CPTPP: Cream TRQ – Serial No. 1113
Date: May 1, 2024
This Notice replaces Notice to Importers No. 1041 dated May 1, 2021 and sets out the policies and practices pertaining to the administration of Canada’s tariff rate quota (TRQ) for cream 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.
Table of contents
- Definitions
- Allocation policy
- Eligibility criteria
- Calculation of allocations
- Transfer, return and under-utilization of allocations
- Related links
Definitions
Cream means a product that is included in Item 117.1 of the (ICL), namely cream falling under tariff item Nos. 0401.40.10 and 0401.50.10 in the list of tariff provisions set out in the Schedule to the .
See the List of EIPA commodity codes for cream.
Allocation policy
- To be eligible, you must be active in the Canadian cream 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 cream 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 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 allocation.
- You must specify in your application a quantity requested. If your calculated allocation is more than the quantity requested in your application, you are issued an allocation up to the amount you specified.
Eligibility criteria
You are eligible for an allocation if you are a:
Processor:
- that manufactures cream in your own provincially-licensed or federally-registered facility.
Further processor:
- that uses cream in your manufacturing operations and product formulations.
Distributor:
- that buys cream and re-sells it to other businesses.
- Note: Companies that procure or sell cream 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 cream and sells it directly to final consumers.
Calculation of allocations
The Minister will allocate the TRQ to processors, further processors and distributors on a market share basis, considering the quantities requested by each eligible applicant, as follows:
Processors:
- based on the kilograms of cream manufactured by the processor during the reference period.
Further processors:
- based on the kilograms of cream used by the further processor in the manufacturing of food products during the reference period.
Distributors :
- based on the kilograms of cream sold by the distributor during the reference period.
- Note: You must exclude the following products from your application:
- products sold to other distributors;
- products sold to related persons; and
- products sold at the retail level to consumers.
- Note: You must exclude the following products from your application:
Should 100% of the TRQ not be allocated during the initial allocation process (i.e. no eligible applicants or the quantity requested by all eligible applicants is less than the total quantity of TRQ), all remaining quantities will be made available for allocation on the department’s website. The eligibility criteria for the allocation of any available quantities continues to apply, with volumes being allocated on an on-demand basis.
Transfer, return, and under-utilization of allocations
- If you wish to transfer any portion of your allocation, you must submit a transfer request form.
- You may return any portion of your allocation to the department in writing by the prescribed return date.
- Note: Returned quantities will normally be made available seven days after the return date to eligible allocation holders, who have not returned any portion of their allocation, on a market share basis, if the quantity requested exceeds the quantity available. If the quantity requested is less than the quantities available, the reallocation will be done on an on-demand basis.
- If you use less than 95% of your allocation in one year, you may have your 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.
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
- How to apply for an import permit
- Allocation transfer request form
- Contact us
- Date modified: