Chicken and Chicken Products - Supplemental Imports (Items 96 to 104 on the Import Control List)
Serial No. 1057
Date: July 12, 2021
This Notice replaces Notice to Importers No. 1031 dated October 20, 2020, and will remain in effect until further notice.
This Notice is provided pursuant to the authority of the Export and Import Permits Act (EIPA) and its corresponding regulations.
In brief
Imports of chicken and chicken products into Canada are subject to import controls under Canada’s EIPA. Accordingly, an import permit is required for shipments of chicken and chicken products to enter Canada.
The Minister may, at their discretion, authorize imports of chicken and chicken products apart from the import access quantities, particularly if they judge that the importation of these products is required to meet Canadian market needs.
This Notice to Importers sets out the policies and practices pertaining to supplemental imports of chicken and chicken products.
Table of contents
- Purpose
- General information
- Products covered
- Supplemental import policies
- Authorization to import chicken for resale due to domestic market shortages
- Authorization to import dark chicken meat not supplied by the chicken farmers of Canada’s Domestic Supply Program
- Authorization to import chicken under the Import-to-Compete Program
- Authorization to import chicken under the Import for Re-Export Program (IREP)
- Authorization to import chicken and chicken products for the purpose of test marketing
- Authorization to import chicken and chicken products under extraordinary or unusual circumstances
- Import permits
- Contact us
- Appendices
- Appendix 1 -
- Appendix 2 - (PDF, 86 KB)
- Appendix 3 - (PDF, 79 KB)
- Appendix 4 -
- Appendix 5 -
- Appendix 6- IREP Forms:
To receive the IREP forms in a Microsoft Excel or Word format, when applicable, please submit your request by email to eics.scei@international.gc.ca- (PDF, 1.4 MB)
- (PDF, 1.3 MB)
- (PDF, 1.35 MB)
- (PDF, 188 KB)
1. Purpose
1.1. The purpose of this Notice is to set out the policies and practices pertaining to the authorization of supplemental imports for chicken and chicken products.
1.2. The present Notice should be read with the Notices to Importers for the World Trade Organization (WTO), Canada-United States-Mexico Agreement (CUSMA) and Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) chicken and chicken products tariff rate quotas (TRQs), which set out the policies and practices pertaining to the administration of those TRQs.
2. General information
2.1. In accordance with its commitments under the WTO, CUSMA and the CPTPP, Canada has in place three TRQs for imports of chicken and chicken products.
2.2. Under Canadian TRQs, in any given year, a predetermined quantity of imports of a good controlled under the EIPA can enter Canada at a lower or zero rate of duty, while imports over this quantity are subject to higher rates of duty. The TRQs therefore have three components: an import access quantity negotiated with Canada’s international trade partners; a within access commitment rate of duty that applies to imports up to the access level; and a higher, over access, commitment rate of duty for imports over the access level. The within and over access rates of duty that apply to imports of chicken and chicken products can be found in Canada’s .
2.3. Subsection 8.3.(3) of the EIPA allows the Minister to issue permits apart from the access quantity. In exercising their discretion under subsection 8.3.(3), the Minister takes into consideration whether the importation of these products is required to meet Canadian market needs.
2.4. Pursuant to the EIPA and its corresponding regulations, when deciding whether to authorize a request for supplemental imports, the Minister will take into account whether the applicant has furnished false or misleading information in connection with any reports required by the Act or the regulations made under the Act or by any condition of a supplemental import authorization, import allocation, or import permit during the 12-month period preceding the period in respect of which the supplemental import authorization is to apply. The Minister may attach conditions to supplemental authorizations and/or to supplemental import permits, and may amend, suspend, cancel or re-instate supplemental import authorizations and supplemental import permits.
3. Products covered
3.1. This Notice pertains to Items 96 to 104 of the Import Control List (ICL); namely chicken and chicken products classified under heading Nos. 01.05, 02.07, 02.09, 02.1.0, 16.01 and 16.02 in the list of tariff provisions set out in the Schedule to the . It also covers specially defined mixtures of chicken products as defined on the Department’s website. Appendix 1 provides a detailed list of the products covered and their associated EIPA product codes.
