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CPTPP: Chicken and Chicken Products TRQ – Serial No. 945
Date: October 1, 2019
This Notice replaces Notice to Importers No. 916 dated November 26, 2018 and sets out the policies and practices pertaining to the administration of Canada’s tariff rate quota (TRQ) for chicken and chicken products under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
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.
Table of contents
1. Definitions
Chicken means a product that is included in items 96 to 104 on 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.
- For the purposes of this Notice, all quantities of chicken are expressed in eviscerated equivalents pursuant to the List of EIPA commodity codes for chicken.
Further processing means the manufacturing of products that are on the Import Control List (ICL). Such products include, but are not limited to, patties, nuggets, fingers, rolls or roasts produced from chicken meat; it also means marinating, smoking or drying, coating or seasoning chicken meat.
Food service operator means a restaurant or food service company that is active in the Canadian foodservice sector in the chicken industry.
Processing means the slaughtering of chicken, cutting up of eviscerated chicken, de-boning of eviscerated or cut up chicken, or further processing of chicken meat.
2. Allocation policy
- To be eligible to apply, you must be active in the Canadian chicken industry at the time of application, and must remain active during the upcoming quota year.
- Note: You must, in addition, have been active in the chicken industry during the reference period.
- Individual applicants and related persons applicants are eligible for only one allocation.
- Note: All applicants must provide a list of related persons.
- Note: In the case of separate applications from related persons involving a parent company and one or more subsidiaries, only the application nominated by the parent company is considered.
- You must specify in your application the minimum amount of quota you will accept. If your calculated allocation is less than 20,000 kg, you are issued an allocation only if the quantity you have specified in your application is equal to or lower than your calculated allocation.
3. Eligibility criteria
You are eligible to apply for an allocation if you are a:
Processor
- that bought at least 250,000 kilograms of chicken and subsequently sold at least 250,000 kilograms of chicken and chicken products processed or further processed in the reference period in federally or provincially registered Canadian plants owned and operated by you.
- You must exclude the following from your application:
- products that were not processed in federally or provincially registered Canadian plants owned and operated by you;
- products bought and sold for the export market;
- non-ICL products;
- products sold at the retail level to consumers;
- products containing meat from old roosters or spent fowl; and
- Intra-company transfers and transactions.
- If you are a parent company submitting joint applications by affiliated firms, you must exclude the purchases and sales of any company, whether it’s the parent company or an affiliated company, that does not meet the 250,000 kilogram purchase, production and sales criteria as set out above.
Distributor
- that bought (i.e., took ownership of and financial responsibility for) at least 220,000 kilograms and subsequently sold at least 220,000 kilograms of chicken and chicken products in the reference period, using warehouses and trucks in carrying out this activity.
- Note: Companies that procure or sell chicken and chicken products on behalf of others without taking ownership of or financial responsibility for the products are not eligible to apply for an allocation.
- Note: Retailers do not qualify as distributors and are not eligible for an allocation under the TRQ. For the 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.
- You must exclude the following from your application:
- products bought and sold for the export market;
- non-ICL products;
- products sold to related persons;
- products sold at the retail level to consumers;
- products containing meat from old roosters or spent fowl;
- products bought from or sold to other distributors; and
- live chickens.
Food Service Operator
- that bought and subsequently sold at least 220,000 kilograms of chicken in the reference period.
- You must exclude the following from your application:
- non-ICL products;
- products containing meat from old roosters or spent fowl; and
- non-chicken purchases.
- If you are a food service operator comprised of a parent company and various subsidiaries, the parent company must submit an application, accompanied by individual application forms and accountants’ letters for each individual affiliate or business brand.
- Note: You must exclude any individual affiliate or business brand that did not buy and subsequently sell at least 220,000 kilograms of chicken in the reference period.
- In the case of food service chains, only the application submitted by the system-wide brand owner of the chain is considered for an allocation. Individual entities within that chain (e.g. franchisees) are not eligible to apply for an allocation.
4. Calculation of allocations
Processor
- 85% is allocated to processors on a market share basis based on the quantity of chicken and chicken products processed or further processed in federally or provincially registered Canadian plants owned and operated by the processor, and subsequently sold, in the reference period.
Distributors
- 10% is allocated to distributors on an equal share basis.
Food Service Operators
- 5% is allocated to food service operators on an equal share basis.
- Note: In the case of a parent company with subsidiaries, the parent company’s allocation is the sum total of its eligible subsidiaries’ calculated allocations.
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 are normally made available seven days after the return date to eligible allocation holders who have not returned any portion of their allocation, in proportion to their initial allocation, or on demand if quantities still remain after the first offer.
- If you use less than 90% 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 Import Tariff Rate Quotas (TRQs) for Supply Managed Products
- Key dates and access quantities
- Information on related persons
- How to apply for an allocation
- How to apply for an import permit
- Allocation transfer request form
- Contact us
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