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Frequently Asked Questions – CPTPP Tariff Rate Quotas

CPTPP entry-into force and phase in of CPTPP TRQs

How will the entry-into-force date of December 30, 2018 affect the phase-in of the CPTPP quotas?
  • As of December 30, 2018, CPTPP TRQ volumes will be prorated to the number of months that remain in the ‘quota year’ as defined in the specific provisions of each TRQ.
  • For example, some TRQs are administered based on the calendar year, while others are based on the dairy year (August 1 – July 31); the turkey TRQ is administered on the turkey marketing year (May 1 to April 30).
    • TRQs administered on a calendar year basis :
      • The quota volumes will be prorated to volumes equal to one month of the quota volume commitment for year one, lasting for the period of December 30 to December 31, 2018;allocations for this period must be utilized by midnight on December 31, and will not be carried forward into 2019.
      • The full TRQ volume for quota year two will then be made available as of January 1, 2019 until December 31, 2019.
    • TRQs administered on a dairy year basis :
      • the quota volumes will be prorated to volumes equal to eight months of the quota volume commitment, lasting for the period from December 30, 2018 to July 31, 2019.
      • The full TRQ volumes for quota year two will then be made available as of August 1, 2019, to July 31, 2020.
    • For the turkey TRQ, which is administered on a turkey marketing year basis :
      • The quota volume will be prorated to a volume equal to five months of the quota volume commitment, lasting for the period from December 30, 2018 to April 30, 2019.
      • The full TRQ volume for quota year two will then be made available as of May 1, 2019, to April 30, 2020.
  • The CPTPP quotas will be phased in over 11 to 19 years, depending on the quota. However, the majority of the new access will have been phased in by year six of the agreement (i.e. 2023), followed by smaller growth until the final phase-in year of the CPTPP quota. The CPTPP quota volumes will not grow after the final phase-in year.
Can I import from all CPTPP Parties beginning December 30, 2018?
  • No. Only products that originate from a CPTPP Party that has ratified the agreement may be imported under the CPTPP quotas.
  • The first six countries to ratify the CPTPP are Australia, Canada, Japan, Mexico, New Zealand, and Singapore.
  • As of December 30, 2018, allocation holders can request import permits for products from Australia, Japan, Mexico, New Zealand, and Singapore.
  • Vietnam ratified the Agreement on November 16, 2018.
  • As of January 14, 2019, allocation holders can begin to request import permits for products from Vietnam.
  • When existing signatories to the CPTPP ratify the Agreement (i.e. Brunei, Chile, Malaysia, and Peru), Canada will update the relevant Notice to Importers for the CPTPP TRQs to include the name of the CPTPP Party. Canada will give advance notice to allocation holders of the date on which they may begin to source eligible products from that CPTPP Party.

Allocation process

How can I apply for an allocation under the new CPTPP quotas?
What is the application period for the CPTPP quotas?
  • The CPTPP agreement enters into force on December 30, 2018.
  • The application period for all CPTPP quotas begins on November 26 and closes on December 12.
  • Some CPTPP quotas are administered on the basis of the calendar year (January 1 to December 31), while others use the dairy year (August 1 to July 31) or the marketing year (May 1 to April 30). 
  • Due to the different periods of time over which some CPTPP quotas are administered, the application deadlines for quota year two and future years will not be the same for every CPTPP quota.
  • Applications for calendar-year quotas, due December 12, will serve as the basis for the Minister’s allocation decision for quota year one (2018) as well as quota year two (2019). The application process for quota year three will open ninety days in advance of the beginning of quota year three on January 1, 2020.
  • Companies applying for dairy-year quotas must submit an application for quota year two in a separate application process that will open ninety days in advance of the beginning of quota year two on August 1, 2019.  
  • Companies applying for marketing-year quotas must submit an application for year two in a separate application process that will open ninety days in advance of the beginning of quota year two on May 1, 2019.
I do not have an EIPA number. Can I still submit an application?