3.2. Processors of non-ICL products who require confirmation as to whether the product they intend to produce is eligible for a chicken and chicken products supplemental import authorization must send their request to the Canada Border Services Agency using the following email address: CBSA.SDM-MDS.ASFC@cbsa-asfc.gc.ca.
4. Supplemental import policies
4.1. There are six categories of supplemental import authorizations for chicken and chicken products:
- Authorization to import Chicken for Resale Due to Domestic Market Shortages
- Authorization to import Dark Chicken Meat not Supplied by the Chicken Farmers of Canada’s Market Development Program (MDP)
- Authorization to import Chicken Under the Import-to-Compete program
- Authorization to import Chicken Under IREP
- Authorization to import Chicken and Chicken Products for the Purpose of Test Marketing
- Authorization to import Chicken and Chicken Products under Extraordinary or Unusual Circumstances
The policies and procedures applicable to each category are set out below.
5. Authorization to import chicken for resale due to domestic market shortages
5.1. The following procedures are followed when processing applications for authorization for supplemental imports due to market shortages:
5.2. Market assessment and the whole bird policy
5.2.1. Applications for authorization for supplemental imports due to market shortages are assessed, among other factors, in terms of the Department’s analysis of the domestic supply and demand situation concerning whole birds. Applications for poultry parts will be authorized only when there is a shortage of whole birds. Shortages of poultry parts may exist even when there is an adequate supply of whole birds. Supplemental imports of parts when whole birds are available would interfere with the adjustment mechanisms in the marketplace. Exceptions will be considered when parts are used for the manufacture of end products that do not compete with poultry products (e.g., pet food).
5.2.2. Consideration of applications will, additionally, take into consideration any disruptions of customary arrangements between an applicant and their supplier(s).
5.3. Eligibility of applications
5.3.1. An application may be made by a firm that meets the Department’s definition of processor, distributor or foodservice operator. (The relevant criteria are set out in specific sections of the associated Notices to Importers.)
5.3.2. An application must be made on form, “Application for Authorization for Supplemental Imports - Request for Domestic Sourcing”, included as Appendix 2, and sent by e-mail to the Chicken Farmers of Canada (CFC), with a copy sent to the Department. The application must identify the product required and the specific week for which the product is requested. An application shall include only one product.
5.3.3. An applicant shall demonstrate that normal supply sources have been exhausted before applying for an authorization for supplemental imports. The application shall describe the applicant's own procurement efforts and explain the basis for assessing that a shortage exists in the whole bird market. The application shall indicate the end use of the product and identify related customers.
5.3.4. Applicants who have been issued import allocations of less than 100,000 kilograms total will be required to have exhausted these allocations before an application will be considered. Applicants with import allocations of 100,000 kilograms or more must have used at least 25% of each allocation per calendar year quarter. Import allocations will be considered exhausted only if all permits issued have been used and the allocation balances are zero. When assessing an application for supplemental imports, the quota of related companies will be taken into account. This section does not apply to allocations in the non-ICL group.
5.3.5. Applicants are advised to allow the maximum possible lead-time for processing of applications and should, therefore, inform the Department and the CFC of anticipated shortages as soon as these are identified. Normally, applications will not be accepted if the proposed week of entry is more than three weeks after the week of application.
5.3.6. Normally, officials will require 12 working days to process applications. However, the actual processing time required will vary with the nature and quantity of the product requested, market conditions and other factors.
5.4. Assessment of application
5.4.1. Each application is assessed in terms of the product and quantities requested. The quantity requested should reflect the applicant's normal throughput and the product should be a product normally used by the applicant and should be consistent with end product(s) normally sold to the applicant's customer(s).
