Good afternoon.
Thank you, honourable Chair and honourable members.
I'm here today to speak to you about CBSA's role within the management of the fisheries, and specifically the areas that concern the crossing of the border.
I first want to say thank you to the committee for the opportunity to contribute to the committee's examination of the traceability of fish and seafood products, and to speak to the CBSA's role in this process. While I cannot outline all aspects of the process in terms of what other government department are responsible for, I can speak to this process from the perspective of the Canada Border Services Agency.
The CBSA facilitates the flow of legitimate trade and enforces more than 100 acts and regulations that keep our country and Canadians safe. In terms of fish and seafood importation, the CBSA plays a role in delivering the program by verifying that other government department requirements are met for seafood being imported and exported to and from Canada, as well as administering the Customs Act.
The policies governing the importation of fish, seafood, seafood products and shellfish are established by the Canadian Food Inspection Agency, Fisheries and Oceans Canada, and Environment and Climate Change Canada. The CBSA works closely with these other government departments to support them and ensure that fish and seafood importations are compliant with the established policies. These activities primarily include verifying that any required licences, permits, certificates or other documentation required to import the goods to Canada are provided while also ensuring that appropriate duties and taxes are remitted by the importers.
The CBSA assists the CFIA by enforcing the policies that govern the importation of food, plants, and animals into Canada to the extent that these policies apply at Canadian border points of entry. Currently, imported fish and seafood products are regulated by the Safe Food for Canadians Act and the Health of Animals Act and their accompanying regulations.
The CBSA assists Fisheries and Oceans Canada with enforcement of the aquatic invasive species regulations, the import prohibition on shark fins, and assists with the trade tracking of certain species of tuna, swordfish, toothfish and illegal, unreported and unregulated fishing.
The majority of commercial importation of foods is regulated by the CFIA and must meet CFIA requirements to be eligible for entry. Import requirements vary depending on a variety of factors, including the commodity, country, or U.S. state from which they are being imported. These import requirements can be found by consulting the CFIA's automated import reference system.
High-risk goods require review and approval by the CFIA's national import service centre before they can be released by the Canada Border Services Agency into Canada. In addition, certain high-risk goods require inspection by CFIA before the goods can be released. The CBSA, at the border, releases, refers for inspection, or refuses entry of goods based upon the recommendation provided by the CFIA.
When the CBSA discovers goods suspected of non-compliance with other government department legislation, such as that of CFIA, they are detained under section 101 of the Customs Act and referred to the responsible department or agency for further inspection and, if necessary, enforcement. The CBSA does not inspect food for the purposes of verifying quality standards and labelling requirements, nor do we undertake any testing for compliance with these other federal requirements.
In the context of traceability, importers are obligated to accurately describe the commodities, including fish and seafood, and their country of origin on the commercial import documentation. The level of description required depends on the legislative and regulatory requirements for that specific product.
The CBSA is also responsible for administering the customs tariff. As part of that mandate, the agency is responsible for ensuring the proper tariff classification for goods being imported. Proper tariff classification on seafood importations at the border is complex, and there is little means for us to visually distinguish between various types of seafood at the time of importation.
Based on this limitation, the CBSA employs a risk-based, post-importation verification program that relies on a books-and-records verification of import documents, such as purchase orders and accounting documents. Such verifications may be conducted in cases where seafood mislabelling is suspected.
For example, in 2017-2018 such verifications of seafood for tariff classification detected seafood fraud resulting from mislabelling and misclassification of large shipments of roasted eel fillets. One such tariff classification verification resulted in a reassessment of $136,500, which the importer then had to pay.
Further, the CBSA provides the importing community with advance rulings that confirm the appropriate classification to use when the goods are imported. Over the last five years, the CBSA has issued seven advance rulings to importers to assist in their compliance at the time of the importation of the various seafood products.
The CBSA recognizes Canada's efforts with respect to traceability of fish and seafood products. We take our role in this seriously and will continue to support the Government of Canada's efforts to address this important issue.
Thank you.