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ADVANCED EXPORTING STRATEGIES AND ISSUES

REGULATORY AND TECHNICAL COMPLIANCE

SANITARY AND PHYTOSANITARY STANDARDS AND LABELLING
REQUIREMENTS




   Enhancing Opportunities in the Canadian Market for
   Innovative High-Value Colombian Agricultural Products
   January 15-17, 2013
   Centro Internacional de Agricultura Tropical (CIAT), Cali, Colombia

                                                        Craig M. Johnston
                                                        Berkeley Counsel
                                                        Berkeley Corporate Advisors
                                                        Toronto, Canada
                                                        Tel +1 416 364 7772
                                                        Email craig @berkeleycounsel.com

                    Craig M. Johnston - Berkeley Corporate Advisors
Craig M. Johnston - Berkeley Corporate Advisors   2




Introduction
•  Purpose of Sanitary and Phytosanitary Measures
•  General Standards
•  Standards for Standards
•  Regulatory Framework
•  Novel Foods and Plants
•  Labelling
•  Nutrition
•  Claims
Craig M. Johnston - Berkeley Corporate Advisors   3


Purposes of Sanitary and Phytosanitary
Measures
a. to protect animal or plant life or health from risks arising
   from the entry, establishment or spread of pests,
   diseases, disease-carrying organisms or disease-
   causing organisms;
b. to protect human or animal life or health from risks
   arising from additives, contaminants, toxins or disease-
   causing organisms in foods, beverages or feedstuffs;
c. to protect human life or health from risks arising from
   diseases carried by animals, plants or products thereof,
   or from the entry, establishment or spread of pests; or
d. to prevent or limit other damage from the entry,
   establishment or spread of pests.
Craig M. Johnston - Berkeley Corporate Advisors   4




General Standard for Food In Canada
Food and Drugs Act prohibits the sale of an article of food
that:
(a) has in or upon it any poisonous or harmful substance;
(b) is unfit for human consumption;
(c) consists in whole or in part of any filthy, putrid,
    disgusting, rotten, decomposed or diseased animal or
    vegetable substance;
(d) is adulterated; or
(e) was manufactured, prepared, preserved, packaged, or
    stored under unsanitary conditions.
Craig M. Johnston - Berkeley Corporate Advisors   5




Plant Pest Protection
Plant Protection Act prohibits the import into Canada or
export from Canada of any thing that is a pest (i.e. means
any thing that is injurious or potentially injurious,
whether directly or indirectly, to plants or to products
or by-products of plants, and includes any plant
prescribed as a pest), that is or could be infested with a
pest or that constitutes or could constitute a biological
obstacle to the control of a pest, unless otherwise
permitted.
Craig M. Johnston - Berkeley Corporate Advisors   6




Standards for Standards
•  SPS Agreement and the Canada-Colombia FTA
•  Measures based on:
   •  International standards, guidelines and recommendations;
   •  Scientifically-based risk assessment and scientifically defensible
      risk control measures


•  Codex Alimentarius (FAO/WHO)
•  World Organisation for Animal Health (OIE)
•  International Plant Protection Convention (IPPC)
Craig M. Johnston - Berkeley Corporate Advisors   7




Proposed Enforcement Framework

•  Licence all importers, exporters of food and
   manufacturers or processors of food products;
•  Assess importer based, in part, on review of its verification
   that supplier’s processes and procedures, and, in
   particular, the key controls used to ensure the safety,
   labelling and composition of food during manufacturing,
   processing, storage or distribution of the product are
   proper;
•  Reflects Hazard Analysis Critical Control Point (HACCP)
   principles;
•  Recommended International Code of Practice – General
   Principles of Food Hygiene adopted by the Codex
   Alimentarius
Craig M. Johnston - Berkeley Corporate Advisors   8




Miscellaneous
•  Alcoholic Beverages
•  Vitamins and Minerals
•  Food Colourings
•  Food Additives
•  Pesticide Residues
•  Wood Packaging
Craig M. Johnston - Berkeley Corporate Advisors   9