  • Yes. If an applicant does not have an EIPA number, Global Affairs Canada will assign one based on the information provided in the application for an allocation.
I am not active in the Canadian sector to which I wish to apply.  Can I apply for quota anyway?
  • No. The Minister’s policies states that, at a minimum, an applicant must be a resident of Canada and have been active in the Canadian sector in the 12-month reference period immediately preceding the allocation year.   
  • Depending on the TRQ, activity is determined on basis of an applicant’s record of production, use or sales. 
  • Interested stakeholders who are not currently active in the applicable Canadian sector (as defined in the Notice to Importers), but who become active in the future, will be able to apply once they become active.
The Notice to Importers states that an applicant must be active in the Canadian sector regularly during the reference period and the allocation year.  What does this mean?
  • This is normally understood to mean that applicants are able to demonstrate activity on a monthly basis.
  • This is why the application form requests applicants to complete a monthly breakdown of their activities in the applicable sector.
Do I have to be able to demonstrate a history of importing these products to apply for an allocation under the applicable CPTPP quotas?
  • No. Applicants’ eligibility for an allocation will be assessed against the eligibility criteria for the applicable CPTPP quota and their activity in the Canadian sector in the 12-month reference period immediately preceding the allocation year. 
If I don’t apply for an allocation in year one, can I still apply for an allocation in subsequent years?
  • Yes. The CPTPP quotas are allocated on an annual basis on the basis of an applicant’s activity during the 12-month reference period.
Do I have to submit a new application each year?
  • Yes. Applicants must submit an application on an annual basis and demonstrate that they were active in the reference period.
How can I determine the pool under which I should apply?
  • Applicants must determine which of the quota pools most corresponds to the nature of their business. The Department will review the application and determine whether an applicant qualifies for the quota pool to which they have applied. 
I believe I qualify for an allocation under more than one group in a CPTPP quota. Can I apply for an allocation under both groups?
  • No. Applicants are eligible to apply under only one group.
Why do I have to provide an accountant’s letter with my application?
  • An accountant’s letter ensures that the quantities claimed in applications accurately reflect the amount of relevant products manufactured or sold by the applicant.
  • Where quotas are allocated on a market share basis, it is important to ensure that applicants do not inadvertently misrepresent their activity levels in their applications, as this would affect the allocation of all the eligible applicants and could result in penalties under the Export and Import Permits Act for providing false and misleading information.
The Notice to Importers says that only one applicant from a group of related parties will receive an allocation under an individual CPTPP quota. How can I determine if I am related to another company?
  • The criteria for determining whether individuals or companies applying for quota are related are set out in the Notice to Importers in the Appendix entitled “Information concerning related persons”. Applicants who are uncertain whether they are related should err on the side of caution and list the individuals or companies to whom they may be related and seek an assessment from Global Affairs Canada.
I am related to an allocation holder under another tariff rate quota program for these products. Can I apply for an allocation under the CPTPP quotas?
  • Yes. However, related parties may not receive more than one allocation under the same CPTPP TRQ.
Once I have submitted an application, how will I know if I have qualified for an allocation?
  • Applicants will be informed in writing whether they have qualified for an allocation and the amount of quota they have been allocated.
  • Applicants will be informed whether they have received an allocation on December 21, 2018.
Will my allocation be the same each year, or will it change from year to year?
  • The amount allocated to each individual quota holder will vary from year to year.
  • For quotas that are allocated on a market share basis, the amount of quota that an applicant will receive in any given year will depend on the level of that applicant’s activity in the domestic sector in relation to the activity of all the other eligible applicants in his or her pool.
  • For quotas that are allocated on an equal share basis, the amount of quota that an applicant will receive in any given year will depend on the number of eligible applicants to the quota.
Is there any cap on the maximum amount of quota that an individual applicant can receive?
  • No, there is no policy to cap the amount of quota that an applicant can be allocated. 
