Importing Food to Canada

April 10, 2017

Stay in-the-know with trade news and updates from Livingston. Subscribe today at www.livingstonintl.com/subscribe

Follow us today! @Livingston_Intl

Joumana BteichSenior Customs and Trade Advisor, Consultingjbteich@livingstonintl.com

Agenda

● Export process● Key players

● Exporter’s responsibilities● Roadmap to compliance● Documents and information● Record keeping

● Importing food to Canada● Legal responsibility ● Documents and information● Record keeping● Customs data● Importing into Canada● Customs clearance process● Other government departments

Appendices

● Food labelling modernization● Canada customs invoice● Useful websites● About Livingston

Export process

Key players in the export and import process

A number of different parties are involved in each and every shipment● Each party owns a specific piece of the process● Exporter/shipper● Supplier/manufacturer● Importer/ship to● Carrier● Customs authorities (Canada Border Services Agency (CBSA), EU

Customs Union, etc.) ● Other Government Departments (OGDs)● Customs broker

Exporter's responsibilities

Roadmap to a compliant business

● Corporate commitment● Clear and communicated export compliance policy● Compliant and efficient processes and procedures ● Training of responsible personnel

● Export determination for items● Order fulfillment optimization● Screening (restricted parties lists, embargoed countries, anti-boycott,

end-use/user)● Consistent and compliant documentation (automated if feasible)

● Compliance Management● Recordkeeping, documentation, Government reporting● Measurements and audits, regular monitoring and training

Documents and information that must be presented upon exportation

● Export classification is usually required for export documentation and customs reporting

● Export licenses (as required) ● Commercial Invoice (any document stating the commercial value of the

goods)● Transportation documents (bill of lading, air waybill, or other loading

document)● Documents evidencing compliance with the applicable customs

regulations and restrictions (if applicable)● Certificate of Origin (if applicable)● Other documents (as required)

Record keeping

● Types of records an exporter must keep on file (not all inclusive)● Health and Safety Records (recall process, consumer complaints

and action taken)● Copy of the export reporting document; e.g. proof of report, export

declaration (when applicable)● Shipping instructions from client; e.g. proforma invoice● Copy of any supporting document; e.g. export licenses, permits or

certificates used in support of the export● Transportation document; e.g. air waybill, proof of delivery ● Letters of credit ● E-mails pertinent to the export; e.g. additional information, additional

shipping instructions or specific instructions● Electronic versions of these documents are acceptable, as long as

they have been approved by Canada Border Services Agency (CBSA)

Importing food to Canada

Legal responsibility of acting as an importer of record in Canada

● Importers and exporters are responsible for the accuracy and completeness of import and export transactions. This includes any Administrative Monetary Penalty System (AMPS penalties) that may be issued for non-compliance

● Retention of Records - importers are required to retain records for a period of six years plus current year

Documents and information that must be presented upon importation

● Canada Customs Invoice (CCI) – a pre-formatted invoice that includes all required details or Commercial Invoice (CI)

● Copy of any supporting document ● Permits or certificates used in support of the import

● Transportation document ● Waybill

Record keeping

● Types of documents an importer must keep on record● All documents related to the import declaration: origin, marking,

purchase order, costs, value, payment, disposal and use in Canada ● Certificate of Origin● Import permit ● Bills of lading● B3 account document● All agreements relative to the sale of the good (royalty agreements,

discounts agreements, etc.)● Customs rulings on HS, origin, marking, valuation

Canadian customs data

● Vendor/exporter/seller● Date of direct shipment● Consignee/buyer/importer● Country of transshipment● Country of Origin● Mode ● Terms and payment● Currency ● Invoice # or P.O.

● Specifications of goods● Understandable description of

goods● HS classification● Quantity and unit price● Weight● Invoice total● Assists● Discounts

Importing into Canada

● Step 1 – Business entity needs to be established as an Importer of Record (IOR) by having a Business Number (RM), registered with the Canada Revenue Agency (CRA)

● Step 2 – Business entity places a purchase order (P.O.) to foreign vendor/shipper (could be the manufacture or supplier of the goods)

● Step 3 – Vendor/shipper accepts the P.O. and prepares goods for shipping

● Step 4 - Once goods are prepared, the shipper prepares the necessary documents to cross the border required by CBSA and fulfills the requirements for any Other Government Departments (OGDs) ● Commercial Invoice - includes description, part number, quantity,

price, Country of Origin and HS number● Bill of Landing● Certificates of Origins, Free Trade Agreements● If necessary, any required information needed for OGDs

● Step 5 - The shipper sends all required documents to the Canadian customs broker and freight carrier

Importing into Canada continued

● Step 6 - The freight carrier is required to send carrier information to the Canadian customs broker, including PARS control numbers, port of entry and estimated time of arrival

● Step 7 - The Canadian customs broker will review and enter the shipment information in the name/BN of the IOR, and send the data to the CBSA ACROSS system for clearance