5.4.2. The applicant's own procurement efforts are also evaluated. While supplemental imports may be authorized when there are general market shortages as defined in sub-section 5.2.1. Supplemental imports will not be authorized if shortages are the result of the applicant's own procurement problems.
5.4.3. Applications may be made for any controlled chicken product that is normally traded in Canada. Product specifications shall conform to normally accepted trading classes of the product (e.g., as delineated in Appendix 1). Applications shall describe accurately the product required, the acceptable quality, level and size variations, and acceptable substitutes. A new application shall be made if specifications are changed after sourcing has begun.
5.4.4. Special product specifications will only be considered if the applicant is known to specialize in that product and if the lead-time is adequate.
5.4.5. Applicants must indicate the week in which they wish to import the product. Normally, the delivery period will be a six day period from Monday through Saturday.
5.4.6. It is expected that the applicant will have made a reasonable effort to contact seven potential suppliers to procure required materials from domestic sources prior to applying for an authorization for supplemental imports due to a market shortage. Officials will pay particular attention to the reasons for the shortage, such as: when the shortage could have been identified; when it was actually identified; and what steps were taken by the applicant to address the situation. It is recommended that applicants contact the Department and the CFC regarding possible medium- to long-term supply shortages.
5.4.7. In case of product substitution, the applicant's ability to use the domestically-sourced product for the intended end use will be considered. Please see sub-section 5.5.3. of this Notice for information concerning product substitution.
5.5. Sourcing
5.5.1. The CFC will survey the domestic market for availability of the product requested and will inform the applicant of the results of this survey within three working days from the time the application is received.
5.5.2. The sourcing results will identify suppliers and the quantities offered; after receiving this information, the applicant must contact each supplier identified within one working day to negotiate price and delivery with these suppliers. The applicant is normally expected to purchase the sourced product up to the level of the requested quantity. The applicant shall notify the CFC as soon as procurement from domestic sources has been completed.
5.5.3. The sourcing results can include any commercially reasonable substitute product (e.g., eviscerated bird substitution for live bird) that can be used by the applicant to produce the identified end product (i.e., from a technical, quality, as well as economic viewpoint).
5.6. Continuation of application
5.6.1. If the applicant is not satisfied with the sourcing results, they may continue the application process using the form “Application for Authorization for Supplemental Imports - Continuation of Application”, included as Appendix 3 of this Notice.
5.6.2. Deadline for Continuation of Application: Any request to the Department for relief from the obligation to purchase the sourced product shall be made, in writing, within two working days from the time that the applicant receives the sourcing list from the CFC.
5.6.3. The applicant shall state in writing to the Department the results of discussions with all the persons on the sourcing list, including the product offered, the price, product specifications and delivery date. The applicant shall confirm the sourcing results within two working days.
5.6.4. The applicant shall substantiate why some or all of the products sourced by the CFC cannot be used to meet associated requirements, stating the reasons for the request for continuation and the results of the negotiations with companies on the sourcing list.
5.6.5. A request to continue an application may be considered under the following circumstances:
- the sourcing results indicate a market shortage;
- the product offered does not meet industry standards of quality;
- the product is not a reasonable substitute;
- the product is offered at market prices which appear excessive in comparison to current regional market prices; or,
- the offer is subject to terms and conditions incompatible with industry standards.
5.7. Departmental assessment
5.7.1. The Department may require three working days to assess the sourcing results, the application itself and current market conditions.
5.7.2. After the application has been assessed along with the relevant information described above, a decision will be communicated to the applicant, and also to the CFC. If supplemental imports are authorized, the applicant will also be advised as to products, quantities and related conditions.
5.7.3. Any credits due to WTO, CUSMA or CPTPP permits that are returned or due to unused permits, after supplemental imports have been authorized, will be deducted from the quantity authorized.
