Importing Food to Canada

Transcription

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2 Importing Food to Canada Stay in-the-know with trade news and updates from Livingston. Subscribe today at Follow us April 10, 2017

3 Joumana Bteich Senior Customs and Trade Advisor, Consulting

4 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

5 Appendices Food labelling modernization Canada customs invoice Useful websites About Livingston

6 Export process

7 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

8 Exporter's responsibilities

9 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

10 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)

11 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 s 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)

12 Importing food to Canada

13 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

14 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

15 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

16 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

17 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

18 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

19 Customs clearance process imports into Canada Austrian Manufacturer /Supplier Accepts the terms of the purchase order and prepares shipment Purchase order created and sent to the foreign manufacture or supplier Canadian Importer Commercial Invoice Bill of lading Certificate of Origin Cargo Inspection (if required) Additional ODG Requirements CFIA/GAC Import permit AUSTRIA CANADA Verification that the quantities and products are accurately reflected on the supplier invoice and Customs entry Carrier dispatched and picks up shipment Canada Border Services Agency Reviews shipment details Shipment accepted for release CBSA Customs Release Carrier delivers to consignee location Canadian Customs Broker Receives shipment information from shipper and carrier Prepares / files shipment information with CBSA Sent ACROSS to CADEX Possible notification of shipment release and exchange of information

20 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

21 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 $ $/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

22 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

23 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

24 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

25 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

26 Safe Food for Canadians Act (SFCA) Implementation

27 Appendices

28 Food Labelling Modernization (FLM)

29 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)

30 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

31 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

32 Canada Customs Invoice (CCI)

33 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

34 Common CCI problems

35 Useful websites

36 Useful websites Canada Border Services Agency Global Affairs Canada Import Control List Canada Food Inspection Agency Guide to Importing Food Products Commercially

37 Useful websites continued Food Labelling and Advertising Food labelling tool Safe Food for Canadians: Importing Food Video Understanding the Proposed Safe Food for Canadians Regulations: A Handbook for Food Businesses

38 About Livingston

39 We ve got you covered 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 offices Countries with Livingston agent offices

40 We ve got you covered Freight Forwarding office locations Container freight stations More than 3,100 staff work at over 110 key border points, seaports, airports and other strategic locations across North America and around the world.

41 Exporter/seller Forwarder International carrier Customs broker Importer/buyer Export processes Forwarder processes Carrier processes Broker processes Import processes 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 Livingston is unique in providing end-to-end trade solutions. This delivers flexibility for clients to choose the model that best meets their needs. 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

42 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

43 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

44 Livingston news Looking for more value-added customs and trade information? Subscribe today to begin receiving updates directly to your inbox This session, and more on-demand webinars and great customs and trade resources can be found at livingstonintl.com.

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