SFC Licence

Businesses importing food or preparing food for export internationally (or across provincial or territorial borders) may require a SFC Licence from Canadian Food Inspection Agency (CFIA) in order to import/export food products into/out of Canada.

CFIA provides an interactive tool that can help determine if your products need a licence. As your Customs Broker, we report this license number on customs clearance entries made on your behalf to Canada Border Services Agency (CBSA) and CFIA.

Consistent with international food and safety standards, Canadian businesses exporting foods regulated by the U.S. Food and Drug Administration can use their licence under the SFCR to meet requirements under the U.S. Foreign Supplier Verification Program.

Note: Importers must possess a valid Safe Food for Canadians (SFC) licence issued by the CFIA before presenting their shipment at the border. Importers will not be able to obtain an SFC licence at the border.

SFC Licence Renewals

SFC Licences are valid for two (2) years. As SFCR came into effect on January 15, 2019, some SFC Licences began expiring on January 15, 2021. Others expire in the days and weeks that follow. If you have an SFC Licence, you can renew your licence up to 120 days before the expiry date online through your My CFIA account.

Submit your request for renewal as early as possible to allow for processing. If your licence expires, your business will no longer be permitted to import/export your food products.

For more information on how to use the My CFIA account portal, visit My CFIA – User Guidance. For instructions how to renew or amend an issued licence permission, follow the link below.

Preventative Controls

Under the Safe Food for Canadians Regulations, importers and exporters of food products are required to develop and maintain a Preventative Control Plan (PCP) to ensure food you are importing/exporting is safe for Canadians or international consumers.

The Preventative Control Plan must describe the food being imported/exported, any hazards that pose a risk of contaminating the food, methods to control the risk, foreign supplier control procedures, and consumer protection requirements (e.g. labelling, grade standards, packaging, etc.).

CFIA provides an interactive tool that can help you develop a Preventative Control Plan.

In addition, SFCR requires that you maintain procedures for handling complaints and recalls for your imported/exported food. This also applies to food produced in Canada, whether for export markets or consumption domestically across provincial or territorial borders.

Traceability

Importers/exporters must maintain traceability records to track and document where food products were purchased and sold.

CFIA provides an interactive tool that can help you determine what your traceability requirements are and when you have to have them in place.

Other SFCR Considerations

In addition to the CFIA, other government departments and agencies regulate the import/export of food products into and out of Canada (e.g., Health Canada, Global Affairs Canada, etc.). As an importer or exporter it is important that you review all specific food groups to ensure compliance with their regulations.

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Prime Minister Justin Trudeau affixed his signature to the Comprehensive Economic and Trade Agreement (CETA) this past weekend. This deal is still not done and is dependent on the European Parliament’s approval and ratification by 28 EU countries, which could take years.

Approximately 200 reservations to CETA were made on behalf of Canada’s provinces & territories. One example is Newfoundland and Labrador’s rights to maintain and regulate the exploration and development of hydrocarbons, such as oil production. Other items controlled by Canada include forestry, gambling, natural resources, and alcohol.

Under CETA, duty will be relieved on an estimated 99% of goods. Beneficiaries, such as the textile and agricultural sectors, will obtain a huge advantage. Canada will be able to export larger quotas of pork, beef, and wheat to the EU countries. In turn, EU dairy producers will benefit by the ability to send more than double the amounts of the current quota of “high quality” cheeses to Canada.

CETA opens up major trade lanes for Canada to the EU countries, resulting in a reduced dependency on the USA. The EU market has a potential market to Canadian companies of 508 million consumers, representing an estimated trade boost for Canada of $12 billion Canadian dollars per year. For comparison, Canada’s population is currently 38+ million and the USA, 340+ million.

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The Canada-European Free Trade Association Free Trade Agreement (CEFTA) was first signed in Davos, Switzerland on January 26, 2008 and came into effect July 1, 2009. CEFTA includes the countries of Iceland, Liechtenstein, Norway and Switzerland. As a result of this agreement, duty rates applied to the importation of various vessels into Canada were greatly affected.

Canadian customs duties under Chapter 89 – Ships, boats, and floating structures – of the Harmonized Tariff average 25% under the Most Favoured Nation (MFN) Tariff rate. Vessels that qualify under the rules of origin of CEFTA will benefit from a reduction of these duty rates as, under the agreement, the rate of duty is gradually being reduced on an annual basis until it reaches duty free status in July 2023.

Due to the complexity of CEFTA rules of origin, its distinct tariff classification regulations, as well as an increased frequency of auditing by Canada Border Services Agency (CBSA), it is in an importer’s best interest to obtain an advance ruling on Tariff Classification and Origin Status. A written decision from CBSA on tariff change in advance of the importation may affect the origin qualification and eliminate duty exposure.

PF Collins has been assisting vessel owners and operators for over 50 years! Further information on vessel importations and Canada’s coasting trade regulations can be found in our Guide to Importing Vessels into Canada. Please contact us if you require any further information or assistance.

