.
8.5.6. For marinated, individually- or bulk-frozen chicken, DFAIT will oversee the collection and delivery of all samples of finished products to the laboratory with all costs borne by the IREP participant or applicant. Please note that if the laboratory results differ from the declaration on the label, DFAIT will apply the laboratory results for its calculation of the percentage of IREP chicken in the finished product, effective the date of laboratory analysis. DFAIT will accept results of laboratory analysis only where DFAIT has overseen the collection and delivery of the samples of finished products. Samples analyzed by laboratories under direct instruction of IREP participants will not be accepted. Interference with samples and/or laboratory analysis, including any communication between the IREP participant or applicant and the laboratory with regard to samples collected and delivered by DFAIT, will result in an immediate suspension from participating in the IREP.
8.6. Reporting requirements
8.6.1. Monthly export reports: IREP participants must submit, electronically, monthly export reports for all IREP product exports in a given month (including a nil report if applicable) to DFAIT (irep@international.gc.ca) by the end of the following month. These reports must be prepared in the prescribed format using the template in Appendix 6. All fields in the template must be filled for each export shipment. DFAIT may at any time request supporting export documentation for any reported shipment (see section 8.7.1.).
8.6.2. Bi-monthly inventory reports: IREP participants must submit, electronically, bi-monthly inventory reports. These reports must be prepared in one of the prescribed format using the template in Appendix 6. The inventory report must be an account, on the first day of the month (starting August 1 of the authorization year), of any product imported under the IREP and any intermediary, finished product or product in the processing phase containing the product imported under the IREP, that has not yet been exported. It must include quantities at the manufacturing facility and, if applicable, quantities stored offsite.
8.6.3. Only products manufactured with inputs imported under the IREP are eligible to be reported under the IREP. Products manufactured using controlled inputs imported under the TRQ or obtained from other sources (including the Chicken Farmers of Canada’s Market Development Program) are not eligible to be reported under the IREP, and products exported prior to the import of a corresponding quantity of controlled inputs under the IREP are not eligible to be reported as exports under the IREP. An IREP participant who submits erroneous reports may be subject to sanctions (see section 8.8.).
8.6.4. IREP participants must provide a declaration, using the template in Appendix 6, from their CEO, stating that all products imported under the IREP during the authorization year have been exported in accordance with all program terms and conditions, permit conditions, and that reporting requirements were met. This letter should only be submitted once it has been determined that all of these criteria have been fulfilled. This letter may not be submitted prior to May 31 of the relevant authorization year, but must be provided no later than September 30 of the following authorization year.
8.7. Additional information
8.7.1. IREP participants must retain, for a period of seven years, and provide to DFAIT on demand, copies of the following documents:
- a. Purchase documents for the imported product:
- Purchase orders and commercial invoices
- Proof of payment (e.g., banking records)
- Descriptive literature which indicates the imported product’s composition
- If available, classification rulings issued by the CBSA related to the imported product
- b. Import documents:
Copies of complete release and accounting packages submitted to the CBSA. Packages include:- Cargo control documents (e.g., Bill of Lading)
- CBSA Form B3
- Commercial invoice
- Any required permits, licenses, or certificates (e.g., Canadian Food Inspection Agency [CFIA] inspection certificate)
- c. Export documents:
- Transportation documents related to the exportation of the finished product (e.g., Bill of Lading, freight invoices)
- Accounting documents related to the sale of exported product (e.g., Letter of intent from foreign customer, Purchase Order, sales contracts, commercial invoices, proof of payment)
- Any required permits, licenses, or certificates (e.g., CFIA inspection certificate)
- Copies of the importing country’s Customs documentation, completed and certified by a Customs officer of the country to which the goods were exported, which fully describes the goods (e.g. US Entry Summary for exports to the United States)
- For export destinations other than the United States, a copy of CBSA’s B13A export declaration
- d. Documents concerning processing of imported products:
- Recipes
- Packaging and labeling for product(s) exported under the IREP
- Production records to allow tracking of imported product(s), including inventory levels, quantities of raw materials used and quantities of finished product(s)
- Descriptive literature related to manufacturing processes and products manufactured
8.7.2. DFAIT may request additional information, and may also request that an independent public accountant (or an accountant named by DFAIT) certify information provided to it by the IREP participant.
8.7.3. IREP participants may be subject to unannounced onsite verification by DFAIT. In accordance with section 10.2 of the EIPA, DFAIT inspectors may, at all reasonable times, have access to facilities, warehouses and any other location where IREP products may be processed or stored. Accordingly, IREP participants are required to cooperate fully in the event of an inspection, audit or examination.
