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TECHNICAL & GOVERNMENT AFFAIRS REPORT Annual General Meeting May 9, 2014 1

TECHNICAL & GOVERNMENT AFFAIRS REPORT

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TECHNICAL & GOVERNMENT AFFAIRS

REPORT

Annual General Meeting

May 9, 2014

1

Division 7 & Technical Group

Holly Buchanan – Buchanan Trading Inc.

Wendy Burggraf – Halford-Lewis Ltd.

Gaspare Colletti – Cell Foods Inc.

Wayne Farrell - CSA

Lisa Gay – Hela Spice Canada Inc.

Tiina Henkusens – McCormick Canada

Matthew Jennison – Maxxam Analytics

Ranjani Munasinghe – Kurundu Ltd.

Donna Nicholson – Griffith Laboratories Limited

Doris Valade – Malabar Super Spice

3

Agenda

• Legislative & Regulatory Modernization

• Import Food Sector Proposed Regulations

(IFSPR)

• License Management System (LMS)

• Safe Foods for Canadians Action Plan

• Administrative Monetary Penalties (AMPs)

• Food Labelling Modernization

• PMRA Re-evaluation Decision ETO

• Flour Fortification – Minor use

• Hazardous Products Act Amendments

(GHS)

4

Agenda

• In-Commerce List (ICL)

• Amaranth CEPA Toxic

• EC Survey – Hydrofluorocarbons

• Halal Claims

• CODEX – CCSCH

• USA Updates

• FDA Partially Hydrogenated Oils

• FDA Nutritional Labelling

• Azodicarbonamide

• FSMA Rules

5

Legislative & Regulatory Modernization

The Government is taking action to further strengthen our world-

class food safety system – stronger food safety rules, more effective

inspection, service commitment & more information for consumers.

Proposed Imported Food Sector Product Regulations (IFSPR)

First stage of the CFIA’s food regulatory modernization agenda.

Safe Food for Canadians Act/Action Plan

Provides legislative base to simplify and consolidate inspection

regulations with common requirements across commodities.

Import Licensing (IFSPR)

Hold a license for importation of non-federally

registered foods (middle of the grocery store) including

spices.

Electronic application - Licensing Management

System (LMS), $263 for a 2-yr license.

Maintain a written implementable recall procedure,

food safety records, product traceability, complaints &

recalls.

Spring 2014 - Publication of the IFS proposed

regulations in Canada Gazette, Part I.

Fall 2014, IFSPR coming into force.

Interim compliance and promotion period – 1 year.

Licensing Management System (LMS)

The License Management System (LMS) - a web based

service offered by CFIA that allows importers of Non-

Federally Registered products, referred to as Imported

Food Sector Products to:

1) Apply for a new Imported Food Sector (IFS) licence

2) View their IFS licence status

3) Amend their IFS licence information or

4) Renew their existing IFS licence

Licensing Management System (LMS)

Register with the Government of Canada, create a

CFIA user account & obtain a GCKey.

License application - Provide Legal Identity, CRA #,

Primary Location, Records Location, Primary contact

(for general info.), Emergency contact (in the event of

recall, has authority to act).

License will be issued upon payment.

8-digit license number.

Option to hold multiple licenses.

License validated by using a broker or by the National

Import Service Centre.

Licensing Management System (LMS)

Safe Food for Canadians Action Plan

SFCA consolidates 3 CFIA statutes – Meat Inspection Act, Fish

Inspection Act, and Canada Agricultural Products Act – and food

provisions of Consumer Packaging and Labelling Act.

Everyone who imports, prepares, manufactures or packages food

for inter-provincial & international trade will require a licence -

Preventive control plan (HACCP & GMPs), Traceability and

Record Keeping.

Licensing strategy – Per commodity? Imports or domestic? Per

location? One master licence?

Exceptions – interprovincial trade, transporters, storage facilities

(not importing/exporting or preparing food), primary producers

(field crop growers & commercial fisheries).

Safe Food for Canadians Regulations : CGI – Nov 2014, 75-day

comment period closing Feb 2015, CGII – June 2015.

Safe Food for Canadians Action Plan

At this time the IFSPR would be repealed and replaced by the

SFCA regulations.

As of April 1, certain CFIA staff working on food-related files

began to transition to a new reporting structure, with many

reporting to new managers and directors.

Inspection re-aligned from commodity based into 4 functional

areas – Food Safety systems, Meat Hygiene, Imports Exports &

Consumer Protection.

Centre of Administration – in operation, centralize and consolidate

the administration of domestic and import-related permissions

(licences, permits and registrations) commercial operators and

the travelling public. http://www.inspection.gc.ca/about-the-cfia/licensing-permitting-

and-registration/coa/eng/1395348583779/1395348638922

Safe Food for Canadians Action Plan

Risk Assessment (RA) Model:

RA Model, algorithm based tool to determine a

company’s “Final Risk Rating” which in turn will

partially determine the level of CFIA oversight, eg.

frequency of inspection.

18 key elements – Initial risk (type of food), Mitigation

factors (PCP), Establishment compliance record =>

Residual risk => Final Risk Rating.

