Doing Business in Canada - CPMA

Doing Business in Canada - CPMA

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Doing Business in Canada

Part 1: Importing, Non-Resident Importers and Exporting to Canada

Trade of fresh fruits and vegetables between Canada and its international partners is a multi billion-dollar business. Canadian consumers have access to a staggering variety of fresh and nutritious produce year- round. Given Canada’s climactic challenges, the supply of produce must be subsidized by a reliable, efficient and cost-effective import system. When the seasons do permit growing of Canadian produce, the supply chain efficiencies utilized by the industry result in a bounty of product which drives robust domestic and export markets. Long standing and new regulatory requirements in Canada, the US, and globally require that all participants along the supply chain understand the various regulations they may have to navigate. Understanding these requirements is critical to ensuring the efficient flow of fresh produce. Shipments which do not meet the regulatory requirements are more likely to be held, inspected and possibly rejected when crossing through international border ports-of-entry. Although not explicitly covered in this document, it is also important that any business-to- business agreements are well understood by both the buyer and seller. Conflicts in these areas can lead to disputes which must be negotiated by independent organizations (i.e. the Fruit and Vegetable Dispute Resolution Corporation or DRC) or by government services such as the Canadian Food Inspection Agency’s (CFIA) Destination Inspection Service (DIS). Part 2: Interprovincial and Intraprovincial Trade Part 1 of Doing Business in Canada covers product which is being imported/exported into Canada. Part 2 will cover trade between provinces (interprovincial) and within a single province (Intraprovincial). The Constitution of Canada (Constitution) provides the legal underpinning of the governance of the country, including the rights and responsibilities of the federal, provincial and territorial governments. Under the Constitution, the federal government has jurisdiction for both international and interprovincial trade, including fresh fruit and vegetables (FF&V). As such, all federal laws and regulations associated with trade in FF&V are applicable for interprovincial trade. An example under the Safe Food for Canadians Regulations (SFCR) is the requirement for a license, with some exceptions, for companies who trade in FF&V across provincial borders. These transactions are considered to be importing or exporting activities, depending on which end of

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