A PUBLICATION FOR MEMBERS OF THE PET FOOD ASSOCIATION OF CANADA

Transcription

1 MESSAGE FROM THE PRESIDENT Welcome to the Spring issue of Regulatory Report, a report that summarizes many of the regulatory initiatives we are working on. We invite you to share this report widely in your company as it provides information across many facets of the pet food business. Our regulatory plate continues to be full. There are many issues and consultations underway and PFAC will represent your interests in those, as summarized below. In February of 2017, the PFAC Board met for its annual planning session. A couple of noteworthy initiatives arose from that. Firstly, the Board authorized a member survey to determine where our limited resources should be focused going forward. Secondly, the PFAC Board is attempting to increase participation and better leverage resources in our Association by forming a number of advisory work groups. These groups will focus on certain topics and do deep dives into issues previously handled by the Board. To that end, three new working groups have been formed: Regulatory Affairs (Chair, MaryAnn Zamora-Grepe, Elmira Pet Products) Communications (Chair, TBA) Pet Food Safety. (Chair, TBA)

2 Page 2 MESSAGE FROM THE PRESIDENT (continued) The Board has invited participation in these groups based upon the skill sets needed and has developed a Ways of Working document that describes the tasks for each group. It is an expectation that participants will be actively involved and have time to commit to projects. Participation will be reconfirmed annually. What follows is a summary of the slate of regulatory topics being undertaken by the Regulatory Affairs Advisory Working Group (RAAWG). We hope to see you at PFAC s Fall Conference, Niagara-on-the-Lake, Ontario, November 2 and 3, Laurie Ross, Mars Canada PFAC President

3 Page 3 GAPFA (GLOBAL ALLIANCE OF PET FOOD ASSOCIATIONS) Canada (PFAC) is a member of GAPFA and Diane Loiselle is its current president, representing PFAC. GAPFA is an alliance of pet food industry associations from Canada, Europe, United States, Russia, Japan, South Africa, Australia, New Zealand, Thailand, Brazil and Mexico. A significant activity of GAPFA during the past year has been to engage the OIE in the concept of accepting GAPFA as the official international spokes-group for the pet food industry. The OIE has responded favourably to this and has drafted a Memorandum of Understanding (MOU) between the OIE and GAPFA, which will be voted on at the World Assembly of the OIE in May of Ms. Wilder has been invited by Canada s Chief Veterinary Officer, Dr. Harpreet Kochhar, to attend the Assembly as part of the Canadian delegation. The next work for GAPFA, once the MOU is signed, will be to start work on a pet food-specific chapter or section of the OIE code. The benefit of this will be to attempt to remove trade barriers that occur as a result of animal disease outbreaks. Other GAPFA initiatives are the authoring of pet food safe manufacturing document and the harmonization (where possible) of the FEDIAF Nutrition Profiles with AAF- CO. PFAC will host the annual GAPFA meeting in Toronto this year, just prior to the PFAC Fall Conference during the week of October 30 - Nov 3.

4 Page 4 CANADA AVIAN INFLUENZA Canada became AI-free and notified the World Trade Organization of its status in October Countries that had placed bans in effect began to recognize the status and lift their bans. At the same time, Dr. N. Kafidi of CFIA, had undertaken a time and temperature survey of Canadian manufacturers to determine the extent to which processed pet food could kill the AI pathogens. Once that project was completed, Dr. Kafidi began asking many of our trading partners to include a heat treatment statement in export certificates so that trade barriers can be mitigated at times of AI outbreaks. Meanwhile, the USA is having its own AI difficulties. An outbreak in Tennessee has caused a ban of raw poultry products from the zone identified by USDA. Canada continues to accept heat-treated ingredients and finished goods manufactured from ingredients from zone. Raw products, however, are still included in the ban. ELECTRONIC CERTIFICATION In previous industry meetings, CFIA announced that it is working toward an electronic certification system that would allow for electronic transfer of documents for imports and exports. There is an advisory group assisting CFIA representatives working on the electronic service delivery project (ESDP). PFAC has been asked to join the advisory group and has been told that an industry-specific consultation will occur this year. The first phase of ESDP is rolling out now, but is very specific to a few commodities. The second phase is expected in early summer, followed by the third and fourth phases in the late fall. For our industry, it is expected that our initial involvement will be with import permit applications. Export Certificate requests will come later. We will be holding an information session on this topic at the PFAC Fall Conference and CFIA will be present to answer our questions. Details will be available in the conference registration flyer in June of 2017.

