Safe Food For Canadian Action Plan – Food Safety Regulatory Modernization

Purpose To provide an overview of elements of a new regulatory framework for federal food inspection along with other elements of the Agency’s modernization efforts To answer any questions that might assist participants to further engage with others over the course of the consultation period To gather initial feedback and reactions

CFIA’s Transformation Agenda The CFIA is pursuing a comprehensive transformation agenda that is designed to foster improvements and meet the growing challenges posed by the complex and evolving operating environment The recently announced Safe Food for Canadians Action Plan is the cornerstone to this transformation agenda Building on the new inspection model, the Government passed the Safe Food for Canadians Act and is developing regulations to bring the Act into force In addition, the Agency is engaging on proposed importer licencing for the imported food sector, labelling modernization and on a compliance promotion strategy This round of consultation will be open until November 30, 2013

Modern Legislation Passed by Parliament… Safe Food for Canadians Act (SFCA) received Royal Assent in 2012; enables modern federal food safety inspection system Act will replace three CFIA inspection statutes – Meat Inspection Act, Fish Inspection Act, and Canada Agricultural Products Act – and food provisions of Consumer Packaging and Labelling Act Food and Drugs Act (FDA) continues to apply to all food sold in Canada , as do other CFIA statutes related to plant and animal health. Discussion document: “A New Regulatory Framework for Food Inspection” sets out proposed elements of broad framework Individual presentations and discussion documents for the other CFIA initiatives are available on the CFIA web site

New Inspection Model Developed… …moving now to implement regulations, risk model, new inspection approaches, and systems performance…

Innovative Features of New Model Those who import, export or prepare food for inter-provincial trade will require a licence and preventive controls Inspection oversight will be risk based - better application of intelligence to determine risk Inspection approach will be consistent across food Single strategy for compliance and enforcement to provide consistent and appropriate response across food Systematic assessment of performance embedded in approach to ensure continuous improvement

CFIA Food Regulations – Today Thirteen federal food inspection regulations will be replaced: Dairy Products Regulations Egg Regulations Processed Egg Regulations Processed Products Regulations Fresh Fruit & Vegetable Regulations Honey Regulations food related provisions of Consumer Packaging and Labelling Regulations Maple Products Regulations Licensing and Arbitration Regulations Organic Products Regulations Livestock & Poultry Carcass Grading Regulations Meat Inspection Regulations Fish Inspection Regulations

Proposed Approach for Tomorrow Single set of food inspection regulations that enable a risk-based approach to food and put the emphasis on outcomes Regulations would include: Horizontal provisions applying to all food imported and prepared for trade inter- provincially (e.g licensing, preventive controls, traceability, record-keeping) Commodity–specific food safety and consumer protection requirements (e.g. slaughter provisions, standards of identity, grades, container sizes, inspection marks, labelling) Complementary regulations regarding disclosure of information and administrative monetary penalties New regulations for most part would not apply to food traded solely within a province or territory

Horizontal Requirements: Licensing Licensing requirements Everyone who imports or prepares food for inter-provincial trade would be required to have a licence Regulated parties would be able to apply for multiple licenses The license would be valid for two years and a fee would apply for the licenses. Suspension and cancellation Proposed regulations would include ability to suspend and cancel licenses, as well as criteria for application of these enforcement tools. Licensing allows CFIA to authorize an activity and attach specific conditions. It also allows the CFIA to identify who is preparing or importing food in Canada, where food businesses are located and what activities they are conducting. Minister to suspend a licence if: licence holder has not complied with conditions of licence or any provision of Act or regulations licence holder has unpaid fees reasonable to believe that public health may be endangered if licence holder continues to import, export or prepare a food commodity for export or inter-provincial trade. Minister may cancel a licence if: licence holder had committed deceptive practices to obtain licence, such as providing false or misleading information to CFIA reason for suspension cannot be resolved within 90 days following day on which licence was suspended - a longer time period may be granted upon request of licence holder; licence holder continued to import, export, or prepare a food commodity for export or inter-provincial trade while their licence was suspended.

