EEC Aged Cheddar Cheese Export Regulations (SOR/91-84)

Short Title

1 These Regulations may be cited as the EEC Aged Cheddar Cheese Export Regulations.

Interpretation

2 In these Regulations,

aged cheddar cheese

aged cheddar cheese means Canadian-produced cheddar cheese that is graded Canada 1 under the Safe Food for Canadians Regulations and aged for a period of not less than nine months; (fromage cheddar fort)

Commission

Commission means the Canadian Dairy Commission; (Commission)

EEC

EEC means the European Economic Community; (CEE)

eligible exporter

eligible exporter means a person to whom an export entitlement is allotted by the Commission pursuant to these Regulations and includes a person referred to in section 3; (exportateur admissible)

export entitlement

export entitlement means the portion of the export quota that is allotted to a person by the Commission pursuant to these Regulations and includes the export entitlement retained by a person pursuant to section 3; (contingent individuel d’exportation)

export quota

export quota means the quantity of aged cheddar cheese that may be exported from Canada to the EEC in a year at the special customs tariff referred to in the arrangement between Canada and the EEC concerning cheese; (contingent global d’exportation)

person

person means any individual, partnership, corporation or cooperative association. (personne)

Export Entitlement

3 A person who was, as of December 31, 1990, an eligible exporter pursuant to the Aged Cheddar Cheese Export Quota Regulations or the EEC Aged Cheddar Cheese Export Quota Regulations, 1983 is hereby confirmed as an eligible exporter as of January 1, 1991, pursuant to these Regulations, and the person shall retain the same export entitlement as that person held on December 31, 1990.

4 Subject to subsections 7(3) and 8(3), an eligible exporter shall retain, in respect of a year, the export entitlement that the eligible exporter held on December 31 of the previous year.

Change in Export Quota

5 Where the export quota, in respect of a year, is increased or decreased from that of the previous year, the Commission shall, within a reasonable period of time,

• (a) in the case of an increase,

  • (i) calculate the amount of the share of the increase available to be allotted to each eligible exporter, prorated on the basis of the portion of the eligible exporter’s export entitlement held on December 31 of the previous year that the eligible exporter utilized in that year,

  • (ii) notify each eligible exporter, in writing, of the amount of the increase and the amount of the share, calculated in accordance with subparagraph (i), of the increase available to be allotted to each eligible exporter, and

  • (iii) increase, by the amount of the share calculated in accordance with subparagraph (i), the export entitlement of each eligible exporter who establishes, to the satisfaction of the Commission, that the eligible exporter is able to produce or obtain aged cheddar cheese and to export it to the EEC in sufficient quantity to fully utilize any increased export entitlement that may be held by that eligible exporter; and

• (b) in the case of a decrease, reduce the export entitlement of each eligible exporter by an amount prorated on the basis of the eligible exporter’s export entitlement held on December 31 of the previous year.

Annual Report

6 An eligible exporter shall, no later than June 30 of each year, send to the Commission a report that establishes, to the satisfaction of the Commission, that the eligible exporter has entered into agreements with one or more EEC importers for the export of aged cheddar cheese in a total quantity at least equal to the export entitlement held by that eligible exporter for the year.

Non-utilization of Export Entitlement

• 7 (1) When an eligible exporter becomes aware that the eligible exporter will not fully utilize the export entitlement held by that eligible exporter in respect of a year, that eligible exporter shall so notify the Commission immediately.

• (2) Where the Commission believes, on the basis of a notification pursuant to subsection (1) or on any other basis, that an eligible exporter will not fully utilize the export entitlement held by the eligible exporter in respect of a year, the Commission shall

  • (a) decrease the export entitlement held by that eligible exporter by an amount equal to the portion that the Commission believes will not be utilized;

  • (b) calculate the amount of the share of the non-utilized portion of that export entitlement available to be allotted to the remaining eligible exporters, prorated on the basis of the portion of their respective export entitlements held on December 31 of the previous year that they utilized in that year;

  • (c) notify the remaining eligible exporters, in writing, of the amount of the non-utilized portion and of the amount of the share, calculated in accordance with paragraph (b), available to be allotted to each remaining eligible exporter; and

  • (d) increase, by the amount of the share calculated in accordance with paragraph (b), the export entitlement of each remaining eligible exporter who establishes, to the satisfaction of the Commission, that the eligible exporter is able to produce or obtain aged cheddar cheese and to export it to the EEC in sufficient quantity to fully utilize any increased export entitlement that may be held by the eligible exporter.

