Peanut Butter for Export to the United States (Item 5201 on Canada’s Export Control List) - Serial No. 1063
Date: November 1, 2021
Please note, on an exceptional basis, applications for the 2022 TRQ year are due on November 19, 2022.
This Notice replaces Notice to Exporters No. 199 dated September 30, 2016 and sets out the policies and practices pertaining to the administration of the tariff rate quota (TRQ) for exports of peanut butter to the United States (U.S.) under the U.S. WTO commitments.
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
- Returns, chronic return penalty and reallocation policy
- Monthly export summary reports
- Related links
Definitions
Peanut Butter means a product that is included in item 5201 on the (ECL), namely peanut butter classified under tariff item No. 2008.11.10 in the List of Tariff Provisions set out in the Schedule to the Customs Tariff for export to the U.S. The applicable U.S. tariff item number for peanut butter is 2008.11.05 of the Harmonized Tariff Schedule of the United States (USHTS). Only goods that are a "product of Canada" may enter the U.S. under Canada’s country-specific reserve. Exports of peanut butter to countries other than the U.S. do not require an export permit.
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.
- Manufacturer of peanut butter
- you are a manufacturer of peanut butter at the time of application, and must remain a manufacturer during the quota year.
Allocation policy
Current allocation holders:
- As an eligible applicant, you will be allocated a TRQ quantity based on your previous year’s utilization, as adjusted for any return penalty.
- For the purposes of the 2022 quota year, the previous year’s utilization will be calculated using 2019 figures, in recognition of the challenges due to Covid-19.
- Effective the 2022 quota year, your allocation will be pro-rated to 98% in order to establish and maintain a 2% reserve for new entrants.
- At the beginning of each allocation cycle any unallocated quantity will be made available to new entrants first and, as such, your allocation would only be pro-rated to the extent necessary to maintain the 2% reserve.
- For the 2022 quota year only, as an historical allocation holder, you will receive a minimum 100,000 kg, regardless of your utilization in 2019.
New entrants
- A reserve equal to 2% of the total TRQ quantity is established for new entrants annually.
- As a new entrant, you are eligible to receive an equal share of the new entrants’ reserve, up to a maximum of 100,000 kg.
- Any unallocated quantity from the new entrants’ reserve will be available throughout the year to all allocation holders. To obtain such quota, you must submit a written application to PeanutButter-BeurreArachide@international.gc.ca once you have used at least 80% of your allocation. Quota will be provided to you on a first-come, first-served basis. Any amounts taken from the new entrant’s reserve, and utilized, will be considered as part of your company’s total utilization for the purposes of the next year’s allocation calculations.
Returns, chronic return penalty and reallocation policy
Returns:
- You may return any portion of your allocation to the Department in writing by August 31.
- If you return quota by the return date, this quota will be considered utilized for the purpose of calculating your next year’s allocation.
- You may receive returned quota on a first-come, first-served basis, once you have used at least 80% of your original allocation.
- To receive a portion of the returned quota, you must submit a written application to PeanutButter-BeurreArachide@international.gc.ca, along with an invoice or purchase order demonstrating a need for additional quota.
- Utilization of quota returned by other allocation holders will not be considered part of your utilization for the purpose of calculating the next year’s allocation.
Chronic return penalty:
- If you return more than 5% of your quota in two consecutive years, you will receive an allocation in the following year that reflects your actual previous year’s utilization, as adjusted for pro-rating. For greater certainty, if you return more than 5% of your quota for two consecutive years, any returned quota in year 2 will not be considered as utilized for the purposes of calculating the following year’s allocation.
Reallocation policy:
- You may receive quota accumulated from the chronic return penalty through the new entrants’ reserve. Such quota will be a permanent quota increase. This quantity will be included as part of your previous year’s utilization for the new year calculation.
Monthly export summary reports
- You must submit a summary report of all exports made under the authority of permits issued.
- Your report must be submitted to PeanutButter-BeurreArachide@international.gc.ca by the 15th of each month following the month in which the actual export took place.
- Your report must include the following information: name of exporter, date of export, export permit number, U.S. consignee, U.S. Customs Entry number, invoice number and quantity exported (in kilograms).
- A sample form may be found here.
Related links
- Key Dates and access quantities
- How to apply for an allocation
- Apply for an EIPA file number (PDF version, 168KB)
- How to apply for an export permit
- Contact us
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