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CPTPP: Milk Powders TRQ - Serial No. 976

This Notice replaces Notice to Importers No. 942 dated May 1, 2019 and sets out the policies and practices pertaining to the administration of Canada’s tariff rate quota (TRQ) for milk powders 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.

1. Definitions

Milk powders means a product that is included in Item 119 and 120 of the , namely milk powders falling under tariff item No. 0402.21.11 and 0402.29.11 in the list of tariff provisions set out in the Schedule to the .

See the List of EIPA commodity codes for milk powders.

2. Allocation policy

• To be eligible, you must be active in the Canadian milk powders industry at the time of application, and must remain active during the quota year.
  • Note: You must, in addition, have been active in the milk powders 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 market share 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 market share allocation.

3. Eligibility criteria

You are eligible to apply for an allocation if you are a:

Processor:

That manufacturers milk powders in your own provincially-licensed or federally-registered facility.

Further Processor:

• That uses milk powders as an ingredient in the production of further processed food products, in your own provincially-licensed or federally-registered processing facility.

Distributor:

• That buys milk powders and resells it to other businesses.
• Note: Companies that procure or sell milk powders 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 powder and sells it directly to final consumers.

4. Calculation of allocations

Processors:

• 80% is allocated to processors on a market share basis based on the kilograms of milk powders manufactured by the processor during the reference period.

Further Processors:

• 10% is allocated to further processors on a market share basis based on the kilograms of milk powders used by the further processor in the manufacturing of further processed food products during the reference period.

Distributors:

• 10% is allocated to distributors on an equal share basis.

5. Transfer, return and underutilization of allocations

• If you wish to transfer any portion of your allocation, you must submit a transfer request form.
  • Note: If you transfer any portion of your allocation, you are not eligible to receive transfers from other allocation holders during the year. If you receive a transfer, you are not eligible to transfer any portion of your allocation.
• 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, in proportion to their initial allocation, or on demand if quantities still remain after the first offer.
• If you use less than 95% of your allocation in one year, you may have your allocation adjusted downward by an underutilization penaltyin 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.

6. Related links

• General Information on the Administration of Import Tariff Rate Quotas (TRQs) for Supply-Managed Products
• Key dates and access quantities
• Information on related persons
• How to apply for an allocation
  • Application form
  • List of EIPA commodity codes for milk powders
• How to apply for an import permit
• Allocation transfer request form
• Contact us