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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.
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.
You are eligible to participate in the allocation round and to receive a share of export licences if:
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.
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:
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.
To participate in the practice allocation of export licences, you must submit, by statutory declaration:
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:
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.
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.
Export licences are valid for the quota year allocated and expire at the end of the quota year.
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,—
*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]
or Justice of the Peace
or other person authorised to take a statutory declaration
Your statutory declaration of milksolids collection data must be:
Send your statutory declaration of milksolids data, both electronically and in hard copy to:
Attention: Brett Lorier
Dairy Quota Allocation and Transfers
PO Box 2526
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).
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:
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.
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.
Phone: Ph: 04 894 3465
The Dairy Industry Restructuring (Transfer of Export Licences) Regulations provide for transfers of export licenses to between eligible persons..
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.
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.
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.
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:
An application for transfer can be made using a transfer application form.
Send your transfer application, both electronically and in hard copy to:
Attention: Brett Lorier
Dairy Quota Allocation and Transfers
PO Box 2526
Application for transfer of export quota licence under the Dairy Industry Restructuring Transfer of Export Licences Regulations 2007
The transfer becomes effective from the date when MPI advises the transferor and transferee that the transfer has been accepted and registered.