Chicken and Chicken Products – CPTPP Tariff Rate Quota (TRQ) (Items 96 to 104 on the Import Control List)

Serial No. 916

Date: November 26, 2018

This Notice to Importers is provided pursuant to Section 6.2 of the Export and Import Permits Act (EIPA) and will remain in effect until further notice.

In brief

Imports of chicken and chicken products into Canada are subject to import controls under Canada’s EIPA.  Accordingly, an import permit is required for shipments of chicken and chicken products to enter Canada. 

Under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) between Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam, Canada agreed to establish a tariff rate quota (TRQ) of 26,745,000 eviscerated kilograms for chicken.

The allocation period for the chicken and chicken products CPTPP TRQ extends from January 1 to December 31, inclusive.  Import permits for shipments of chicken and chicken products destined to the Canadian market are issued to allocation holders under Canada’s TRQ for chicken and chicken products, which is administered by Global Affairs Canada.

This Notice to Importers sets out the policies and practices pertaining to the administration of the CPTPP TRQ, including the allocation, underutilization, return and transfer policies.  This Notice also explains how to apply for import permits.

Summary of key dates and access quantity for the 2019 allocation year

• TRQ Year: January 1 to December 31
• Access Quantity: 7,833,000 eviscerated kilograms
• Start of Application Period: November 26, 2018
• Application Deadline: December 12, 2018
• Reference Period for assessing applicant’s eligibility for an allocation: September 1, 2017 to August 31, 2018
• Opening of the TRQ for imports: January 1, 2019
• Date for Returning Unutilized Quota: September 1, 2019 (no later than 12:00h, Eastern Time)

1. Purpose

1.1. The purpose of this Notice is to:

• set out the policies and practices pertaining to the administration of Canada’s CPTPP TRQ for chicken and chicken products;
• invite applications for allocations under the CPTPP chicken and chicken products TRQ for the next quota year; and
• explain how to apply for permits for imports of chicken and chicken products.

2. Definitions

“Chicken and chicken products” means a product that is included in Items 96 to 104 of the Import Control List (ICL).

“Processor” means an establishment that carries on activities that involve the slaughtering of chicken, cutting up of eviscerated chicken, de-boning of eviscerated or cut up chicken, or further processing of chicken meat in federally or provincially registered Canadian plants owned and operated by the applicant. Further processing activities such as, but not limited to, the manufacturing of such products as patties, nuggets, fingers, rolls or roasts produced from chicken meat in addition to marinating, smoking or drying, coating or seasoning chicken meat are permitted processing activities.  Only processed products on the ICL are eligible. (Refer to Appendix 7)  Additionally, a “processor” must have been active buying at least 250,000 kilograms of chicken and subsequently selling at least 250,000 kilograms of processed chicken and chicken products that are on the ICL during the reference period. 

• For clarity, distribution sales by processors, i.e., where they do not process the product bought and sold, must be excluded.
• Additionally, chicken and chicken products bought and sold for the export market, non-ICL chicken and chicken products, non-arm’s length sales, sales at the retail level to consumers, any products which contain meat from old roosters or spent fowl, and products bought from or sold to other distributors must all be excluded.

“Distributor” means an establishment that buys chicken and chicken products and re-sells it to other businesses.  Distributors use warehouses and trucks in carrying on its trade (either the renting or purchasing of warehousing and transportation services is considered to meet this criterion.  Additionally, a “distributor” must have been active buying at least 220,000 kilograms of chicken and subsequently selling at least 220,000 kilograms of chicken and chicken products that are on the ICL during the reference period. 

• For clarity, commission brokers do not meet the distributor definition and are not eligible for an allocation under the TRQ. For purposes of this Notice, commission brokers procure or sell on behalf of others without taking ownership of or financial responsibility of the chicken. 
• Retailers also do not meet the distributor definition and are not eligible for an allocation under the TRQ.  For purposes of this Notice, a retailer is an establishment that is primarily engaged in retailing food, and which buys chicken and chicken products and sells it directly to final consumers.
• Chicken and chicken products bought and sold for the export market, non-ICL chicken and chicken products, non-arm’s length sales, sales at the retail level to consumers, live chickens, any products which contain meat from old roosters or spent fowl, and products bought from or sold to other distributors must all be excluded.

“Foodservice” means an establishment or a chain of establishments whose primary function is the preparation and sale of meals to consumers that have been active in the foodservice sector of the chicken industry buying and subsequently selling 220,000 kilograms of chicken during the reference period. 

“Market share” means an applicant’s level of activity in the chicken sector in relation to the total activities of the other eligible applicants within the group of the TRQ.

“Equal share” means each applicant receives the same allocation level based on the quantity of TRQ available divided by the number of eligible applicants within the group of the TRQ.