Novel Foods
a. a substance, including a microorganism, that does not have a
history of safe use as a food;
b. a food that has been manufactured, prepared, preserved, or
packaged by a process that
   i. has not been previously applied to that food, and
   ii. caused the food to undergo a major change; and
c. a food that is derived from a plant, animal or microorganism
that has been genetically modified such that
   i. the plant, animal or microorganism exhibits characteristics that were
   not previously observed in that plant, animal or microorganism,
   ii. the plant, animal or microorganism no longer exhibits characteristics
   that were previously observed in that plant, animal or microorganism,
   iii. one or more characteristics of the plant, animal or microorganism no
   longer fall within the anticipated range for that plant, animal or
   microorganism
Craig M. Johnston - Berkeley Corporate Advisors   10




Plants with Novel Traits
•  a plant that contains a trait which is both new to the
   Canadian environment and has the potential to affect the
   specific use and safety of the plant with respect to the
   environment and human health;
•  traits can be introduced using biotechnology,
   mutagenesis, or conventional breeding techniques;
•  includes all viable plant parts derived from them
Craig M. Johnston - Berkeley Corporate Advisors   11




Novel Foods Assessment
•  evaluation of the process used to develop the food
   product;
•  comparison of its characteristics to those of traditional
   food counterparts; its nutritional quality;
•  the potential for new toxicants or anti-nutrients; and
•  the potential allergenicity of any proteins that have been
   introduced into the food by genetic modification
   techniques.
Craig M. Johnston - Berkeley Corporate Advisors   12




Assessment of PNTs
•  Phytosanitary risk assessment


•  Excludes transgenic cut flowers specifically of the taxa:
   •  Chrysanthemum x morifolium,
   •  Dianthus caryophyllus,
   •  Dendranthema spp.,
   •  Gerbera hybrida,
   •  Lilium spp.,
   •  Rosa spp., and
   •  Tulipa spp.
  that are not intended for environmental release
Craig M. Johnston - Berkeley Corporate Advisors   13




Labelling
•  required on pre-packaged goods, that is, goods in
 packages that are sold to the consumer, except
  •  confections that are packaged in one-bite sizes and
  •  fresh fruits or vegetables packaged in a wrapper or confining band
   of less than ½ inch
Craig M. Johnston - Berkeley Corporate Advisors   14




Food Labelling - Basic Required Elements
(a) the common name of the product;
(b) Country of origin;
(c) the net quantity;
(d) Name and address of the distributor;
(e) List of ingredients (including allergens);
(f) Nutrition facts table;
(g)  Durable life date if the durable life is less than 90 days
     (except, among other things, fresh fruit and vegetables)
(h)  French/English;
(h)  No misleading statements
Craig M. Johnston - Berkeley Corporate Advisors   15




Common Name
•  The name prescribed by Federal regulations, e.g.,
   "orange juice from concentrate", "60% whole wheat
   bread", "milk chocolate", "mayonnaise", “mixed
   vegetables” or “breakfast sausage”, where applicable; or
•  When not prescribed by regulation, the name by which the
   food is commonly known, e.g., orange drink, vanilla
   cookies, chocolate cake.
Craig M. Johnston - Berkeley Corporate Advisors   16




Net Quantity
•  quantity must be declared in metric units;
•  label may also show the Imperial or American equivalents;



 Ingredients List
 •  listed in descending order of proportion by weight;
 •  ingredients must be described using their common
    names;
 •  some common names for ingredients are
    mandated by regulation.
Craig M. Johnston - Berkeley Corporate Advisors   17




Allergens
enhanced labelling requirements for food allergens, gluten
sources and sulphites. Listed food allergens are:
   a.almonds, Brazil nuts, cashews, hazelnuts, macadamia nuts,
       pecans, pine nuts, pistachios or walnuts;
   b.peanuts;
   c.sesame seeds;
   d.wheat and triticale;
   e.eggs;
   f.milk;
   g.soybeans;
   h.crustaceans (common name of the crustaceans);
   i.shellfish (common name of the shellfish);
   j.fish (common name of the fish); or
   k.mustard seeds.
Craig M. Johnston - Berkeley Corporate Advisors   18




Nutrition Facts Table
Required unless the product is
   a. foods for which all the required nutritional information may be
      expressed as "0"
   b. Alcoholic beverages
   c. fresh vegetables and fruits without added ingredients
   d. most raw, single ingredient meat, meat by-product, poultry
      meat, and poultry meat by-product;
   e. raw, single ingredient marine or freshwater animal products
      (such as fish, crustaceans, etc.)
Craig M. Johnston - Berkeley Corporate Advisors   19




