Sugar (Additional Quantity) for Export to the United States under the Canada-United States-Mexico Agreement - Serial No. 1066

Date: December 15, 2021

This Notice sets out the policies and practices pertaining to the administration of the refined sugar tariff rate quota (TRQ) referred to in subparagraph (c) of TRQ - US 9 under the Canada-United States-Mexico Agreement (CUSMA).

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.

For policies relating to the main quantity under subparagraph (a) of TRQ – US 9 see Sugar for Export to the United States under the Canada-United States-Mexico Agreement - Serial No. 1035.

Definitions
Eligibility criteria
Allocation policy - Calculation of allocations
Returns and reallocation of returned quantities
Important note
Related links

Definitions

Available quantity means an amount equal to 20 percent of the total quantity of additional in-quota rate imports of refined sugar that the United States Secretary of Agriculture determines to permit to enter into the United States in a given year, as referred to in Chapter 2, Appendix 2, subparagraph (c) of TRQ – US 9 of CUSMA.

Eligible sugar means a product that is included in Item 5204 (b) on the Export Control List, namely refined sugar as set out in subparagraph (c) of TRQ - US 9 of Chapter 2, Appendix 2: Tariff Schedule of the United States – (Tariff Rate Quotas) of CUSMA, that is wholly obtained from raw sugar beets produced in Canada, or refined in Canada from non-originating raw sugar.

Note: Eligible sugar may be subject to specific requirements as determined by the United States at the time of each increase. Any additional requirements will be communicated with stakeholders prior to the quota opening.
See the list of EIPA commodity codes for CUSMA Sugar

Domestic market production share means a share of the domestic production of refined sugar during the calendar year immediately preceding the opening of the TRQ.

Raw sugar means sugar whose content of sucrose by weight, in the dry state, corresponds to a reading of less than 99.5 degrees polarity.

Refined sugar means sugar whose content of sucrose by weight, in the dry state, corresponds to a reading of 99.5 degrees polarity or higher.

Eligibility criteria

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

Resident of Canada

Your head office is in Canada or you operate a branch office in Canada.

Sugar refiner
- You are actively involved in the refining of raw sugar in Canada. You must also have been actively refining raw sugar during the calendar year immediately preceding the opening of the TRQ and must remain active during the calendar year when this quota is open.
- Note: Active involvement normally means the production of refined sugar in the applicant’s own facility located in Canada and includes contributing to employment and value-added activities in Canada.

Note: The application deadline will be communicated in a separate notice following the United States’ announcement of any additional quantity.

Allocation policy - Calculation of allocations

80% of the available quantity will be allocated based on domestic market production share.
You will be allocated a portion of the additional quantity based on your share of the domestic market production during the calendar year immediately preceding the opening of the TRQ.
20% of the available quantity will be available on a first-come, first-served basis to allocation holders who have used 80% of their initial allocation.

Returns and reallocation of returned quantities

If there are more than 120 days left in the calendar year at the time of quota opening, the following policies will apply:

Returns: You may return any portion of your allocation to the Department, in writing, by the prescribed return date. The return date will be determined prior to quota opening.
Reallocation policy: Returned quantities will be made available on a first-come, first-served basis to allocation holders who have used their entire initial allocation and who have not returned any quota during the quota year. Written applications requesting additional quantities can be submitted to sugar-sucre@international.gc.ca.

Important note

Applicants are reminded of the prohibitions, offenses and penalties under the EIPA and its regulations.

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