● Step 8 - CBSA will review the shipment information and conditionally release the shipment, if all required information is provided. CBSA will send notice of acceptance to the carrier and customs broker

● Step 9 - Carrier arrives at the border, and if no inspection is required, shipment is released. Notification of release is transmitted to broker and carrier for record keeping purposes

● Step 10 - Carrier delivers the goods to the consignee location and Canadian customer accepts delivery

● Step 11 - IOR preforms verification that quantities and products are accurately reflected on the supplier invoice and the customs declaration entry

Customs clearance process – imports into Canada

Additional ODG Requirements • CFIA/GAC• Import permit

Cargo Inspection (if required)

Canadian ImporterPurchase order created and sent to the foreign manufacture or supplier

Austrian Manufacturer /Supplier Accepts the terms of the purchase order and prepares shipment

• Commercial Invoice• Bill of lading• Certificate of Origin

Carrier dispatched and picks up shipment

Canadian Customs Broker • Receives shipment information

from shipper and carrier • Prepares / files shipment

information with CBSA

Canada Border Services Agency• Reviews shipment details• Shipment accepted for release

Sent ACROSS to CADEX

CBSA Customs Release

Carrier delivers to consignee location

Verification that the quantities and products are accurately reflected on the supplier invoice

and Customs entry

Possible notification of shipment release and exchange of information

AUSTR

IA CAN

AD

A

Other Government Departments (OGDs)

CBSA administers over 30 Acts of Parliament on behalf of Other Government Departments● Global Affairs Canada – agricultural and military products plus some

textiles and garments● Canadian Food Inspection Agency (CFIA) – food and related products● Health Canada – drug and medical devices and hazardous products● Environment Canada – animals, plants and certain wood products● Natural Resources Canada – energy-using products● Industry Canada – prepackaged consumer products● Transport Canada – motor vehicles and tires

Global Affairs Canada (GAC)

Import quotas● Canada has restrictions and controls on certain food products● Beef and veal products (26.0%)● Wheat (Durum wheat: 49% Other wheat: 76.5%)● Cheese (245.5 % but not less than $3.53 – 5.78 $/kg )

● Importers must apply for annual quota (difficult to obtain)● Quota allocation calculations are based on prior year activity● Import Control List (ICL): permits and certificates for various products

Canadian Food Inspection Agency (CFIA)

● CFIA is dedicated to safeguarding food, animals and plants, which enhances the health and well-being of Canada's people, environment and economy● CFIA’s highest priority is mitigating risks to food safety, and the health and safety of Canadians is the driving force behind the design and development of CFIA programs● The CFIA oversees● Food admissibility, safety (similar to the European Food Safety

Authority (EFSA)), and labelling● Import Licenses (fish, meat, dairy) ● Soil, food packaging materials

Safe Food for Canadians Act (SFCA)

● The SFCA is● Focused on stronger food safety rules, more effective inspection,

commitment to service and more information transparency for consumers

● Aimed at promoting safer food and better protection to optimize the health and safety of Canadians and make Canadian businesses more competitive globally

Proposed regulations are expected to be published in Canada Gazette Part II, in 2017

Safe Food for Canadians Act (SFCA)

Key elements● Development of regulations on a broad range of food safety issues

including● Horizontal provisions (licensing, preventative controls, traceability,

record-keeping)● Commodity specific food safety and consumer protection

requirements (slaughter provisions, standards of identity, grades, container sizes, inspection marks, labelling)

● Supplemental regulations regarding disclosure of information and administrative monetary penalty

Safe Food for Canadians Act (SFCA)

Requirements● Canadian businesses who import food would need to● Have a license to import ● Have a preventive control plan (in most cases) ● Import food that is manufactured, prepared, stored, packaged and

labelled under similar food safety controls as food prepared in Canada ● Maintain procedures and processes for handling and investigating

complaints and recalls

Safe Food for Canadians Act (SFCA)

Implementation

Appendices

Food Labelling Modernization (FLM)

Food Labelling Modernization (FLM)

● This initiative will develop a modern and innovative food labelling system within the context of the Canadian Food Inspection Agency’s (CFIA) priorities and vision● Review of CFIA food labelling regulatory framework, program design

and delivery systems for all food products● Exception● It will not include food labelling activities that fall under the mandate of

Other Government Departments (such as Health Canada)

Food Labelling Modernization (FLM)

Requirements● All food packaged for consumer use must comply with basic food labelling requirements ● Common name of the food, a list of ingredients and components, the

name and address of the responsible party, a net quantity declaration in metric and a best before date when required

● The nutrition facts table is mandatory for most prepackaged foods with some exceptions and exemptions. The format and information must comply with the guidelines on Nutritional Labelling developed by Health Canada and also with the Food and Drug Regulations

● Agricultural and fish products for which standards exist under the Meat Inspection Act, Canadian Agricultural Products Act, and the Fish Inspection Act may have additional labelling requirements (e.g. grade or country of origin)

