Sugar for Export to the United States under the Canada-United States-Mexico Agreement – Serial No. 1002

This Notice sets out the policies and practices pertaining to the administration of Sugar referred to in TRQ – US 09 for export to the United States under the Canada-United States-Mexico Agreement (CUSMA).

This Notice, effective July 01, 2020, is provided pursuant to the authority of the Export and Import Permits Act (EIPA) and its corresponding regulations, and remains in effect until December 31, 2020. An allocation policy will be established for exports of these goods, effective January 1, 2021 onward.

  1. Definitions
  • Originating Sugar means goods listed in subparagraph (e) of TRQ – US 09 of Appendix 2: Tariff Schedule of the United States – (Tariff Rate Quotas) of CUSMA that are wholly obtained from sugar beets produced in Canada.
  1. Access Level
  • The quantity under this Tariff Rate Quota (TRQ) is 9,600,000 kilograms per calendar year. This quantity is pro-rated to 4,800,000 kilograms in year 1 of CUSMA implementation.
  • According to subparagraph (c) of TRQ – US 09 of Appendix 2: Tariff Schedule of the United States – (Tariff Rate Quotas) of CUSMA, if the United States in any year determines that imports into the United States of additional quantities of refined sugar (other than specialty sugar) are permitted at in-quota tariff rates, above the quantities made available at those rates under the WTO Agreement and other trade agreements, including CUSMA, Canada’s sugar TRQ shall increase by 20 % of that additional in-quota quantity in that year. In the event of an increase to Canada’s TRQ quantity, Global Affairs Canada will notify stakeholders.
  1. Product Coverage
  • Only Originating Sugar, up to the annual TRQ quantity, may qualify for an export permit.  In the case of an increased TRQ quantity, refined sugar made from non-originating raw sugar, up to the TRQ increased quantity, may also qualify for an export permit. Refer to the Handbook of Export and Import Commodity Codes for specific product codes required to complete permit applications. For exports under any increased TRQ quantity, the “additional 20% codes” must be used.
  • Goods entered into the United States in excess of the TRQ quantity or that are not eligible under the TRQ will receive Most Favored Nation (MFN) tariff treatment. Exports of these goods do not require permits.
  1. Eligibility Criteria
  • To be eligible for an export permit, an applicant must demonstrate its active involvement in the production of Originating Sugar, or in the production of refined sugar made from non-originating raw sugar with respect to any TRQ increased quantity, that are eligible for export to the United States.  Active involvement normally means the production of these products in the applicant’s own facility, and includes continuing to contribute to employment and value-added activities in Canada.
  1. Administration Policy
  • Goods eligible for in-quota tariff rates under this TRQ are found on the Export Control List.  As such, an export permit is required to export these goods to the United States.
  • Anyone interested in exporting these goods from Canada into the United must obtain a shipment-specific export permit.
  • Permits for exports under this TRQ are available on an “on demand” basis, upon submission of a completed shipment-specific permit application.
  • Permit applications for exports under this TRQ will be reviewed, on a first come, first served basis, by Global Affairs Canada before any permits are issued.
  • Permit applications will normally be reviewed, and permits will normally be issued, within a 4-hour service standard during normal business hours.
  • Permits obtained for exports under this TRQ are not required to accompany United States Customs entry documents.
  1. Related links

Handbook of Export and Import Commodity Codes

Key Dates and Access Quantities

Apply for an EIPA file number

How to Apply for an Export Permit

Weekly CUSMA Sugar-Containing Products & Sugar Utilization Information

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