Notices
ITEMS 135 TO 139 - EGGS AND EGG PRODUCTS
Serial No. 702
Date: October 18, 2006
Table of Contents
1.0 Purpose
2.0 Coverage
3.0 Duration
4.0 Authority
5.0 Import access level
6.0 Allocation of the eggs and egg products TRQ
7.0 Adjustments for rejected shipments
8.0 Transferability of import allocations
9.0 Inedible egg products
10.0 Import permit issuance
11.0 Application for share of the eggs and egg products
TRQ
12.0 Import allocations and import permits
13.0 Weight reported on the permits
14.0 Permit fees
15.0 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: List of EICB
Commodity Codes for Eggs and Egg Products (pdf)
Appendix 4: Application form
for a Share of the Eggs and Egg Products TRQ for the period January
1 to December 31, 2007 (pdf)
Appendix 5: Accountant’s
letter for a share of the eggs and egg products TRQ (pdf)
Appendix 6: Affidavit
by applicants for a share of the eggs and egg products TRQ (pdf)
Appendix 7: Definition of Affiliated
Companies and Associated Persons
Appendix 8: Our 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 eggs and egg products tariff rate
quota (TRQ). 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 eggs and egg products
TRQ available for allocation for the period January 1 to December 31,
2007.
2.1 This Notice replaces Notice to Importers No. 693
dated October 24, 2005. It refers to Items 135 to 139, inclusive, of the
Import Control List, namely eggs and egg products classified under heading
Nos. 04.07, 04.08, 21.06 or 35.02 in the List of Tariff Provisions set
out in the Schedule to the Customs Tariff.
2.2 This Notice should be read in conjunction with Notice
to Importers No. 634 of August 19, 2002, which describes the Minister’s
policies and practices concerning supplemental imports of these products.
A new Notice concerning supplementary imports of these products
providing additional information on the Import for Re-export Program (IREP)
and new policies regarding authorizations for supplementary imports of
shell eggs due to market shortage, will be available on the EICB
web site at in the coming weeks.
2.3 Importers who require a determination as to whether
or not the product they intend to import is within the scope of this Notice
should obtain a tariff classification ruling from Canada Border Services
Agency. Requests for such rulings may be directed to: Ms. Ann
Marie Broadbent, Canada Border Services Agency (CBSA), Admissibility Branch
at 613-954-7013, fax 613-952-3971.
3.1 This Notice will remain valid until December 31,
2007.
4.1 Each of the products covered by this Notice was
added to the Import Control List pursuant to paragraphs 5(1)(a) and 5(1)(b)
and section 5.3 of the Export and Import Permits Act (EIPA) in order to
implement a Canadian commitment under the World Trade Organization (WTO)
Agreement on Agriculture.
4.2 Under TRQs, import 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. Under section 6.2 of the EIPA, the Minister 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. Also pursuant to section 6.2 of the EIPA, the Minister
may consent to the transfer of import allocations. Having established
an import access quantity, the Minister shall under sub-section 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 low “within
access commitment” rates of duty. Sub-section 8.3(3) allows the
Minister to issue permits in excess of the access quantity. Pursuant to
sub-section 10.(1) of the EIPA, the Minister may, amend, suspend, cancel
or re-instate any permit, import allocation issued or granted under the
Act.
5.1 Under the North American Free Trade Agreement (NAFTA),
Canada provides an import access level for eggs and egg products of 2.988%
of the previous year's domestic egg production as determined by Agriculture
and Agri-Food Canada. This amount is split among shell eggs (1.647%),
frozen, liquid and further processed eggs (0.714%) and powdered eggs (0.627%).
5.2 Under the WTO, the TRQ level established for global
imports of eggs and egg products for 2007 is 21,370,000 dozen (egg equivalent).
Based on current estimates of domestic egg production, the WTO access
level is expected to be higher than Canada's NAFTA commitment. The amount
by which the WTO access level exceeds that under NAFTA will be allocated
to eligible applicants in the breaking egg segment of the sector to import
eggs for breaking purposes.
6.1 Shell Eggs
6.1.1 The shell egg portion of the TRQ will be allocated
as follows:
6.1.2 Traditional allocation holders
-
Traditional allocation holders (i.e. those importers importing shell
eggs before the introduction of import controls in 1974) will, normally,
continue to receive an allocation equivalent to their initial allocation
as adjusted, where necessary, for under-utilization.
