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REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Regulations.)
Amendment | Regulatory Impact Analysis Statement

Description:

The purpose of the Plant Protection Act is to protect plant life and the agricultural and forestry sectors of the Canadian economy by preventing the importation, exportation and spread of plant pests (e.g. insects and diseases).

A Phytosanitary Certificate is an official document issued by the plant protection organization of the exporting country to the plant protection organization of the importing country. It certifies that the plants or plant products covered by the certificate have been inspected according to appropriate procedures and are considered to be free from quarantine pests and practically free from other injurious pests, and that they are considered to conform with the current phytosanitary regulations of the importing country. They are legal government documents and must be carefully controlled. The Phytosanitary Certificate facilitates trade but is not a trade document.

Currently, the importer must provide CFIA with a facsimile of the foreign Phytosanitary Certificate and provide an original hard copy of the certificate within 14 days.

This proposal will modify the regulation to remove the importers’ obligation to provide an original hard copy of the Phytosanitary Certificate if an electronic version has already been received from an approved foreign phytosanitary authority. Canada is presently working with Mexico and United States on the development of an electronic certification system. Currently, there are no countries that are approved.

As the existing regulations do not provide such an authority for acceptance of electronic documents without also receiving a hard copy, an amendment to the regulations is required.

The electronic certificate initiative will enhance, not replace, the current approach. Importers will still have the option to provide paper (hard copy) certificates.

The proposal complements the key commitments of CFIA to streamline regulatory activities such as the flow of regulatory documents and information between trading partners. This initiative will also improve the efficiency of current administrative practices, as receipt of an electronic copy will reduce the need to manually input the statistical information contained in the certificate.

Electronic certification will have a major positive impact on the importation of plants and plant products into Canada. Electronic certification will allow the direct exchange of certificates from government to government without industry handling the documents in the interim, thereby reducing opportunity for fraud and increasing efficiency in the exchange of foreign Phytosanitary Certificates.

Alternatives:

The status - quo:

• There are some security concerns with the current facsimile system because the hard copy certificates can be fraudulently altered or lost en route.

Amend the Regulation (preferred option):

• Removing the requirement for an original hard copy, if an electronic version is sent directly from an authorized foreign phytosanitary authority to CFIA, would improve efficiency in the exchange of documents from other countries and facilitate the clearance of goods entering Canada.
• This amendment would also accommodate improved administrative procedures and facilitate the tracking of certificates.

Costs and Benefits:

As this is a minor regulatory initiative, a full cost benefit analysis is not necessary.

New computer software will be needed to upgrade the current system and CFIA staff will require training on the new software system.

This amendment will allow for electronic data transmission and statistical data capture. It will reduce costs and the time required for the filing of hard copies. The system will allow for instant notification of shipments and facilitate clearance of goods arriving in Canada. It will improve efficiency in creating, retrieving and maintaining statistical data.

Consultation:

Generally, meetings are held on a quarterly basis with the three members of the North American Plant Protection Organization: i.e. Canada, United States and Mexico. The U.S. and Mexico fully support this initiative. Preliminary informal discussion with some stakeholders indicated that they fully support this initiative because it is in the best interest of all stakeholders, as it will facilitate the clearance of goods.

Foreign phytosanitary authorities such as U.S. and Mexico indicated the need to use secure servers in conjunction with encryption technology. This requirement will be mandatory since Phytosanitary Certificates carry sensitive information such as names and addresses of companies.

The electronic certificate initiative has broad support from the CFIA, foreign phytosanitary authorities, and Canadian industrial organizations of the agricultural and forestry sectors.

Compliance and Enforcement:

There are no enforcement issues.

Contact:

Greg Stubbings
Director, Plant Health Division
Plant Products Directorate
Canadian Food Inspection Agency
59 Camelot Drive
Ottawa, Ontario
K1A 0Y9
Telephone: (613) 225-2342 (ext. 4316)
Fax: (613) 228-6602
internet: gstubbings@inspection.gc.ca