5.8. Supplemental import permits pursuant to an authorization under this section
5.8.1. Eligible applicants are issued a unique EIPA authorization number for each approved request. As with other permit applications, the authorization number should be inscribed on the permit application in the box marked "COMMENT". The applicant may apply for permits up to the total quantity authorized, for the product authorized and for the delivery period authorized. The supplemental import permit will be valid only during the delivery week requested by the applicant.
5.8.2. No substitution of product will be allowed other than those acceptable under CFC sourcing arrangements and no extension of the permit validity period will be made. Changes in product or validity period would require a new application for supplemental imports and a new sourcing effort by the CFC.
5.8.3. Unused supplemental import authorizations expire at the end of their validity period.
5.8.4. Additional information concerning the issuance of supplemental import permits is included in Section 11.0.
5.9. Administrative measures which may be applied
5.9.1. Administrative measures will normally be applied to suppliers in the following cases:
- Normally, if product offered by a supplier in response to CFC sourcing efforts is found not to be available when the applicant contacts the supplier, the supplier will be removed from the sourcing list for a period of 60 calendar days from the date when the product was offered for sale;
- Normally, if product offered by a supplier and purchased by the applicant is not delivered within the delivery period specified or does not meet the agreed specifications, the supplier will be removed from the Department’s supplier's list for a period of one year.
5.9.2. Administrative measures will normally be applied to applicants in the following cases:
- normally, if an applicant does not contact suppliers by the deadline indicated by the CFC (a minimum of one working day from the time the sourcing information was received from the CFC) the application will be rejected;
- normally, when two applications from an applicant have been rejected for incompleteness within a 90 day period, no further applications will be accepted from that applicant for a period of 60 calendar days after the second rejection;
- normally, if an application is fully sourced and the applicant does not purchase the sourced product up to the level of the request, no further applications will be accepted from that applicant for a period of 60 days from the date when they proposed to import the chicken;
- normally, if an application is partially sourced by the CFC and supplemental imports are authorized for some or all of the shortfall on condition that some or all of the CFC sourced product be purchased and this obligation is not fulfilled, no further applications will be accepted from that applicant for a period of 60 calendar days from the date when they proposed to import the chicken. Applicants should be ready to provide evidence that they have purchased, or offered to purchase, product sourced in the domestic market pursuant to an application for supplemental imports;
- normally, if an applicant withdraws an application after sourcing has been started by the CFC for reasons other than having procured his requirements, no further applications will be accepted for a period of 30 days during which that applicant normally would have been eligible to apply for supplemental imports;
- normally, if an applicant applies for, and receives, a supplemental import permit pursuant to an authorization under this Section and offers that same product, or a reasonable substitute, for sale on the CFC sourcing list for the same week, no further requests for supplemental import permits will normally be considered for a period of 60 days after the product was offered for sale on the sourcing list.
6. Authorization to import dark chicken meat not supplied by the CFC’s Domestic Supply Program
6.1. If the product sought is not available from a processor, at a landed price competitive with U.S. product, the non-ICL manufacturer shall notify the Department, at least three weeks in advance, who in turn will request CFC to proceed with the sourcing process. Supplemental imports will be authorized if the requested product cannot be sourced domestically at a competitive price. The landed price formula is based on a 12 week rolling average Urner Barry Wholesale Price (Northeast, boneless/skinless thigh meat, special trim) plus relevant transportation costs, custom brokerage fees, and exchange rate conversions.
6.2. An applicant shall demonstrate that normal supply sources have been exhausted before applying for an authorization for supplemental imports. The application shall describe the applicant's own procurement efforts through potential MDP suppliers.
7. Authorization to import chicken under the Import-to-Compete Program
7.1. Supplemental imports of chicken under Import-to-Compete are authorized to eligible applicants (refer to the Chicken and Chicken Products Notices to Importers for eligibility criteria) under three circumstances:
- for the manufacture of new non-ICL products;
- for the difference between an allocation under the non-ICL group of the chicken and chicken products TRQs and the allocation holder’s production during the reference period of September 1 to August 31 immediately preceding the new quota year (the shortfall). Applicants are only eligible to receive such shortfall allocations if they have applied for an allocation under the non-ICL pools of both the WTO chicken and chicken products TRQ and CUSMA chicken TRQ (this requirement is not applicable to supplemental import authorization requests for dark meat); or
- for increased production of non-ICL products during the quota year.