Importer licensing under the Food Safety Action Plan The proposed Imported Food Sector Product Regulations (IFSPR) mark the first phase of the Modernization initiative, moving towards a new and improved inspection model, and the SFCA will be enabled under existing authorities initially (CAPA) and will continue forward with the Safe Food for Canadians Action Plan and through regulations drafted under the SFCA The proposed Regulations will require importers of Non-Federally Registered Products to meet certain general and licensing requirements to import these products into Canada 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 Fruit and 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 targets importers of products currently regulated under only the FDA/R and CPLA/R

Proposed IFSPR 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 Control Plan (PCP) Complete an application for an IFS licence – electronic application through the CFIA Licence Management System Have, implement and maintain a written PCP and demonstrate that the necessary measures have been taken to reduce food safety risks A valid IFS licence number will be required with each shipment of goods no fee per shipment or limit on number of shipments licence is valid for 2 years; proposed cost of $259 for 2013/14

Horizontal Requirements: Preventive Control Plans (PCPs) A PCP sets out in writing how food safety and other regulatory requirements (e.g. related to labelling, product composition, allergens) will be achieved. PCPs recognized internationally as best way to demonstrate that food safety risks and hazards are controlled because it focuses on prevention and systems-based examination of potential hazards The proposed regulations under SFCA would entrench management responsibility by requiring licence holders to have a PCP that demonstrates how they achieve regulatory requirements (safety and other requirements) and describe how management controls their operations, including how they monitor, verify and correct deviations, and respond to unforeseen food safety situations

Horizontal Requirements: Preventive Control Plan Examples of expected outcomes : Floors, Walls, Ceilings Floors, walls, and ceilings shall be constructed of material that is durable, impervious to moisture, smooth, cleanable, and suitable for the production conditions in the area. Floors shall have drainage that prevents standing or pooled water Water/Ice/Steam The quality and safety of water, ice and steam in direct contact with food or food contact surfaces is controlled to prevent contamination. Water shall be potable or clean and shall be suitable for the process being undertaken Water, ice and steam shall be sampled, tested and analyzed to confirm their safety for the intended purpose. Proposal to move from prescriptive commodity-specific rules that cover some food commodities, to system of expected outcomes and regulatory requirements for all food traded across borders Approach provides flexibility to introduce new technologies and processes that could enhance safety and/or reduce costs Depending on nature of operation, PCPs would include some or all of following elements: processes and products equipment design and maintenance sanitation and pest control employee hygiene and training receiving, transportation and storage physical structure and maintenance of the establishment recall and complaints

Horizontal Requirements: Traceability and Record Keeping Rapid identification of origin and movement of a food commodity is essential for protecting consumers during a food recall Proposed regulations would apply Codex standard of maintaining records on inputs and distribution, “One step forward, one step backwards”, to every stage of food supply chain, from primary producer to retailer Regulations would require that operators: collect and maintain traceability information in an accessible, useable format, in English or in French. provide records to CFIA on request , un-encrypted and within 24 hours in a format which can be imported and manipulated by standard commercial software Operator who believe that food is not in compliance with food safety requirements would have to : immediately initiate procedures to withdraw the food from the market inform the CFIA inform consumers if it could have reached them and recall if necessary Retailers, restaurants and catering companies will not be required to collect information about consumer purchases All records would need to be maintained and accessible at an address in Canada for a period of not less than three years

Commodity Specific Safety and Trade/Consumer Protection Provisions Safety Example : Fresh Fruit and Vegetables - new produce safety outcomes/requirements for fresh fruit and vegetables would apply to farms who ship product directly to market in another province or to another country to be consumed raw Commodity-specific requirements will be maintained for grades, standards of identity, container sizes, country of origin and labelling requirements Food Labelling Modernization may ultimately re-engineer these areas (e.g. country of origin). In interim, current regulatory process is an opportunity to clean up our regulatory framework by : Consolidating and grouping provisions of similar purpose Reviewing whether some groupings would be appropriate for Incorporation by Reference (IBR) Moving to outcome-based statements where it makes sense Referencing to the Food and Drug Regulations, where appropriate FDR Overlap Labelling and Standards of Identity provisions exist in Food and Drug Regulations (FDR) administered and in regulations under CAPA, MIA, FIA and CPLA. Duplication and inconsistencies exist between these provisions. Industry has often criticized the current sets of regulations for being confusing and impeding innovation. Labelling and Standards of Identity requirements in the FDR will not change in this round of amendments. While Food Labelling Modernization Initiative may ultimately re-engineer these provisions, the drafting of new regulations under the SFCA represents an opportunity to improve the uniformity of labelling and standards of identity Proposed labelling and standards of identity sections under the new CFIA food regulations will include: - reference to the FDR where appropriate; - requirements currently under CAPA, FIA, MIA, CPLA not already covered in the FDR; and - commodity specific requirements When the duplication between the current sets of regulations cannot simply be eliminated, a provision by provision analysis will be done to determine which provision will be maintained taking into consideration industry preference and consumer protection

