Impact on Canada-U.S.

Agri-food Trade

Safe Food for Canadians Regulation & FSMA

Keith Mussar

V.P. Regulatory Affairs

Canadian Association of Importers and Exporters

The Company We Keep

Who Our Members Are…..

How Many People They Employ…..

Our members: • Employ approximately 1.6 million Canadians

or about 10% of the entire workforce

• Our membership is: •3 times bigger than the Canadian automotive

industry (550,000 jobs 2013)

•3 times bigger than the oil & gas industry

(550,000 jobs 2013)

•6.5 times bigger than Canada’s food processing

industry (236,000 jobs 2011)

•Bigger than all 3 of the above combined

• Members contribute $270 Billion to the

Canadian economy in revenue or about 14.4% of

the GDP

• Members pay approximately $40 billion a year

in taxes, not including duty or GST

Measuring Our Shadow

Safe Foods for

Canadians Act (2012)

•Licensing – importers, exporters &

manufacturers

•Agricultural Products Act

•Consumer Packaging

& Labelling Act

•Meat Inspection Act

•Fish Inspection Act

•Licensing

•Enhanced trade, food safety &

compliance requirements

•Fresh Fruit & Vegetable

Consumer Packaging &

Labelling Regulations

Meat Inspection Regulations

Fish Inspection Regulations

Processed Products

Regulations

Organic Products Regulations

+ 7 Others

Safe Food for Canadians

Regulation (2016)

Safe Food for Canadians Act &

Regulations

Complex Regulation !

• 165 pages or regulation

• Incorporation by reference: 16 documents - > 200 pages

• Interpretive guidance

• New compliance & enforcement standards

• Outcome based regulations – evidence based compliance

• Audited food safety practices rather than inspection

USDA

U.S. FDA

Pet Food

Safe Food for Canadians Regulation

SFCR ≠ FSMA

Canada-U.S. Agri-food Trade

Canada-U.S. Agri-food Trade

Canadian Agri-food Imports from U.S.

Canadian Agri-food Exports to U.S.

• 2011 ~ $13 B Canadian NRIs

• 5,600 Canadian Companies

What is a Non Resident Importer ?

• Fixed place of business in the U.S.-not in Canada

• Preapproved by Canada Revenue Agency & Canada Border Services Agency

• Good Standing within jurisdiction

• Canada business number

• Pay duties and taxes in Canada

• Pay for CRA & CFIA audits

U.S. Exports to Canada

Canadian Importer

U.S. Non-resident Importer

U.S. Non-resident Importer

SFCR & Trade

• Licensing of Importers

• Fixed place of business in Canada

• Food safety & regulatory compliance plan

• Recall plan

• New labelling requirements for imported product

• New product & business date element reporting

• Foreign food safety system recognition • Non-resident imports

• Import prohibition directly from third countries by non-resident importers

U.S. Food Safety System Recognition

x CFIA-U.S. FDA comparability agreement

Equivalence agreement for meat

Recognition for seafood

U.S. Exports to Canada

Canadian Importer

U.S. Non-resident Importer

U.S. Non-resident Importer

X

Exemptions

• Unprocessed commodities (green coffee beans, green cocoa beans)

• Processed in Canada

• Labeled “for further processing”

• Not in consumer ready packaging

• Food additives

• Beverages with > 0.5% alcohol

FSMA & Trade

• Liability on U.S. importer for food safety

• Foreign manufacturer registration

• U.S. agent liability

• Voluntary Qualified Importer Program

• Non-resident importers

Recap

• SFCR ≠ FSMA: impact on the business of trade

• SFCR complex – U.S. industry needs to be informed

• Non-resident importers essential to bi-lateral trade

• U.S. food safety system recognition essential to U.S. trade

• Voluntary Qualified Importer Program essential to Canadian trade

Questions ?

Keith Mussar

kmussar@iecanada.com