7.2. A request for authorization for supplemental imports may be submitted to the manager of the chicken and chicken products TRQs at any time during the calendar year. Eligible applicants whose non-ICL chicken products have a dark meat component will be referred to the CFC’s MDP for eligible quantities of chicken pursuant to this portion of their application.
7.3. Manufacturers who have been issued import allocations for production of non-ICL chicken products will normally be required to have exhausted these allocations before supplemental imports may be authorized under this provision. Allocations will be considered exhausted only if all permits issued have been used and the allocation balances are zero.
7.4. Manufacturers applying to the Department for import permits for chicken under this provision must state the quantity and the specification of the product to be manufactured and the anticipated production and delivery dates.
7.5. Manufacturers importing chicken under this provision are subject to the condition that they agree to subsequently provide the information listed in Appendices 4 and 5 of this Notice. This information is used to confirm that the specified chicken products were produced, that the associated sales were made, and that payment was received. Normally, if a manufacturer applies solely for the "shortfall", only the information listed in Appendix 4 accompanied by a statement by the Chief Executive Officer (CEO) will be required.
7.6. Should a company fail to provide the required information in section 7.5 or should the information provided indicate that it did not both produce and sell the agreed-upon chicken products in the prescribed period, any future allocations to that company may be reduced and other action taken under the EIPA.
7.7. Meat-on-meat products and brochettes are not eligible for supplemental authorization under the Import-to-Compete Program.
8. Authorization to import chicken under the IREP
8.1. This program is limited to processors. For the purposes of the IREP, a processor carries on activities in federally registered Canadian plants owned and operated by the applicant that involve the slaughtering of chicken, cutting up of eviscerated chicken, de-boning of eviscerated or cut up chicken, or further processing. The latter includes, but is not limited to, the manufacturing of such products as patties, nuggets, fingers, rolls or roasts produced from chicken meat, as well as the further processing function of smoking or drying, coating or seasoning chicken meat.
8.1.1. Applicants approved for participation in the program for a given year must comply with program terms and conditions, permit conditions, as well as reporting requirements. Normally, failure to comply with program terms and conditions, permit conditions as well as reporting requirements, or failure to provide updated and accurate information, could result in the application of sanctions as set out in Section 8.8.
8.1.2. Marinated, uncooked, individually- or bulk-frozen chicken products exported under Chapters 2 and 16 of the Schedule will normally not be authorized.
8.2. An IREP participant:
- must be the importer of record of those products;
- must be the sole processor of those products; and
- must subsequently re-export the associated processed product as the exporter of record.
8.2.1. As the importer of record, the name of the IREP participant should correspond to the importer name on customs release documentation (e.g., B3, section 1), and the IREP participant owns the imported chicken or chicken products. As the exporter of record, the name of the IREP participant should correspond to the importer name on foreign customs release documentation (e.g., U.S. Entry Summary, box 26).
8.2.2. Diversion of product imported under the IREP to the Canadian market is prohibited. Specifically, the transfer or sale of products imported under the IREP, or of finished goods containing products imported under the IREP, within Canada or to a Canadian resident or company is prohibited.
8.3. The IREP authorization year
8.3.1. The IREP authorization year extends from June 1 to May 31 inclusive.
8.4. Application process
8.4.1. To participate in the IREP, a Canadian processor must apply for an authorization for supplemental imports each authorization year. An applicant may submit an application at any point during the authorization year.
8.4.2. IREP participants seeking an authorization for continued participation in the program may be eligible for the streamlined renewal process detailed in Section 8.4.6.