“Reference period” means the period of time used to measure an applicant’s activity in the processing or distribution of chicken and chicken products in Canada. For the purpose of this Notice, the reference period is from September 1 to August 31 immediately preceding the applicable allocation year.

“Accountant” means a member in good standing of one of the professional accounting bodies in Canada, who is registered with his/her provincial professional organization to provide accounting services and is independent from the applicant (i.e., is not an owner, a partner, a director, or an employee of the company applying for an import allocation).

3. General Information

3.1.1. In accordance with its commitments under CPTPP, Canada has established a TRQ for imports of chicken from CPTPP countries.

3.1.2. Under Canadian TRQs, in any given year, a predetermined quantity of imports of a good controlled under the EIPA can enter Canada at a lower rate of duty, while imports over this quantity are subject to higher rates of duty. The TRQs therefore have three components: an import access quantity negotiated with Canada’s international trade partners; a within access commitment rate of duty that applies to imports up to the access level; and a higher, over access commitment rate of duty for imports over the access level.

3.1.3. The within and over access rates of duty that apply to imports of chicken and chicken products can be found in Canada’s Customs Tariff.

3.1.4. Pursuant to the EIPA and its corresponding regulations, when deciding whether to issue an import allocation or whether to consent to a transfer, the Minister shall take into account whether the import allocation holder has furnished false or misleading information in connection with any reports required by the Act or the regulations made under the Act or by any condition of an import allocation or import permit during the 12-month period preceding the period in respect of which the import allocation or transfer is to apply. Furthermore, the Minister may attach conditions to import allocations and/or to import permits, and may amend, suspend, cancel or re-instate import permits and allocations.

3.1.5. Failure by an applicant to provide any information requested by Global Affairs Canada, or failure to comply with any condition of an allocation or permit issued pursuant to the EIPA may result in the rejection of the application for an allocation under the chicken and chicken products TRQ, the reduction or cancellation of an allocation issued pursuant to the EIPA, or the cancellation of associated permits.

3.2. Access quantity

3.2.1. The access quantity for the CPTPP chicken and chicken products TRQ will be phased in over nineteen years.  The phase-in table can found in the text of the CPTPP under section 2-D, entitled Canada Appendix A Tariff Rate Quotas.

3.2.2. The 2019 access level for the CPTPP chicken and chicken products TRQ is 7,833,000 eviscerated kg.

3.3. Allocation Period

3.3.1. The quota allocation year for the CPTPP chicken and chicken products TRQ extends from January 1 to December 31, inclusive.

3.3.2. Eligibility for an allocation will be assessed on the basis of each applicant’s activities in the chicken industry during the reference period of September 1 to August 31 immediately preceding the new quota year. An applicant must be a resident of Canada and be active in the Canadian chicken sector regularly during the reference period and the allocation year.

3.3.3 Being active regularly during the reference period and the allocation year is normally understood to mean monthly activity.

4. Products Covered

4.1. This Notice pertains to items 96 to 104 of the Import Control List (ICL), namely chicken and chicken products falling under heading Nos. 01.05, 02.07, 02.09, 02.10, 16.01 and 16.02 in the list of tariff provisions set out in the Schedule to the Customs Tariff.

4.2. Importers who require a determination as to whether the product they intend to import is eligible this TRQ are encouraged to obtain an advanced tariff classification ruling from the appropriate regional client service office of the Canada Border Services Agency (CBSA).

5. Allocation Policy

5.1 The CPTPP chicken and chicken products TRQ is allocated in the following manner:

• 85 percent of the TRQ is allocated to the processor group on a market share basis;
• 10 percent of the TRQ is allocated to the distributor group on an equal share basis; and
• 5 percent of the TRQ is allocated to the food-service group on an equal share basis.

5.2. Eligible applicants are eligible to apply under only one group during any given allocation year under the CPTPP chicken and chicken products TRQ.

5.3. Eligible processor applicants’ market share is calculated on the basis of the kilograms of chicken processed and subsequently sold by the applicant during the reference period in relation to the total market calculated within the processor group of eligible applicants.

5.4. For the purpose of this Notice, where two or more applicants are related persons, they shall be eligible for only one allocation. To determine which persons are related, applicants are required to provide a list of “related persons”. A definition of related persons may be found in Appendix 8, “Information Concerning Related Persons”.

5.5. In the case of separate applications from related applicants involving a parent company and one or more subsidiaries, only the application nominated by the parent company will be eligible. If the parent company does not make such a nomination in writing, it shall be made by Global Affairs Canada.

5.6. In order to ensure that allocations are issued in economically viable quantities, applicants whose market share calculation does not result in a minimum 20,000 kg allocation will normally not be issued an allocation.  Applicants are to specify the minimum volume they are willing to accept. Should an applicant’s market share calculation result in a volume lower than the specified volume, no allocation will be issued.

