Notice to Importers

Dairy - Domestic Market Shortage Policy - Supplemental Imports of Cream (Item 117.1 on the Import Control List)

Serial No. 882
Date: August 30, 2016

This Notice is provided pursuant to the authority of the Export and Import Permits Act (EIPA) and its corresponding regulations.

In Brief

Imports of cream into Canada are subject to import controls under Canada’s EIPA.  Accordingly, an import permit issued by Global Affairs Canada is required for shipments of cream to enter Canada.

The Minister may, at his/her discretion, authorize imports of dairy products apart from the import access quantity, particularly if the importation of these products is considered necessary to meet Canadian market needs.

This Notice to Importers sets out the policies and practices pertaining to supplemental imports of cream for manufacturing purposes.

Table of Contents

1. Purpose

1.1. The purpose of this Notice is to set out the policies and practices pertaining to the authorization of supplemental imports of cream for manufacturing purposes in cases of temporary domestic market shortages.

2. General Information

2.1. Subsection 8.3 (3) of the EIPA allows the Minister to issue permits apart from the access quantity. In exercising his/her discretion under subsection 8.3 (3), the Minister takes into consideration whether the importation of these products is required to meet Canadian market needs.

2.2. Supplemental import authorizations for cream for manufacturing purposes applied in cases of a temporary domestic market shortages for which an application was submitted will normally be issued only in situations where the Government of Canada is of the opinion that:

  • the impact on the national industrial milk production quota will be minimal;
  • the issuance would result in growth in the national dairy market; and
  • the issuance would not provide the applicant with access to supply at a price below domestic price levels.

2.3. The within and over access rates of duty that apply to imports of dairy products can be found in Canada’s Customs Tariff.

2.4. 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 item 117.1 of the Import Control List (ICL) ), namely cream falling under heading Nos. 0401.50.10 and 0401.50.20 in the list of tariff provisions set out in the Schedule to the Customs Tariff.  

3.2. Importers who require a determination as to whether the product they intend to import is within the scope of this Notice are encouraged to obtain an advanced tariff classification ruling from the appropriate regional client service office of the Canada Border Services Agency (CBSA).

4. Authorization of Supplemental Imports

4.1. Applications for an authorization for supplemental imports should follow the applicable procedures set out in this Notice.  In all cases, the appropriate EIPA commodity codes must be referred to in the appplication. (see section 3.1).

4.2. Applications for an authorization for supplemental imports for other dairy products not subject to this Notice, will continue to be assessed under the established supplemental policies and procedures found in Notice to Importers No. 850 - Dairy Products - Supplementary Imports (Items 117 to 134 and 141 to 160 on the Import Control List), which include,

  • imports of dairy products under the Import for Re-Export Program (IREP),
  • imports of dairy products for the purpose of test marketing; and,
  • imports due to extraordinary or unusual circumstances (e.g.,. Kosher and organic products).

5. Authorization to Import Cream Due to Temporary Domestic Market Shortage

5.1. This policy is limited to imports of cream for use in manufacturing.

5.2. Who is Eligible to Apply?

5.2.1. A manufacturer of dairy products that requires cream as a primary input may submit an application.

5.2.2. The application form, “Dairy Products – Cream – Supplemental Import Authorization Application”, which is included as Appendix 1, must be completed and sent to Global Affairs Canada by email to Dairy-Laitier.TIC@international.gc.ca. The application must identify the product required in kilograms of butterfat and the specific month for which the product is requested.

5.2.3.  The applicant, in its application, must demonstrate that normal sources of supply have been exhausted before applying for an authorization for supplemental imports of cream. The application must detail the applicant's own efforts to obtain supply, including requests to domestic suppliers, provincial milk marketing boards and the Canadian Dairy Commission.

5.2.4. Applicants are advised to submit their applications as far in advance as possible to provide Global Affairs Canada sufficient time to process their application. Applicants should, also inform Global Affairs Canada of anticipated shortages as soon as these are identified. Normally, applications should be submitted at least fifteen (15) business days prior to the planned date of entry.

5.2.5. Normally, Global Affairs Canada will require fifteen (15) business days to process an application. However, the actual processing time required may vary depending on the nature and quantity of the product requested, market conditions and other factors.

5.3 Assessment of Applications

5.3.1. 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).