-
All traditional allocation holders are required to complete and
return the application form provided in Appendix 4 in order to receive
an allocation.
6.1.3 Federally Registered Egg Stations
Eligible federally-registered egg stations may receive an allocation
under the shell egg portion of the TRQ proportional to each station's
market share, adjusted for surplus declarations. The market share for
the 2007 quota year will be calculated as the applicant's number of eggs
sold from October 1, 2005 to September 30, 2006 divided by the total number
of eggs sold by all applicants who receive an allocation for 2007.
6.1.4 Under-utilization Policy
A company that uses less than 90% of its table egg allocation in any
one year may receive an allocation in the next year that reflects the
actual level of use.
6.1.5 Monthly Import Distribution Schedule
-
Quota holders with allocations of more than three loads will be advised
of their individual monthly import schedule. The bulk of shell egg
imports will be scheduled to coincide with periods of peak demand
in Canada.
-
Quota holders with allocation of three loads or fewer are, normally,
permitted to import at any time during a given year following receipt
of their allocation for that year.
6.2 Egg Products - Frozen, liquid and further processed eggs
6.2.1 The frozen, liquid and further processed egg portion
of the TRQ will be allocated as follows:
6.2.2 Traditional allocation holders
-
Traditional importers (i.e. those companies importing frozen, liquid
and further processed eggs before the introduction of import controls
in 1974) will, normally, continue to receive an allocation equivalent
to their initial allocation as adjusted, where necessary, for under-utilization.
-
All traditional importers are required to complete and return the
application form provided in Appendix 4 in order to receive an allocation.
6.2.3 Processors, Wholesalers and Distributors
Eligible applicants involved in the egg products industry as processors,
wholesalers or distributors applying for a share of the frozen, liquid
and further processed egg portion of the TRQ may receive an allocation
proportional to each applicant’s market share.
The market share for the 2007 quota year will be calculated as the applicant's
quantity of egg products sold from October 1, 2005 to September 30, 2006
divided by the total quantity of egg products sold by all applicants who
receive an allocation for 2007.
6.2.4 Under-utilization Policy
A company that uses less than 95% of its egg products allocation in
any one year may receive an allocation in the next year that reflects
the actual level of use.
6.2.5 Return Policy
Quota holders may return to the Export and Import Controls Bureau (EICB)
any unused egg products quota issued to them for 2007 on or before September
7, 2007. Any amounts so collected will be used to accommodate requests
for supplemental imports. Quota returned to the EICB on or before the
above deadline will not be considered as unused allocations for purposes
of administering the underutilization penalty in section 6.2.4.
6.2.6 The frozen, liquid and further processed egg allocations
are normally issued in four quarterly installments during the year.
6.2.7 Under the frozen, liquid and further processed
egg portion of the TRQ, importers may have the option of importing, in
addition to liquid or frozen eggs, shell eggs identified as breaking stock,
provided they are directed to a registered processed egg station for breaking.
Quota holders must meet the following additional conditions in order to
be granted an import permit for breaking eggs:
-
Prior to importation, the importer must inform the Regional Office
of the Canadian Food Inspection Agency (CFIA) in writing of the quantity
of eggs expected to be imported, the date of importation and the identity
of the registered processed egg station to which the eggs are to be
delivered; and,
-
the eggs must be packed in containers that are clearly labelled with
one of the following (in English or French):
1. Ungraded eggs
2. Nest Run
3. Grade C
6.2.8 Conversion Factors
The frozen, liquid and further processed egg portion of the TRQ is expressed
in kilograms. For purposes of administering the eggs and egg products
TRQ, one dozen ungraded, nest-run or Grade C shell eggs is equal to 0.575
kilograms of frozen or liquid eggs.
6.3 Eggs for Breaking Purposes
6.3.1 The eggs for breaking purposes portion of the
TRQ will be available only to registered processed egg stations. It will
be allocated in proportion to each station’s market share.
The market share for the 2007 quota year will be calculated as the applicant's
number of eggs sold from October 1, 2005 to September 30, 2006 divided
by the total number of eggs sold by all applicants who receive an allocation
for 2007.