5.7. All import allocations expire at the end of each allocation year and all applicants interested in receiving an import allocation must reapply each year.

5.8. Joint applications by affiliated firms submitted by the parent company for the processor group will be considered in calculating the allocations.  However, if the parent company or an affiliated company does not meet the 250,000 kilograms threshold, the chicken purchases or sales of that company cannot be included in the parent company’s calculation of its total chicken purchases or sales.

5.9. In the case of foodservice chains, applications for an allocation under the foodservice pool will only be considered from the system-wide brand owners of such chains.  Global Affairs Canada will not entertain separate requests from entities (e.g., franchisees) within the same brand organization, even if they individually or in combination meet the 220,000 kilogram threshold.

5.10. Food service group applicants that comprise of a parent company and one or more subsidiary may submit one application under the parent company. This request should be accompanied by individual application forms, accountant letters and affidavits for the different affiliates or business brands.  Based on this information, the amount of TRQ the parent company is eligible for in each of the categories will be calculated, after which the parent company will be advised of its total import allocation.  If an affiliate or business brand does not meet the 220,000 kilogram threshold, the chicken purchases of that affiliate or business brand cannot be included in the parent company's calculation of its total chicken purchases.

5.11. All import allocations expire at the end of each allocation year and all applicants interested in receiving an import allocation must reapply each year.

6. How to apply for an allocation

6.1. Applicants who wish to apply for an allocation under this TRQ are invited to submit their completed application form and any other relevant documents no later than December 12 immediately preceding the opening of the allocation year.

6.2. All applicants for an allocation are required to include as part of their application:

• a completed application form; and
• a sworn affidavit;

6.3. Processor applicants are also required to include as part of their application a letter from an independent qualified professional (normally an accountant) verifying the information included in the application.

6.4. All appendices to the application should be in the exact format of the models attached to this Notice. Any changes to the wording of the appendices will normally not be permitted. Any change to the appendices should be discussed and submitted in advance to be validated by Global Affairs Canada.

6.5. The information that the applicant provides will be considered when allocating the TRQ. Global Affairs Canada retains the right to request additional information. Applicants may be required to provide evidence of their activities. Accountants may be asked to explain the procedures used in greater detail and may be asked to provide Global Affairs Canada with copies of all working documents. Any costs associated with a request for additional information will be borne by the applicant. Failure to provide information requested may result in the application being deemed incomplete.

6.6. The declaration in the application form allows Global Affairs Canada and its representative access to any information pertaining to the applicant in relation to the application for an import allocation or to subsequent applications for, or concerning the use of, import permits that is in the files of Agriculture and Agri-Food Canada or the Canadian Food Inspection Agency. Normally, applicants are informed of any such requests for information.

6.7. Section 18 of the EIPA forbids any person to knowingly induce, aid or abet any other person to contravene any of the provisions of the EIPA. Such contraventions by an applicant or its accountant may lead to prosecution for offenses under the EIPA.

6.8. Applicants are invited to send their applications by E-MAIL to the Chicken Mailbox. Applicants sending their application by e-mail should be prepared to present the original version of their application upon Global Affairs Canada’s request. Failure to do so may lead to the cancellation of any allocation issued pursuant to the application and/or the cancellation of associated permits.

6.9. Applications sent by MAIL or COURIER should be addressed to the quota manager of the Chicken TRQ at Global Affairs Canada. The mailing address of the Trade Controls Policy Division can be obtained on the Global Affairs Canada website, under Contact Us.

6.10. For legibility reasons, applications sent by facsimile will not be accepted.

6.11. Applications postmarked after the deadline immediately preceding the opening of the allocation year, or in a format other than that required, will normally not be considered. Lost applications will not normally be considered without acceptable proof that they were sent before the deadline (e.g., courier receipt).

7. Underutilization, returns and reallocation

7.1 Underutilization

7.1.1. Allocation holders with a utilization rate less than 90 percent in the previous allocation year may have their allocations adjusted downward by an under-utilization penalty for the new allocation year ^{Footnote 1}.

7.1.2. For allocation holders that under-utilized in the previous allocation year, allocations in the new allocation year will be reduced by the percentage of the allocation not utilized in the previous allocation year^{Footnote 2}.

7.1.3. Allocation holders that under-utilized during the previous allocation year will be advised of the applicable under-utilization penalty before the allocations are finalized for the new allocation year.

7.2. Returns

7.2.1. Allocation holders may return any portion of the balance of their allocation no later than September 1 of the allocation year. Any portion of an allocation that is returned by this date will be considered as having been used for the purposes of administering the under-utilization policy.

7.3. Reallocation

7.3.1. Returned quantities will be made available seven days after the return deadline to eligible allocation holders who have not returned any unused quantity of their allocation. The reallocated quantity will be in proportion of the applicant’s allocation, or on demand if quantities still remain after the first offer.

