Canada recovers fraction of millions in duties tied to mislabelled U.S. chicken imports

CANADA – Canadian border authorities have assessed nearly US$311 million in duties, penalties and interest on suspected misclassified chicken imports from the United States since 2017, while collecting only about US$3.2 million.

The figures were tabled in Parliament in response to a question from Philip Lawrence, drawing attention to enforcement gaps managed by the Canada Border Services Agency.

The dispute centres on spent fowl, which refers to end-of-lay hens processed for food products and allowed tariff-free entry from the United States under the Canada-United States-Mexico Agreement, unlike broiler chicken protected under Canada’s supply-managed system.

Last year, Canada imported more than 113 million kilograms of chicken labelled as spent fowl from the United States, a level domestic producers, including the Chicken Farmers of Canada, say exceeds realistic U.S. production capacity.

The group has argued that imports above roughly 60 million kilograms annually are likely to involve reclassified broiler meat entering the market to avoid tariffs and quotas.

The Canada Border Services Agency has stepped up inspections of poultry imports and reports improved compliance rates following tighter verification measures in recent years.

Despite enforcement action, nearly US$240 million in assessed amounts remain unpaid while close to US$68 million has been written off due to collection limitations and insolvencies.

Agency spokesperson Karine Martel said unpaid amounts are transferred to the Canada Revenue Agency after 30 days and may later be written off if recovery efforts fail or legal limits expire.

A large portion of recent write-offs, including about US$40 million, was linked to a system migration in October 2024 that temporarily delayed debt processing during the rollout of a new customs platform.

The issue has also been raised in consultations ahead of a review of CUSMA, although Chicken Farmers of Canada maintains it reflects illegal classification practices rather than a flaw in the trade agreement.

The U.S. poultry industry, including the National Chicken Council, has largely avoided detailed comment, while Canadian officials continue reviewing enforcement practices as Philip Lawrence says the system leaves domestic producers at a disadvantage.

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