Standard Table
Craig M. Johnston - Berkeley Corporate Advisors   20




Enhanced Optional Table
Craig M. Johnston - Berkeley Corporate Advisors   21




Health/Quality Claims
•  Modifications -- “No salt added”, “Light”
   •  The modification must be allowed within the definition of the
      product
   •  Must be a variation for the “usual”
   •  Must specify why it is, e.g. “light” (e.g. “half the calories of our
      regular salad dressing”)
•  “Fresh”, “Natural, “Organic”
Craig M. Johnston - Berkeley Corporate Advisors    22




Production Codes
•  herme%cally	
  sealed	
  containers	
  of	
  processed	
  fruits	
  and	
  vegetables;	
  
•  code	
  stamped	
  on	
  them	
  to	
  enable	
  the	
  iden%fica%on	
  of	
  the	
  
   establishment	
  where	
  they	
  were	
  processed	
  and	
  the	
  date	
  of	
  
   manufacture;	
  
•  assist	
  in	
  product	
  tracing	
  and	
  recalls	
  in	
  the	
  event	
  of	
  problems;	
  
•  strongly	
  recommended	
  that	
  all	
  products	
  and	
  shipping	
  containers	
  
   have	
  codes	
  on	
  them	
  to	
  enable	
  tracing	
  and	
  recall	
  as	
  well.

  UPC Labels
  UPC labels are not required by law, but practically all retailers will require
  this on the label to facilitate inventory control
Craig M. Johnston - Berkeley Corporate Advisors   23




Conclusions
•  Regulatory framework will look to policies and procedures
   of importer (HACCP);
•  Importer will look to you for assurances regarding proper
   policies and procedures;
•  Recommended International Code of Practice – General
   Principles of Food Hygiene adopted by the Codex
   Alimentarius
Craig M. Johnston - Berkeley Corporate Advisors   24




… Conclusions
•  Develop relationships in light of this footprint:
   •  Customs brokerages;
   •  Distributors;
   •  Clients.
•  Recognize the need to support those relationship with
   information and documented policies and procedures;
•  Identify any short-comings or obstacles in the process and
   develop strategies for addressing these.
Craig M. Johnston - Berkeley Corporate Advisors   25




Thank you!



  Berkeley Counsel
  59 Berkeley Street
  Toronto, Ontario
  Canada M5A 2W5

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Estrategias avanzadas de exportación

