FAQ's - Dairy Export Licences

What are export licences?

Export licences are required for exporting certain dairy products under quota programmes to the United States, the European Union, Japan, and the Dominican Republic (a list of designated markets is given below). Export licences are allocated by MPI based on an applicant’s share of total milksolids collected from dairy farmers in New Zealand.

The Dairy Industry Restructuring Act 2001 Schedule 5A lists these designated markets.

For all other information and requirements for exporting dairy products, please refer to the Exporting dairy products webpage.

What are the designated markets?

The table below describes the current designated markets, the dairy products for each designated market, the total quota allocation for each market and the quota year.

Designated Market Product Total quota allocation Quota year
Dominican Republic Milk Powder 4,800,000 kilograms 1 January to 31 December
European Union (EU) Butter 74,693,000 kilograms 1 January to 31 December
European Union (EU) Cheddar Cheese 7,000,000 kilograms 1 January to 31 December
European Union (EU) Cheese for processing 4,000,000 kilograms 1 January to 31 December
USA Low fat cheese 1,000,000 kilograms 1 January to 31 December
USA NSPF cheese 6,506,528 kilograms 1 January to 31 December
USA American type cheese 238,001
kilograms
1 January to 31 December
USA Cheddar Cheese 5,403,532 kilograms 1 January to 31 December
Japan Prepared edible fat 11,550,000 kilograms 1 April to 31 March in the following year

Am I eligible to participate in the allocation of export licences?

You are eligible to participate in the allocation round and to receive a share of export licences if:

  • you collected and acquired legal title in at least 0.1 percent of total milksolids collected from dairy farmers in New Zealand (in the most recently completed season, the average of the two most recently completed seasons, or the average of the three most recently completed seasons; compared to national data from the most recent season); and
  • you are registered to export under Part 5 of the Animal Products Act 1999. To register, please refer to the: Exporter registration page.

If you are not sure whether you collected enough milksolids to be eligible, you can still submit your data on milksolids collected from farmers by statutory declaration for consideration.

How will export licences be allocated?

Schedule 5B of the Dairy Industry Restructuring Act 2001 sets out the rules for allocation. To be eligible to receive a share of export licences, you must collect and acquire legal title in at least 0.1 percent of total milksolids collected from dairy farmers in New Zealand. This will be calculated based on:

  • the most representative data of total milksolids collected in New Zealand in the latest year for which data is available; and
  • milksolids data submitted by each potential participant (participants can choose to submit data for either the most recently completed season, the two most recently completed seasons or the three most recently completed seasons – whichever results in the highest average figure for milksolids collected from farmers).

Export licences will be allocated to eligible participants in proportion to their share of the total milksolids collected by eligible participants. Ineligible applicants' data will be excluded from that calculation.

Note, you will only receive an export licence for a particular market if your share in that particular market equates to 20 tonnes (20 000 kg) or more of product to that market for the quota year. If your calculated share of licence in a particular market equates to less than 20 tonnes (20 000 kg), this amount will not be allocated to you but will be reallocated pro rata among the remaining eligible participants.

What do I need to do to participate in the allocation of export licences?

To participate in the practice allocation of export licences, you must submit, by statutory declaration:

  1. the total milksolids you collected from farmers in the most recent completed dairy season; or
  2. the total milksolids you collected from farmers in the two most recent completed dairy seasons (with data for each season's collection listed separately); or
  3. the total milksolids you collected from farmers in the three most recent completed dairy seasons (with data for each season's collection listed separately).

If you choose to submit data from more than one season, we will use an average of the seasons' data supplied for the purposes of:

  • determining your eligibility to participate in the allocation; and
  • determining your share of export licences.

Milksolids is only the milk-fat and protein component of raw milk.

Export licences will then be allocated by MPI to eligible participants in proportion to their share of the total milksolids.

When will export licences to designated markets be allocated?

The quota year for all designated markets except Japan is 1 January to 31 December. For Japan it is 1 April to 31 March.

MPI will call annually for submissions to participate in the allocation of export licences in August prior to the 1 January and 1 April start of the next quota year. Export licences are reallocated each year. Submissions must be received by the date specified by MPI.

Calling for submissions in August gives exporters sufficient time to ship quota product and enter it into designated markets from the start of the quota year, 1 January.

What period are export licences valid for?

Export licences are valid for the quota year allocated and expire at the end of the quota year.

How do I make a statutory declaration?

Schedule 5C of the Act sets out the form of the statutory declaration required for the purposes of allocating export licences.

Required text for a statutory declaration

I, [full name], of [address], being the chief executive officer*/director* of [name of company], solemnly and sincerely declare that to the best of my knowledge, having made all reasonable inquiries,—

    the information attached to this declaration is a true copy of information that complies with the requirements of Schedule 5B of the Dairy Industry Restructuring Act 2001; and the [specify statement(s), report(s), or information] attached to this declaration is/are* the [statement(s),report(s), or information] required to be supplied by the chief executive under Schedule 5B of the Dairy Industry Restructuring Act 2001.

*Delete if inapplicable.

And I make this solemn declaration conscientiously believing the same to be true and by virtue of the Oaths and Declarations Act 1957.

Declared at [place] on [date]


.............................................................

Registrar
or
Justice of the Peace
or
Solicitor
or
other person authorised to take a statutory declaration

Your statutory declaration of milksolids collection data must be:

  • made in the form set out in schedule 5C of the Act;
  • signed by the chief executive officer or a director of your company; and
  • witnessed and signed by a person authorised to take a statutory declaration (for example a Justice of the Peace or a Solicitor).