8. Transfer policy

8.1. The Minister may allow the transfer of allocations between allocation holders. All requests for allocation transfer must be referred to Global Affairs Canada for consideration. Requests must be made by way of the CPTPP Chicken - Import Allocation Transfer Request form.

9. Import permit

9.1. Types of permits

9.1.1. An import permit issued by Global Affairs Canada is required for every shipment of product covered by this Notice to enter Canada. For a given shipment, importers may either present a shipment-specific import permit or invoke the appropriate General Import Permit (GIP).

9.1.2. Products imported directly into a bonded warehouse does not require either a specific import permit or a GIP. However, an import permit is required to move goods out of a bonded warehouse for consumption in Canada.

9.2. Shipment-specific import permits

10.2.1. Shipment-specific import permits are normally issued on demand to allocation holders up to the amount of their allocation under this TRQ. Shipments entering Canada under a shipment-specific import permit can normally do so at the within access rate of duty as long as there is sufficient quota remaining.

9.2.2. To claim the within access rate of duty for a shipment, the importer must present the shipment-specific import permit to the CBSA at the time of final accounting.

9.2.3. Shipment-specific import permits will not normally be issued retroactively for shipments that have already been imported into Canada, including under the authority of a GIP, regardless of the importer’s allocation.

9.2.4. For a shipment-specific import permit to be considered valid, the name on the permit must match exactly the name of the importer on the CBSA’s B3-3 Canada Customs Coding Form and related documents at time of final accounting. Furthermore, the quantity on the permit must be the same as the net quantity on the Customs invoice. It is incumbent on the recipient of the permit to ensure that a permit application is made in the name of the importer of record and includes the correct quantity. Questions about the proper procedures to fill out customs entry documents should be addressed to local CBSA officials.

9.3 General Import Permit

9.3.1. The GIP that applies for cheese is General Import Permit (GIP) No. 100 – Eligible Agricultural Goods. There is no limit to the quantities of product that may enter Canada under the GIP; however, such imports will be subject to the higher over access rate of duty.

9.4 How to apply for a permit

9.4.1 Information about the permit application process, including information about fees, the monthly billing system, information required from applicants and the permit application form, is available on the Global Affairs Canada website: Applying for an Import Permit.

10. Contact us

10.1. Contact details the Trade Controls Policy Division and the Help Desk are available on the Global Affairs Canada website: Contact Us

10.2. For directory assistance, you may call 343-203-6820.

Appendices

Appendix 1 – Application Form

Application form | PDF 166 KB

Appendix 2 – Summary sheet for foodservice applicants

Application form | PDF 131 KB

Appendix 3 – Accountant's letter for applicants requesting an allocation under the processor or the distributor pool

Accountant's Letterhead

To: Global Affairs Canada

Re: [Applicant name]
[Applicant File Number]

At the request of [applicant’s name] and as required by Notice to Importers - Chicken and Chicken Products – CPTPP TRQ (the Notice). I performed the following procedures in connection with [applicant’s name] application form for an import allocation of the chicken and chicken products CPTPP TRQ for the next quota year ("the application").

I enquired of [applicant’s name] and confirmed that the company will continue to do business as a [processor] or [distributor] as outlined in the Notice. For distributors, in particular, [applicant name] uses both (1) trucks and (2) one or more warehouses in carrying on its business as a chicken distributor.

Procedures performed and findings:

1. I read the application and the Notice.

2. I inspected purchase invoices and/or the summary sheets listing these invoices (provided they show detail information of these invoices) of [applicant name] covering purchases made in the reference period of September 1 to August 31 immediately preceding the new quota year having a total of [quantity] kilograms in eviscerated equivalent weight and a total of [amount] dollars of chicken for:

1. the name and address of the seller;
2. the weight of the chicken purchased;
3. the type of chicken purchased; and,
4. the cost (being an amount greater than nil) of the chicken purchased.

The following exceptions, including exceptions to arms-length transactions, were found:

3. I compared the type of chicken described in the purchase invoices and/or summary sheets listing these invoices, inspected above, to the types permitted in the Import Control List detailed in Appendix 7 of the Notice and found that the type of chicken described was of a type included in the Import Control List.

4. I compared the total dollar amount of each of the purchase invoices inspected and/or summary sheets listing these invoices to cancelled cheques (or other banking records or cash disbursement documentation) and found them to be in agreement.

The following exceptions were found:

5. I inspected sales invoices and/or summary sheets listing these invoices (provided they show detail information of these invoices) of [applicant name] covering the reference period of September 1 to August 31 immediately preceding the new quota year having a total of [quantity] kilograms in eviscerated equivalent weight and a total of [amount] dollars of chicken for:

1. the name and address of the purchaser;
2. the weight of the chicken sold;
3. the type of chicken sold; and,
4. the selling price (being an amount greater than nil) of the chicken sold.

