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Notice

Vol. 139, No. 11 — March 12, 2005

Regulations Amending the Fish Inspection Regulations

Statutory authority

Fish Inspection Act

Sponsoring agency

Canadian Food Inspection Agency

REGULATORY IMPACT
ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Description

This initiative addresses an amendment to the Fish Inspection Regulations (FIR). The Fish Inspection Act (the Act) enables the Government of Canada to regulate the safety and quality of fish products imported into Canada or produced in federally registered establishments for export or interprovincial trade. Pursuant to the Act, the FIR regulates the inspection of processed fish and processing establishments.

This proposed amendment is the result of the longstanding need to respond to the Canadian salted fish industry's concerns regarding the existing provisions of the FIR with respect to salted fish.

The intent of this proposed amendment to the FIR is to

(1) better facilitate the marketing of salted fish in the international marketplace through the revision and updating of the sections of the FIR pertaining to salted fish and salted fish products so that they correspond to present processing practices made possible through technological advances in the industry, as well as to changes in market requirements;

(2) provide the industry with flexibility to meet marketplace demands and specifications by

(a) defining the minimum criteria for salted fish,

(b) defining the criteria for the voluntary use of product presentations and classes,

(c) removing compulsory grades and grade standards, and

(d) permitting greater flexibility in the labelling of salted fish and salted fish products destined for the international marketplace; and

(3) continue to achieve, in the process, appropriate levels of food safety and consumer protection.

The Canadian salted fish industry, through individual stakeholders and its industry associations, first identified the need to amend the salted fish portion of the FIR to the Department of Fisheries and Oceans approximately 15 years ago, and over the years, considerable effort was expended in developing regulatory proposals. This phase of the work, later transferred to the Canadian Food Inspection Agency (CFIA), culminated in the publication of a salted fish regulatory amendment in Part I of the Canada Gazette on September 29, 2001. However, with the changes to the industry and to markets as a result of the collapse of the Atlantic cod fishery, a significant sector of the salted fish industry could not support the amendment as presented. As a result, the proposed amendment was revisited and a revised amendment has been developed in consultation with the industry.

Over the past 50 years, technological advances, changes in marketplace demands and the development of new markets have rendered certain sections of the FIR pertaining to salted fish obsolete. The arrival of splitting machines, mechanical dryers and refrigeration at all levels of the processing and distribution chain have permitted radical changes in the way salted fish is prepared and marketed. Today, in excess of 95 percent of Canadian salted fish is exported and international competition is fierce. Currently, there is an ever increasing dependence on foreign suppliers for raw material. These changes in marketing strategies and customer demands, coupled with structural changes within the Canadian industry, as well as a trend toward less salty and more "value added" salted fish products, make the existing Regulations obsolete. If Canada is to remain competitive in the international marketplace, the sections of the FIR pertaining to salted fish must be revised and updated.

There has been a longstanding issue with the use of the term "Gaspé Cure" among major industry processing groups, particularly in Quebec and southwest Nova Scotia. For several years, the Association québécoise de l'industrie de la pêche (AQIP) has taken the position that the term Gaspé Cure should be restricted to products produced in the Gaspé region of Quebec, while the Nova Scotia Fish Packers Association and their counterparts in Newfoundland and Labrador contend that Gaspé Cure relates to process parameters and not geographic location. In 1999, AQIP trademarked the term Gaspé and its various associations—"Genuine Gaspé," "Gaspé Cured," etc.—and has since licensed Gaspé producers to use this term in association with salted fish that meets the unique characteristics of salted fish processed in the Gaspé region. These amendments to the FIR replace the grade name Gaspé Cure Slack Salted Fish with the class name Slack Salted Fish, which removes any regional connotation that could be associated with the term "Gaspé Cure."

This regulatory amendment will have minimum impact on Canadian consumers as less than 5 percent of salted fish products produced in Canada are destined for the domestic market. This amendment will primarily affect Canadian salted fish processors and exporters.

This amendment is consistent with the Codex Standard for Salted Fish and Dried Salted Fish and should facilitate international trade in Canadian salted fish products.

Alternatives

Option 1 — Status quo

The status quo is not an acceptable alternative, as technological advances, changes in marketplace demands and the development of new markets have rendered certain sections of the FIR pertaining to salted fish obsolete. This amendment has been developed at the request of the salted fish industry and with their full participation. Because the present Regulations do not correspond to current technological production practices, or to current marketplace requirements, and have essentially been replaced by a costly and time-consuming exemption process, a new and better way of doing business is essential.