8.4.3. An application is composed of the following documents:
- application form (one per imported ingredient);
- export Product(s) List (Section 13) form (one per imported ingredient);
- recipe for each finished product;
- label for each finished product;
- United States Department of Agriculture (USDA) Application for Approval of Labels, Marking or Device, stamped by the USDA;
- processing procedures and detailed explanation of the loss factor declared in the Export Product(s) List (Section 13) (signed);
- contract or purchase order documentation from foreign client (for new applications only).
8.4.4. The application form and related documents are included in Appendix 6. They must be submitted electronically to the IREP mailbox (irep@international.gc.ca). Incomplete applications will not be processed until all information has been received.
8.4.5. To be eligible to continue to participate in the IREP, IREP participants must submit their application to the Department no later than March 31 immediately preceding the start of the authorization year for their continued participation to be approved by June 1.
8.4.6. Streamlined renewal process: To be eligible for the streamlined renewal process, applicants must satisfy the following four criteria:
- the IREP participant is applying for an imported ingredient that has already been approved for the current authorization year;
- the IREP participant is not applying for new finished products;
- the IREP participant has not changed its recipes, labels, processing procedures or loss factors (i.e., the data in latest approved Export Product(s) List (Section 13) are still valid); and
- the IREP participant was not suspended for non-compliance with the terms, conditions or reporting requirements of the program during the 12 months preceding the application.
8.4.7. IREP participants who do not meet all four eligibility criteria for the streamlined renewal process must submit complete applications as per section 8.4.3.
8.4.8. As with the regular application process, the streamlined renewal process requires one application form for each ingredient for which an authorization is being sought. Under the streamlined renewal process, however, eligible applicants may select the renewal check-box that appears on the application form. Other forms and supporting documents listed in section 8.4.3. are not required to be submitted at the time of application under the streamlined renewal process; however, they must be supplied on demand if requested.
8.4.9. Applicants and/or IREP participants will be apprised in writing of the result of their application. The letter of authorization will provide additional information concerning the terms, conditions and reporting requirements of the program.
8.4.10. Each authorization to participate in the IREP is conditional upon receipt of the CEO acceptance letter (see template in Appendix 6). Failure to provide this letter within 30 days of receipt of the letter of authorization will result in the IREP participant being deemed to not have accepted all the terms and conditions found herein and in its letter of authorization, and its participation in the program will be ended.
8.4.11. Should an IREP participant wish to modify any information in its original application (including, but not limited to, a change in a recipe or additional products), an amendment request must be submitted for approval by the Department prior to implementation of the change by the IREP participant.
8.5. Permit conditions
8.5.1. IREP participants will be eligible to receive import permits subject to certain conditions, including:
8.5.2. IREP participants must export all products imported under the IREP within 90 calendar days of the date of entry indicated on the associated supplemental import permit.
8.5.3. IREP permits issued in a given authorization year will be valid only for that authorization year.
8.5.4. For imports of bone-in breast for processing and re-export of boneless chicken products, a conversion rate of 63% is used for reconciling the IREP participants’ imports and exports for this product.
8.5.5. For marinated, individually- or bulk-frozen chicken, the quantity of chicken in the finished product is determined by total protein content analysis, based on Health Canada’s Canadian Nutrient Files, conducted at an accredited, independent laboratory. The Department will calculate the quantity of chicken in the finished product as follows:
((protein content per serving as declared on label/serving size as declared on label)-added protein*100) / Health Canada base meat protein percentage = percentage of IREP chicken in the finished product
For example, Health Canada’s base meat protein content for raw, water chilled, broiler breast meat is 22.74%.
((19g protein content / 100g serving size)* 100) / 22.74% = 83.55%
The percentage of imported chicken included in the finished product is calculated based on the net weight of the finished product.
