Importing food products into Canada and the United States can come with its share of challenges, particularly when it comes to compliance with regulations.
Both countries have stringent standards in place to ensure the safety and quality of food products entering into their markets. Businesses that are food importers must navigate a complex landscape of regulations, licenses, and classifications.
This article brought to you by our friends at GHY International delves into common misses encountered during the food importation process regarding licensing and registration and provides pro tips to help businesses streamline their operations and ensure compliance.
Licensing and Registration Requirements
One of the initial challenges in food importation is understanding and meeting the licensing and registration requirements imposed by the respective regulatory bodies in Canada and the United States.
In Canada, the Canadian Food Inspection Agency (CFIA) plays a pivotal role in overseeing food safety and compliance. Businesses must obtain the necessary licenses from the CFIA, ensuring that their facilities and products meet Canadian standards. This involves rigorous inspections, documentation, and adherence to Good Manufacturing Practices (GMP).
To import most foods into Canada, the Safe Food for Canadians Act (SFCA) and its regulations (SFCR) require that businesses hold a licence issued by the Canadian Food Inspection Agency (CFIA). The CFIA has been using the Integrated Import Declaration (IID) to automatically verify that importers of certain commodities have a valid Safe Food for Canadians licence (SFC licence).
On February 12, 2024, the CFIA will begin using IID to automatically verify the SFC licences of importers of manufactured foods.
This means that if you import any food commodity that requires a licence, including manufactured foods, you must hold a valid SFC licence and declare it correctly in your import declaration, or your transaction will be rejected.
If your transaction is rejected, IID will send you or your broker one or more reject messages that describe the reason(s) for the rejection and your food shipment will be denied entry into Canada until you correct the error(s) and re-submit your import declaration. All import requirements must be met before your shipment's import declaration can be accepted.
Common Misses
The CFIA has been monitoring import transactions of manufactured foods and has identified two common licensing errors, first is the use of an incorrect AIRS end-use code. The second issue is where an inappropriate HS code/OGD extension is used to declare the food. For example, if the code for fresh herbs (a fresh fruit and vegetable) is used for the import of dried herbs (a manufactured food) and the importer’s licence only covers the import of manufactured foods, the transaction will be rejected.
Canada Pro-Tip: To prevent these types of errors, it is recommended that importers work with their Customs Broker to ensure the HS code/OGD extension is appropriate for the food being imported.
In the United States, the Food and Drug Administration (FDA) and the United States Department of Agriculture (USDA) are the key regulatory bodies overseeing food imports. Businesses must register with the FDA, and depending on the nature of the products, compliance with specific regulations may be required.
To import foods into the USA, importers must register their food facilities with the FDA. This registration includes providing information about the location and activities conducted at the facility.
Importers are required to submit Prior Notice (PN) to the FDA or U.S. Customs and Border Protection’s (CBP) electronic interface system before the arrival of a shipment. This submission allows FDA and CBP officials to prioritize inspections for upcoming food imports scheduled to arrive in the U.S. This notice includes details about the imported food, such as the product description, manufacturer information, and anticipated entry information. Additionally, if food products are arriving by ship, and ISF Filing is required.
Common Misses
Importers who fail to submit a Prior Notice on time and/or with inaccurate information are refused entry and temporarily held at the port of entry until they can provide CBP and FDA with the required information. Failure of compliance can range from permanent seizure, destruction of goods and monetary penalties to a ban on future imports, and civil prosecution.
USA Pro-Tip: Understand the timeframe for submitting a Prior Notice and work with your Customs Broker to ensure accurate and timely filing. Depending on the mode of transportation of your imported food and whether you use CBP or FDA’s electronic interface system, your prior notice can be submitted no later than 2 hours prior to arrival and no sooner than 30 days.
License Coverage and Import Rules
One thing that should not be overlooked is ensuring that your existing license covers new products being imported. An omission in checking the rules and/or temporary bans on a new or current import item can lead to denied entry.
For example, an importer of clam chowder soup faced denial of their imports due to lacking a fish import license. In another instance, an importer of fresh strawberries failed to consider the light brown apple moth infestation in the region of California they regularly sourced from, resulting in their goods being denied entry as they were temporarily banned.
Pro-Tip: Always confirm that your license covers all products intended for import, and thoroughly investigate the import rules and temporary bans for each item to avoid potential rejections.
Harmonized System (HS) Codes
Assigning the correct Harmonized System (HS) codes is a critical step in the food importation process. HS codes facilitate the classification of products and are essential for determining applicable tariffs and regulations.
Pro-Tip: Invest time and resources in accurately classifying your products under the HS code system with your Customs Broker. This ensures that you pay the correct duties and taxes and helps prevent delays at customs.
Food importation into Canada and the United States demands meticulous attention to detail and a proactive approach to compliance. By understanding and addressing common challenges in licensing, registration and classification, businesses can enhance their chances of a successful and compliant food importation process.
Proactively staying informed about regulatory changes and maintaining a collaborative relationship with regulatory agencies and your Customs Broker are key elements in navigating the dynamic landscape of food import compliance in North America.
For comprehensive facilitation in obtaining licenses, and registrations, ensuring the correct classification of goods, and overall compliance with customs and regulating agencies/departments, GHY offers expertise and support. Navigating the complex world of food import compliance is made easier with the right partners by your side.
Reach out today to speak with SNI's regulatory experts!