Option 2 — Deregulation

Although a sector of the Canadian salted fish industry favoured a form of deregulation, complete deregulation of the industry was not considered to be an acceptable alternative. There were varying opinions with respect to deregulation; however, there was consensus that a minimum standard for salted fish should be defined (percentage salt and moisture), accompanied by the prescription of product presentations and classes to be used on a voluntary basis.

Four options representing varying degrees of deregulation were proposed. Each of the four options was evaluated and subsequently rejected as either being too prescriptive, or alternatively, too permissive to permit the minimum regulation of the salted fish industry.

Option 3 (recommended option) — Amend the FIR

This amendment to the FIR as presented is based on performance requirements, as the detailed prescriptive standards are being removed from the Regulations. A salted fish product must meet a minimum standard of salt and moisture content; however, the use of product designations and classes is voluntary. If a product designation or class is used, it must comply with the standards prescribed in the Regulations. This option represents a compromise on the level of deregulation.

This amendment will provide the salted fish industry with the flexibility to market its products in the most economical, competitive and efficient manner without compromising consumer health and safety.

The proposed amendment to the FIR will more closely align Canadian salted fish requirements with international standards, e.g. Codex Alimentarius, thus enabling Canada to compete more effectively in the global marketplace.

Benefits and costs

The preferred option of amending the FIR is a minor regulatory initiative, and therefore, a full cost-benefit analysis was not completed.

The benefits to industry and stakeholders of implementing these Regulations include the following:

  • The flexibility to respond to domestic and international market requirements with respect to new product development and value added products is achieved with the removal of prescriptive and mandatory regulatory requirements.
  • Industry personnel will no longer be required to be trained in the grading of salted fish products with the removal of mandatory grades.
  • The number of exemption permits required should be significantly reduced thereby reducing industry administrative costs.
  • Simplified labelling requirements should reduce industry label costs.

The initial cost to industry to train personnel with respect to these changes will be minimal considering that industry participated actively in the development of the revised amendment and already has in-depth knowledge of the changes.

Although this amendment will dramatically reduce the number of salted fish exemption permits, a limited number will still be required in order to authorize importing country labelling requirements that may not be allowed under the FIR. As an example, such requirements would include importing country grade standard designations, net weight designations and size designations.

The benefits to the CFIA of implementing these Regulations include the following:

  • A reduction in administrative costs as the number of exemption permits issued for salted fish products will be reduced. It is estimated that the number of exemption permits requested by industry and issued by the CFIA will be reduced in the magnitude of 70–75 percent.
  • Inspection time, effort and complexity will be significantly reduced as CFIA inspectors will no longer be required to be trained in the recognition and application of salted fish grade standards. Once the grades are removed from the Regulations, salted fish will only be examined for the sensory attributes related to taint, decomposition and unwholesomeness.
  • No additional or new skills, abilities or processes, other than those currently in place, will be required by Agency personnel.

There will be no other substantial additional costs to Government. Other than the costs of familiarizing personnel with the new regulatory requirements, the costs to the CFIA will be minimal.

These proposed amendments do not impose any additional regulatory burden on individuals or businesses involved in the salted fish industry. In fact, the regulatory burden is being substantially reduced as prescriptive grade standards, class, size and moisture content requirements are being removed from the Regulations to be replaced with more generic and voluntary product requirements.

Consultation

Prior to the September 29, 2001, prepublication in Part I of the Canada Gazette, extensive consultations were carried out with representatives from the salted fish industry from 1991 to 1996. A joint industry/government Salted Fish Working Group was formed and met on seven separate occasions. All concerned producer organizations and brokers were represented.

Subsequent to the September 29, 2001, prepublication, the CFIA determined that additional consultation was required. Extensive consultations were again undertaken with industry representatives in the provinces of Quebec, Nova Scotia, and Newfoundland. These consultations included a mail-out to 278 members of the salted fish industry on July 11, 2002, containing four regulatory options for their consideration, and face to face consultations were conducted with members of the Gaspé Region, the Nova Scotia Fish Packers Association, members of southwest Nova Scotia's salted fish industry and members of the Newfoundland salted fish industry.

A final package containing the preferred regulatory option and accompanying policy interpretations was mailed to 278 members of the salted fish industry for their final comments on November 20, 2002.

Provincial representatives were either present during the consultation sessions or provided written comments throughout the consultation process.

Based on positive feedback received from their review of the amended Regulations, it is anticipated that members of the salted fish industry will support this amendment as presented.

Compliance and enforcement

No major changes will occur in the application or enforcement of the Regulations as a result of this amendment.