● All mandatory labelling information and nutritional labelling, is required to be declared in both English and French

Food labelling online tool

● The Industry Labelling Tool is the food labelling reference for all food inspectors and stakeholders in Canada. It replaces the Guide to Food Labelling and Advertising, and the decisions page to provide consolidated, reorganized and expanded labelling information

Canada Customs Invoice (CCI)

The Invoice: information provided on a CCI

● Exporter name and address● Date● Purchase order number● Purchaser name and address● Consignee name and address● Country of Origin● Currency of settlement● Terms of payment● Description of the goods● HS codes● Unit price● Extended price● Freight or insurance included or

excluded in price● Weight

Common CCI problems

Useful websites

Useful websites

● Canada Border Services Agency● http://cbsa-asfc.gc.ca/menu-eng.html

● Global Affairs Canada● http://www.international.gc.ca/controls-

controles/prod/agri/index.aspx?lang=eng● Import Control List● http://laws-

lois.justice.gc.ca/eng/regulations/C.R.C.,_c._604/index.html● Canada Food Inspection Agency ● http://www.inspection.gc.ca/

● Guide to Importing Food Products Commercially● http://www.inspection.gc.ca/food/imports/commercial-

importers/importing-food-products/eng/1376515896184/1376515983781?chap=0

Useful websites continued

● Food Labelling and Advertising● http://www.inspection.gc.ca/food/labelling/eng/1299879892810/12998

79939872● Food labelling tool● http://www.inspection.gc.ca/food/labelling/food-labelling-for-

industry/eng/1383607266489/1383607344939● Safe Food for Canadians: Importing Food Video● https://www.youtube.com/watch?v=iGhfiG7YkCI

● Understanding the Proposed Safe Food for Canadians Regulations: A Handbook for Food Businesses● http://www.inspection.gc.ca/about-the-cfia/acts-and-

regulations/regulatory-initiatives/sfca/consultation/learn/handbook-for-food-businesses/eng/1481560206153/1481560532540?chap=0

About Livingston

With Livingston personnel in 110 offices worldwide and more than 500 partner agents in 200 cities around the globe, Livingston has the people and resources in place to get your shipments where they need to be - on time, every time

Countries with Livingston officesCountries with Livingston agent offices

We’ve got you covered

We’ve got you covered

More than 3,100 staffwork at over 110 key border points, seaports, airports and other strategic locations across North America and around the world.

Freight Forwarding office locations

Container freight stations

● Classification● Jurisdiction

determination● EAR / ITAR● Screen orders● Determine licensing● Apply for licenses● Generate documents● Submit export

declaration● Deemed export

management● Landed cost calculation● Metrics● Supply chain security

and safety

● Select carriers● Book carriers● Consolidate freight● Track shipments● Cargo insurance● Project cargo● Barge services● Freight management

services

● Transport goods● Track shipments● Break bulk● eManifest services● Driver contact center

● Clear customs● Foreign trade zones● Importer self assessment● Customs self assessment● Non resident importer

services

● Classification● Import data

management● Manage doc creation● Binding rulings● FTA management● Manage duty recovery● COO management● Valuation● Post entry processing● Supplier management● Metrics● Trade logistics

management● Supply chain security

and safety

Exporter/seller Forwarder International carrier

Customs broker Importer/buyer

Export processes Forwarder processes Carrier processes Broker processes Import processes

Livingston is unique in providing end-to-end trade solutions. This delivers flexibility for clients to choosethe model that best meets their needs.

Customs Brokerage• Prepares and files customs entry declaration and ensures

regulatory compliance on behalf of importers• #1 in Canada, #3 in the U.S.

Global Trade Management (GTM)• End-to-end management of some or all of client’s trade

compliance requirements (managed services)• Recognized high-quality leader in North American market

Trade Consulting• Customs compliance programs and duty and tax recovery• Project-oriented fee generating projects

Freight Forwarding• Complementary freight forwarding offering primarily for

small and medium sized clients• Expertise in specialized industry sectors and trade lanes

Trade Software• Customs and transportation-related ancillary business lines• Software, currency conversion, vehicle transportation

and import vehicle Registration

● Trade made easy. Scalable and automated solutions that simplify the complexities of international trade

● Anticipate risks. A focus on compliance and maximized opportunity. Accurate classification, export controls, import and export operations, and optimizing special trade programs

● More control and visibility. Latest technology for shipment tracking, trade compliance, risk avoidance, cost management, and refunds

● Meet change head on. We can act immediately to supplement your team, mitigate compliance issues, guide you through an audit, and identify solutions to help you avoid penalties

● Be confident worldwide. We are recognized as one of the top global providers based on our geographic locations and breadth of scope

Livingston news

Looking for more value-added customs and trade information?

Subscribe today to begin receiving updates directly to your inbox www.livingstonintl.com/subscribe

This session, and more on-demand webinars and great customs and trade resources can be found at livingstonintl.com.