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CPTPP: Products Consisting of Natural Milk Constituents TRQ - Serial No. 1006

Date: October 1, 2020

This Notice replaces Notice to Importers No. 961 dated October 1, 2019, and sets out the policies and practices pertaining to the administration of Canada’s tariff rate quota (TRQ) for products of natural milk constituents under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

This Notice is provided pursuant to the authority of the (EIPA) and its corresponding , and remains in effect until further notice.

1. Definitions

Products of natural milk constituents means a product that is included in Item 125 on the (ICL), namely products of natural milk constituents falling under tariff item 0404.90.10 in the list of tariff provisions set out in the Schedule to the .

Refer to the List of EIPA commodity codes for products of natural milk constituents.

2. Allocation policy

• To be eligible, you must be active in the Canadian products of natural milk constituents industry at the time of application, and must remain active regularly during the quota year.
  • Note: You must, in addition, have been active regularly in the products of natural milk constituents 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 quantity of quota you will accept. If your calculated market share 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 market share allocation.

3. Eligibility criteria

You are eligible to apply for an allocation if you are a:

Processor

• that manufactures products of natural milk constituents in your own provincially-licensed or federally-registered facility.

Further processor

• that uses products of natural milk constituents in your manufacturing operations and product formulation.

Distributor

• that buys products of natural milk constituents and re-sells it to other businesses.
  • Note: Companies that procure or sell products of natural milk constituents 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 products of natural milk constituents 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 products of natural milk constituents manufactured by the processor during the reference period.

Further processors

• 10% is allocated to further processors on a market share basis based on the kilograms of products of natural milk constituents used by the further processor, in the manufacturing of further processed food products 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.
• 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 95% of your allocation in one year, you may have your initial 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 TRQs for Supply-Managed Products
• Key dates and access quantities
• Information concerning related persons
• How to apply for an allocation
  • Application form
  • List of EIPA commodity codes for products of natural milk constituents
• How to apply for an import permit
• Allocation transfer request form
• Contact us