5.3.2. The applicant must contact a minimum of four (4) potential suppliers, in addition to the Provincial Milk Marketing Board(s) in which the applicant has processing capacity and the Canadian Dairy Commission to procure required materials from domestic sources prior to applying for an authorization for supplemental imports due to a market shortage.

5.3.3. Various Canadian government departments and agencies, including Agriculture and Agri-Food Canada, as well as various divisions within Global Affairs Canada, may be consulted to assess whether the proposed import is consistent with the purposes for which the article was placed on the Import Control List.

5.3.4. All information submitted by the applicant as a part of their application will be treated as confidential information.

5.3.4. Incomplete applications will normally be returned without action.

5.4. Sourcing

5.4.1. Canadian Suppliers

5.4.1.1. Applicants are to provide, in their application, written evidence of their domestic sourcing requests (e.g. records of communication with contacted suppliers and received responses).

5.4.1.2. A lack –of response by a potential supplier within three business days of the Applicants’ request will normally be considered to fulfil the Applicant’s obligation in article 5.4.1.1 of this Notice.

5.4.1.3. Any supply identified during the sourcing activity described in article 5.4.1.1 of the Notice is to be deducted from the applicant’s total request.

5.4.2 Provincial Milk Marketing Board(s)

5.4.2.1. Applicants must provide, in their application, written confirmation:

  • from the provincial milk marketing board(s) in which the imported butterfat is to be processed that
    • no raw milk or cream is available to fulfill the applicant's request; and
    • that these provincial milk marketing board(s) support the applicant's application.
  • that no raw milk or cream is available to fulfill the applicant's request from
    • the provincial milk marketing board(s) within the respective dairy pool (P5 and/or WMP) in which the imported butterfat is to be processed; and
    • the provincial milk marketing board(s) in which the applicant have processing capacity.

5.4.2.2. In the event that a provincial milk marketing  board is able to meet some or all of the raw milk or cream required by the Applicant, failure to deliver the raw milk or cream within five business days will be normally be considered to be sufficient evidence of lack of availability of raw milk or cream.

5.4.2.3. A lack of response by a provincial milk marketing board within three business days of the Applicant’s request will normally be considered to fulfil the Applicant’s obligation in article 5.4.2.1 of this Notice.

5.4.2.4. Any supply identified during the sourcing activity described in article 5.4.2.1 of this Notice  is to be deducted from the applicant’s total request.

5.4.3. Canadian Dairy Commission

5.4.3.1. Applicants must are provide evidence that the Canadian Dairy Commission has confirmed that there is no additional raw milk or cream available within provinces adjacent to the one in which the imported butterfat is to be processed. (Records of communication with the Canadian Dairy Commission must be included in the application.)

5.4.3.2. A lack of response by the Canadian Dairy Commission within three business days of the Applicant’s request will normally be considered to fulfil the Applicant’s obligation in article 5.4.3.1 of this Notice.

5.4.3.4. Any supply identified during the sourcing activity described in article 5.4.3.1 of the Notice is to be deducted from the applicant’s total request.

5.5. Domestic Utilization

5.5.1. Applicants are:

  • to provide, in their applications, written confirmation from the provincial milk marketing board(s) in which they have processing capacity that the applicant has received full entitlement and/or was at full capacity with respect to raw milk within the past month;
  • required to use in priority domestic raw milk and/or domestic cream that has become available during the supplemental import authorization period.

5.6. Inventory

5.6.1. Applicants must provide Global Affairs Canada with:

  • the amount of any butter currently in the Canadian Dairy Commission’s Plan B holdings (if applicable); and
  • the level of their private stocks of the product to be produced using the imported cream.

5.6.2. Applicants must commit in writing to track imported cream, processing and sales by lot, and must make this information available for audit upon demand by the Canadian Dairy Commission, and/or Global Affairs Canada.

6. Duration

6.1. Supplemental import authorizations issued under this policy will normally be issued for a duration of thirty (30) calendar days.

6.2. Unused supplemental import authorizations will expire at the end of their validity period.

7. Importation Process

7.1. Supplemental import authorizations issued under this policy will be issued to the Canadian Dairy Commission to act as the importer of record.

8. Contact Us

8.1. Names and direct phone numbers for Tariff Rate Quota manager(s), permit officer(s), and the Help Desk are available on the Global Affairs Canada website: Contact Us

8.2. For directory assistance, you may call 343-203-6820.