The following exceptions were found:

6. I enquired of [name and title of individual responsible for the application] whether the sales invoices inspected and/or summary sheets listing these invoices, inspected above, excluded sales of chicken at the retail to consumer level. [Name of individual responsible for the application] responded that sales of chicken at the retail to consumer level were excluded from such sales invoices and/or summary sheets listing these invoices.

The following exceptions were found:

7. I compared the total dollar amount of each of the sales invoices inspected and/or summary sheets listing these invoices to cash receipts (or other relevant documentation indicating that full payment had been received) and found them to be in agreement.

The following exceptions were found:

8. I examined, and where necessary, recalculated the conversion of purchases and subsequent sales of chicken as reported in [applicant name's] purchases and sales journal, respectively, during the reference period of September 1 to August 31 immediately preceding the new quota year, into eviscerated equivalent kilograms, as described in the application, based on the formulas set out in Appendix 7 of the Notice. The calculations were mathematically correct.

The following exceptions were found:

9. I enquired of [name and title of individual responsible for the application] whether all related applicants and all related persons as defined in Appendix 8 to the Notice were described in the application. [Name of individual responsible for the application] responded that all such related applicants and all such related persons were described in the application.

The following exceptions were found:

10. I compared the name, address and percentage of share ownership of all shareholders owning 5% or more of the total voting shares as described in the [applicant name's] register of share ownership to the application and found them to be in agreement.

The following exceptions were found:

11. For applications involving the processor pool (market share) I enquired of [name of individual responsible for the application] as to whether the purchases and sales invoices verified that they involved only product that was bought by the applicant for processing and excluded (1) all export and distribution sales, (2) all products with meat from spent fowl or old roosters as an ingredient and (3) all non-ICL products, as required by Global Affaires Canada policy.

The following exceptions were found:

12. For applications including the distributor pool (equal share) I enquired of [name of individual responsible for the application] as to whether the purchases and sales verified were bought by the applicant for distribution and excluded (1) all export sales, (2) purchases from and sales to other distributor, (3) live chickens, (4) all products with meat from spent fowl or old roosters as an ingredient and (5) all non-ICL products, as required by the Global Affairs Canada policy.

The following exceptions were found:

These procedures do not constitute an audit of the application and therefore I express no opinion on the application.

This letter is for use solely in connection with [applicant name] application for a chicken and chicken products CPTPP TRQ allocation.

I am a professional member in good standing of an institute, society or association of accountants incorporated by or under an Act of the Legislature of this province, whose normal professional activities include the performance of independent audits of financial statements, and am qualified to express an opinion on financial statements for third party use.

Accountant name (please print) _____________________________

Accountant signature: ______________________________________

City _______________________________________________________

Date _______________________________________________________

Name of partner: ___________________________________________

Membership Number with National Professional Organization:
________________________________________________________

Membership Number with Provincial Professional Organization:
________________________________________________________

Province: __________________________________________________

Appendix 4 – Accountant's letter for applicants requesting an allocation under the foodservice pool

Accountant's Letterhead

To: Global Affairs Canada

Re: [Applicant name]
[Applicant File Number]

At the request of [applicant’s name], its affiliates and franchisees (the "applicant"), and as required by the Notice to Importers - Chicken and Chicken Products – CPTPP TRQ (the Notice), I performed the following procedures in connection with the applicant's application form for an import allocation of the chicken and chicken products CPTPP TRQ for the period that extends from January 1 to December 31, inclusive ("the application").

I enquired [applicant’s name] and confirmed that the company will continue to do business throughout the next quota year as a [food-service operator] as outlined in the Notice.

Procedures performed and findings

1. I read the application and the Notice.

2. With respect to the applicant's chicken purchases, I have reviewed the responses that the applicant received to the attached Supplier Questionnaire Form (Appendix 2) which they sent to their poultry suppliers. The information provided by these suppliers covers the purchases made by the applicant during the reference period of September 1 to August 31 immediately preceding the new quota year. The totals are:

• [quantity] kg in eviscerated equivalent weight; and,
• [amount] dollars

The attached Suppliers Questionnaire Forms are for the following sellers:

• [Name and address of each supplier who has filed a form]

The attached Supplier Questionnaire Forms indicate:

1. the weight of the chicken purchased;
2. the type of chicken purchased;
3. the costs (being an amount greater than nil) of the chicken purchased; and,
4. the name and full address of the purchaser.