Food Labelling Modernization Vision: to design an innovative and modern food labelling system, trusted and respected by Canadians and the international community. Area of Focus Outcomes Roles and Responsibilities Improve compliance by effectively balancing the roles and responsibilities between consumers, industry, and government Regulations Better protect consumers and support industry innovation by strengthening the regulatory framework , while considering global standards and approaches. Policy and Program Development Improve compliance by developing effective policies and programs; that are based on risk; facilitate partnerships and support consistency. Service Delivery Improve service delivery by applying standardized inspection approaches based on risk and prevention, and supported by appropriate services and tools.

Safe Food For Canadians Act FLM & Other Initiatives Objective: Identify and analyze issues that will lead to development of recommendations for a more modern and innovative food labelling system 17 Safe Food For Canadians Act FLM & Other Initiatives Issues Gathered & Engagement Completed Approval of Draft Recommendations Completed Engagement Stages Stage 1: Launch, Engage and Gather Issues Stage 2: Analyse Data and Draft Recommendations Stage 3: Engage on Draft Recommendations & Analyse Data Stage 4: Finalize Report on Recommendations & Implementation Proposal 1 2 3 Timelines June- December 2013 January - May 2014 June – November 2014 December 2014 – June 2015

Other Proposed Elements Organics Products Regulations: Organics regulations do not currently cover aquaculture because they were under CAPA. An Aquaculture Organic Standard is now published and SFCA regulations represent an opportunity to include aquaculture, as well as to address some other non-substantive issues, such as unclear wording in some places Licensing and Arbitration Regulations (LAR): Replace regulations and “dual licensing” with a requirement for fruit and vegetable dealers to be members of a non-government entity to facilitate orderly trade and better align with system in United States Disclosure of personal and confidential business information without consent related to food safety investigations; food recalls; licence suspensions or cancellations; notice of violations, warning and penalties issued under AAMPS; and, refused shipments upon entry into Canada Review and Redress: On April 1, 2012, the CFIA created a Complaints and Appeals Office (CAO) to provide stakeholders with a "single window" and clearly defined process to submit complaints related to service delivery, administrative errors, and regulatory decisions. New regulations would formalize the regulatory function, with authority to make new decisions

Proposed Pillars of a Compliance Promotion Strategy Examples of Potential Applications Education Enhanced online search function Guidance documents for both stakeholders and CFIA employees Enhanced use of social media Webinars and YouTube videos demonstrations on key topics Technical Assistance Plain language synopses to complement legal documents Training opportunities are provided through partnerships Model systems Searchable question and answer repository Templates, self-assessments and checklists Transparent Communication Industry best practices highlighted as examples Compliance and enforcement data is shared publicly Compliance Incentives Compliance history supports ability to adjust inspection frequencies Support programs conditional on compliance License suspensions and monetary penalties act as deterrents

Coming into Force and Next Steps Consultations on these initiatives will continue until November 30, 2013 Formal Notice of Intent of new federal food inspection regulations in Spring 2014 , including draft content of food inspection regulations supported by first draft suite of guidance documents for industry Revise documents on other initiatives will also be available Target for new Food Inspection Regulations to Come into Force: January 2015

Feedback By email: CFIA-Modernisation-ACIA@inspection.gc.ca By mail: 21 By email: CFIA-Modernisation-ACIA@inspection.gc.ca By mail: Strategic Partnerships Division 1400 Merivale Road, Tower 1 Floor 6, suite 218 Ottawa, ON K1A 0Y9 Canada Attn: regulatory framework By fax: 613-773-5606