Importing A Vessel Into Canada

Further information on vessel importations and Canada’s Coasting Trade regulations can be found in our Guide to Importing Vessels into Canada. Or contact us if you require any further assistance!

Learn More

The post How CEFTA Affects the Importation of Vessels into Canada first appeared on PF Collins International Trade Solutions.

A drawback is a refund of customs duties on imported goods that are eventually exported. Under CBSA’s Duty Drawback Program, you can even claim a drawback on imported goods that were sourced from a supplier in the domestic market!

Qualifying for a Drawback

If you are the importer, exporter, processor, owner or producer of the goods, you may qualify for a drawback if one of the following applies:

1. You are directly or indirectly involved in importing goods that are later exported in the same condition they were imported or
2. Goods were further manufactured or
3. The imported goods were used in a limited manner to produce other goods for export

Time Limits

In most cases, you have to present a claim no later than four (4) years from the date the goods were first imported. You cannot file a claim until you have exported the imported goods.

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There are two ways to handle these importations under current regulations:

1. Memorandum D17-1-4 – Known Short Shipment (Paragraphs 103-108)
2. Memorandum D13-3-10 – Split Shipments

Applying the correct procedure will ensure you pay the minimum amount of duties while remaining compliant with import legislation. It will also save you the time of creating breakdowns of values in relation to every sub-component — all that is required is a packing list detailing the items within each load at time of clearance.

The following are examples of the types of commodities that may be affected:

• Cranes & hoists
• Ski lifts
• Assembly line
• Oil rigs
• Lot purchase
• Prefabricated buildings
• Large systems or machinery

The post Importing Large Equipment in Multiple Loads? first appeared on PF Collins International Trade Solutions.

To improve maritime safety and mitigate risks to the safety and security of the crew, ship, and cargo, the International Maritime Organization (IMO) recently adopted amendments to the International Convention of the Safety of Life at Sea (SOLAS) requiring mandatory weight verification for packed containers being loaded onto vessels. Effective July 1, 2016, all shippers must provide the Verified Gross Mass (VGM) of packed containers to ocean carriers prior to loading. Without the VGM provided on a signed shipping document, carriers and terminals will not be allowed to load the containers.

International Maritime Organization (IMO)

The International Maritime Organization (IMO) sets the global standards for the safety and security of the international shipping industry. Its mandate is to provide a regulatory framework that covers all aspects of international shipping, including the stability and safe operations of ships as well as the safe handling, packing and transport of containers. Investigations into several major maritime accidents over the past decade have determined that overweight containers played a key role in the incidents.

Overview of SOLAS Verified Gross Mass (VGM) Guidelines

The following provides a brief overview of the SOLAS VGM guidelines:

• VGM requirements come into effect on July 1, 2016.
• The shipper named on the Ocean Bill of Lading is responsible for submitting the VGM
• The VGM must be verified by signature of an authorized representative of the shipper
• Equipment used to calculate the VGM must meet national certification and calibration standards
• Estimating weight is not permitted
• Ocean carriers/terminals will not load containers without the VGM
• Enforcement of VGM rules falls under the aegis of local governmental agencies responsible for maritime affairs (e.g. Transport Canada)

Calculating the VGM

SOLAS guidelines provide two methods for calculating the VGM:

Method 1: Weighing the Packed Container

After packing and sealing a container the shipper may weigh the container or arrange for a third party to weigh the packed container.

Method 2: Calculating Cargo + Dunnage + Tare

The shipper (or third party arranged by the shipper) may weigh all packages and cargo items, including the mass of pallets, dunnage and other packing and securing material to be packed in the container, and add the tare mass of the container to the sum of the single masses of the container’s contents.

For More Information

Transport Canada has issued a Ship Safety Bulletin regarding the new VGM regulations and published the Canadian Procedure for Obtaining the Verified Gross Mass of Packed Containers as Required by SOLAS VI/2.

PF Collins is working closely with governmental agencies, carriers, and our global supply network to ensure compliant implementation of the SOLAS guidelines and to ensure our clients remain informed of further developments.

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Importers and exporters are ultimately responsible for ensuring compliance with import/export laws and regulations related to their shipments and declarations made to the Canada Border Services Agency (CBSA).

CBSA manages trade compliance on Tariff Classification, Valuation and Origin programs by performing audits either randomly or through risk-based verification priorities. Targeted goods may be carried over from previous years or newly added throughout the year.

A full list of the targeted goods on the verification priority audit schedule can be found here. The full listing with findings may also be found on CBSA’s website.

If you have already been contacted by CBSA concerning an audit, PF Collins can help by representing your company throughout the process, increasing your chances of obtaining a favourable outcome. We can also assist in helping you establish a customs compliance program to ensure maximum compliance with CBSA’s trade programs, as well as minimized costs associated with audits.

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