Thank you very much, Mr. Chair.
It's a pleasure to be here this afternoon to discuss the Ukraine goods remission order. As noted, I am the director general for the market access bureau at Global Affairs Canada.
I would like to acknowledge that my team and I are joining you today on the traditional and unceded territory of the Algonquin Anishinabe people.
I would like to focus my opening remarks on the role that Global Affairs Canada plays in Canada’s system of supply management and how we assist in imports of supply-managed goods.
Canada's supply-managed system operates on three separate pillars—production controls, pricing controls and imports controls. Global Affairs Canada administers the import controls. Most importantly, we administer Canada's various tariff rate quotas for supply-managed goods, or TRQs. A TRQ is a quota, implemented as a result of Canada's commitment within various free trade agreements, that establishes a quantity of a product that may be imported at a lower or within-access rate of duty.
Controls for supply-managed goods and their associated TRQs are implemented and administered under the Export and Import Permits Act, which requires that imports of supply-managed goods be authorized through the use of a permit.
For imports of supply-managed goods, there are two types of permits. The first is an individual import permit, which applies to a specific shipment of goods and allows the importer to claim the within-access rate of duty. This type of permit is issued to allocation holders under Canada's various TRQs.
Entities apply directly to Global Affairs Canada for an individual import permit for supply-managed goods. Upon approval, all pertinent information associated with the permits issuance is shared, via our integrated electronic systems, with the Canada Border Services Agency, who is the responsible authority for the enforcement of import controls for supply-managed goods at the border.
The second type of permit is called a general import permit, which is a regulation issued under the authority of the Export and Import Permits Act that allows a resident of Canada to import control goods subject to the terms and conditions of the regulation. These regulations allow for the import of supply-managed goods at the higher over-access rate of duty and, in certain cases, limited volumes of imports for personal use at the lower within-access rate of duty. From an administrative standpoint, the key difference between these two permits is how an applicant obtains and uses the permit and the volume of goods that can be imported.
As stated, for individual import permits, there is an application, which in turn requires a decision by Global Affairs Canada and, if approved, information is shared between Global Affairs Canada and the Canada Border Services Agency to ensure the efficient completion of the clearance process. Additionally, under shipment specific permits there is a limit on the quantity of goods that can be imported under the permit and the TRQ itself.
With general import permits for supply-managed goods, there is no application to, or decision by, Global Affairs Canada. An entity importing under the authority of a general import permit must simply cite its use on their import documentation. Furthermore, there is no limitation on the volume of goods that can be imported at the over-access rate of duty under a GIP—general import permit.
Mr. Chair, in closing, I would like to state that while the issuance of the remission order temporarily alters the long-standing environment under which import controls for certain supply-managed goods functions, Global Affairs Canada, along with governmental partners, remain committed to ensuring the long-term health of our supply management system.
Thank you.