  • 1. 1 ADVANCED EXPORTING STRATEGIES AND ISSUES REGULATORY AND TECHNICAL COMPLIANCE SANITARY AND PHYTOSANITARY STANDARDS AND LABELLING REQUIREMENTS Enhancing Opportunities in the Canadian Market for Innovative High-Value Colombian Agricultural Products January 15-17, 2013 Centro Internacional de Agricultura Tropical (CIAT), Cali, Colombia Craig M. Johnston Berkeley Counsel Berkeley Corporate Advisors Toronto, Canada Tel +1 416 364 7772 Email craig @berkeleycounsel.com Craig M. Johnston - Berkeley Corporate Advisors
  • 2. Craig M. Johnston - Berkeley Corporate Advisors 2 Introduction •  Purpose of Sanitary and Phytosanitary Measures •  General Standards •  Standards for Standards •  Regulatory Framework •  Novel Foods and Plants •  Labelling •  Nutrition •  Claims
  • 3. Craig M. Johnston - Berkeley Corporate Advisors 3 Purposes of Sanitary and Phytosanitary Measures a. to protect animal or plant life or health from risks arising from the entry, establishment or spread of pests, diseases, disease-carrying organisms or disease- causing organisms; b. to protect human or animal life or health from risks arising from additives, contaminants, toxins or disease- causing organisms in foods, beverages or feedstuffs; c. to protect human life or health from risks arising from diseases carried by animals, plants or products thereof, or from the entry, establishment or spread of pests; or d. to prevent or limit other damage from the entry, establishment or spread of pests.
  • 4. Craig M. Johnston - Berkeley Corporate Advisors 4 General Standard for Food In Canada Food and Drugs Act prohibits the sale of an article of food that: (a) has in or upon it any poisonous or harmful substance; (b) is unfit for human consumption; (c) consists in whole or in part of any filthy, putrid, disgusting, rotten, decomposed or diseased animal or vegetable substance; (d) is adulterated; or (e) was manufactured, prepared, preserved, packaged, or stored under unsanitary conditions.
  • 5. Craig M. Johnston - Berkeley Corporate Advisors 5 Plant Pest Protection Plant Protection Act prohibits the import into Canada or export from Canada of any thing that is a pest (i.e. means any thing that is injurious or potentially injurious, whether directly or indirectly, to plants or to products or by-products of plants, and includes any plant prescribed as a pest), that is or could be infested with a pest or that constitutes or could constitute a biological obstacle to the control of a pest, unless otherwise permitted.
  • 6. Craig M. Johnston - Berkeley Corporate Advisors 6 Standards for Standards •  SPS Agreement and the Canada-Colombia FTA •  Measures based on: •  International standards, guidelines and recommendations; •  Scientifically-based risk assessment and scientifically defensible risk control measures •  Codex Alimentarius (FAO/WHO) •  World Organisation for Animal Health (OIE) •  International Plant Protection Convention (IPPC)
  • 7. Craig M. Johnston - Berkeley Corporate Advisors 7 Proposed Enforcement Framework •  Licence all importers, exporters of food and manufacturers or processors of food products; •  Assess importer based, in part, on review of its verification that supplier’s processes and procedures, and, in particular, the key controls used to ensure the safety, labelling and composition of food during manufacturing, processing, storage or distribution of the product are proper; •  Reflects Hazard Analysis Critical Control Point (HACCP) principles; •  Recommended International Code of Practice – General Principles of Food Hygiene adopted by the Codex Alimentarius
  • 8. Craig M. Johnston - Berkeley Corporate Advisors 8 Miscellaneous •  Alcoholic Beverages •  Vitamins and Minerals •  Food Colourings •  Food Additives •  Pesticide Residues •  Wood Packaging
  • 9. Craig M. Johnston - Berkeley Corporate Advisors 9 Novel Foods a. a substance, including a microorganism, that does not have a history of safe use as a food; b. a food that has been manufactured, prepared, preserved, or packaged by a process that i. has not been previously applied to that food, and ii. caused the food to undergo a major change; and c. a food that is derived from a plant, animal or microorganism that has been genetically modified such that i. the plant, animal or microorganism exhibits characteristics that were not previously observed in that plant, animal or microorganism, ii. the plant, animal or microorganism no longer exhibits characteristics that were previously observed in that plant, animal or microorganism, iii. one or more characteristics of the plant, animal or microorganism no longer fall within the anticipated range for that plant, animal or microorganism
  • 10. Craig M. Johnston - Berkeley Corporate Advisors 10 Plants with Novel Traits •  a plant that contains a trait which is both new to the Canadian environment and has the potential to affect the specific use and safety of the plant with respect to the environment and human health; •  traits can be introduced using biotechnology, mutagenesis, or conventional breeding techniques; •  includes all viable plant parts derived from them
