How it Works
New Zealand origin beef and veal products can be exported to the United States at the following quantities, subject to the specified tariffs.
|Product type||Beef & Veal (CN codes 0201 and 0202)|
|Annual quota amount||213,402 tonnes (product weight)|
|Quota Year||1 January – 31 December|
|In-quota tariff rate||US4.4c/kg on most beef products|
|Out-of-quota tariff rate||26.4%|
Some quick definitions:
“Qualifying Product” is beef and veal from livestock slaughtered in a USDA Listed Premises. It is measured as dressed carcass hot weight.
“At Time of Slaughter” is a figurative term, referring to when the semi-dressed carcase crosses the scales and ownership changes from the farmer to the buyer/quota holder/qualifying company.
“Production Seasons” are one year commencing the nearest Sunday to 1 October, and ending the nearest Saturday to 30 September in the following calendar year.
“New Entrant Period” means in relation to a New Entrant, the Quota Year for which a New Entrant is first allocated Reserved Quota Allowance and the two following Quota Years.
“Association” as defined in Section 14, Paragraph C, part 2(g) of the Quota Manual.
Who is quota allocated to?
There are two categories of recipients: Qualifying Companies and New Entrants.
Qualifying Companies hold export registration and have been the Owners of Qualifying Product at Time of Slaughter, over any of the three preceding Production Seasons.
New Entrants are companies that fit the following criteria:
- Hold of export registrations prior to the use of Reserved Quota Allowance.
- Have the ability to process, or have processed, as the Owners of Qualifying Product at Time of Slaughter, and sell the volume of Qualifying Product on which the allocation of Reserved Quota Allowance is based.
- Have not been allocated General or Reserved Quota Allowance during the three years prior to the applicable New Entry Period.
- Are a “New Entrant” as defined in Section 2 of the Quota Manual.
How is quota allocated?
Ninety-eight per cent of the quota is allocated as General Quota Allowance to Qualifying Companies. It is allocated to companies according to their share of the sum of all companies’ Production Histories for the preceding three Production Seasons.
The remaining 2% is available to allocate as Reserved Quota Allowance to New Entrants, who can apply for a period of three-years after which they would become a Qualifying Company.
|Reserved Quota Allowance Allocation to New Entrants is based on:|
|Year 1||an estimate of production for the season commencing in October, prior to the start of the quota year|
|Year 2||one season’s actual production history and an estimate for this Year 2 season|
|Year 3||the actual production history from Years 1 and 2 and an estimate for this Year 3 season|
The amount of Reserved Quota Allowance calculated is reduced by the amount of General Quota Allowance a company's Production History earns in the preceding quota year.
If there is insufficient Reserved Quota Allowance available, the amount allocated to each New Entrant is abated pro-rata between them.
Allocations of Reserved Quota Allowance are conditional upon New Entrants meeting certain criteria and annual production estimates. The ability to use Reserved Quota Allowance is earned progressively during a Production Season. It becomes unconditional, as criteria are met and in proportion to the New Entrant’s actual production.
Acquiring and selling quota
General or Unconditional Reserved Quota Allowance holders can transfer all or part of their quota allowance for the relevant Quota Year to a holder of an export registration.
Complete and sign the Transfer form and submit to the Board. The transfer takes effect upon Board confirmation
Download Transfer of US Beef and Veal Quota Allowance form below.
Acquiring and selling Production History
A holder of Production History may transfer all or part of its Production History for a given Production Season to a Qualifying Company or a New Entrant.
Complete and sign the Transfer form and submit to the Board. The transfer takes effect upon Board confirmation and will be valid for any future Quota Years, in terms of the General Quota Allowance Allocation formula.
Download Transfer of US Beef and Veal Production History form below.
Quota allowance application closing dates
|General Quota Allowance applications close||15 October|
|Reserved Quota Allowance applications close||1 September|
Tariff Rate Quota (TRQ) certificates
Tariff Rate Quota (TRQ) Certificates are required for product to be imported within the terms of the TRQ.
The exporter must submit completed TRQ Certificates – showing the details of the consignment – to the Board for authorisation. The exporter then forwards the certificate to the importer.