8.5.6. For marinated, individually- or bulk-frozen chicken, the Department will oversee the collection and delivery of all samples of finished products to the laboratory with all costs borne by the IREP participant or applicant. Please note that if the laboratory results differ from the declaration on the label, the Department will apply the laboratory results for its calculation of the percentage of IREP chicken in the finished product, effective the date of laboratory analysis. The Department will accept results of laboratory analysis only where it has overseen the collection and delivery of the samples of finished products. Samples analyzed by laboratories under direct instruction of IREP participants will not be accepted. Interference with samples and/or laboratory analysis, including any communication between the IREP participant or applicant and the laboratory with regard to samples collected and delivered by the Department, will result in an immediate suspension from participating in the IREP.
8.6. Reporting requirements
8.6.1. Monthly export reports: IREP participants must submit, electronically, monthly export reports for all IREP product exports in a given month (including a nil report if applicable) (irep@international.gc.ca) by the end of the following month. These reports must be prepared in the prescribed format using the template in Appendix 6. Units, headers or structure cannot be modified. All fields in the template must be filled for each export shipment. The Department may at any time request supporting export documentation for any reported shipment (see section 8.7.1.).
8.6.2. Bi-monthly inventory reports: IREP participants must submit, electronically, bi-monthly inventory reports. These reports must be prepared in one of the prescribed formats using the template in Appendix 6. Units, headers or structure cannot be modified. The inventory report must be an account, on the first day of the month (starting August 1 of the authorization year), of any product imported under the IREP and any intermediary, finished product or product in the processing phase containing the product imported under the IREP, that has not yet been exported. It must include quantities at the manufacturing facility and, if applicable, quantities stored offsite within Canada.
8.6.3. Only products declared in an approved Export Product(s) List (Section 13) and manufactured with inputs imported under the IREP are eligible to be reported under the IREP. Products manufactured using controlled inputs imported under the TRQs or obtained from other sources (including the CFC’s MDP) are not eligible to be reported under the IREP, and products exported prior to the import of a corresponding quantity of controlled inputs under the IREP are not eligible to be reported as exports under the IREP. An IREP participant who submits erroneous reports may be subject to sanctions (see section 8.8.).
8.6.4. IREP participants must provide a declaration, using the template in Appendix 6, from their CEO, stating that all products imported under the IREP during the authorization year have been exported in accordance with all program terms and conditions, permit conditions, and that reporting requirements were met. This letter should only be submitted once it has been determined that all of these criteria have been fulfilled. This letter may not be submitted prior to May 31 of the relevant authorization year, but must be provided no later than September 30 of the following authorization year.
8.7. Additional information
8.7.1. IREP participants must retain, for a period of seven years, and provide to the Department on demand, copies of the following documents:
- a) purchase documents for the imported product:
- purchase orders and commercial invoices
- proof of payment (e.g., banking records)
- descriptive literature which indicates the imported product’s composition
- if available, classification rulings issued by the CBSA related to the imported product
- b) import documents:
copies of complete release and accounting packages submitted to the CBSA. Packages include:- cargo control documents (e.g., Bill of Lading)
- CBSA Form B3
- commercial invoice
- any required permits, licenses, or certificates (e.g., Canadian Food Inspection Agency (CFIA) inspection certificate
- c) export documents:
- transportation documents related to the exportation of the finished product (e.g., Bill of Lading, freight invoices)
- accounting documents related to the sale of exported product (e.g., letter of intent from foreign customer, purchase order, sales contracts, commercial invoices, proof of payment)
- any required permits, licenses, or certificates (e.g., CFIA inspection certificate)
- copies of the importing country’s customs documentation, completed and certified by a customs officer of the country to which the goods were exported, which fully describes the goods (e.g., U.S. Entry Summary for exports to the U.S.)
- for export destinations other than the U.S., a submission to the Canadian Export Reporting System (CERS)
- d) documents concerning processing of imported products:
- recipes
- packaging and labeling for product(s) exported under the IREP
- production records to allow tracking of imported product(s), including inventory levels, quantities of raw materials used and quantities of finished product(s)
- descriptive literature related to manufacturing processes and products manufactured.
8.7.2. The Department may request additional information, and may also request that an independent public accountant (or an accountant named by the Department) certify information provided to it by the IREP participant.
