Public Consultations: CPTPP Dairy Tariff Rate Quotas (TRQs) Panel report implementation and other administration policy changes - Proposed allocation and administration policy changes
Allocation policy changes
| CPTPP TRQ | Current policy | Proposed policy |
|---|---|---|
Milk | 85% is allocated to processors on a market share basis, for milk in bulk (not for retail sale) to be processed into dairy products used as ingredients for further food processing (secondary manufacturing). 15% is allocated to distributors on an equal share basis. | 85% is allocated to processors and distributors on a market share basis (using one market share calculation for all applicants based on the activity metrics set out below) for milk in bulk (not for retail sale) to be processed into dairy products used as ingredients for further food processing (secondary manufacturing). 15% is allocated to processors and distributors on a market share basis (using one market share calculation for all applicants based on the activity metrics set out below) for any milk (no end-use requirement). Applicants may apply for one or both allocations. |
Butter | 80% is allocated to processors on a market share basis, for butter in bulk (not for retail sale) to be used as ingredients for further food processing (secondary manufacturing). 10% is allocated to further processors on a market share basis. 10% is allocated to distributors on an equal share basis. | 85% is allocated to processors, further processors, and distributors on a market share basis (using one market share calculation for all applicants based on the activity metrics set out below) for butter in bulk (not for retail sale) to be used as ingredients for further food processing (secondary manufacturing). 15% is allocated to processors, further processors, and distributors on a market share basis (using one market share calculation for all applicants based on the activity metrics set out below) for any butter (no end-use requirements). Applicants may apply for one or both allocations. |
Industrial Cheese | 80% is allocated to processors on a market share basis. All imports are to be in bulk (not for retail sale) to be used as ingredients for further food processing (secondary manufacturing). | 100% is allocated to processors, further processors, and distributors on a market share basis (using one market share calculation for all applicants based on the activity metrics set out below). All imports are to be in bulk (not for retail sale) to be used as ingredients for further food processing (secondary manufacturing). |
Cheeses of All Types Mozzarella and Prepared Cheese Concentrated Milk | 85% is allocated to processors on a market share basis. 15% is allocated to distributors on an equal share basis. All imports of concentrated milk shall be destined for retail sale. | 100% is allocated to processors and distributors on a market share basis (using one market share calculation for all applicants based on the activity metrics set out below). All imports of concentrated milk shall be destined for retail sale. |
Cream Cream Powders Milk Powders Skim Milk Powders Powdered Buttermilk Whey Powder Products Consisting of Natural Milk Constituents Ice Cream and Mixes Other Dairy | 80% is allocated to processors on a market share basis. 10% is allocated to further processors on a market share basis. 10% is allocated to distributors on an equal share basis. | 100% is allocated to processors, further processors, and distributors on a market share basis (using one market share calculation for all applicants based on the activity metrics set out below). |
Yogurt and Buttermilk | 80% is allocated to processors on a market share basis. 10% is allocated to further processors on a market share basisfor yogurt and/or buttermilk in bulk (not for retail sale) to be used as ingredients for further food processing (secondary manufacturing). 10% is allocated to distributors on an equal share basis. | 90% is allocated to processors, further processors, and distributors on a market share basis (using one market share calculation for all applicants based on the activity metrics set out below). 10% is allocated to processors, further processors, and distributors on a market share basis (using one market share calculation for all applicants based on the activity metrics set out below) for yogurt and/or buttermilk in bulk (not for retail sale) to be used as ingredients for further food processing (secondary manufacturing). Applicants may apply for one or both allocations. |
Administration policy changes
| Policy element | Current policy | Proposed policy |
|---|---|---|
Return date | Four months prior to end of TRQ year.
| Five months prior to end of TRQ year.
|
Transfer policy | One-way transfers.
| Two-way transfers.
|
Quantity requested | Applicants are not asked what specific volume they are requesting under the allocation process. | Applicants will be asked what specific volume they are requesting under the allocation process. Should the allocation process result in a market share allocation greater than the volume requested by the applicant, the eligible applicant will receive the volume identified in their application. The remaining volume will be allocated on a market share basis to other eligible applicants whose market share calculation is less than the volume identified in their application. |
Market activity metrics
The market activity metrics for processors, further processors and distributors will be assessed on the following basis, in kilograms:
- processors: base market activity on their manufacturing of goods covered by the TRQ (except the Milk TRQ, which is based on their processing of goods that are covered by the TRQ)
- further processors: base market activity on their use of goods covered by the TRQ in the manufacturing of further processed food products
- distributors: base market activity on goods covered by the TRQ that they bought and re-sold to other businesses
- goods sold to other distributors, related persons and at the retail level must be excluded from distributors market activity.
- Date Modified:
