WTO: Specialty Creams TRQ – Serial No. 974

Date: May 1, 2020

This Notice replaces Notice to Importers No. 898 dated May 1, 2017 and sets out the policies and practices pertaining to the administration of Canada’s tariff rate quota (TRQ) for specialty creams 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

Specialty creams means a product that is included in Item 117.1 of the Import Control List (ICL), namely specialty creams falling under tariff item No. 0401.40.10, 0401.50.10, 0401.40.20 and 0401.50.20 or in the list of tariff provisions set out in the Schedule to the Customs Tariff.

See the List of EIPA commodity codes for specialty creams.

2. Allocation policy

• To be eligible, you must demonstrate sales of sterilized cream in Canada during the reference period.
• 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 can demonstrate sales of sterilized cream, in Canada, during the reference period.
  • Note: Companies that procure or sell specialty creams on behalf of others without taking ownership of or financial responsibility for the product are not eligible to apply for an allocation.

4. Calculation of allocations

• First, to eligible applicants who have an established distribution line for sterilized cream, minimum 23% butterfat, in cans of a volume not exceeding 200 ml (sterilized cream). To the extent that requirements exceed the TRQ, allocations will be made on a pro-rata basis.
• Second, if there is any quota remaining, the balance of the TRQ, shall be allocated to new applicants for sterilized creams and those requesting other types of specialty creams (e.g. Devon cream).  To the extent that requirements exceed the remaining balance of the TRQ, allocations will be made on a pro-rata basis.

5. Return and underutilization of allocations

• You may return any portion of your allocation to the Department in writing by the prescribed return date.
• Note: Returned quantities are reallocated to eligible applicants on a first-come, first-served basis.
• If you use less than 95% of your allocation in one year, you may have your allocation adjusted downward by an underutilization 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 Import Tariff Rate Quotas (TRQs) for Supply-Managed Products
• Key dates and access quantities
• Information on related persons
• How to apply for an allocation
• Application form
• List of EIPA commodity codes for specialty cream
• How to apply for an import permit
• Contact us