  • 11. Craig M. Johnston - Berkeley Corporate Advisors 11 Novel Foods Assessment •  evaluation of the process used to develop the food product; •  comparison of its characteristics to those of traditional food counterparts; its nutritional quality; •  the potential for new toxicants or anti-nutrients; and •  the potential allergenicity of any proteins that have been introduced into the food by genetic modification techniques.
  • 12. Craig M. Johnston - Berkeley Corporate Advisors 12 Assessment of PNTs •  Phytosanitary risk assessment •  Excludes transgenic cut flowers specifically of the taxa: •  Chrysanthemum x morifolium, •  Dianthus caryophyllus, •  Dendranthema spp., •  Gerbera hybrida, •  Lilium spp., •  Rosa spp., and •  Tulipa spp. that are not intended for environmental release
  • 13. Craig M. Johnston - Berkeley Corporate Advisors 13 Labelling •  required on pre-packaged goods, that is, goods in packages that are sold to the consumer, except •  confections that are packaged in one-bite sizes and •  fresh fruits or vegetables packaged in a wrapper or confining band of less than ½ inch
  • 14. Craig M. Johnston - Berkeley Corporate Advisors 14 Food Labelling - Basic Required Elements (a) the common name of the product; (b) Country of origin; (c) the net quantity; (d) Name and address of the distributor; (e) List of ingredients (including allergens); (f) Nutrition facts table; (g)  Durable life date if the durable life is less than 90 days (except, among other things, fresh fruit and vegetables) (h)  French/English; (h)  No misleading statements
  • 15. Craig M. Johnston - Berkeley Corporate Advisors 15 Common Name •  The name prescribed by Federal regulations, e.g., "orange juice from concentrate", "60% whole wheat bread", "milk chocolate", "mayonnaise", “mixed vegetables” or “breakfast sausage”, where applicable; or •  When not prescribed by regulation, the name by which the food is commonly known, e.g., orange drink, vanilla cookies, chocolate cake.
  • 16. Craig M. Johnston - Berkeley Corporate Advisors 16 Net Quantity •  quantity must be declared in metric units; •  label may also show the Imperial or American equivalents; Ingredients List •  listed in descending order of proportion by weight; •  ingredients must be described using their common names; •  some common names for ingredients are mandated by regulation.
  • 17. Craig M. Johnston - Berkeley Corporate Advisors 17 Allergens enhanced labelling requirements for food allergens, gluten sources and sulphites. Listed food allergens are: a.almonds, Brazil nuts, cashews, hazelnuts, macadamia nuts, pecans, pine nuts, pistachios or walnuts; b.peanuts; c.sesame seeds; d.wheat and triticale; e.eggs; f.milk; g.soybeans; h.crustaceans (common name of the crustaceans); i.shellfish (common name of the shellfish); j.fish (common name of the fish); or k.mustard seeds.
  • 18. Craig M. Johnston - Berkeley Corporate Advisors 18 Nutrition Facts Table Required unless the product is a. foods for which all the required nutritional information may be expressed as "0" b. Alcoholic beverages c. fresh vegetables and fruits without added ingredients d. most raw, single ingredient meat, meat by-product, poultry meat, and poultry meat by-product; e. raw, single ingredient marine or freshwater animal products (such as fish, crustaceans, etc.)
  • 19. Craig M. Johnston - Berkeley Corporate Advisors 19 Standard Table
  • 20. Craig M. Johnston - Berkeley Corporate Advisors 20 Enhanced Optional Table
  • 21. Craig M. Johnston - Berkeley Corporate Advisors 21 Health/Quality Claims •  Modifications -- “No salt added”, “Light” •  The modification must be allowed within the definition of the product •  Must be a variation for the “usual” •  Must specify why it is, e.g. “light” (e.g. “half the calories of our regular salad dressing”) •  “Fresh”, “Natural, “Organic”
  • 22. Craig M. Johnston - Berkeley Corporate Advisors 22 Production Codes •  herme%cally  sealed  containers  of  processed  fruits  and  vegetables;   •  code  stamped  on  them  to  enable  the  iden%fica%on  of  the   establishment  where  they  were  processed  and  the  date  of   manufacture;   •  assist  in  product  tracing  and  recalls  in  the  event  of  problems;   •  strongly  recommended  that  all  products  and  shipping  containers   have  codes  on  them  to  enable  tracing  and  recall  as  well. UPC Labels UPC labels are not required by law, but practically all retailers will require this on the label to facilitate inventory control
  • 23. Craig M. Johnston - Berkeley Corporate Advisors 23 Conclusions •  Regulatory framework will look to policies and procedures of importer (HACCP); •  Importer will look to you for assurances regarding proper policies and procedures; •  Recommended International Code of Practice – General Principles of Food Hygiene adopted by the Codex Alimentarius
  • 24. Craig M. Johnston - Berkeley Corporate Advisors 24 … Conclusions •  Develop relationships in light of this footprint: •  Customs brokerages; •  Distributors; •  Clients. •  Recognize the need to support those relationship with information and documented policies and procedures; •  Identify any short-comings or obstacles in the process and develop strategies for addressing these.
  • 25. Craig M. Johnston - Berkeley Corporate Advisors 25 Thank you! Berkeley Counsel 59 Berkeley Street Toronto, Ontario Canada M5A 2W5