Vol. 151, No. 14 — July 12, 2017
SI/2017-33 July 12, 2017
AN ACT TO AMEND THE FOOD AND DRUGS ACT, THE HAZARDOUS PRODUCTS ACT, THE RADIATION EMITTING DEVICES ACT, THE CANADIAN ENVIRONMENTAL PROTECTION ACT, 1999, THE PEST CONTROL PRODUCTS ACT AND THE CANADA CONSUMER PRODUCT SAFETY ACT AND TO MAKE RELATED AMENDMENTS TO ANOTHER ACT
Order Fixing the Day on which this Order is made as the Day on which Section 12 of the Act Comes into Force
P.C. 2017-795 June 20, 2017
His Excellency the Governor General in Council, on the recommendation of the Minister of Health, pursuant to subsection 73(1) of An Act to amend the Food and Drugs Act, the Hazardous Products Act, the Radiation Emitting Devices Act, the Canadian Environmental Protection Act, 1999, the Pest Control Products Act and the Canada Consumer Product Safety Act and to make related amendments to another Act, chapter 9 of the Statutes of Canada, 2016, fixes the day on which this Order is made as the day on which section 12 of that Act comes into force.
(This note is not part of the Order.)
Pursuant to subsection 73(1) of An Act to amend the Food and Drugs Act, the Hazardous Products Act, the Radiation Emitting Devices Act, the Canadian Environmental Protection Act, 1999, the Pest Control Products Act and the Canada Consumer Product Safety Act and to make related amendments to another Act, S.C. 2016, c. 9 (“the Act”), this Order fixes the day it is made as the day on which section 12 of the Act comes into force.
The intent of this Order in Council (OIC) is to bring into force a provision of the Act amending the Food and Drugs Act (FDA) which will allow Canada to meet its obligation under Article 11.8 of the World Trade Organization (WTO) Trade Facilitation Agreement (TFA). Article 11.8 of the TFA provides that WTO members shall not apply technical regulations and conformity assessment procedures within the meaning of the Agreement on Technical Barriers to Trade to goods in transit.
The Act made several amendments to various statutes in order to bring Canada’s statutory regime into alignment with requirements under the WTO TFA. The Act received royal assent on December 12, 2016, and most of the amendments came into force on that date with a few exceptions. One of these exceptions is section 12 of the Act, which amends the FDA to exempt goods in transit from the application of the FDA, as per Canada’s obligations under Article 11.8 of the WTO TFA.
The approach of using an OIC to bring into force section 12 of the Act was taken so that the amendment to the FDA would be brought into force after the TFA becomes binding on all WTO members. Following ratification by two thirds of its 164 members on February 22, 2017, the WTO TFA is now in force, and is therefore binding on all members who have ratified the Agreement (which includes Canada).
Prior to the coming into force of section 12, the FDA applied to goods in transit once they were imported into Canada. Goods are in transit across Canada when the passage across Canada’s territory is only part of a complete journey beginning and ending outside of Canada’s territory. The passage of these goods may include transhipment, breaking bulk, or a change in the mode of transport and still be considered goods in transit across Canada.
Imported packaged drugs, devices, foods, and cosmetics will now be exempt from the FDA, when they have not been released under the Customs Act and are transported through Canada solely for the purpose of export. These goods will still be subject to the other requirements respecting importation, including the requirements of the Customs Tariff and the Customs Act, and the regulations made thereunder, such as those related to bonds or security.
The Act was considered by the House of Commons Standing Committee on International Trade as Bill C-13 in 2016, and then by the Senate Standing Committee on Foreign Affairs and International Trade, with stakeholders giving testimony on the legislation and its anticipated impact. All stakeholders providing testimony were generally supportive, both of the WTO TFA and of exempting imported goods in transit from technical regulations and conformity assessment procedures.
Policy and Regulatory Strategies Directorate
Regulatory Operations and Regions Branch