Strengthened Oversight of

Imports under the

Proposed Imported Food

Sector Product Regulations

2Background

• The proposed Imported Food Sector Product Regulations would introduce food safety and licensing

requirements for importers in the Imported Food Sector to enable better identification of unsafe foods

and ingredients , and allow the CFIA to identify and engage importers

• Food safety is a priority of the Government of Canada and the proposed regulations are a key element

to fulfill the Prime Minister’s Food and Consumer Safety Action Plan announced in 2007

– an important building block for the Agency’s food safety agenda

– in-line with Canada’s key trading partners (US, EU and Australia/New Zealand) that have implemented similar

requirements and/or licensing regimes at the importer level

• These proposed regulations mark the first stage of the Agency’s Regulatory Modernization initiative,

moving towards a new and improved inspection model, and the Safe Food for Canadians Act (SFCA)

– will continue forward with the Safe Food for Canadians Action Plan and through regulations drafted under the SFCA

• The CFIA has embarked on a change and modernization agenda, propelled by the new Safe Food for Canadians Act (SFCA), with a focus on: stronger food safety rules; more effective inspection; commitment to service; and more information for consumers.

• The SFCA is the cornerstone of CFIA’s sweeping change agenda, that will help bring about legislative change aimed at promoting safer food and better protection to optimize the health and safety of Canadians and make Canadian businesses more competitive globally. Key change agenda initiatives include: – Inspection Modernization;– Food Regulatory Modernization;– Food Labelling Modernization;– Compliance Promotion; and – Food Safety Action Plan’s Import Licensing. – 3

CFIA’s Change Agenda

4Imported Food Sector (IFS)

Examples of foods that would require the importer to hold a valid import licence to import into Canada under the proposed regulations.

Meat

Fish

Dairy Products

Eggs

Fresh Fruit and Vegetables

Honey

Maple Products

Processed Egg

Processed Products

Food Commodity

Grain Products

Beverages

Confectionary/Chocolate

Spices, Seasonings and Dried Herbs

Vegetable Fats and Oils

Infant Formula and Meal Replacements

Snack Foods

Bottled Water

Salts

Synthetic Colours

Meat Regulations

Fish Regulations

Dairy Product Regulations

Egg Regulations

Fresh Fruitand Vegetables Regulations

Honey Regulations

Maple Products Regulations

Processed Egg Regulations

Processed Products Regulations

Regulation Coverage

Imported Food Sector Product Regulations

Act Coverage

FDA &CPLA

CAPA

Meat Inspection Act

Fish Inspection Act

1

2

3

SFCA

5

IFS Trends

• The IFS is vast, imports are received from over 190 countries many of whom

have food safety systems in very formative stages of development

– “Risks are no longer confined within our borders, and the Agency must face the challenge

and focus its resources where the risk is greatest and where there is the greatest net

benefit to Canadians” CFIA website

• Of the estimated 25,000 importers, 96% are micro or small in size but

collectively import transactions for the whole sector are valued at over $1 Billion

dollars/month with 50,000 transactions/month

6Regulatory Requirements

• The proposed Imported Food Sector Product Regulations will require importers to meet certain general and

licensing requirements to import IFS products into Canada

General Requirements

• Notify the CFIA within 24 hours of determining that a food safety hazard exists

• Develop, establish and maintain a written recall plan to help identify and remove products of concern from

the Canadian marketplace quickly and efficiently

• Maintain records associated with the imported products, as well as those related to the recall plan and the

Preventive Food Safety Control Plan (PFSCP)

Licensing Requirements

• Complete an application for an IFS licence

• Licence holders must have, implement and maintain a written PFSCP and demonstrate that they have taken

the necessary measures to reduce food safety risks

7Collection of the CRA Business Number

• An IFS licence application will require applicants to provide key identifying information. To follow government best practices, and to use a unique identifier, the regulatory proposal requires applicants to provide their CRA Business Number.

• Question 1: Are there any concerns with the requirement to provide this piece of information? If so, what is the nature of the concern and how might it be resolved?

8Proposed IFS Licence

• Under the proposed regulations an IFS licence number will be

required with each shipment of goods

• Electronic application through the CFIA Licence Management

System

• Licence will apply to entities, not establishments

– current draft – one licence per legal entity

• No fee per shipment

• No limit on number of shipments

• Licence is valid for 2 years

• Proposed Cost of $259 for 2013/14

9Number of Licences per Legal Entity• An applicant for an IFS licence may only hold one licence per their legal

entity in the current draft. Consideration is being given as to whether legal

entities should be allowed to hold multiple licences based on distinct

operating names

• Considerations:

– allowing an unlimited number of licences dilutes enforcement abilities (i.e. cancellation

of one licence is rendered meaningless if they also have other IFS licences)

– some larger importers have cautioned that the risks and logistics associated with only

having one licence for their operation are significant and unmanageable

– enforcement of multiple licences issued per operating name can be managed through

the legal name of the licence holder as well as their CRA Business Number

• Question 2: Is there support for allowing one legal entity to hold more

than one IFS licence for different branches of their operation? Please

identify any concerns with this approach

10Proposed Implementation: Providing Flexibility to Industry

• The coming-into-force of the proposed regulations will begin with an Interim

Compliance Promotion phase that will last for at least one year

• Will allow large businesses time to develop new models and agreements

• Will allow time for small and medium enterprises to :

– become aware of their obligations and familiarize themselves with the appropriate

legislation;

– comply with the regulatory requirements; and

– obtain a licence

Drafting regulations

Compliance promotion and

educationEnforcement

Regulations in force

Drafting regulations

Compliance promotion and

educationEnforcement

Regulations in force

75-Day Comment Period

11Engagement Approach

• Consulting with importers to better understand their issues and needs, especially micro and small-sized importers• Working with partners to identify opportunities to assist

importers under this regulatory proposal to build capacity to develop and implement a PFSCP• Developing guidance documents to help industry meet

the regulatory requirements• Strong service oriented approach through the use of an

electronic client interface for licence applicants

12Supporting Resources

• The following resources will help support industry to meet the regulatory requirements immediately:

Regulatory Requirement

ResourceInterpretation General Recall Plan Record

KeepingLicensing Preventive Food

Safety Control Plan

A Guideto Identifying Food Products Affected by the Proposed Imported Food Sector Product Regulations

ü ü

AutomatedImport Reference System ü üCodex’s RecommendedInternational Code of Practice ü ü ü ü üFood Recalls: Make a Plan and Action It! ü ü ü ü üGeneral Principles of Food Hygiene, Composition and Labelling ü ü ü ü üGood Importing Practices for Food ü ü ü ü üGuide to Food Labelling and Advertising ü ü ü ü üGuide toFood Safety ü ü ü ü üListservefor periodic updates www.inspection.gc.ca/importedfood ü

13Supporting Resources (cont’d)

• In addition to the resources that will be available immediately, the following resources will help support industry to meet the regulatory requirements at coming-into-force:

• Question 3: What other tools or forms of support should the CFIA make available to help industry meet the regulatory requirements?

Regulatory Requirement Resource

All provisions of the regulations • Importer’s Guide

Licensing • Preventive Food Safety Control Plan models• Licence application and technical support from the Importer

Licensing Unit

Preventive Food Safety Control Plan • Preventive Food Safety Control Plan models

14Engagement Activities

• Targeted discussions have been, and continue to be held with industry, a working group has been formed with CBSA to ensure system interoperability and smooth implementation• Publication in Canada Gazette, Part I, will launched a

formal 75-day comment period• 17-city Agency overview of the regulatory clauses• Multi-lingual information materials in development

recognizing the cultural diversity within the import sector