• (3) Where the Commission has reduced the export entitlement of an eligible exporter in respect of a year pursuant to paragraph (2)(a) and the Commission is of the opinion that the eligible exporter was unable to fully utilize the eligible exporter’s export entitlement for reasons beyond the control of the eligible exporter, the Commission shall, in respect of the following year,

  • (a) increase the export entitlement held by that eligible exporter to an amount that is equal to the export entitlement held by that eligible exporter before the reduction;

  • (b) reduce the export entitlement held by any eligible exporter whose export entitlement was increased pursuant to paragraph (2)(d) to an amount that is equal to the export entitlement held by that eligible exporter before that increase; and

  • (c) withdraw any export entitlement that was allotted pursuant to subsections 9(3) to (5) as a result of the reduction.

Cancellation of Export Entitlement

• 8 (1) The Commission shall cancel the export entitlement of any eligible exporter who

  • (a) becomes a subsidiary of or related to, associated with or controlled by another eligible exporter;

  • (b) does not comply with section 6 or subsection 7(1);

  • (c) does not comply with section 10 or 11; or

  • (d) does not comply with the terms and conditions of the export assistance paid, pursuant to the Exported Dairy Products Assistance Payment Order, to the eligible exporter for exports under the export entitlement held by the eligible exporter.

• (2) In a case referred to in subsection (1), the Commission shall, within a reasonable period of time,

  • (a) calculate the amount of the share of the cancelled export entitlement available to be allotted to the remaining eligible exporters, prorated on the basis of the portion of their respective export entitlements held on December 31 of the previous year that they utilized in that year;

  • (b) notify the remaining eligible exporters, in writing, of the amount of the cancelled export entitlement and of the amount of the share, calculated in accordance with paragraph (a), available to be allotted to each remaining eligible exporter; and

  • (c) increase, by the amount of the share calculated in accordance with paragraph (a), the export entitlement of each remaining eligible exporter who establishes, to the satisfaction of the Commission, that the eligible exporter is able to produce or obtain aged cheddar cheese and to export it to the EEC in sufficient quantity that the eligible exporter would fully utilize any increased export entitlement that may be held by the eligible exporter.

• (3) Where the Commission has, in a case referred to in paragraph (1)(b), cancelled the export entitlement held by an eligible exporter in respect of a year and the Commission is of the opinion that the eligible exporter did not comply with section 6 or subsection 7(1) for reasons beyond the control of the eligible exporter, the Commission shall, in respect of the following year,

  • (a) allot to that eligible exporter the same export entitlement as that eligible exporter held before the cancellation;

  • (b) reduce the export entitlement held by any eligible exporter whose export entitlement was increased pursuant to paragraph (2)(c) to an amount that is equal to the export entitlement held by that eligible exporter before the increase; and

  • (c) withdraw any export entitlement that was allotted pursuant to subsections 9(3) to (5) as a result of the cancellation.

Application for Export Entitlement

• 9 (1) Where, after the process set out in subparagraph 5(a)(iii) or paragraph 7(2)(d) or 8(2)(c) has been completed, a portion of the export quota still remains available to be allotted, the Commission shall invite any person, other than an eligible exporter, to submit, within such period as the Commission determines, an application for export entitlement.

• (2) On the expiration of the period referred to in subsection (1), the Commission shall retain the application of any person who, in the opinion of the Commission,

  • (a) is involved in the production or distribution, or both, of Canadian-produced cheese;

  • (b) is able to produce or obtain aged cheddar cheese and to export it to the EEC in sufficient quantity to fully utilize any export entitlement that may be held by the person;

  • (c) has experience in the export of dairy products; and

  • (d) is not a subsidiary of or related to, associated with or controlled by an eligible exporter.

• (3) Where applications are retained pursuant to paragraph (2)(a), the Commission shall draw one application, by chance, from the applications retained and allot to the person whose application is drawn an export entitlement of an amount equal to the lesser of 20 000 kg and the portion of the export quota still available to be allotted.

• (4) Where a portion of the export quota remains available to be allotted after the process described in subsection (3) has been completed, the Commission shall allot the portion by repeating the process described in that subsection, drawing from the remaining applications, until no applications remain.

• (5) Where a portion of the export quota remains available to be allotted after the process described in subsection (4), the Commission shall allot the portion to eligible exporters, prorated on the basis of the portion of their respective export entitlements held on December 31 of the previous year that they utilized in that year.

Transfer of Export Entitlement

10 No eligible exporter shall transfer, in whole or in part, the export entitlement held by the eligible exporter unless the Commission

• (a) is of the opinion that the proposed transferee meets the criteria set out in paragraphs 9(2)(a) to (d); and

• (b) authorizes the transfer.

Title

11 No eligible exporter shall export aged cheddar cheese under the export entitlement held by the eligible exporter unless that eligible exporter has title to the aged cheddar cheese.