6.3.2 Under-utilization Policy
A company that uses less than 95% of its eggs for breaking purposes
allocation in any one year may receive an allocation in the next year
that reflects the actual level of use.
6.3.3 Return Policy
Quota holders may return to the EICB any unused eggs for breaking purposes
quota issued to them for 2007 on or before September 7, 2007. Any amounts
so collected will be used to accommodate requests for supplemental imports.
Quota returned to the EICB on or before the above deadline will not be
considered as unused allocations for purposes of administering the underutilization
penalty in section 6.3.2.
6.3.4 Additional Conditions
Quota holders must meet the following conditions in order to be granted
an import permit for eggs for breaking purposes:
-
Prior to importation, the importer must inform the Regional Office
of the CFIA in writing of the quantity of eggs expected to be imported,
the date of importation and the identity of the registered processed
egg station to which the eggs are to be delivered; and,
-
the eggs must be packed in containers that are clearly labelled with
the following (in English or French): “Eggs for breaking purposes.”
6.3.5 The eggs for breaking purposes allocations are
normally issued in four quarterly installments during the year.
6.4 Egg powder
6.4.1 The egg powder portion of the TRQ will be allocated
on an equal-share basis to federally-registered processed egg stations
and further processors that use egg powder in their manufacturing and
production formulations. Related or affiliated companies may apply for
separate allocations, but no combination of such allocations will be permitted
to exceed 25% of the total amount available for allocation unless the
total of all applications is less than the access level.
6.4.2 Under-utilization Policy
A company that uses less than 95% of its egg powder allocation in any
one year may receive an allocation in the next year that reflects the
actual level of use.
6.4.3 The egg powder allocations are normally issued
in four quarterly installments during the year.
7.1 Individual allocations may be credited for shipments
which are returned to the exporting country because of rejection by the
CFIA. Importers wishing to avail themselves of this provision must submit
to the EICB, within two weeks from the date of the rejection, the inspection
certificate and related export documents showing that the shipment has
been exported from Canada. These documents must bear the applicable import
permit number. No credit will be made after the end of the quota year.
8.1 The Minister may allow the transfer of allocations.
All requests for transfer of allocations must be submitted in writing
to the EICB for consideration.
9.1 Although import permits are required for importing
inedible egg products into Canada, there are no restrictions on the quantities
that can be imported. The procedures to be followed for permit application
and issuance are described in section 10 of this notice. Please ensure
the applicable EICB commodity code is used when making application for
import permits (see Appendix 3).
10.1 Firms with a share of the TRQ (or "import
allocation") may apply for “specific import permits”
issued by the EICB for access at the low, “within-access commitment”
rates of duty, which, subject to Paragraph 12.1, are normally issued on
demand to allocation holders up to the amount of their import allocation.
10.2 Import permits are required for each shipment of
eggs and egg products classified under heading Nos. 04.07, 04.08, 21.06
or 35.02 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 eggs and egg products, but such imports
will be subject to the higher “over access commitment” rate
of duty. Those presenting a specific import permit to the CBSA 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 allocation.
10.3 The name on a specific import permit must match
exactly the name of the importer on CBSA’s B3 Customs entry and
related documents at the time of final accounting. Where the name on the
import permit and the name on the B3 is not the same entity, the permit
will be declared invalid. It is incumbent on the quota holder to ensure
that applications for permits are made in the name of the importer of
record. Questions about the proper procedures to fill out Customs entry
documents should be addressed to local CBSA officials.
10.4 In accordance with the Import Permit Regulations,
the EICB has in place the following procedures for receiving applications
for import permits:
-
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).
-
A description of the process of applying for a permit is attached
as Appendix 2; it includes fees, 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 customs brokers
in major centres across Canada or (ii) in the offices of the EICB.
-
A list of the EICB commodity codes for eggs and egg products is attached
as Appendix 3. The appropriate code must be used in order to expedite
the issuance of the import permit.
11.0 Applications for shares of
the eggs and egg products TRQ
11.1 Applicants must provide all necessary documents
and details in support of their application. Please note in particular
the application form in Appendix 4, the accountant’s letter in Appendix
5 and the Affidavit in Appendix 6. All applications must be postmarked
by December 1, 2006.
