CPTPP: Yogurt and Buttermilk TRQ - Serial No. 962

Date: October 1, 2019

This Notice replaces Notice to Importers No. 933 dated November 26, 2018, and sets out the policies and practices pertaining to the administration of Canada’s tariff rate quota (TRQ) for yogurt and buttermilk 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.

1. Definitions

Yogurt and buttermilk means products that are included in items  124 and 158 on the Import Control List (ICL), namely yogurt and buttermilk falling under heading Nos. 0403.90.91 and 0403.10.10 in the list of tariff provisions set out in the Schedule to the Customs Tariff.

• Refer to the List of EIPA commodity codes for yogurt and buttermilk for specific product codes.

2. Allocation policy

• To be eligible to apply, you must be active in the yogurt and buttermilk industry at the time of application, and must remain active during the quota year.
• Note: You must, in addition, have been active in the yogurt and buttermilk 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.
• You must specify in your application the minimum quantity 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 manufactures yogurt and buttermilk in your own provincially-licensed or federally-registered facility.

Further processor

• that uses yogurt and buttermilk in your manufacturing operations and product formulations.

Distributor

• that buys yogurt and buttermilk and re-sells it to other businesses.
• Note: Companies that procure or sell yogurt and buttermilk on behalf of others without taking ownership of or financial responsibility for the product are not eligible to apply for an allocation.
• Note: Retailers are not eligible to apply for an allocation. A retailer is an establishment that is primarily engaged in retailing food, and which buys yogurt and buttermilk and sells it directly to final consumers.

4. Calculation of allocations

Processors

• 80% is allocated to processors on a market share basis based on the kilograms of yogurt and buttermilk manufactured and subsequently sold by the processor during the reference period.

Further processors

• 10% is allocated to further processors on a market share basis for the importation of goods in bulk (not for retail sale) to be used as ingredients for further food processing (secondary manufacturing) based on the kilograms of yogurt and buttermilk used in the manufacturing of food products and subsequently sold by the further processor during the reference period.

Distributors

• 10% is allocated to distributors on an equal share basis.

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.
• Note: If you transfer any portion of your allocation, you are not eligible to receive transfers from other allocation holders during the year. If you receive a transfer, you are not eligible to transfer any portion of your allocation.
• Note: Transfer requests will normally only be considered and approved if the portion transferred is utilized in accordance with the conditions under which the TRQ was originally allocated. For example, a processor may receive a portion of an allocation from a further processor so long as the condition for the importation of the yogurt and buttermilk, in bulk (not for retail sale) to be used as ingredients for further food processing (secondary manufacturing), is met. Global Affairs Canada may require evidence that the transferred allocation is utilized in accordance with the conditions under which the TRQ was originally allocated.
• 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 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
  • Accountant’s letter
  • List of EIPA commodity codes for yogurt and buttermilk
• How to apply for an import permit
• Allocation transfer request form
• Contact us