Consistent approach for inspecting all food, whether

imported, exported or prepared domestically for sale

across provincial borders or internationally.

Ongoing Pilot Project - Quebec & Ontario (49 meat &

29 dairy facilities). Phase 1 of 4 (Sept 2014).

Safe Food for Canadians Action Plan

Risk Assessment (RA) Model:

Safe Food for Canadians Action Plan

Non-compliance:

Corrective Action Request (CAR) for critical non-

compliance.

Administrative Monetary Penalties (AMPs) - a

monetary penalty for contravening certain provisions

of the Act, to a maximum of $10,000 for a very serious

violation . Consultation on proposed implementation

for the meat sector closed in April – may be used for

application of AMPS to the entire food sector.

License suspension up to 2 years.

Safe Food for Canadians Action Plan

The Reference Database for Hazard Identification

(RDHI):

Tool to identify food-related hazards in production and

processing; and to develop more accurate, effective

food safety procedures and preventive control plans,

such as Hazard Analysis Critical Control Points

(HACCP).

http://www.inspection.gc.ca/food/safe-food-production-

systems/food-safety-enhancement-

program/rdhi/eng/1384900871739/1384900941583

Food Labelling Modernization

Food Labelling Modernization

Food Labelling Modernization

Stage 1 completed : Identify issues from consultation with >1,300

stakeholders. Stage 2: Engage stakeholders on options to

address the issues identified in Stage 1.

Follow-up to the 2013 Food Safety Forum. Healthy and Safe

Food Regulatory Forum, 2-day event, June 17-18, Gatineau,

Quebec. http://inspection.sondages-

surveys.ca/s/food_forum/langeng/

Draft regulations Jun – Nov 2014, Jun 2015 final publication.

Launched the Online Labelling Tool (OLT) - Core labelling

requirements, Claims & Statements and Food Specific Labelling

Requirements. Replaces The Guide to Food Labelling and

Advertising. http://www.inspection.gc.ca/food/labelling/food-

labelling-for-industry/eng/1383607266489/1383607344939

PMRA Re-evaluation Decision Ethylene

Oxide

Published 19 Dec 2013, RVD2013-02, http://www.hc-

sc.gc.ca/cps-spc/pubs/pest/_decisions/rvd2013-02/index-eng.php

Based on comments received from the consultation

period on proposed changes, PRVD2010-21.

Granted continued registration of products containing

EtO for sale & use in Canada.

Requires risk reduction measures to further protect

workers and the environment.

EtO approved for use as a fumigant with an MRL of

1500 ppm ethylene chlorohydrin and 0.1ppm ethylene

oxide (default MRL, no specific MRL established for

EtO).

PMRA Re-evaluation Decision ETO

Further Risk Reduction Measures:

Safety and awareness training for all employees in the fumigation

facility.

Fumigation only to be performed in vacuum or gas-tight

chambers.

Additional personal protective equipment for handlers.

A reduction of the maximum application rate on spices and

natural seasonings.

Additional advisory and precautionary statements.

Remove the claim for control of insects since the registrant does

not support this claim.

Prohibition of the use in/on basil.

PMRA Re-evaluation Decision ETO

Processors must provide technical data (eg. toxicity) as a

condition for continued registration.

2-year transition period to complete label amendments (eg. first

aid/disposal/precautionary statements, protective equipment).

Including Directions for use: “Do Not use in or on any form of

basil.”

By law, these directions must be followed. Meaning if the EtO

supplier has an updated label prohibiting use on basil, the

processor must comply.

Flour Fortification – HC Consultation

Manufacturers & Importers must ensure food meets all applicable

legislation including mandatory fortification of flour, even when

used as an ingredient.

Some stakeholders have expressed an interest in exemptions for

the use of “insignificant” amounts of unenriched flour where the

contribution to nutrition would be considered negligible, apply

appropriate labelling eg. “unenriched flour.”

Fortification is used as a public health tool and aimed at helping

prevent nutrient deficiencies.

HC is willing to amend the FDR to allow minor use in a

responsible manner while allowing flexibility.

Definition of minor use, foods impacted, impact on nutrition

intakes, data to support the rationale.

Consultation closed on April 4, 2014.

Globally Harmonized System (GHS)

On March 28, 2014, Bill C-31 was introduced in

Parliament .

Enable Health Canada to implement the GHS

Classification and Labelling of Chemicals for

workplace chemicals.

International system, facilitate trade, standardized

labelling, consistent hazard information.

Will replace WHMIS (Workplace Hazardous Materials

Information System).

Implementation June 2015, sector by sector approach.

Alignment with Europe & USA (5-yr implementation).

In-Commerce List (ICL)

The In-Commerce List been revised.

Represents all substances that may continue to be

used under the Food and Drugs Act.

Substances on this list will be reviewed to determine

which ones may require further evaluation regarding

their potential to harm human or environmental health.