3. With respect to the applicant's chicken sales, I have examined the value of the gross sales of the applicant during the reference period of September 1 to August 31 immediately preceding the new quota year. I have reviewed the applicant's estimate that chicken sales represent ___% of these gross sales and believe that it is a reasonable estimate. Based on this estimate, the total value of the chicken sold by the applicant during the reference period of September 1 to August 31 immediately preceding the new quota year was [amount]. Based on a value/kg of [amount], these sales represent approximately [quantity] kg of chicken.

4. The volume of the applicant's chicken purchases [is greater than/is less than] 50% of their total volume of meat purchases (i.e. including poultry, beef, pork, other meats and fish but excluding vegetables, French fries, beverages, etc.).

5. I inquired of [name and title of individual responsible for the application] whether all related applicants and all related persons as defined in Appendix 8 to the Notice were described in the application. [Name] responded that all such related applicants and all such related persons were described in the application.

The following exceptions were found

6. I compared the name, address and percentage of share ownership of all shareholders owning 5% or more of the total voting shares as described in the [applicant's] register of share ownership to the application and found them to be in agreement.

The following exceptions were found

These procedures do not constitute an audit of the application and therefore I express no opinion on the application.

This letter is for use solely in connection with the applicant's application for a chicken and chicken products CPTPP TRQ allocation for the period that extends from January 1 to December 31.

I am a professional member in good standing of an institute, society or association of accountants incorporated by or under an Act of the Legislature of this province, whose normal professional activities include the performance of independent audits of financial statements, and am qualified to express an opinion on financial statements for third party use.

Accountant name (please print) _____________________________

Accountant signature: ______________________________________

City _______________________________________________________

Date _______________________________________________________

Name of partner: ___________________________________________

Membership Number with National Professional Organization:
________________________________________________________

Membership Number with Provincial Professional Organization:
________________________________________________________

Province: __________________________________________________

Appendix 5 – Affidavit by applicants requesting an allocation under the processor or the distributor pool

I [NAME OF PERSON], A RESIDENT OF THE COUNTY OR MUNICIPALITY OF __________________, IN THE PROVINCE OF __________________ MAKE OATH AND SAY AS FOLLOWS:

1. I am employed by [applicant name] as [job title].
2. The information contained in this affidavit pertains to [applicant name] application form for an import allocation for the [processor] or [distributor] portion of the chicken and chicken products CPTPP TRQ for the period that extends from January 1 to December 31, inclusive (“the application”).
3. [Applicant name] does and will continue to do business throughout the next quota year as a [processor] or [distributor] as outlined in Notice to Importers - Chicken and Chicken Products – CPTPP TRQ (the Notice). For distributors, in particular [applicant name] uses both (1) trucks; and (2) one or more warehouses in carrying on its business as a chicken distributor.
4. I reviewed [applicant name] purchase invoices covering purchases made in the reference period of September 1 to August 31 immediately preceding the new quota year, having a total of [quantity] kilograms in eviscerated equivalent weight and a total of [amount] dollars of chicken.
5. I compared the type of chicken described in the purchase invoices noted in (4) above to the products listed in the Import Control List (ICL) detailed in Appendix 7 of the Notice and found that the type of chicken described in the purchase invoices corresponded to the products listed in the ICL.
6. I compared the total dollar amount of each of the purchase invoices outlined above to cancelled cheques (or other banking records or cash disbursement documentation) and found them to be in agreement.
7. I reviewed sales invoices of [applicant name] covering the reference period of September 1 to August 31 immediately preceding the new quota year having a total of [quantity] kilograms in eviscerated equivalent weight and a total of [amount] dollars of chicken.
8. I confirm that the sales invoices outlined above excluded (1) all sales of chicken at the retail level to consumers and (2) all export sales as required by Global Affairs Canada policy.
9. I compared the total dollar amount of each of the sales invoices to cash receipts (or other financial documents indicating that full payment had been received) and found them to be in agreement.
10. I examined and, where necessary, recalculated the conversion of purchases and subsequent sales of chicken as reported in [applicant name] purchases and sales journals for the reference period of September 1 to August 31 immediately preceding the new quota year into eviscerated equivalent kilograms, as described in the application, based on the formulas set out in appendix 7 of the Notice. I confirm that the calculations were mathematically correct.
11. I confirm that all related applicants and all related persons as defined in Appendix 8 to the Notice were described in the application.
12. I confirm that the name, address and percentage of share ownership of all shareholders owning 5% or more of the total voting shares as described in [applicant name] register of share ownership matches that listed in the application.
13. I agree that any information provided by me or my firm to Global Affairs Canada in support of my firm's application for an allocation of the next year chicken and chicken products CPTPP TRQ is subject to review by an independent public accountant (or an accountant named by Global Affairs Canada) if and as required by Global Affairs Canada, and that all costs related to such work by the accountant shall be borne by [applicant name].
14. I understand that the information provided by me in this affidavit will be used to assess [applicant name] application for an allocation of the next year chicken and chicken products CPTPP TRQ. I realize that section 17 of the Export and Import Permits Act (EIPA)forbids any person from furnishing false or misleading information and forbids knowingly making any misrepresentation pursuant to the EIPA. I am aware that section 18 of the EIPA forbids any person from knowingly inducing, aiding or abetting any other person in contravening any of the provisions of the EIPA.
15. For processor pool applications: I confirm that the purchase invoices noted in (4) above involved only product that was bought for processing and excluded (1) all export and distribution sales, (2) all non-ICL products and (3) all products with meat from spent fowl or old roosters as an ingredient.
16. For distributor pool applications: I confirm that the purchase invoices noted in (3) above involve only product that was bought for distribution and excluded (1) all export sales, (2) all purchases from and sales to other distributors, (3) live chickens, (4) all non-ICL products and (5) all products with meat from spent fowl or old roosters as an ingredient.
17. I confirm that all information provided in the application is accurate and complete.

