Sugar-Containing Products for Export to the United States under the Canada-United States-Mexico Agreement

Serial No. 1001
Date: June 29, 2020

This Notice sets out the policies and practices pertaining to the administration of Sugar-Containing Products referred to in TRQ - US 10 for export to the United States under the Canada-United States-Mexico Agreement (CUSMA).

This Notice, effective July 01, 2020, is provided pursuant to the authority of the Export and Import Permits Act (EIPA) and its corresponding regulations, and remains in effect until December 31, 2020. An allocation policy will be established for exports of these goods, effective January 1, 2021 onward.

Table of Contents

1. Definitions
2. Access Level
3. Product Coverage
4. Eligibility Criteria
5. Administration Policy
6. Related Links

1. Definitions

• Eligible Sugar-Containing Products means goods listed in subparagraph (g) of TRQ - US 10 of Appendix 2: Tariff Schedule of the United States - (Tariff Rate Quotas) of CUSMA that meet the applicable origin requirements in Chapter 4 (Rules of Origin) of CUSMA and in subparagraph (e) of TRQ - US 10. 

2. Access Level

• The quantity under this Tariff Rate Quota (TRQ) is 9,600,000 kilograms per calendar year. This quantity is pro-rated to 4,800,000 kilograms in year 1 of CUSMA implementation. 

3. Product Coverage

• Only Eligible Sugar-Containing Products, up to the annual TRQ quantity, may qualify for an export permit.
• Refer to the Handbook of Export and Import Commodity Codes for specific product codes required to complete permit applications.

• Goods entered into the United States in excess of the TRQ quantity or that are not covered by the TRQ will receive Most Favored Nation (MFN) tariff treatment. Exports of these goods do not require permits. 

4. Eligibility criteria

• To be eligible for an export permit, an applicant must demonstrate its active involvement in the production of Eligible Sugar-Containing Products that are eligible for export the United States.  Active involvement normally means the production of these products in the applicant’s own facility, and includes continuing to contribute to employment and value-added activities in Canada. 

5. Administration policy

• Goods eligible for in-quota tariff rates under this TRQ are found on the Export Control List.  As such, an export permit is required to export these goods to the United States.
• Anyone interested in exporting these goods from Canada into the United must obtain a shipment-specific export permit.
• Permits for exports under this TRQ are available on an “on demand” basis, upon submission of a duly completed shipment-specific permit application.
• Permit applications for exports under this TRQ will be reviewed, on a first come, first served basis, by Global Affairs Canada before any permits are issued.
• Permit applications will normally be reviewed, and permits will normally be issued, within a 4-hour service standard during normal business hours.
• Eligible Sugar-Containing Products entering the United States within the TRQ quantity and accompanied with a Canadian-government issued shipment-specific export permit shall receive duty-free treatment.
• Permit applications received after the TRQ has been fully exhausted will be placed in a queue for any quantities that become available.
• Exporters are advised to provide their United States customs broker with a copy of the shipment-specific export permit prior to the time of export. Canadian exporters should retain their original shipment-specific export permit. 

6. Related links

• Handbook of Export and Import Commodity Codes
• Key Dates and Access Quantities
• Apply for an EIPA file number (PDF version, 168KB)
• How to Apply for an Export Permit  
• Weekly CUSMA Sugar-Containing Products & Sugar Utilization Information
• Contact Us