Food additives are on this list, “foods” are not. Means

new food products will not have to go through the

nomination process.

http://hc-sc.gc.ca/ewh-

semt/contaminants/person/impact/list/revised-icl_lsc-

revisee_tbl-eng.php

Chemicals Management Plan – AZO

Grouping

Amaranth, a permitted food colour is under review as

“CEPA toxic,” dietary exposure exceeds the ADI. HC

call for data to refine the assessment prior to

considering as final.

If found to be toxic, HC will manage use by:

◦ Reducing the amount of amaranth approved in food applications or the

number of food applications where amaranth can be used.

◦ Rescind the approval for use of amaranth in non-standardized food.

◦ Require pre-approval for the use of amaranth in new food applications.

◦ Prohibit the use of amaranth in food.

US FDA prohibits use for health and safety reasons.

Consultation closed on April 30, 2014.

CEPA 1999 section 71 Notice -

Hydrofluorocarbons

Environment Canada has published a mandatory

survey to gather information on hydrofluorocarbons.

Substances used as refrigerants, foams, aerosol

propellants, fire suppression agents, cleaning

solvents.

Primarily replace compounds known to deplete the

ozone layer.

Reporting deadline is August 19, 2014

Halal

Amendment to The Food and Drug Regulations.

Halal claims must now include the name of the

certifying body. This will provide consumers with

assurances that the food meets a certifying body’s

standard.

Requirements apply to both domestic and imported

products.

CODEX Committee on Spices and Culinary

Herbs (CCSCH)

Objective: (a)To elaborate worldwide standards for

spices and culinary herbs in their dried and

dehydrated state in whole, ground, and cracked or

crushed form. (b) To consult, as necessary, with other

international organizations in the standards

development process to avoid duplication.

At the 1st Session, CCSCH agreed to establish an e-

Working Group to prepare proposed draft standard for

black, white, green (BWG) pepper, b/o principles of

consumer protection & fair trade practices, CSA

representation.

ftp://ftp.fao.org/codex/reports/reports_2014/REP14_SCHe.pdf

FDA Partially Hydrogenated Oils

The US FDA has tentatively determined that PHOs

which are the primary dietary source of industrially-

produced trans fatty acids, or trans fat, are not

generally recognized as safe (GRAS).

If finalized, this would mean that food manufacturers

would no longer be permitted to sell PHOs, either

directly or as ingredients in another food product,

without prior FDA approval for use as a food additive.

Consultation closed March 2014.

Health Canada will continue with a voluntary reduction

approach, industry has been relatively successful at

reducing the amount of trans fats in foods in Canada.

FDA Proposed Changes to Nutritional

Labelling

To help Americans better understand how diets

contribute to obesity & diseases related to obesity.

Format & content of the Nutrition Facts. ◦ Prominence to calories & servings per container.

◦ Listing of Daily Values on left side.

◦ Add values for Calories from fat, Potassium, Vitamin D & Added sugars.

◦ Vitamins A & C no longer mandatory.

Changes to DRVs (Dietary Reference Values) & RDIs

(Recommended Daily Intake) for certain nutrients.

Changes to RACCs (Reference Amount Customarily

Consumed).

Comment period closes June 2nd, implementation 3-4

years.

Azodicarbonamide

This food additive came under public and government

scrutiny in the USA due to its link as a possible

carcinogen and widespread use as a dough

conditioner in bread products.

Component of yoga mats & shoe rubber.

Subway has announced plans to remove it from their

products and a US Senator has called on the FDA to

implement a ban in food.

Health Canada is not considering any changes to its

approval for use as a food additive, permitted

maximum 45 ppm of flour.

FSMA – Final Rules

Establishment, Maintenance, and Availability of

Records: Amendment to Record Availability

Requirements Rule: Effective April 4, 2014, allows

FDA access to records related to suspect food.

Allows FDA access to other articles of food with a

“reasonable probability” of having health

consequences or causing death in humans or animals.

https://www.federalregister.gov/articles/2014/04/04/20

14-07550/establishment-maintenance-and-availability-

of-records-amendment-to-record-availability-

requirements

FSMA – Proposed Rules

http://www.fda.gov/Food/GuidanceRegulation/FSMA/ucm253380.htm

Transportation Rule: Require taking steps to prevent

contamination during transport (sanitary practices,

proper storage, adequate cleaning & proper

protection). Consultation closes May 31, 2014.

Produce Rule: Standards for growing, harvesting,

packing and holding produce (except those rarely

consumed raw) on domestic and foreign farms. Focus

on common routes of micro contamination of produce,

(1) water (2) farm worker hygiene (3) manure and

other soil additions (4) animals in growing areas, and

(5) equipment, tools and buildings. Consultation has

closed.

FSMA – Proposed Rules

Foreign Supplier Verification Program: All US

importers must establish & follow a FSVP for each

imported food, includes food compliance, hazard

analysis, verification activities, corrective actions,

periodic reassessment & recordkeeping. Consultation

has closed.

Accreditation of Third-Party Auditors: Establish a

program for accreditation of third-party auditors.

Importers will not generally be required to obtain

certifications, the FDA may use certifications from

accredited auditors in determining whether to admit

certain imported food. Consultation has closed.

QUESTIONS?

Thank you!

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