WTO: Milk Protein Substances TRQ - Serial No. 1010

Date: October 1, 2020

This Notice replaces Notice to Importers No. 901 dated September 21, 2017, and sets out the policies and practices pertaining to the administration of Canada’s tariff rate quota (TRQ) for milk protein substances under the World Trade Organization (WTO).

This Notice is provided pursuant to the authority of the Export and Import Permits Act (EIPA) and its corresponding regulations, and remains in effect until further notice. 

1. Definitions

Milk protein substances means a product that is included in Item 125.2 on the Import Control List (ICL), namely milk protein substances falling under tariff item 3504.00.11 in the list of tariff provisions set out in the Schedule to the Customs Tariff.

WTO milk protein substances have a milk protein content of 85% or more by weight, calculated on the dry matter, and do not originate in a CUSMA country, an EU country or other CETA beneficiary, Chile, Costa Rica or Israel.

See the List of EIPA commodity codes for milk protein substances.

2. Allocation policy

• Individual applicants and related persons applicants are normally eligible for only one allocation.
  • Note: All applicants must provide a list of related persons.

3. Eligibility criteria

You are eligible to apply for an allocation if you are a:

Eligible historical end user

• That imported a product covered by this Notice in each of 2006, 2007 and 2008, and that can demonstrate a requirement for these products in their formulations for products manufactured in their own facilities.

Eligible new entrant end user

• That can demonstrate a requirement for the products covered by this Notice, in their formulations for products manufactured in their own facilities

Eligible non-end user

• That purchase and take ownership of products covered by this Notice.

Note: Applicants are eligible for a TRQ allocation within only one pool. Applicants must be able to substantiate that they meet the relevant criteria.

4. Calculation of allocations

Eligible historical end users

• 75% is allocated to eligible historical end users on a pro-rata basis of an applicant’s historical imports averaged over 2006 to 2008, inclusive, as adjusted since (e.g., for under-utilization), or on the basis of actual need if the amount requested is lower than the applicant’s pro-rata share.
  • Note: Applicants must provide the ratio (percentage) of milk protein contained in the product they intend to import.

Eligible new entrant end users

• 20% is allocated to eligible new entrant end users on an equal-share basis or on the basis of actual need if the amount requested is lower than an equal share.
  • Note:  Applicants must provide the ratio (percentage) of milk protein contained in the product they intend to import.

Eligible non-end users

• 5% is allocated to eligible non-end users on an equal-share basis or on the basis of actual need if the amount requested is lower than an equal share.

Any quota that remains unallocated in any of the three pools will be reallocated:

1) to historical end users on a pro-rata basis, or on the basis of actual need, if the quantity requested is less than the pro-rata share;
2) (if any quantities remain) to new entrant end users on an equal-share basis, or on the basis of actual need, if the quantity requested is less than the equal share;
3) (if any quantities still remain) to non-end users on an equal-share basis, or on the basis of actual need if the quantity requested is less than the equal share.

5. Transfer, return and under-utilization of allocations

• If you wish to transfer any portion of your allocation, you must submit a transfer request form.
• You may return any portion of your allocation to the Department in writing by the prescribed return date.
  • Note:  Returned quantities will be made available following the same steps as the initial reallocation policy outlined under section 4. Calculation of allocations of the present policy.
• If you use less than 95% of your allocation in one year, you may have your allocation adjusted downward by an under-utilization penalty in the following year.
  • Note: Any portion of your allocation that you transfer or return in accordance with the present policy is considered to have been used.

6. Related links

• General Information on the Administration of TRQs for Supply-Managed Products
• Key dates and access quantities
• Information concerning related persons
• How to apply for an allocation
  • Application form
  • List of EIPA commodity codes for milk protein substances
• How to apply for an import permit
• Allocation transfer request form
• Contact us