Canada Counsel's Corner September 2010 Article

CFIA to Consult Industry Concerning Licensing of Food/Food Ingredient Importers

On August 16, 2010 the Canadian Food Inspection Agency (CFIA) signaled its intention to license food and food ingredient importers. It posted a consultation survey on its website eliciting comments from the stakeholders. It is contemplated that importers of specified food and food ingredients, regulated under the Food and Drugs Act, will require a license and will be required to demonstrate that they employ a food safety system that minimizes the risk of a food borne incident involving products they import. The food safety system is to be measured by its ability to ensure that products comply with the Consumer Product Packaging and Labeling Act and Regulations.

The non exhaustive list of products impacted is as follows:

Alcoholic and non-alcoholic beverages
Confectionary
Fats and oils
Infant formula
Coffee and tea
Cereals
Spices and seasonings
Juices
Bakery products.

It is understood that the Regulation will not apply to the following:

Processed fruits and vegetables
Meat and poultry
Dairy products
Egg products
Honey and maple products
Seafood
Fresh fruits and vegetables
Synthetic colours
Bottled water

The objective of this regulatory proposal, in keeping with Canada's Food and Consumer Safety Action plan, is to enhance Canada's food safety system for imported food products in the non-federally registered sector by monitoring legislation and enhancing program measures.

The CFIA has advised that enhanced controls of imported products are required for the following reasons:

Over 70% of food products sold in Canada are imported and most of the domestic products contain imported ingredients.
Imports are sourced from more than 190 countries with varying levels of food safety controls.
Complexity of global marketing and mass distribution networks translates to more widespread failures in food safety systems.
There have been increases in Canadian food safety incidences involving imported products in the last five years.
Concerns have been expressed by Canadians regarding safety of imported products.

The regulatory scheme will allow the CFIA to better identify and engage regulated parties, enhance verification of compliance with food safety requirements, and minimize risk of unsafe products. Registration will also allow the CFIA to target products of importers of greatest risk and concern, facilitate a proactive approach to prevent marketing of unsafe foods, and respond rapidly to better manage food safety issues when they occur.

Interestingly, the new Regulation will be promulgated under the Canada Agriculture Products Act, and not the Food and Drugs Act, because the latter does not provide authority to prescribe food safety control programs as the Canada Food and Safety Action Plan contemplates.

The CFIA will hold special consultations across Canada, dates and details to be announced. It is anticipated that consultation will be completed by October 4, 2010, and that draft regulations will be published before the end of December 2010.

Members who are themselves importers of such food and food ingredients, or who have related businesses in Canada for which they have responsibility, should pay attention to this opportunity for consultation, and should apprise themselves of the potential impact of the proposed Regulation on the manner in which they conduct Canadian importation business.

Darrel Pearson
Partner and Co-Chair International Trade and Investment Practice Group
(416) 777-4811
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