8.7.3. IREP participants may be subject to unannounced onsite verification by the department. In accordance with section 10.2 of the EIPA, the Department inspectors may, at all reasonable times, have access to facilities, warehouses and any other location where IREP products may be processed or stored. Accordingly, IREP participants are required to cooperate fully in the event of an inspection, audit or examination.
8.8. Sanctions
8.8.1. Failure to comply with any term or condition of the IREP or any of its reporting requirements will normally result in suspension from participation in the IREP (up to the remainder of the authorization year), cancellation of import permits, reduction of an IREP participant's TRQ allocation(s) and/or prosecution for offences against the EIPA. An IREP participant that is suspended from participation in the IREP is not eligible to receive IREP import permits.
8.8.2. Should the Department's reconciliation of an IREP participant’s imports and exports under the IREP indicate that product imported by that IREP participant under the IREP has been in Canada for more than 90 calendar days, the IREP participant will normally be suspended from the program until the Department determines that the situation has been rectified and that the IREP participant is in compliance with program terms and conditions.
8.8.3. Should there be unresolved discrepancies in the information provided by an IREP participant, that IREP participant may be suspended from the program until the Department determines that the situation has been rectified and that the IREP participant is in compliance with program terms and conditions.
9. Authorization to import chicken and chicken products for the purpose of test marketing
9.1. Supplemental imports may be authorized to facilitate test marketing in the Canadian market of new products that are, for example, unique or are produced with unique processes and require a substantial capital investment for their production.
9.2. Authorization for supplemental imports for purposes of test marketing may be issued only for products that are marketed directly to consumers.
9.3. Companies that intend to conduct test marketing of a specific product must normally plan the activity within their annual TRQ allocations. Companies that have been issued allocations will normally be required to have exhausted these allocations before supplemental imports may be authorized under this provision.
9.4. Applications made on company letterhead may be submitted to the manager of the chicken and chicken products TRQs and should contain the following information:
- a description of the product and related production processes, with indications respecting unique features of same;
- a description of a proposed test marketing program, identifying test market areas, market channels, timing, promotion plans and marketing costs, product quantities required for the proposed test marketing program, and an analysis showing the minimum test market results required to decide in favour of the capital investment in Canadian production facilities; and,
- a detailed outline of the resulting minimum capital investment and job creation; proposed financing required to produce the product, e.g., facilities, equipment, production capacity; and the time required to bring such facilities on line from the time of the department’s decision to approve the test marketing program.
9.5. Companies are required to commence production in Canada as soon as is feasible after the successful completion of the test marketing program.
9.6. Imports pursuant to an authorization issued under this provision shall only be made for the products to be test marketed, for the prescribed test marketing period, and for the approved quantities.
9.7. Once these quantities or the period have been exhausted, further permits may be authorized only for the same product in quantities sufficient to continue serving the test marketing areas during a period reasonably required for the construction of the domestic production facilities. Once such facilities have been established, no further permits will be allowed for either the test market product or for required raw materials. An applicant may submit only one test marketing application for a given product.
9.8. Successful applicants will be required to provide monthly statistics on the sales of imported products by test area. Failure to submit these statistics may result in suspension of import privileges under this provision.
10. Authorization to import chicken and chicken products under extraordinary or unusual circumstances
10.1. Other applications for authorization for supplemental imports due to extraordinary or unusual circumstances will be evaluated on their individual merits.
11. Import permits
11.1 Information about applying for import permits can be found on the department’s website.
12. Contact us
12.1. Names and direct phone numbers for quota manager(s), permit officer(s), and the Help Desk are available on the department’s website.
12.2. Questions concerning the sourcing of domestic product can be addressed to the CFC at:
Chicken Farmers of Canada
1610-50 O'Connor Street
Ottawa, Ontario
K1P 6L2
Telephone: 613-241-2800
e-mail: sourcing@chicken.ca
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