  • However, the maximum amount of quota that an applicant can be allocated will be limited in practice by the allocation methodology that applies to the CPTPP quota.
  • For CPTPP quotas that are allocated on a market share basis, the size of the largest allocation will be a function of the market activity of the eligible applicants; the applicant with largest market activity (whether in terms of sales, production, or distribution) will receive an allocation that is proportionate to the market activity of all eligible applicants in the CPTPP quota.
  • For CPTPP quotas that are allocated on an equal share basis, the size of the allocation received by all eligible applicants will be equal to the volume of available quota divided by the number of eligible applicants.
Is there a minimum amount of quota that an applicant can receive? Will applicants receive allocations in commercially viable quantities? What happens if the calculation of market share produces an allocation size that is less than the minimum threshold?
  • Yes, there is a minimum allocation that an applicant may receive; however, the exact quantity varies depending on the TRQ.
  • 20,000 KG is the minimum allocation under the CPTPP quotas for dairy, chicken and turkey, respectively. Applicants whose market share calculation does not result in an allocation at or above the 20,000 KG minimum threshold will normally not be issued an allocation, unless the applicant identifies the minimum volume they are willing to accept. Should an applicant’s market share calculation result in a volume lower than the identified volume, no allocation will be issued.
  • 25,000 dozen is the minimum allocation under the CPTPP quotas for eggs, and broiler hatching eggs and chicks, respectively. Applicants whose market share calculation does not result in an allocation at or above 25,000 dozen will normally not be issued an allocation, unless the applicant identifies the minimum volume they are willing to accept. Should an applicant’s market share calculation result in a volume lower than the identified volume, no allocation will be issued.
What happens if I cannot use my entire allocation? Can I return some? How do I do that?
  • An underutilization penalty will normally apply to allocation holders that do not utilize 90 or 95 percent of their allocation in a quota year, depending on the utilization threshold that is indicated in the applicable Notice to Importers.
  • Allocation holders that do not meet the minimum utilization threshold in the quota year may have their allocations adjusted downward by an under-utilization penalty for the new quota year.
  • If an allocation holder anticipates that they may not be able to utilize all or a portion of their quota allocation, they may return any portion of their unused allocation by no later than the return date indicated in the applicable Notice to Importers.  Any portion of an allocation that is returned by the return date will be considered as having been used for the purposes of administering the under-utilization policy.
  • Allocation holders who wish to return quota may do so by notifying Global Affairs Canada in writing of the volume of allocation they wish to return by no later than the applicable return date. This notification should be sent to the organizational mailbox associated with the administration of the applicable CPTPP quota.  
How can I access quota that has been returned by other allocation holders?
  • Returned quantities will normally be made available seven days after the return deadline to eligible allocation holders who have not returned any unused quantity of their allocation.
  • The first issuance of returned quota will be in proportion to the applicant’s initial allocation; afterwards, quota will be available on demand if any remains after the first issuance.
Is it possible to transfer quota? If so, to whom and how?
  • Yes.  The Minister may allow the transfer of allocations between allocation holders.
  • All quota transfers must be referred to Global Affairs Canada for consideration.
  • Requests must be made by way of the Transfer Request Form for the applicable specific CPTPP quota.
  • For all CPTPP dairy quotas, once an allocation holder has transferred all or part of their allocation to another allocation holder, they will not be able to receive a quota transfer for the remainder of the allocation year.  Conversely, once an allocation holder has received a transfer, they may not transfer any of their allocation to another allocation holder for the remainder of the quota year. 
I am a distributor. Why can’t I include sales of products to other distributors in my application?
  • Sales to other distributors are not allowed to be included in a distributor applicant’s total sales in order to ensure that the sale of that same quantity of products is not used by multiple distributors to qualify for an allocation. 
  • Distributors may include in their application all sales made to other types of businesses, including processors, retailers, food service, etc.
  • Distributors may also include quantities of products they exported during the reference period.
How do I get more information about the allocation process?
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