Export Controls for Dairy, Peanut Butter and Sugars

Summary#

This is the Order Amending the Export Control List (SOR/2020-70). It adds and changes several agricultural and food product entries on the Export Control List, mainly to control exports to the United States (and U.S. foreign trade zones). The order’s entry in the Canada Gazette was registered April 7, 2020 and published April 29, 2020; it comes into force when section 40 of the Canada–United States–Mexico Agreement Implementation Act comes into force (or on the day the order is registered if that happens later).

What it does#

This order changes Group 5 (Agricultural and Food Products) of the Export Control List. Main changes:

• Adds item 5200 covering:
  • skim milk powders (HTS subheading 0402.10),
  • milk protein concentrates (HTS subheading 0404.90),
  • infant formulas that contain more than 10% (by dry weight) cow’s milk solids (HTS subheading 1901.10).
  • These are controlled for all destinations.
• Replaces item 5201 to specifically control peanut butter classified under tariff item No. 2008.11.10 for export to the United States.
• Replaces item 5203 to list many specific HTS subheadings for sugar-containing products that will be controlled when exported to the United States (references the Harmonized Tariff Schedule of the United States).
• Replaces item 5204 to list specific HTS subheadings for sugars, syrups and molasses that will be controlled for export to the United States and U.S. Foreign Trade Zones.
• These listings bring the named goods under export control measures under the Export and Import Permits Act, meaning their export or transfer will be subject to government controls (for example, export permits may be required).

Who's affected#

• Canadian producers and exporters of:
  • skim milk powder and milk protein concentrates,
  • certain infant formulas (those with more than 10% cow’s milk solids),
  • peanut butter exported under tariff item 2008.11.10,
  • sugar-containing products and sugars/syrups/molasses covered by the listed HTS subheadings.
• Exporters, brokers, freight forwarders and customs agents who handle shipments to the United States and U.S. Foreign Trade Zones.
• Other businesses that trade in or rely on these specific product lines may notice changes to paperwork, timing, or market access.

If it’s unclear who is affected: the order lists product classifications by tariff or HTS codes, so any firm shipping goods that match those codes may be affected.

Why it matters#

• Listing these food products on the Export Control List means Canada can require permits or impose conditions on their export. That can change how quickly and easily companies can ship these goods abroad.
• The changes are linked to implementing international commitments (the order references the Canada–United States–Mexico Agreement Implementation Act). In practice, this helps Canada coordinate export rules with trade partners and with limits some importing countries set.
• For ordinary shoppers, the notice does not say whether domestic supply or retail prices will change. The source does not provide information on any limits, quotas, or expected economic effects.