Inspection services will be provided and the FIR will be enforced in the usual manner. Action in accordance with the Fish Inspection National Enforcement Policy, based on the CFIA Compliance and Enforcement Policy, will be taken to deal with non-compliance. Depending on the severity of the infraction, actions from the provision of warnings, up to and including charges, could be taken.

The CFIA will ensure compliance by continuing to inspect salted fish at levels commensurate with the health and safety and economic risk of the product. There will be no need to institute new compliance regimes or appeal mechanisms.

Contacts

Stephen Stephen, Fish, Seafood and Production Division, Canadian Food Inspection Agency, 59 Camelot Drive, Ottawa, Ontario K1A 0Y9, (613) 221-7025 (telephone), (613) 228-6648 (facsimile), sstephen@inspection.gc.ca (electronic mail); and Jean Lapointe, Network Chief, Fish, Seafood and Production Division, Champlain Harbour Station, 901 Du Cap-Diamant Street, Québec, Quebec G1K 4K1, (418) 648-7373 (telephone), (418) 648-4792 (facsimile), lapointeje@inspection.gc.ca (electronic mail).

PROPOSED REGULATORY TEXT

Notice is hereby given that the Governor in Council, pursuant to section 3(see footnote a) of the Fish Inspection Act, proposes to make the annexed Regulations Amending the Fish Inspection Regulations.

Interested persons may make representations concerning the proposed amendment within 60 days after the date of publication of this notice. All such representations should cite the Canada Gazette, Part I, and the date of publication of this notice and be sent to Mr. Stephen Stephen, Head, Product Standards, Fish, Seafood and Production Division, Canadian Food Inspection Agency, Champlain Harbour Station, 159 Cleopatra Drive, Ottawa, Ontario K1A 0Y9, Tel.: (613) 221-7025; Fax: (613) 228-6648 or Jean Lapointe, Network Chief, Fish, Seafood and Production Division, Canadian Food Inspection Agency, 901 Du Cap-Diamant Street, Québec, Quebec G1K 4K1 Tel.: (418) 648-7373; Fax: (418) 648-4792.

Ottawa, March 7, 2005

EILEEN BOYD
Assistant Clerk of the Privy Council

REGULATIONS AMENDING THE FISH INSPECTION REGULATIONS

AMENDMENTS

1. (1) Subparagraph 26(1)(c)(ii) of the Fish Inspection Regulations(see footnote 1) is repealed.

(2) Subparagraph 26(1)(c)(vi) of the Regulations is repealed.

2. The heading before section 103 and sections 103 to 120 of the Regulations are replaced by the following:

103. In this Part, "salted fish" means fish of the Gadidae family that has been preserved by salt and contains not less than 12% salt on a wet weight basis and a maximum moisture content of 65%

104. (1) No person shall place a product designation on a label affixed to a container of salted fish unless the designation is immediately adjacent to the common name of the product without any intervening printed, written or graphic matter and the designation is made in accordance with subsection (2).

(2) Salted fish shall be designated as

(a) "split fish", if it is split and at least two-thirds of the anterior of the backbone has been removed;

(b) "split fish with entire backbone", if it is split and no portion of the backbone has been removed;

(c) "fillet", if it is a fillet as defined in section 2; or

(d) any other designation that

(i) is distinctive from those set out in paragraphs (a) to (c), and

(ii) meets the requirements of these Regulations.

105. (1) No person shall place a class designation on a label affixed to a container of salted fish unless the designation is made in accordance with subsection (2).

(2) Salted fish shall be designated as

(a) "slack salted fish", if, after the curing process is complete, it has a maximum salt content of 25% of the dry weight of the fish;

(b) "light salted fish", if, after the curing process is complete, it has a salt content of more than 25% but not more than 33% of the dry weight of the fish;

(c) "dried heavy salted fish", if, after the curing process is complete, it has a salt content of more than 33% of the dry weight of the fish and has a maximum moisture content of 54%; or

(d) "green heavy salted fish", if, after the curing process is complete, it has a salt content of more than 33% of the dry weight of the fish and has a moisture content of more than 54% but not more than 65%.

106. If more than one species of salted fish is packed in a container, the names of the species must be indicated on the label in the common name or in the list of ingredients in descending order of proportion.

COMING INTO FORCE

3. These Regulations come into force on the day on which they are registered.

[11-1-o]

Footnote a

S.C. 1997, c. 6, s. 53

Footnote 1

C.R.C., c. 802

 

NOTICE:
The format of the electronic version of this issue of the Canada Gazette was modified in order to be compatible with hypertext language (HTML). Its content is very similar except for the footnotes, the symbols and the tables.

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Updated: 2006-11-23