Sugar-containing Products for Export to the United States under the Canada-United States-Mexico Agreement - Serial No. 1034
Date: December 01, 2020
Updated in December 2022
This Notice sets out the policies and practices pertaining to the administration of Sugar-Containing Products referred to in TRQ - US 10 under the Canada-United States-Mexico Agreement (CUSMA).
This Notice is provided pursuant to the authority of the (EIPA) and its corresponding , and remains in effect until further notice.
Table of contents
- Definitions
- Eligibility criteria
- Allocation policy
- Calculation of allocations - 2021
- Calculation of allocations – 2022 and onwards
- Returns, under-utilization and chronic return penalties, and reallocation of allocations
- Exports under your CUSMA-SCP allocation
- Related links
Definitions
Sugar-Containing Products (SCPs) means a product that is included in Item 5203 (b) on the Export Control List (ECL), namely goods listed in subparagraph (g) of TRQ - US 10 of Appendix 2: Tariff Schedule of the United States - (Tariff Rate Quotas) to Annex 2-B of Chapter 2 in CUSMA. See the list of EIPA commodity codes for CUSMA SCPs. Any commodity code not listed therein is not eligible for preferential treatment under this TRQ.
CUSMA SCP TRQ means, TRQ - US 10 of Appendix 2: Tariff Schedule of the United States - (Tariff Rate Quotas) to Annex 2-B of Chapter 2 in CUSMA.
Eligibility criteria
You are eligible for an allocation if you are a:
- Resident of Canada
- your head office is in Canada or you operate a branch office in Canada; and
- Producer of SCPs
- you were active in the production of SCPs during the reference period, you are active in the production of SCPs at the time of application, and you will remain active in the production of SCPs during the quota year.
- Note: Active involvement means the production of SCPs in your own facility and includes continuing to contribute to employment and value-added activities in Canada.
- you were active in the production of SCPs during the reference period, you are active in the production of SCPs at the time of application, and you will remain active in the production of SCPs during the quota year.
Allocation policy
- To be eligible to apply, you must be a Producer of SCPs.
Calculation of allocations - 2021
Pool 1:
- 80% of total quantity is allocated on an equal share basis to applicants that utilized at least 1,000,000 kg under the 2018-19 WTO SCP TRQ.
Pool 2:
- 17% of total quantity is allocated on an equal share basis to applicants that:
- utilized less than 1,000,000 kg under the 2018-19 WTO SCP TRQ;
- were a new entrant under the 2019-20 WTO SCP TRQ; or
- used the 2020 CUSMA SCP TRQ.
Pool 3:
- 3% of total quantity is allocated on an equal share basis to new entrants, to a maximum of 1% of total quantity per applicant. Any remaining quantity is available, upon submission of a written application to Sugar-Sucre@international.gc.ca, on a first-come, first-served basis to allocation holders that have used at least 80% of their allocation.
Calculation of allocations – 2022 and onwards
Pool 1:
- 97% of total quantity is allocated based on each eligible applicant’s utilization in the previous year, including any eligible increases or penalties. Allocations are pro-rated to 97% of eligible allocations, as applicable.
Pool 2:
- 3% of total quantity is allocated on an equal share basis to new entrants, to a maximum of 1% of total quantity per applicant. Any remaining quantity is available, upon submission of a written application to Sugar-Sucre@international.gc.ca, on a first-come, first-served basis to allocation holders that have used at least 80% of their allocation.
Returns, under-utilization and chronic return penalties, and reallocation of allocations
- Returns: You may return any portion of your allocation to the Department in writing by the prescribed return date.
- Note: Returned quantities will be made available on a first-come, first-served basis to allocation holders that have not returned any quota, and that have used at least 80% of their initial allocation, during that quota year, and that have submitted a written application to Sugar-Sucre@international.gc.ca, along with an invoice or purchase order demonstrating a need for additional quota.
- Under-utilization penalty: If you use less than 90% of your initial allocation, your allocation will normally be adjusted downwards in the next quota year to reflect your actual utilization.
- Note: Any portion of your allocation that you return in accordance with the returns policy will be considered to have been used for the purpose of the under-utilization penalty policy.
- Chronic return penalty: If you have an average rate of return over 25% over the two previous consecutive years, your allocation will normally be adjusted downward in the next quota year by 30% of your average returns during those two previous consecutive years.
- Re-allocation policy: Quantities accumulated from under-utilization and chronic return penalties will be offered on an equal share basis to allocation holders (that were not subject to an under-utilization or chronic return penalty during that quota year) and that requested an increase in their application.
Exports under your CUSMA-SCP allocation
Any person that receives an allocation under this TRQ is responsible for ensuring their compliance with the EIPA, its regulations and applicable notices including this notice.
To use an allocation, you must request and obtain a shipment specific export permit from ¶¶ÒùÊÓƵ for each shipment that you send to the United States. Permits issued for the export of SCPs covered by this Notice can only be used to export SCPs to the United States included in Item 5203 (b) and counted towards the CUSMA-SCP TRQ, and which are included in the CUSMA-SCP commodity handbook, according to the quantity and tariff classification indicated on the permit. Any other use of this allocation may constitute an offence under the EIPA.
When declaring shipments of these goods under this TRQ to the U.S. authorities, you must ensure that they are correctly classified and accounted for only against the CUSMA-SCP TRQ.
Related links
- Key Dates and Access Quantities
- How to apply for an allocation
- Application form (PDF, 162 KB)
- Apply for an EIPA file number (PDF version, 168KB)
- How to Apply for an Export Permit
- Contact Us
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