Notice to Exporters – Sugar Confectionery and Chocolate Preparations, Processed Foods, Dog and Cat Food for Export to the European Union and its Member States  (Items 5206 to 5208 on Canada’s Export Control List)

Serial No. 208
Date: September 1, 2017

This Notice is provided pursuant to the authority of the Export and Import Permits Act (EIPA) and its corresponding regulations. This Notice will remain in effect until further notice.

In Brief:

Under the Comprehensive Economic and Trade Agreement (CETA) between Canada and the European Union (EU) and its Member States, the EU agreed to establish a 10,000 metric tonne origin quota for imports of sugar confectionery and chocolate preparations, a 35,000 metric tonne origin quota for imports of processed foods, and a 60,000 metric tonne origin quota for imports of dog and cat food from Canada.

The origin quota year extends from January 1 to December 31, inclusive.

Exports from Canada of sugar confectionery and chocolate preparations, processed foods, and dog and cat food products that are eligible under the CETA origin quota are subject to export controls under the EIPA. Accordingly, an export permit is required for shipments of these products from Canada to the EU in order to obtain the preferential tariff rate under CETA.

This Notice to Exporters sets out the policies and practices pertaining to the administration of Canadian exports under the CETA origin quota for sugar confectionery and chocolate preparations, processed foods, and dog and cat food, and explains how to apply for export permits.

Summary of Key Dates and Access Quantities for the 2017 Quota Year

2017 – Origin Quota Year: September 21 to December 31

  • Access Quantities (pro-rated for the period from September 21 to December 31, 2017):
    • Sugar Confectionery and Chocolate Preparations – 2,795 metric tonnes, net weight;
    • Processed Foods – 9,781 metric tonnes, net weight ; and
    • Dog and Cat Food – 16,767 metric tonnes, net weight
  • Opening of the Origin Quotas for exports: September 21, 2017

Table of Contents

1.0 Purpose

1.1 The purpose of this notice is to:

  1. Set out the Minister’s policies and practices pertaining to the administration of the origin quotas for Canadian exports of sugar confectionery and chocolate preparations, processed foods, and dog and cat food; and
  2. Explain how to apply for export permits.

2.0 General Information

2.1 Under CETA origin quotas, certain products that do not satisfy the product-specific rules of origin under may qualify as originating under alternative product-specific rules of origin as specified in ).

2.2 The origin quotas specify the quantity of a product(s) that can qualify as originating for the purposes of the origin quota and receive preferential CETA tariff treatment. In order to receive this treatment the product must meet the product description and undergo sufficient production to satisfy the applicable product-specific rule of origin associated with that origin quota.

2.3 Weekly utilization rates for exports that require export permits for origin quota-eligible shipments are available online. The EU also publishes quota utilization rates on its website.

3.0 Products Covered

3.1 This Notice pertains to Tables A.2, A.3 and A.4 of which sets out the CETA provisions applicable to the products covered by this Notice, specifically:.

  1. Table A.2 Sugar Confectionery and Chocolate Preparations;
  2. Table A.3 Processed Foods; and
  3. Table A.4 Dog and Cat Food.

3.2 A detailed list of the origin quota products that are subject to export controls under the EIPA may be found in the .

4.0 Access Level

4.1 The annual origin quota levels for the products covered by this Notice are:

  1. Sugar Confectionery and Chocolate Preparations - 10,000 metric tonnes, net weight
  2. Processed Foods – 35,000 metric tonnes, net weight
  3. Dog and Cat Food - 60,000 metric tonnes, net weight

4.2 Exceptionally, for 2017, the origin quota access levels for these products for the period of September 21 to December 31, 2017 are:

  1. Sugar Confectionery and Chocolate Preparations – 2,795 metric tonnes, net weight
  2. Processed Foods – 9,781 metric tonnes, net weight
  3. Dog and Cat Food – 16,767 metric tonnes, net weight

4.3 CETA contains growth factors for each of the origin quotas covered under this Notice that provide for an increase in the volume of the Origin Quota if certain conditions are met. The growth factors are outlined at the end of Tables A.2, A.3 and A.4 in .

5.0 Export Permits

5.1 Types of Permits

5.1.1 A shipment-specific export permit is required for every shipment of sugar confectionery and chocolate preparations, processed foods, and dog and cat food products covered by this Notice in order to receive preferential tariff treatment available through the origin quota.

5.1.2 Shipment-specific export permits for products covered by this Notice are issued on a first-come, first-served basis.

5.1.3 Once an origin quota has been fully utilized, export permits will not be issued.

5.1.4 The may be found online.

5.2 Accessing CETA Origin Quotas for Sugar Confectionary and Chocolate preparations, Processed Foods, and Dog and Cat Food

5.2.1 As outlined in paragraph 3 of of CETA, the EU administers access to origin quotas on a first-come, first-served basis.

5.2.2 Pursuant to Paragraph 5 of , Canada has notified the EU of ¶¶ÒùÊÓƵ-issued export permit requirements for products exported under the applicable origin quotas. Accordingly, under Paragraph 6 of , the EU shall only provide preferential tariff treatment based on the alternative rule of origin for the origin quotas to products accompanied by an export permit.

5.2.3 In accordance with the CETA Protocol on Rules of Origin and Origin Procedures, the exporter of the product is required to provide an to the importer.

5.2.4 In order for the exporter to identify Origin Quota exports to the EU and to inform the importer of the application of Annex 5-A, the exporter must include a reference to Annex 5-A on the commercial invoice or other commercial document, and provide the importer with a copy of the export permit. In accordance with paragraph 4 of , the Parties shall not count any products against the annual origin quota without such reference.

5.3 How to Apply for a Permit

5.3.1 Information about the permit application process, including information about fees, the monthly billing system, and information required from applicants, is available on the ¶¶ÒùÊÓƵ website: Applying for an Export Permit (Non-strategic Products).

6.0 Contact us

6.1 Contact information is available on the ¶¶ÒùÊÓƵ website: .

6.2 For directory assistance, you may call 343-203-6820, or email: tic@international.gc.ca.