Notices
ITEM 125 - PRODUCTS OF NATURAL MILK CONSTITUENTS
Serial No. 705
Date: October 16, 2006
Table of Contents
1.0 Purpose
2.0 Coverage
3.0 Duration
4.0 Authority
5.0 Size and Duration of
the Natural Milk Constituents TRQ for 2007
6.0 Allocation of the Products of Natural
Milk Constituents TRQ for 2007
7.0 Underutilization penalty and return policy
8.0 Related Persons
9.0 Supplementary imports
10.0
Application for shares of the products of natural milk constituents
TRQ
11.0 Import permit issuance
12.0 Permit Fees
13.0 Further information
Appendix 1 - Copy
of form EXT-1466, "Application for Permit" (pdf)
Appendix 2 - Description of the process
of applying for an import permit
Appendix 3 - Application form
for a share of the products of natural milk constituents TRQ for the
period January 1 to December 31, 2007 (pdf)
Appendix 4 - "Persons
related"
Appendix 5 - Service Pledge
1.1 The purposes of this Notice are:
a) to inform importers of the Minister’s policies and practices
respecting the administration of the 4,345,000 kilogram (kg) tariff rate
quota (TRQ) for products of natural milk constituents. It should be read
with the Import Allocation Regulations and the Import Permit Regulations.
Where elements of the present Notice augment these Regulations, those
elements are to be read as expressions of the Minister’s normal
practices and procedures; and,
b)to invite applications for quota shares of the 4,345,000 kilogram natural
milk constituents TRQ available for allocation for the period January
1 to December 31, 2007.
2.1 This Notice replaces Notice to Importers No. 689
dated October 11, 2005. It refers to Item 125 of the Import Control List
(ICL), products of natural milk constituents, that are classified under
tariff items No. 0404.90.10 or 0404.90.20 in the list of tariff provisions
set out in the schedule to the Customs Tariff; namely products consisting
of natural milk constituents, whether or not containing added sugar or
other sweetening matter. Milk protein concentrate and blends of natural
milk constituents are the major products covered by this tariff item number.
2.3 Importers who require a determination as to whether
the tariff classification of the product they intend to import is within
the scope of this Notice are to contact: Ms. Ann-Marie Broadbent,
Canada Border Services Agency, Admissibility Branch at 613-952-6741, fax:
613-952-3171 or by e-mail: anne-marie.broadbent@cbsa-asfc.gc.ca.
3.1 This Notice will remain valid until December 31,
2007.
4.1 Under the authority of paragraphs 5(1)(a) and 5(1)(d)
and section 5.3 of the Export and Import Permits Act (EIPA), Item 125
was placed on the Import Control List on January 1, 1995, in order to
implement a Canadian commitment under the World Trade Organization (WTO)
Agreement on Agriculture.
4.2 Under TRQs, imports are subject to low "within
access commitment" rates of duty up to a predetermined limit (i.e.
until the import access quantity has been reached), while imports over
this limit are subject to higher "over access commitment" rates
of duty. By section 6.2 of the EIPA, the Minister responsible for the
Act may: a) determine an import access quantity allowed entry at the low
rate of duty, b) establish a method of allocating the import access quantity,
and c) issue an import allocation to any resident of Canada who applies
for an allocation, subject to the regulations and any terms and conditions
the Minister may specify in the allocation. Having established an import
access quantity, the Minister shall under subsection 8.3(1) of the EIPA
issue import permits to allocation holders who apply for permits, up to
the limit of that quantity, subject to compliance and application of regulations
made under section 12 of the EIPA. These permits shall entitle the goods
to which they apply to be subject to lower rates of duty. Subsection 8.3(3)
allows the Minister to issue permits in excess of the access quantity.
Pursuant to subsection 10(1) of the EIPA, the Minister may amend, suspend,
cancel or re-instate any permit, import allocation or other authorization
issued or granted under the Act.
5.0 Size
of the Natural Milk Constituents TRQ for 2007
5.1 The products of natural milk constituents TRQ for
2007 is set at 4,345,000 kilograms.
6.1 The TRQ for products of natural milk constituents
will be allocated to eligible applicants on the basis of their requirements
and to the extent of availability, as described below.
6.2 Allocations will be made first to users of milk
protein concentrate that can demonstrate a requirement for this product
in their manufacturing operations and product formulations. Applicants
must provide the ratio (percentage) of protein contained in the product
they intend to import. To the extent that requirements exceed the tariff
rate quota, allocations will be made on a modified equal-share basis (i.e.,
on the basis of actual need if the amount requested is lower than an equal
share).
6.3 Once the requirements of companies using milk protein
concentrate have been met, the balance of the TRQ, if any, will be allocated
to processors and further processors that can demonstrate a requirement
for other products of natural milk constituents (e.g., blends of products
of natural milk constituents) in their manufacturing operations and product
formulations. To the extent that requirements exceed the tariff rate quota,
allocations will be made on a modified equal-share basis (i.e., on the
basis of actual need if the amount requested is lower than an equal share).
6.4 Accordingly, applicants are invited to provide the
following information by completing and returning the application form
in Appendix 3 of this Notice, in support of their application:
-
Company profile, including any affiliations (see Appendix 4, “Information
Concerning Related Persons”);
-
Ratio (percentage) of protein contained in the product to be imported;
-
Description of products of natural milk constituents for which an
allocation is being requested;
-
Quantity requested; and,
-
Description of product(s) being manufactured and ratio of the product(s)
to be imported used in their production (i.e., product formulation).
7.1 A company that uses less than 95 per cent of its
allocation in any one year may receive an allocation in the next year
which reflects the actual level of use.
7.2 A company shall not be allowed to transfer quota
to another user. However, quota holders may return to the Export and Import
Controls Bureau (EICB) any unused “natural milk constituents”
quota issued to them for 2007 on or before October 1, 2007. Quota returned
to the EICB on or before the above deadline will not be considered as
unused quota for purposes of applying the under-utilization penalty in
section 7.1. Returned quota will be made available on an equal-share basis
to eligible applicants who demonstrate, by October 1, 2007, additional
quota requirements for their manufacturing operations.
8.1 For the purpose of this Notice, where two or more
applicants are related persons, they shall be eligible for only one allocation.
To determine which persons are related, an applicant for an allocation
is asked to provide a brief profile of the company in part 10 of the application,
which should include a list of "related persons" (see Appendix
4, “Information Concerning Related Persons”).
8.2 In the case of separate applications from related
applicants involving a parent company and one or more subsidiaries, only
the application nominated by the parent company will be considered. If
the parent company does not make such a nomination in writing, it shall
be made by the EICB.
9.1 The Minister may, at his discretion,
authorize imports of products of natural milk constituents in excess of
the 4,345,000 kgs import access quantity, in particular when the importation
of these products are required to meet Canadian market needs.
9.2 Requests for authorization for supplementary imports
may be submitted to Mr. Hugues Leroux at the address indicated in section
10.2 below. In deciding whether or not to issue a supplementary permit,
the Minister will consider, amongst other criteria, the availability of
like or directly substitutable products in the Canadian market.
10.1 Applicants are to provide full details in support
of their request for an allocation, using the application form attached
in Appendix 3. Applications for a share of the products of natural milk
constituents TRQ in 2007 must be postmarked on or before December
5, 2006.
10.2 Applications sent by MAIL or by COURIER should
be addressed to:
Mr. Hugues Leroux
Agriculture Section
Trade Controls Policy Division (TIC)
Export and Import Controls Bureau
Foreign Affairs and International Trade Canada
125 Sussex Drive
Ottawa, Ontario
K1A 0G2
10.3 Applications sent by facsimile will not be accepted.
Only original applications will be accepted.
10.4 Applications postmarked after December 5, 2006
will not be considered. Claims of lost applications will not normally
be considered without acceptable proof that they were sent before the
deadline (e.g., courier receipt).
10.5 Unless otherwise specified by the applicant, EICB
officials communicate with an EIPA authorization applicant in the official
language of Canada which the applicant has used on the application.
11.1 Import permits are issued, normally, pursuant
to an import authorization and are required for each shipment of products
of natural milk constituents falling within tariff Nos. 0404.90.10 or
0404.90.20 in the List of Tariff Provisions set out in the Schedule to
the Customs Tariff. Importers may either invoke General Import Permit
(GIP) No. 100 - Eligible Agricultural Goods, a copy of which is available
on request, or present an import permit issued to their firm by the Export
and Import Controls Bureau for that shipment ("specific import permit")
in order to clear customs. Those citing the GIP will be authorized to
import unlimited quantities of products of natural milk constituents,
but such imports will be subject to the higher “over-access commitment”
rate of duty. Those presenting a “specific import permit”
to the Canada Border Services Agency at the time of final accounting may
enter their shipments at the lower “within access commitment”
rate of duty. Note: “Specific import permits” will not be
issued for shipments already imported into Canada under the authority
of the General Import Permit, regardless of the importer's import allocation.
11.2 In accordance with the Import Permit Regulations,
the Export and Import Controls Bureau (EICB) has in place the following
procedures for receiving applications for import permits:
(a) When requesting an import permit, applicants are to complete the
Form EXT-1466, "Application for Permit" (a copy of which is
attached as Appendix 1) and transmit it to the EICB.
(b) A description of the process of applying for a permit is attached
as Appendix 2. It includes details on fees, the monthly billing system
and information required from applicants. All import permits are issued
either (i) through an on-line automated system in the offices of brokers
in major centres across Canada, or (ii) in the office of the Export and
Import Controls Bureau.
12.1 A fee will be levied for each permit or certificate
issued in accordance with the Export and Import Permits and Certificates
Fees Order (Notice to Importers No.
508 dated May 16, 1995).
13.1 Enquiries about import allocations may be addressed
to:
Mr. Hugues Leroux
Tel: 613-996-2594
Fax: 613-996-0612
e-mail: hugues.leroux@international.gc.ca
(Address as indicated in paragraph 10.2)
13.2 Enquiries about permit issuance and utilization
of import allocations may be addressed to:
Mr. Doug Bird
Tel: 613-944-1803
Fax: 613-996-0612
e-mail: doug.bird@international.gc.ca
(Address as indicated in paragraph 10.2)
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