Sworn before me at the City of ________________________________________in the province

of______________________, on this ____________ day of ________[Month]of ______ [Year]

Notary Public, Justice of the Peace or Commissioner of Oaths

______________________________________

Signature and printed or typed name of swearer

Appendix 6 – Affidavit by applicants requesting an allocation under the foodservice pool

I [NAME OF PERSON], A RESIDENT OF THE COUNTY OR MUNICIPALITY OF________________, IN THE PROVINCE OF________________MAKE OATH AND SAY AS FOLLOWS:

1. I am employed by [name of firm] as a [job title].
2. My firm does and will continue to do business throughout the next quota year as a [food-service operator] as outlined in Notice to Importers - Chicken and Chicken Products – CPTPP TRQ (the Notice).
3. The information provided by our suppliers covers the purchases made by [name of firm], during the reference period of September 1 to August 31 immediately preceding the new quota year. The totals are:
   • [quantity] kg in eviscerated equivalent weight; and,
   • [amount] dollars
4. The attached Suppliers Questionnaire Forms (appendix 2) are for the following sellers:
   • [Name and address of each supplier who has filed a Form]
5. The attached Supplier Questionnaire Forms indicate:
   1. The weight of the chicken purchased;
   2. The type of chicken purchased;
   3. The costs (being an amount greater than nil) of the chicken purchased; and
   4. The name and full address of the purchaser.
6. With respect to [name of firm's] chicken sales, I have examined the value of the gross sales during the reference period of September 1 to August 31 immediately preceding the new quota year. I have reviewed [name of firm's] estimate that chicken sales represent % of these gross sales and believe that it is a reasonable estimate. Based on this estimate, the total value of the chicken sold by [name of firm] during the reference period of September 1 to August 31 immediately preceding the new quota year was [amount]. Based on a value/kg of [amount], these sales represent approximately [quantity] kg of chicken.
7. The volume of [name of firm's] final chicken purchases [is greater than/is less than] 50% of our total volume of meat purchases (i.e. including poultry, beef, pork, other meats and fish but excluding vegetables, french fries, beverages, etc.).
8. I compared the type of chicken described in the purchase invoices outlined above, to the types permitted in the Import Control List (ICL) detailed in Appendix 7 of the Notice and found that the type of chicken described was similar to the description found in the ICL.
9. I recalculated the conversion of purchases of chicken as reported in [name of firm's] purchases journal during the reference period of September 1 to August 31 immediately preceding the new quota year into eviscerated equivalent kilograms, as described in the application, based on the formulas set out in Appendix 7 of the Notice. I confirmed that the calculations were mathematically correct.
10. I confirm that all related applicants and all related persons as defined in Appendix 8 to the Notice were described in the application.
11. I am listing the name, address and percentage of share ownership of all shareholders owning 5% or more of the total voting shares as described in [name of firm's] register of share ownership similar to that mentioned in the application.
12. I agree that any information provided by me or my firm to Global Affairs Canada in support of my firm's application for an allocation of the next year chicken and chicken products CPTPP TRQ is subject to review by an independent public accountant (or an accountant named by Global Affairs Canada). I further agree that the determination of whether an accountant's report is required shall be made solely by Global Affairs Canada. I also agree that all costs of the accountant shall be borne by my firm and that the accountant's report will be in the form specified by Global Affairs Canada.
13. I understand that the information provided by me in this affidavit will be used to assess my firm's application for an allocation of the next year chicken and chicken products CPTPP TRQ. I realize that section 17 of the Export and Import Permits Act (EIPA) forbids anyone to furnish false or misleading information or knowingly to make any misrepresentation in any application in order to procure an import permit. I am aware that section 18 of the EIPA forbids any person to knowingly induce, aid or abet any other person to contravene any of the provisions of the EIPA.
14. All information provided by me on the "Application form for a chicken and chicken products - CPTPP TRQ allocation" for the period that extends from January 1 to December 31 is accurate and complete.

Sworn before me at the City of ________________________________________in the province

of______________________, on this ____________ day of ________[Month]of ______ [Year]

Notary Public, Justice of the Peace or Commissioner of Oaths

______________________________________

Signature and printed or typed name of swearer

Appendix 7 – List of EIPA commodity codes for chicken

Appendix 8 – Information concerning related persons

1. For the purposes of this Notice to Importers, persons are related to each other and are related persons if they are:

• relatives of one another;
• corporation and
  • a person who controls the corporation,
  • any person who is a member of a related group that controls the corporation,
  • any person who is a relative of any person who controls the corporation, or
  • any person who is a relative of any person who is a member of a related group that controls the corporation; or
• two corporations
  • controlled by the same person, related group, or unrelated group,
  • one of which is controlled by one person and that person is a relative of a person who controls the other corporation,
  • one of which is controlled by one person and that person is a member of a related group that controls the other corporation,
  • one of which is controlled by one person and that person is a relative of any member of a related group that controls the other corporation,
  • one of which is controlled by one person and that person is a relative of each member of an unrelated group that controls the other corporation,
  • one of which is controlled by a related group, a member of which is also a member of another related group that controls the other corporation,
  • one of which is controlled by a related group, a member of which is a relative of any member of another related group that controls the other corporation, or
  • one of which is controlled by a related group, each member of which is a relative of at least one member of another related group that controls the other corporation.

2. Notwithstanding section 1, for the purposes of this Notice to Importers, persons shall normally be deemed related to each other and to be related persons if they are not dealing with each other at arm's length in respect of the import, purchase and/or sale of the products covered by this Notice.

3. (1) For the purposes of this Notice to Importers:

• “arm’s length” means the relationship that exists between parties that are self-interested, who are seeking to maximize their respective positions, and who act severally and independently from each other - it is a question of fact whether persons not related to one another within the meaning of section 1 of this appendix were at a particular time dealing with each other at arm's length;
• “common connection” may be evidenced by, for example:
  • a provision in a formal agreement,
  • conduct, or
  • a business or family relationship;
• “economically dependent” means a state when the ongoing operations of a corporation depends upon the majority of its business volume coming from one source;
• “person” means an individual or a corporation;
• “related group” means two or more persons that have a common connection;
• “relative(s)” are persons connected by blood, marriage, common-law partnership, adoption or affinity regardless of age or relationship;
• “unrelated group” means two or more persons that have no common connection.

3. (2) For the purposes of this Notice to Importers:

• “control” means ownership of such a number of shares as carries with it the right to a majority of the votes in the election of the board of directors.
  • In addition to this definition, the following also applies
    • (i) ownership of more than one-third of the shares and less than a majority of the shares of a corporation may be presumed to constitute control of that corporation unless it can be established that the corporation is not controlled in fact by the owner of those shares
    • (ii) a person who has an option or a right under a contract, in equity or otherwise, in any capacity, to shares in a corporation, or to acquire shares in a corporation, or to control the voting rights of shares in a corporation may be presumed to control that corporation unless it can be established that the corporation is not controlled in fact by the person who has this option or right;
    • (iii) where any person, related group, or unrelated group owns a large debt of a corporation which may become payable on demand or a substantial investment in retractable preferred shares that person, related group, or unrelated group may be presumed to control that corporation unless it can be established that the corporation is not controlled in fact by the owner(s) of that debt or retractable preferred shares
    • (iv) where a corporation has commercial activities, contractual agreements, or arrangements with any person, related group, or unrelated group that could make this corporation economically dependent on this person, related group, or unrelated group, then that person, related group, or unrelated group may be presumed to control that corporation unless it can be established that the corporation is not controlled in fact by the person, related group, or unrelated group that has commercial activities, contractual agreements or arrangements with that corporation
    • (v) where any person, related group, or unrelated group possesses unique expertise or experience that is critical for the ongoing operations of a corporation that person, related group, or unrelated group may be presumed to control that corporation unless it can be established that the corporation is not controlled in fact by the person, related group, or unrelated group that possesses the unique expertise or experience
• “control in fact” means an ability to change or determine the composition of the board of directors or an ability to direct the business and affairs of the corporation.

4. For the purposes of this Notice to Importers:

• (a) where two corporations are related to the same third corporation within the meaning of this Notice to Importers, they are related to each other;
• (b) a corporation can be controlled or controlled in fact by a person, related group, or unrelated group notwithstanding that the corporation is also controlled by another person, related group, or unrelated group;
• (c) a person can be considered to be related to himself, herself, or itself for the purpose of establishing that persons are related to each other and are “related persons”.