Export permits limited to CUSMA sugar TRQs

Summary#

This Order, Order Amending the Order Amending the Export Control List (SOR/2020-148), narrows which sugar products need an export permit when sent to the United States under the new trade rules in Canada‑United‑States‑Mexico Agreement (CUSMA). It makes sure only the products that fit the lower‑duty “within‑access” tariff rate quotas (TRQs) are controlled, and it came into force on June 26, 2020.

What it does#

• Replaces the previous entries for Item 5203 and Item 5204 on the Export Control List so the list covers only the U.S. tariff codes tied to the CUSMA TRQ “within‑access” quantities for:
  • sugar‑containing products (Item 5203), and
  • sugars, syrups and molasses (Item 5204).
• Removes or excludes the broader set of tariff codes that would have captured “over‑access” goods (goods that exceed the within‑access TRQ and face higher duties).
• Ensures export permits are required only for the within‑access TRQ goods, not for over‑access exports.
• Linked to the timing of CUSMA, which entered into force on July 1, 2020; the Order itself took effect on June 26, 2020.

Who's affected#

• Exporters, processors and traders of sugar‑containing products and refined sugar who ship to the United States under CUSMA TRQs.
• Companies that handle trade compliance and export paperwork for those products.
• Global Affairs Canada (specifically its Trade and Export Controls Bureau) which issues the export permits and will implement the change.
• It is less likely to affect businesses that export sugar products to destinations other than the United States.

Why it matters#

• It reduces paperwork and administrative burden for Canadian exporters by avoiding a rule that would have required permits for both low‑duty (“within‑access”) and higher‑duty (“over‑access”) shipments.
• It clarifies which shipments need an export permit, making exports to the U.S. under CUSMA more predictable.
• According to the government analysis, there are no new costs from this change and small businesses are not expected to be impacted.