5 Page 5 CANADA (continued) IMPORTATION OF SPECIALTY MEALS Dr. Faiza Aklil made an extended audit visit to the EU in January of this year for the purpose of visiting (and approving) producers of specialty meals for export to Canada. These included duck meal and porcine meal. A report of the audit has now been submitted to the EU for comment and once that has been finalized, the export certificate will be approved and companies may apply for import permits. There is no firm time-line for completion, however, based upon a similar exercise conducted last year for finished goods, a good guess would be September of Dr. Aklil has also advised that it is her recommendation that raw materials from the member states she visited on her audit visit be permitted for import to Canada. Her recommendation is being reviewed by the CFIA s Centre for Science and once their approval is received, she will proceed to develop import conditions and an export certificate. Countries visited were: France, Spain, Italy, Germany, U.K., Netherlands and Romania. IMPORTATION OF FINISHED PET FOOD FROM THE EU In early 2016, funded by companies in our industry, Dr. Aklil and Dr. Melvin-Walsh made an audit visit to the EU for the purposes of confirming production methods for pet food. Nine facilities in six countries were visited. Finished goods are now approved for shipment to Canada and no import permit is required. DOMESTIC SUBSTANCE LIST For a number of years, we have been working with our consultant, Mr. Keith Mussar, to rectify the exclusion of many pet food ingredients from the Domestic Substance List (DSL). We have been working with Environment Canada to find an elegant solution for this problem without the disruption of trade or the manufacture of pet food. A preliminary list of ingredients to be approved by Environment Canada (EC) was submitted to EC at the end of To date, we have not received comment on the preliminary lists. This is a complicated issue and to provide more detail is beyond the scope of what we can offer here. However, if you would like more information, please contact Martha (Marty) Wilder our Executive Director and she can provide more background.

6 Page 6 CANADA (continued) PHYTOSANITARY CERTIFICATES In 2012, the CFIA conducted a consultation (Directives D and D-12-05) regarding a proposed requirement for phytosanitary certificates for certain grains and seeds. The move was prompted as a measure to control the infestation into Canada of the khapra beetle and weed seeds. The initial implementation date was suspended after it became apparent that more consultation was required and that consultation continues to this date. The next round of broader stakeholder consultations on the draft directives will be communicated through multiple channels (WTO notification process, CFIA Listserv, Canadian grain industry association networks, etc. We will continue to monitor and comment on these Directives when the opportunity presents itself. USA PET FOOD IMPORTS FROM THE USA AND EXPORTS TO USA FROM CANADA The Foreign Supplier Verification rule has now been published in the USA. Companies that ship to the USA will be asked by their customers to comply with the conditions of the FSVP within 18 months of the date of publication. A provision in the FSVP provides a reduced burden for companies in countries recognized as having equivalent systems to the USA. Unfortunately, because Canada does not regulate pet food domestically, there is currently no equivalency agreement. PFAC is planning to organize a webinar on the FSVP so that members can assist themselves (and their customers) in navigating the requirements. IMPORT OF MEAT AND BONE MEAL FROM THE USA Imports of Meat and Bone Meal from the USA are still not permitted unless the product meets the Canadian SRM definition. CFIA has explained that because of the integration of cattle between Canada, USA and Mexico, USA (and Mexico s) negligible risk status cannot be recognized. The earliest that recognition could be expected would be 2020 if Canada receives a similar designation of negligible risk.

7 Page 7 USA (continued) TRANSSHIPMENT/IN-TRANSIT VIA USA Canadian requirements of USDA Dr. Aklil has outlined the requirements for transshipment and in-transit of pet food through the USA. She explained that transshipment would occur if a seal is broken and/or part of a load is off-loaded. In this case, two certificates are required: one from the USDA as to the status of the product while in the USA and one from the third country certifying that the product meets Canada s import conditions. In-transit shipments are those which do not have a broken seal and in this case, they may enter Canada, via the USA, with the third country certificate. In a similar discussion, Ms. Wilder outlined an issue with Transshipment through the USA for Canadian exports. The system requires the issuance of an import permit; but when there is less than a load (LTL), a shipper like FEDEX is the only US contact and will not apply for a permit. CFIA has been asked to discuss with USDA as to how this issue may be resolved. REGULATORY UPDATE PFAC CONFERENCE Attendees at the PFAC Conference will also be provided with a FSMA update and future updates will be posted on the PFAC website. IMPORTS FROM USA The export certificate for heat-treated, shelf-stable pet food from the USA is being amended to include a heat-treatment statement. This will mitigate trade stoppages at times of avian influenza and other animal diseases that can be killed by heat-treatment. Meanwhile, CFIA is working on the second phase of revisions to import policy regarding raw and freeze-dried products. PFAC will have an opportunity to comment on the policy before it is finalized.

