You will recall that in July 2004 the Canadian Food Inspection Agency (CFIA) announced its intention to move forward on a mutually agreeable new business model to improve the existing Destination Inspection Service (DIS) for fresh produce. This was in response to the produce industry’s request for a number of improvements in this important service; a critical component in ensuring an effective and fair dispute resolution system for the mutual protection of buyers and shippers. This decades old service had shifted to the bottom of the CFIA priority list as food safety and other programs became the Agency’s greatest priority. After extensive efforts, industry and government acknowledged that the status quo for the effective delivery of this inspection service was not possible under the current CFIA structure, and the industry stood to lose a critically important service – also valued by our trading partners outside of the country. Failure to act would have seen further deterioration in service; a condition not acceptable to the industry.
The new CFIA Service Model, includes such things as a new organizational structure for the DIS, dedicated staff for destination inspections, service on weekends, adoption of new service standards and fees for service based on an hourly rate, phased in over a three year period. The new fees are intended to provide future financial sustainability for the system and to improve the timeliness and the quality of the service. The new fee structure will be fairer as it will be based upon time spent in delivering the service. While fee rates will increase for those more time consuming inspections, there will be a reduction for other simpler commodity inspections. The CFIA previously appointed a national Industry Advisory Board for the DIS, which has worked with the CFIA to effect improvements since 2004; this body will continue into the future as a means to ensure industry input in the new service.
Following the announcement by the CFIA in 2004, the Fresh Produce Alliance (FPA) organized consultation sessions in 2006 for industry members across the country to introduce the new concept. During those sessions, industry members endorsed the new model and indicated support for the proposed improvements and the phased in approach of new hourly fees. These fees are still being calculated by the CFIA. The new model and implementation plan was also endorsed at the annual meetings of the Canadian Horticultural Council, the Canadian Produce Marketing Association and the Board of Directors of the Dispute Resolution Corporation. Further support was also given by the Ontario Produce Marketing Association, Quebec Produce Marketing Association, Calgary Produce Marketing Association, British Columbia Produce Marketing Association, and key U.S. grower / shipper organizations that export fresh fruits and vegetables to Canada.
The CFIA remains committed to the implementation of the new model and has recently taken concrete steps forward by publishing in Volume 144, No. 6 of the February 6th Canada Gazette proposed regulatory changes. The regulatory changes will provide the foundation for a three year implementation of the new DIS model commencing in the fall of this year.
Before day one of the new DIS, anticipated to be October 1st, 2010, there will be a further schedule of information sessions across Canada to provide details of the new business model and new fees for service along with the three year implementation plan. In the meantime, a draft of the government’s approach to the three year implementation plan, including the three year fee hourly rate adjustments will be discussed at a late March meeting between the CFIA Industry DIS Advisory Board and management officials of the DIS. Members will be kept advised as new developments occur.
Industry has been awaiting this proposed regulatory amendment since 2004 as the ability to financially self sustain this service would not be possible.
To access the Canada Gazette, please go to http://www.gazette.gc.ca/rp-pr/p1/2010/2010-02-06/pdf/g1-14406.pdf (page 186 of the notice).
Should you have any questions, please do not hesitate to contact Sophie Perreault at 514-355-4330, ext. 22 or sperreault@aqdfl.ca