8.8. Sanctions
8.8.1. Failure to comply with any term or condition of the IREP or any of its reporting requirements will normally result in suspension from participation in the IREP, cancellation of import permits, reduction of an IREP participant's TRQ allocation(s) and/or prosecution for offences against the EIPA. An IREP participant that is suspended from participation in the IREP is not eligible to receive IREP import permits.
8.8.2. If an IREP participant fails to comply with any term or condition of the IREP or any of its reporting requirements on multiple occasions, that IREP participant may be suspended from participation in the IREP for the remainder of the authorization year.
8.8.3. Should DFAIT's reconciliation of an IREP participant’s imports and exports under the IREP indicate that product imported by that IREP participant under the IREP has been in Canada for more than 90 calendar days, the IREP participant will normally be suspended from the program until DFAIT determines that the situation has been rectified and that the IREP participant is in compliance with program terms and conditions.
8.8.4. Should there be unresolved discrepancies in the information provided by an IREP participant, that IREP participant may be suspended from the program until DFAIT determines that the situation has been rectified and that the IREP participant is in compliance with program terms and conditions.
9. Authorization to Import Chicken and Chicken Products for the Purpose of Test Marketing
9.1. Supplemental imports may be authorized to facilitate test marketing in the Canadian market of new products that are, for example, unique or are produced with unique processes and require a substantial capital investment for their production.
9.2. Authorization for supplemental imports for purposes of test marketing may be issued only for products that are marketed directly to consumers.
9.3. Companies that intend to conduct test marketing of a specific product must normally plan the activity within their annual TRQ allocations. Companies that have been issued an allocation will normally be required to have exhausted this allocation before supplemental imports may be authorized under this provision.
9.4. Applications made on company letterhead may be submitted to the chicken and chicken products quota manager at DFAIT and should contain the following information:
- a description of the product and related production processes, with indications respecting unique features of same;
- a description of a proposed test marketing program, identifying test market areas, market channels, timing, promotion plans and marketing costs, product quantities required for the proposed test marketing program, and an analysis showing the minimum test market results required to decide in favour of the capital investment in Canadian production facilities; and,
- a detailed outline of the resulting minimum capital investment and job creation; proposed financing required to produce the product, e.g., facilities, equipment, production capacity; and the time required to bring such facilities on line from the time of a DFAIT decision to approve the test marketing program.
The name and mailing address of the chicken and chicken products quota manager can be obtained on the DFAIT website, under Contact Us.
9.5. Companies are required to commence production in Canada as soon as is feasible after the successful completion of the test marketing program.
9.6. Imports pursuant to an authorization issued under this provision shall only be made for the products to be test marketed, for the prescribed test marketing period, and for the approved quantities.
9.7. Once these quantities or the period have been exhausted, further permits may be authorized only for the same product in quantities sufficient to continue serving the test marketing areas during a period reasonably required for the construction of the domestic production facilities. Once such facilities have been established, no further permits will be allowed for either the test market product or for required raw materials. An applicant may submit only one test marketing application for a given product.
9.8. Successful applicants will be required to provide monthly statistics on the sales of imported products by test area. Failure to submit these statistics may result in suspension of import privileges under this provision.
10. Authorization to Import Chicken and Chicken Products under Extraordinary or Unusual Circumstances
10.1. Other applications for authorization for supplemental imports due to extraordinary or unusual circumstances will be evaluated on their individual merits.
11. Import permits
11.1. Types of Permits
11.1.1. 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).
11.2. Shipment-specific import permits
11.2.1. 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.
11.2.2. 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.
11.2.3. 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.
11.3. General Import Permit
11.3.1. 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.
11.3.2. 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 supplemental authorization.
11.4. How to Apply for a Permit
11.4.1. 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 (http://www.international.gc.ca/controls-controles/about-a_propos/impor/permits-licences.aspx?lang=eng)
11.4.2. 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 KB)
12. Contact Us
12.1. Names and direct phone numbers for quota manager(s), permit officer(s), and the Help Desk are available on the DFAIT website: Contact Us.
12.2. For directory assistance, you may call 613-944-0773.
12.3. Questions concerning the sourcing of domestic product can be addressed to the CFC at:
Chicken Farmers of Canada (CFC)
1007-350 Sparks Street
Ottawa, Ontario
K1R 7S8
Telephone: 613-241-2800
Facsimile: 613-241-5999
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