8 Page 8 USA (continued) EXPORTS TO USA Dr. Suminder Sawhney, National Director of Animal By-Products, has had meetings with USDA asking them to meet their commitment to simplify pet food exports to the USA through a multiple-shipment certificate, as is the case for shipments from the USA. These discussions are continuing and PFAC has asked its sister association, PFI, to make a similar request. It appears that this may be possible without regulatory change, which is good news. Import permits would still be required, as the removal of import permits would require a regulatory change. There is no time-line for completion. Dr. Nacer Kafidi is working with USDA to develop a single export certificate for the USA. Presently, companies use the generic certificate, pasting on the import conditions that appear on the import permit. PFAC has provided comment on the new draft certificate, noting that because of its complexity, it is only beneficial when used as a multiple shipment certificate. Don t miss the USA update at the PFAC Fall Conference!

9 Page 9 GUIDELINE FOR EXPORT CERTIFICATION In 2014, CFIA, in consultation with PFAC, developed a detailed guideline to assist companies in understanding their obligations when exporting to various markets around the world. In the Fall of 2016, the document went live on CFIA s website. The Guideline for Export Certification is now online on the CFIA website and can be found HERE or at You should look at the document often for updates. We have asked CFIA to provide notice when updates are occurring and when we receive those notices, we will share. The Regulatory Affairs Advisory Working Group (RAAWG) has recently completed a side-by-side document comparison and has commented to CFIA on some suggested clarifications on the Guideline document. You should also note that where a country does not have import conditions (such as Hong Kong & Japan), you are still obligated, pursuant to the Health of Animals Act, to obtain an HA2341 document. This requirement is explained in more detail in the Guideline document. Your can also find export conditions for all countries for which Canada has negotiated certificates HERE or at

10 Page 10 SAFE FOOD FOR CANADIANS The Gazette I consultation for the Safe Food For Canadians regulation has recently closed. PFAC provided comment during the consultation and asked for an industry specific conversation with CFIA. It was previously thought that the pet food industry would not be impacted by the Regulation; however, those companies that use human food as defined by the Act in the preparation of pet food (e.g. pumpkin power, dried vegetables, human grade raw materials) are in fact included because by definition, these are food. An exemption for pet food use is available if the product is labeled as not for use in human food. We have pointed out the challenges with labeling bulk shipments and the mixed messaging of labeling the same food as both not for human food and the implied safe for human food if not labeled. Alternatives to labeling the product (for example, use of commercial documents) have been proposed by PFAC and we have asked what the implications of obtaining a license are; in particular, what other parts of the Regulation would be triggered as a licensed importer. Finished pet foods are not covered by the Safe Food For Canadians Regulations. If you wish a copy of our consultation submission, kindly contact our office. CFIA COST-RECOVERY CONSULTATION CFIA has recently closed Phase I of a cost-recovery consultation. Members of the RAAWG attended information sessions to hear more about why CFIA feels the need to change its service fees. CFIA has not amended its fee structure for over twenty years. Its cost in delivering what it views as private services is approximately $533 million, yet it is recovering only about 10 percent of those costs (55M) through current fees. PFAC conducted a survey of its members on this topic and has submitted comments to Phase I. We have asked for a deep dive into our industry s ability to absorb fee increases and our service standards expectations before Phase II rolls out. If you wish a copy of our consultation submission, kindly contact our office.

11 Page 11 OTHER MARKETS CHINA Seven Canadian companies that were approved to ship to China in 2012 will need re-inspection this year. At the same time, companies who have never been approved (or inspected) for China may request an inspection. CFIA has sent an invitation to China to inspect and awaits a response. All companies who are wishing to be inspected will be required to share in the costs of the incoming mission. On the good news front, we have received notice that China s ban on Canada s poultry products is lifted. This means that shipments of poultry-based pet food from approved facilities may recommence. INDIA More good news. CFIA has been advised by India that the draft export certificate proposed by Canada meets Indian import conditions. The next step is for India to publish its decision in the Indian Gazette before shipments to India can commence. There is no time-line as to when publication will take place, but senior CFIA officials continue to press for finalization. ARGENTINA CFIA has made a proposal for an export certificate for Argentina, but despite numerous follow up s, no response has been received. CFIA has asked the Trade Commissioner in Argentina to follow up. TAIWAN Any country may choose to audit our inspection systems at their discretion. In January, 2017, Taiwan made an audit mission to Canada and inspected three Canadian manufacturing facilities. Following the inspection, a report is issued. At the time of writing this copy, CFIA was still awaiting receipt. It is CFIA s expectation that going forward, CFIA will be able to inspect, on behalf of Taiwan, companies wishing to enter into Taiwanese exports. Taiwan will reserve the right to audit at their discretion.

12 Page 12 OTHER MARKETS (continued) BOLIVIA & ECUADOR CFIA has repeatedly asked for import conditions for Bolivia and Ecuador but to date has not received responses from either country. PFAC will use its networking in GAPFA to see if we can get this information through other means. PLEASE CONTACT our Executive Director, Martha (Marty) Wilder should you wish any more detail regarding any of the items outlined in this Regulatory Report. See you in November!