Where do I send my statutory declaration of milksolids collection data?

Send your statutory declaration of milksolids data, both electronically and in hard copy to:

dairyquota@mpi.govt.nz

and

Attention: Brett Lorier
Dairy Quota Allocation and Transfers
MPI Policy
PO Box 2526
Wellington

What is a "general export licence" and when can I use it?

A "general export licence" is one that applies to trade at the normal tariff (trade outside the terms of the quota, or so-called "over-quota trade"). A general export licence may be used by any person registered to export under the Animal Products Act 1999, for any quantity of the product for which the licence applies.

However, a general export licence may not be used by any exporter until MPI has issued a public notification in a quota year that it may be used for the remainder of that quota year for the market and product concerned. MPI will issue such a notification only when it has issued export certificates to all licence holders for at least 95 percent of each licence holder's quantity of export licence, for the relevant market and product.

After Fonterra's initial rights expire completely in 2010, only two designated markets will include over-quota trade subject to general export licences: milk powder to the Dominican Republic (from January 2008), and prepared edible fat to Japan (from April 2010).

Is a valid export licence all I need to export product to a designated market?

No. You will still need to obtain any other relevant documentation required by the importing country authorities or by the New Zealand authorities. This may include any or all the following:

  • a health/sanitary certificate;
  • a country of origin certificate;
  • an IMA certificate (for EU quota butter and cheese);
  • a dairy quota export approval from MPI;
  • an approved Quota Compliance Programme;
  • a valid import licence;
  • a valid customs export entry.

This list may not be exhaustive in respect of any particular market.

Dairy quota product must comply with the requirements for dairy product exported under the Animal Products Act 1999. In addition, dairy quota product must be processed and exported from premises with a Quota Compliance Programme approved by the Ministry for Primary Industries (MPI).

You should contact MPI for information regarding the requirements for health/sanitary certificates, country of origin certifications, IMA certificates and dairy quota export authorisations. Information can be found on the following MPI web pages:

You should contact the Customs Service for any Customs related matters.

What is the cost of export licences?

The costs for the Quota Management System regulatory framework and Quota Management register are recovered from export licence holders. These systems are for issuing dairy quota export approvals, including IMA 1 certificates and for recording the current holding of each exporter’s export licences. The cost of these systems are recovered from export licence holders in direct proportion to the tonnes of export licence they are allocated. Export licence holders are invoiced quarterly.

Who can I contact if I have further questions about allocations of quota export licences?

Brett Lorier
Phone: Ph: 04 894 3465

Email: Dairyquota@mpi.govt.nz

Transferring export licences

The Dairy Industry Restructuring (Transfer of Export Licences) Regulations provide for transfers of export licenses to between eligible persons..

Can I transfer my dairy export licence to someone else?

Under the regulations associated with the amendments to the Dairy Industry Restructuring Act, export licence holders are able to transfer export licences to another person eligible to hold an export licence. Licence holders may not transfer export licences except in accordance with rules in these regulations.

Under the regulations, you and the other party involved in a transfer are responsible for determining the commercial terms of any transfer. The government and its agencies have no role in this.

However, all transfers must be registered with MPI before they can come into effect. MPI needs to know exactly which entities hold which export licences at any time.

Transfers are able to be made from the beginning of a quota year.

 

Some questions and answers in relation to the process for transferring export licences are below.

Who is eligible to hold an export licence?

Any person or entity registered under Part 5 of the Animal Products Act 1999 for the export of dairy products is eligible to hold an export licence. If a person or entity ceases to be registered under the Animal Products Act, then they will be obliged to transfer any licence they hold at the earliest possible time to an eligible holder and will not be able to make use of it in the interim.

How much of my export licence can I transfer to another person?

A licence holder may transfer to another eligible person any amount of licence greater than or equal to 20 000kg in a single transaction. A licence holder may only transfer a part of an export licence that has not been used.

How do I register a transfer of export licence?

The transferor and the transferee of all or part of an export licence must jointly apply to the chief executive of the Ministry for Primary Industries in writing for registration of the transfer on the register of export licence holders. A separate application must be made for each designated market and quota year that is the subject of a transfer.

An application for transfer must contain the following information:

  • the full name, address and contact details of both the transferor and the transferee (including a contact name, phone number, fax number and email address);
  • the designated market (both product and destination) for which the transfer applies;
  • the volume of quota export rights for which the transfer applies;
  • the period for which the amount of export licence to be transferred is valid (i.e. the quota year for which it is valid and, in the case of butter to the EU, the sub-period of a quota year for which it is valid);
  • the date the export licence was first allocated or registered to the transferor.

An application for transfer can be made using a transfer application form.

Send your transfer application, both electronically and in hard copy to:

dairyquota@mpi.govt.nz

and

Attention: Brett Lorier
Dairy Quota Allocation and Transfers
MPI Policy
PO Box 2526
Wellington

Application Form

Application for transfer of export quota licence under the Dairy Industry Restructuring Transfer of Export Licences Regulations 2007

When would a transfer take effect?

The transfer becomes effective from the date when MPI advises the transferor and transferee that the transfer has been accepted and registered.

 

Last Updated: 17 October 2013

Contact MPI

for general enquiries phone

0800 00 83 33