Administration of Beef and Veal Tariff Rate Quota

Act: Export and Import Permits Act, R.S.C. 1985, c. E-19
Regulation: Exemption Regulations - Beef and Veal Imports, SOR/95-154

To Whom Does This Apply?

Importers of fresh, chilled or frozen beef and veal.

Summary

Note: The revision to the beef and veal supplementary import policy has been made to further support the Canadian beef and veal producers in meeting the challenges and uncertainties arising from the discovery of Bovine Spongiform Encephalopathy (BSE) in one cow by providing increased opportunity to Canadian domestic beef and veal suppliers to offer product at competitive price. For more information, please refer to the Notice to Importers No. 679 on the ITCAN's Web site. Furthermore, the base period for processing and import activity in connection with an application for beef and veal quota for 2006 has been changed, due to BSE fallout, from that of previous year. Please refer to Tariff Rate Quota Administration below.

On January 1, 1995, imports of fresh, chilled or frozen beef and veal imported from non-NAFTA countries were placed on the Import Control List and hence require a permit to enter Canada. At the same time, an annual access level of 76 409 tonnes was established.

However, under the Exemption Regulations - Beef and Veal Imports, non-NAFTA beef and veal can be imported without a permit, if certain conditions are fulfilled. You must store it in a customs bonded warehouse, and sell or otherwise transfer the goods to a holder of an import permit issued under the Act before the goods are released.

Access Level

The access level is divided into three pools - 29 600 tonnes is reserved for imports from New Zealand; 35 000 tonnes is reserved for imports from Australia; and 11 809 for imports from all other countries, including those from Australia and New Zealand once they have exhausted their reserves. Imports up to the access level enter duty-free while imports over the access level enter at a 26.5% tariff for the year 2000.

Tariff Rate Quota Administration

The entire Tariff Rate Quota is allocated to Canadian firms near the beginning of every calendar year. For 2006 applications, processors and retailer-processors receive 57 309 tonnes, or 75% of the quota on the basis of the amount of non-NAFTA beef and veal that they process in their own facilities in the period of January 1, 2002 to July 31, 2005, whichever the applicant chooses. The balance of the quota, 19 102 tonnes, or 25%, is allocated to distributors in 2006 applications on the basis of the amount of non-NAFTA beef and veal sold by them in the period of January 1, 2002 to April 30, 2003 (pro-rated to 12 months), or a more recent period from August 1, 2004 to July 31, 2005, whichever the applicant chooses. Firms with quota-shares are issued specific imports permits, which allow them to import at the low rate of duty, upon request. Firms may import unlimited quantities of non-NAFTA beef and veal at the high rate of tariff by citing General Import Permit No. 100.

There is also provision for supplementary import permits which allow fresh, chilled and frozen beef and veal to enter Canada at the low rate of duty. These are issued to firms, both quota-holders and new entrants, meeting the eligibility requirements described in Notice to Importers No. 662.

The Canada Border Servcies Agency customs-bonded warehouses are private or public facilities where goods can be stored duty free and tax free until they are exported or are consumed domestically. For more information, please see the document Customs Bonded Warehouse Program.

Information

For further information or for copies of Notices to Importers explaining the operation of the beef and veal tariff rate quota or forms, please contact officials of the Export and Import Controls Bureau (EICB) of the ITCan at the number provided below, or visit the Agriculture and Steel page on their Web site.

DISCLAIMER
Information contained in this section is of a general nature only and is not intended to constitute advice for any specific fact situation. For particular questions, the users are invited to contact their lawyer. For additional information, see contact(s) listed below.

Quebec Contact(s):
See National Contact.

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National Contact(s):
Export and Import Controls Bureau (EICB)
Foreign Affairs and International Trade Canada
4th Floor, Tower C
Lester B. Pearson Building
125 Sussex Drive
Ottawa, Ontario  K1A 0G2
Telephone: 613-995-8104
Fax: 613-996-0612
Toll-free (information): 1-800-267-8376 (in Canada)
TTY (hearing impaired): 613-944-9136
Web site: http://www.international.gc.ca/menu-en.asp