CETA: Cheese of All Types TRQ – Serial No. 993
Date: October 1, 2020
This Notice replaces Notice to Importers No. 957 dated October 1, 2019 and sets out the policies and practices pertaining to the administration of Canada’s tariff rate quota (TRQ) for cheese under the Comprehensive Economic and Trade Agreement (CETA).
This Notice is provided pursuant to the authority of the (EIPA) and its corresponding , and remains in effect until further notice.
Table of contents
1. Definitions
Cheese means a product that is included in Items 141 to 157 of the (ICL), namely cheese falling under tariff items 04.06 in the list of tariff provisions set out in the Schedule to the .
Milk means whole, partly skimmed, or skim milk, ultrafiltered whole, skim or partly skimmed milk, and cream, in liquid form, used in the production of cheese
New entrant means:
- an eligible applicant who is not an allocation holder under Canada’s cheese TRQ under the World Trade Organization (WTO).
- as of 2022, an eligible applicant who is not an allocation holder under Canada’s WTO cheese TRQ or did not receive an allocation of the TRQs established under CETA in the preceding year.
See the List of EIPA commodity codes for cheese.
2. Allocation policy
- To be eligible, you must be active in the Canadian cheese 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 cheese 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.
- If you received an allocation in the previous year and have submitted a complete application for an allocation in the new quota year, you may receive an advance of up to 30% of your initial allocation in the previous year, subject to any under-utilization or chronic return penalty that may apply.
- At least 30% of the TRQ is available to new entrants every year.
- Note: Beginning in 2022, at least 10% of the TRQ quantity will be available for new entrants every year.
- Note: A new entrant is treated as such for a period of three years.
- Allocations are calculated on a market-share basis.
- You must specify in your application the minimum quantity of quota you will accept. If your calculated market share allocation is less than 1000 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.
- Individual allocations are capped at a maximum of 20% of the TRQ.
- In the event that the TRQ is not fully allocated, available quantities are offered immediately to eligible applicants in proportion to their allocation, or on demand if quantities still remain after the first offer.
3. Eligibility criteria
You are eligible to apply for an allocation if you are a:
Cheese manufacturer
- that manufactures cheese in your own provincially-licensed or federally-registered facility.
Distributor
- that buys cheese and re-sells it to other businesses.
- 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.
Retailer
- that is primarily engaged in retailing food, and which buys cheese and sells it directly to final consumers.
- Note: A retailer does not include food service establishments primarily engaged in preparing meals, snacks and beverages, to customer orders, for immediate consumption on and off the premises, as defined in the North American Industry Classification System (NAICS).
4. Calculation of allocations
Cheese Manufacturers
- 20% is allocated to large cheese manufacturers that use more than 50,000,000 liters of milk annually for cheese production.
- 30% is allocated to small and medium-sized cheese manufacturers that use 50,000,000 liters of milk or less annually for cheese production.
- Note: For cheese manufacturers, market share is calculated on the basis of the total amount of cheese manufactured by the cheese manufacturer in the reference period.
Distributors and retailers
- 20% is allocated to large distributors and retailers whose initial calculated allocation in proportion to total eligible distributor and retailer applicants equals or exceeds 20,000 kilograms.
- 30% is allocated to small and medium-sized distributors and retailers whose initial calculated allocation in proportion to total eligible distributor and retailer applicants is less than 20,000 kilograms.
- Note: For distributors, market share is calculated on the basis of the total amount of cheese sold by the distributor in the reference period.
- Note: For retailers, market share is calculated on the basis of the total amount of cheese purchased and subsequently sold by the retailer in the reference period.
5. 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: 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.
- If you return 20% or more of your allocation for two consecutive years, your allocation in the following year may be reduced by the amount of quota you returned averaged over those two years.
- Note: This provision does not normally apply to small and medium-sized allocation holders and new entrants.
- Returned quantities are normally made available the day after the return date to distributors and retailers, 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 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.
6. 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: