Canada – European Union (EU) Comprehensive Economic and Trade Agreement (CETA) - Exporting beef and pork to the EU: Simplified information for Canadian stakeholders

Under CETA, the European Union has established annual duty-free tariff-rate-quotas for fresh/chilled beef and veal, frozen/other beef and veal, and pork. The following table illustrates available quota (TRQ) quantities (measured in carcass weight equivalent^{Footnote 1}) beginning on January 1 for these CETA TRQs during the Agreement’s implementation period.

CETA Annex 2-A: Tariff elimination and its Tariff Schedules outline the CETA market access outcomes for Canada and the EU, including the tariff lines covered under each of the TRQs established under the agreement. Section A of CETA Annex 2-B: Declaration of the Parties concerning tariff rate quota administration, defines  the EU’s obligations with regards to administering its CETA beef and veal, and pork TRQs. Beef and veal, and pork originating in Canada, on importation into the EU, will benefit from preferential tariff treatment under CETA on the basis of an origin declaration. For additional information, please consult the CETA Protocol on Rules of Origin and Origin Procedures.

The EU administers these CETA TRQs by way of import licensing, with allocation through the EU’s “simultaneous examination method”, a process that includes participation from the import licence issuing authorities of the individual Member States. The Simultaneous Examination Method is described in Article 184(2)(b) of Regulation (EU) No. 1308/2013

The CETA quotas for the years 2017 to 2020 inclusive, are managed under Commission Implementing Regulation (EU) 2017/1585 - opening and providing for the administration of Union tariff quotas for fresh and frozen beef and veal and pigmeat originating in Canada.

From 2021 onwards, the CETA quotas are managed under the EU’s TRQ Review Regulations 2020/760  and 2020/761. Although the legal basis is changing, the management of the CETA quotas remains the same, and is detailed in Articles 46 and 66, as well as Annexes VIII (beef quotas under order numbers 09.4280 and 09.4281) and X (pigmeat quota under order number 09.4282) of Regulation 2020/761.

Eligible applicants

Annual CETA TRQ quantities are subdivided into four quarterly sub-periods, with an initial application period available to EU meat importers (see below) in the second month prior to the beginning of the quarter. If the quarterly quota is not fully allocated, then at the beginning of the following two months, the list of eligible applicants is expanded to include accredited meat processors and wholesalers (see below) in addition to meat importers.

• Eligibility of EU meat importers: Operators registered for Value-Added Tax (VAT) in one of the EU Member States, who have imported bison, beef, veal, and/or pork into the EU, regardless of origin or import regime (full duty, preferential duty, tariff quota) during the 12-month period immediately prior to submission of the import licence application.
• Accredited meat processors & wholesalers: food business operators with establishments approved in accordance with Article 4 of Regulation (EC) No 853/2004 (meat hygiene registration number).

Application process

Initial quarterly application period (November – February – May – August):  EU meat importers

• EU importers of beef and veal and/or pork with a registered value-added tax (VAT) number in their Member State may submit import licence applications to the issuing authority of the Member State in which they are registered for VAT purposes.
• The European Commission Trade Helpdesk provides the contact information for the competent authorities designated to process and issue import license applications.
• E.g.: Select “Canada” as the exporting country; select the Member State you wish to apply to; Enter “0201”, “0202” or “0203”, etc. as the Product Code; and, Select the “Import Procedures” tab to find that Member State’s competent authority for issuing import licences.
• The initial quarterly application period occurs during the first seven days of the second month preceding the start of every quarter, in November, February, May and August. A security of € 95 for beef and € 65 for pork, per metric tonne of carcass weight equivalent, shall be lodged at the time of submission of an import licence application. This security is released in proportion to physical imports under the corresponding import licence.
• Commission Regulations  2016/1237 and 2016/1239 provide horizontal rules for the application of the system of import licences for agricultural products. The AGRIM model in Annex I to Implementing Regulation 2016/1239 lists information required when submitting an import licence application (e.g., requested tonnage, Combined Nomenclature (CN) codes, etc.). The AGRIM model is valid throughout the EU, and is available in all the EU’s official languages.
• Member States notify the European Commission of the quantities applied for by the EU importers. The European Commission allocates the available quantity according to the simultaneous examination method. Provided that sufficient quantities are available, the European Commission will allow the Member States to issue import licences for the quantities requested. If requested quantities should exceed the quantity available in the specified month, then a single reduction coefficient will be set by the Commission and applied by the Member States.
• The issuing authorities of the Member States will issue import licences beginning from the 23rd day of the month until the end of that month. An AGRIM licence issued in any Member State can be used at any EU customs entry point.

Additional quarterly application periods (months other than November, February, May and August): EU meat importers, accredited meat processors & wholesalers

• If quantities remain available after the initial quarterly application period, the above process will repeat, expanding eligible applicants to include accredited meat processors and wholesalers, in addition to EU meat importers.
• The application, processing and issuance of licenses noted above would repeat every month except December (advanced to end November from 2021), as long as quantities have not been fully allocated. New quarterly quantities are made available in November, February, May and August. The quantities remaining available at the end of a quarter are automatically carried over to the next quarter, but are not carried over to the next quota year.

EU import requirements

It is important to note that the provisional application of CETA on September 21, 2017 does not change EU import requirements and/or sanitary requirements.

Canadian establishments which intend to export meat and meat products to other countries must receive, store, process, and/or ship only meat and meat product that is compliant with the Safe Food for Canadians Regulations.

In addition, exporters of meat, meat products and meat preparations must comply with the European Union export requirements for meat and poultry products, where information such as how a Canadian establishment can apply to become eligible to export to the EU can be found.

For the export of meat products, an Official Meat Inspection Certificate and/or animal health certificate will need to accompany the shipment. For more information, please consult the nearest regional CFIA office.

Information for Canadian exporters on country-specific implementation aspects can be identified by contacting the Trade Commissioner Service. Trade Commissioners can also assist in connecting potential EU buyers and importers with prospective Canadian exporters.

We recommend that Canadian exporters and EU importers work closely together to inform each other of the various export and import requirements applicable for Canadian exports to the specific EU market.

Follow-up of allocated quantities

As for other import quotas managed with licences, the monthly allocations for the CETA quotas 09.4280 (fresh/chilled beef), 09.4281 (frozen beef) and 09.4282 (pigmeat) are published at the end of each month.

A broader overview can be found on the Agri-Food Data Portal, section Trade and Quotas.