High-Sugar Containing Products for Export to the European Union and its Member States - Serial No. 1093
Date: September 28, 2022
This Notice sets out the policies and practices pertaining to the administration of High-Sugar Containing Products referred to in Table A.1 of of the Comprehensive Economic and Trade Agreement (CETA) between Canada and the European Union (EU) and its Member States.
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
- Calculation of Allocations
- Returns, under-utilization and chronic return penalties, and reallocation of allocations
- Accessing the CETA Origin Quota for High-Sugar Containing Products
- Related links
Definitions
"High-Sugar Containing Products (HSCPs)" means a product that is included in Item 5205 on the Export Control List (ECL), namely goods listed in Table A.1 of of the CETA between Canada and the EU and its Member States.
See the list of EIPA commodity codes for CETA HSCPs.
"Food Processor" means an establishment that manufactures the high-sugar containing products of the type eligible to benefit from the origin quota in its own facilities in Canada.
"Sugar Refiner" means an establishment that refines sugar in its own facilities in Canada, and that has been active in the Canadian sugar-refining sector for at least five years.
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
- a Sugar Refiner or a Food processor
Calculation of allocations
Pool 1:
- 75% of the total quantity is allocated on an equal share basis, less any penalties, to eligible sugar refiners that apply by the prescribed application deadline.
Pool 2:
- 25% of the total quantity is made available on a first-come, first-served basis to eligible food processors and sugar refiners for use at any time during the quota year.
- If you are an allocation holder in pool 1, you can obtain quantities in pool 2 if you have utilized at least 80% of your allocation and if you can demonstrate the need for additional quota.
- All requests for quantities from pool 2 must be sent to Sugar-Sucre.TIC@international.gc.ca.
Returns, under-utilization and chronic return penalties, and reallocation of allocations
- Returns: As an allocation holder, you may return any portion of your allocation to the Department in writing by the prescribed return date.
Note: In any quota year, returned quantities will be made available on a first come, first served basis to sugar refiners that hold an allocation from pool 1 until July 1. After that date and until the end of the quota year, returned quantities will be also available to other eligible sugar refiners and food processors.- In order to be eligible to use returned quota, allocation holders must utilize at least 80% of their allocation. This utilization threshold is not applicable to any allocation holder that previously returned part of their allocation, as long as the requested quantity does not exceed the returned quantity.
- Under-utilization penalty: If you use less than 90% of your initial allocation, your allocation will 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 return policy will be considered "utilized" for the purpose of the under-utilization penalty policy.
- Note: The under-utilization penalty will only be applicable once the overall quota utilization rate reaches 50% at the end of a given quota year.
- Chronic return penalty: If you have an average rate of return over 25% during two consecutive quota years, your allocation will be adjusted downward in the next quota year by 30% of your average returns during the two consecutive quota years.
- Note: The chronic return penalty will only be applicable once the overall quota utilization rate reaches 60% at the end of a given quota year.
- As an allocation holder, if you had your allocation reduced in a given quota year due to a chronic return and/or an under-utilization penalty, you can attempt to recuperate the lost quantity through utilization of a similar quantity either from returns or from pool 2 during the following quota year.
Accessing the CETA Origin Quota for High-Sugar Containing Products
In accordance with the CETA Protocol on rules of origin and origin procedures, as an exporter, you are required to provide an origin declaration to the importer. Additionally, you 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.
Related links
- Key Dates and Access Quantities
- 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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