11.2 To assist the EICB in determining which persons
are related or affiliated, applicants must provide a list of affiliated
companies and “persons related” (see Appendix 8). The EICB
may request additional information and may take other information into
account in making determinations concerning affiliation, related persons
and eligibility for shares of the eggs and egg products TRQ.
11.3 An application for a share of the shell
egg, the egg products and/or the eggs for breaking purposes portion
of the TRQ must be accompanied by a sworn affidavit certifying inter alia
the firm's actual sales during the relevant base period.
11.4 In addition to the requirement in section 11.3,
all applicants must provide an original verification of the application
by an independent qualified person, such as an accountant. For the purpose
of this Notice, an "accountant" is defined as a member in good
standing of one of the three professional accounting bodies in Canada
(C.A., C.G.A. or C.M.A.) who is registered with his/her provincial professional
organization to provide accounting services and is independent from the
applicant (i.e. is not an owner, or a partner of the company applying
for an import allocation, and is not in an employee - employer relationship
which involves the applicant).
11.5 The affidavit and the verification letter must
be in the exact format of the models attached to this Notice (see Appendices
5 and 6). Any changes to the wording of the prescribed affidavit or letter
are only permitted if required by professional standards and in the event
that changes are made, the applicant or the accountant must discuss these,
in advance, with the EICB.
11.6 Applications for a share of the eggs and egg products
TRQ for 2007 must be made by fully completing the application form attached
as Appendix 1 and must be postmarked December 1, 2006, or earlier.
11.7 Applications sent by Mail or Courier should be
addressed to:
Mrs. Keltie Findlay Leclair
Agriculture Section (TICA)
Trade Controls Policy Division
Export and Import Controls Bureau
Foreign Affairs and International Trade Canada
Lester B. Pearson Bldg
125 Sussex Drive
Ottawa, Ontario
KlA 0G2
11.8 Applications received by facsimile will not be
accepted. Only original applications will be accepted.
11.9 Applications postmarked after December 1, 2006,
will not be considered. Claims for lost applications will not normally
be considered without acceptable proof of the application having been
sent (e.g. courier receipt).
11.10 The declaration in the application form allows
representatives of the Export and Import Controls Bureau (EICB) access
to any information on the company that is in the files of Agriculture
and Agri-Food Canada or the Canadian Food Inspection Agency relating to
the application for an import allocation or to subsequent applications
for, or the use of, import permits. Applicants will normally be informed
of any such requests for information.
11.11 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.
Additional Information
12.1 The TRQ allocation policy described in this Notice
may be modified by the Minister. The
Minister issues import permits to allocation holders in compliance with
the Import Permit Regulations and subject to any conditions attached to
import allocations, and may amend, suspend, cancel or re-instate import
permits.
12.2 Subject to paragraph 12.1, firms with an import
allocation will normally be issued import permits up to the limit of their
allocation.
12.3 In completing import permit applications, the EICB
commodity codes listed in Appendix 7 of this Notice should be used to
describe the product to be imported.
12.4 All import allocations expire at the end of each
calendar year and all firms interested in receiving an import allocation
must re-qualify each year.
13.1 For all products on the Import Control List, the
weight on the permit must be the same as the net weight quantity on the
Customs invoice.
14.0 Permit fees
14.1 A fee will be levied for each permit or certificate
issued in accordance to the Export and Import Permits and Certificates
Fees Order (Notice to Importers No. 508 dated
May 16, 1995).
15.0 Further information
15.1 Enquiries about import allocations may be addressed
to:
Mrs. Keltie Findlay Leclair
Telephone: (613) 996-4333
Facsimile: (613) 996-0612
E-mail: keltie.findlay@international.gc.ca
(Address listed in paragraph 11.8 above)
15.2 Enquiries about permit issuance and utilization
of import allocations may be addressed to:
Mr. Doug Bird
Telephone: 613-944-1803
Facsimile: 613-996-0612
E-mail: doug.bird@international.gc.ca
(Address listed in paragraph 11.8 above)
15.3 All applicants will be assigned a (new or designated
pre-existing EICB file) number based on the company profile submitted
as part of the formal application. The (Federal, 9 digit core) GST/Business
number is required as an essential identifier. The company name must be
provided in a format, consistent with that under which the GST/Business
number is registered.
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