CPTPP: Milk TRQ – Serial No. 1116
Date : May 1, 2024
This Notice replaces Notice to Importers No. 1048 dated May 1, 2021 and sets out the policies and practices pertaining to the administration of Canada’s tariff rate quota (TRQ) for milk 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
Milk means a product that is included in Item 117 of the (ICL), namely milk falling under tariff item Nos. 0401.10.10 and 0401.20.10 in the list of tariff provisions set out in the Schedule to the .
See the List of EIPA commodity codes for milk.
Allocation policy
- To be eligible, you must be active in the Canadian milk 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 milk 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.
- Please note that 85% of the TRQ is reserved for the importation of goods in bulk (not for retail sale) to be processed into dairy products used as ingredients for further food processing (secondary manufacturing). For this TRQ, further food processing (secondary manufacturing) means that the tariff heading (first four digits) of the ingredient dairy product manufactured with the imported product is different than the resulting further processed product.
- Applicants may apply for quota with processing requirements and/or no end-use requirements. Please ensure this is clearly indicated in the application.
- Note: Food service establishments (e.g. restaurants) are not considered further processors.
Eligibility criteria
You are eligible for an allocation if you are a:
Processor:
- that processes milk in your own provincially-licensed or federally-registered facility.
Distributor:
- that buys milk and re-sells it to other businesses.
- Note: Companies that procure or sell milk 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 milk and sells it directly to final consumers.
Calculation of allocations
The Minister will allocate the TRQ to processors and distributors on a market share basis, considering the quantities requested by each eligible applicant, as follows:
Processors:
- based on the kilograms of milk processed by the processor during the reference period.
Distributors:
- based on the kilograms of milk 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.
- Note: Transfer requests will normally only be considered and approved if the portion transferred is utilized in accordance with the conditions under which the TRQ was originally allocated. For example, an allocation issued for the importation of goods in bulk to be used as ingredients for further food processing will be approved for transfer on this basis. The department may require evidence that the transferred allocation is utilized in accordance with the conditions under which the TRQ was originally allocated.
- 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: