Section 2: Legislative and Regulatory Authorities. 2.1 Objective of Section Legislative and Regulatory Basis. 2.3 Authority of the Inspector

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1 Section 2: Legislative and Regulatory Authorities 2.1 Objective of Section Legislative and Regulatory Basis 2.3 Authority of the Inspector 2.4 Powers of the Inspector Powers of the Inspector under the Canada Agricultural Products (CAP) Act Powers of the Inspector under the Fresh Fruit and Vegetable Regulations Powers of the Inspector under Provincial Regulations 2.5 Responsibilities of the Applicant 2.6 Suitable Facilities 2.7 Inspection Fees

2 Section 2: Legislative and Regulatory Authorities 2.1 Objective of Section 2 This section provides an outline of the legislative and regulatory authorities available to inspectors under the Canada Agricultural Products Act (CAP Act), the Fresh Fruit and Vegetable Regulations (FFVR) and the Canadian Food Inspection Agency Fees Notice (CFIA Fees Notice). Section 2 defines the powers and authority that enable an inspector to perform inspection duties. As well, the section explains the responsibilities that the applicant must fulfil under the FFVR. Inspection fees established under the CFIA Fees Notice are provided for each inspection activity in a table at the end of this section. 2.2 Legislative and Regulatory Basis The CAP Act, established in 1988, provides the broader authority to establish regulations to regulate the marketing of agricultural products in import, export and interprovincial trade. The CAP Act also provides for national standards and grades of agricultural products, for their inspection and grading, for the registration of establishments, and for standards governing establishments. The following sections of the CAP Act provide the authority to make regulations. The FFVR are established pursuant to these sections of the CAP Act. Some sections of the Act or FFVR have been restated in this manual. However, inspectors are encouraged to review the entire Act and FFVR for a broader understanding. Section 32 of the CAP Act provides the authority under which the FFVR are enacted. Regulations may be made under the authority of the CAP Act for the following purposes: to prescribe legends and grade names for fresh produce; to provide for the inspection of establishments and the inspection, analysis, testing, grading and sampling of fresh produce; to establish grades and standards for fresh produce, and standards for containers; to regulate or prohibit the preparation of any fresh produce; to determine the place of origin or destination of fresh produce; to establish requirements governing seizure and detention and to regulate the inspection of places and the stopping of vehicles;

3 to regulate or prohibit the marketing of fresh fruit or vegetables in import, export or interprovincial trade, including regulations to: - establish the terms and conditions governing such marketing, - define fresh fruits or vegetables, - allow for Ministerial exemptions from any of the requirements of the Act or regulations where the Minister or delegate considers that it is necessary to do so in order to alleviate a shortage in Canada of the fruit or vegetable or an equivalent fruit or vegetable, and to exempt any person, establishment, agricultural product, class of agricultural products, container or other thing from the application of any or all of the provisions of the Act or the regulations; to prescribe inspection fees. 2.3 Authority of the Inspector The mandate of the inspector is to enforce the Fresh Fruit and Vegetable Regulations, and the CAP Act. Section 19(4) of the CAP Act provides that: No person shall obstruct or hinder, or make any false or misleading statement either orally or in writing to an inspector who is carrying out duties or functions under this Act or the regulations. An example of obstruction is if a person refused to allow an inspector to enter a facility containing fresh fruit and vegetables. Hindering is an act of delaying or interfering, such as not providing documents in a timely fashion. Section 19(5) of the CAP Act provides that: Except as authorized by an inspector, no person shall remove, alter or interfere in any way with a thing seized or detained under this Act or the regulations. 2.4 Powers of the Inspector Powers of the Inspector under the CAP Act Section 21 of the CAP Act outlines the powers of the inspector. The authority granted to the inspector in this section is much broader in scope than many realize. It is very important that each inspector become familiar with these powers in order to more effectively perform the duties of his/her position.

4 Section 21 of the Canada Agricultural Products Act provides that: For the purpose of ensuring compliance with this Act and the regulations, an inspector may enter and inspect any place, (except a home unless permission is granted), or stop any vehicle, in which the inspector believes on reasonable grounds there is any fresh fruit or vegetable, and the inspector may: - open any container that the inspector believes on reasonable grounds contains fresh fruit and vegetables. This allows the inspector to inspect samples of his/her choosing; - inspect any produce and take samples of it free of charge as in the case of chemical residue testing; and - require any person to produce for inspection or copying, in whole or in part, any record or other document such as invoices, bills of lading, inspection certificates etc. that the inspector believes on reasonable grounds contains any information relevant to the inspectors duties and functions. In carrying out an inspection, an inspector may be required to make copies or reproduce documents to substantiate non-conformities or provide evidence of a breach of the Act or regulations. The Act provides the inspector with the authority to: - use or cause to be used any data processing system at the place to examine any data contained in or available to the data processing system; - reproduce any record or cause it to be reproduced from the data in the form of a printout or other intelligible output and take the printout or other output for examination or copying; and - use or cause to be used any copying equipment at the place to make copies of any record or other document. The owner or person in charge and every person found in that place shall give the inspector all reasonable assistance to enable the inspector to carry out the inspector's duties and functions under this Act and shall furnish the inspector with such information with respect to the administration of this Act or the regulations as the inspector may reasonably require. In addition, Section 23 of the CAP Act gives the inspector the authority to seize and detain any agricultural product or other thing (such as packaging material,

5 documentation, etc.) where the inspector believes on reasonable grounds that the CAP Act or the Fresh Fruit and Vegetable Regulations have been contravened Powers of the Inspector under the Fresh Fruit and Vegetable Regulations An inspector has the power to issue an inspection certificate with respect to the produce which he or she has inspected, or issue a document signed by the inspector certifying that the produce has been inspected. (Section 41(2)(a) of the FFVR). An inspector has the authority to mark, or have marked according to his/her instructions, packages of produce in the lot he/she inspected with an identification number or numbers indicating that those packages of produce were all or part of the lot of produce inspected. This is commonly referred to as Positive Lot Identification (PLI). (Section 41(2)(b) of the FFVR) An inspector has the power to seal, using a numbered Agency seal, any vehicle into which produce has been loaded and in respect of which an inspection certificate has been issued or evidence provided. (Section 41(2)(c) of the FFVR) Powers of the Inspector under Provincial Regulations The federal government has exclusive jurisdiction to legislate or regulate interprovincial and international trade. Provincial governments, however, have exclusive jurisdiction with regards to property and civil rights within the province. In some provinces, fresh fruit and vegetable inspectors are appointed under provincial regulations. It is only in these instances that inspectors may enforce provincial regulations or requirements. Inspectors appointed under provincial regulations should ensure that they are aware of the authorities provided to them under these appointments. 2.5 Responsibilities of the Applicant The applicant must provide an inspector with all reasonable assistance to enable the inspector to carry out his/her duties and functions under the Act. This includes the furnishing of information with respect to the administration of the Act or regulations as the inspector may reasonably require (Section 21(3) of the CAP Act). In addition, a person who wishes to have produce inspected for the purposes of export, interprovincial marketing, or customs clearance shall be responsible for the following (Section 40 of the FFVR):

6 a) To request an inspection in writing from the nearest inspection office at least 24 hours prior to an inspection (48 hours if there is no inspector in the area). The manner for requesting an inspection is detailed in Section 3.2 Request for Inspection of this manual. b) To make the produce readily accessible for inspection by placing the containers and/or produce in such a manner that they are completely accessible and the quality and condition of the produce is fully disclosed. For the purpose of inspection, accessible means it is easy to choose samples on a random basis. A vehicle fully loaded or half unloaded is not completely accessible. The applicant must either completely unload the vehicle or channel a passage through the vehicle in order that samples may be randomly chosen. 2.6 Suitable Facilities A person who wishes to have produce inspected shall provide a suitable and adequately lighted facility where the produce may be inspected. This requirement will ensure that the inspector can evaluate defects and perform the inspection activity to the best of their ability. In order to meet this requirement, applicants must provide the following (Section 41 of the FFVR): lighting (cool white type) that provides illumination of at least 540 lux; a work area located free from vehicular traffic or other hazards; an electrical outlet to facilitate the use of electronic equipment necessary to carry out a full inspection; assistance to open and close containers as well as assistance to do other things the inspector requires. This means an employee of the applicant will make the lot accessible; will assist the inspector to retrieve the chosen samples; will bring them to the inspection facilities; will help the inspector to open and close containers; and, finally, the applicant's employee will be responsible for returning the samples to the proper place after the inspection is completed. designate at least one employee in the facility whom the inspector may contact for assistance. The inspector has the authority to postpone an inspection because of poor inspection conditions that would hinder an inspector from determining the true condition or quality of the product. If the following are not provided, it would be deemed to constitute poor inspection conditions (Section 42(1) of the FFVR): a suitable environment with adequate temperature to allow the inspector to determine the condition of produce;

7 waste disposal; a grading table; white or pale coloured interior walls and ceiling. 2.7 Inspection Fees The CFIA Fees Notice outlines the applicable fees for inspections, registration, Ministerial Exemptions and monitoring activities. Inspection fees are mandated and cannot be waived or amended. The CFIA Fees Notice also states that: The fees are payable at the time of request for a license, registration, Ministerial Exemption or at the time of issuance of a release permit, certificate or evidence of inspection, or when grading, monitoring or assistance is completed. However, the fees shall be paid before service is performed, or right or privilege is granted, if the applicant s account is not in good standing, or the applicant does not have a fixed place of residence in Canada. Inspection Fees Note: Reference to the Regulations means the Fresh Fruit and Vegetable Regulations. Item Activity Fee 1 Inspection of domestic produce to ensure compliance with the requirements under Part III of the Regulations (compulsory interprovincial shipping point inspections) Inspection of onions, potatoes or field tomatoes exported to the United States or Puerto Rico in accordance with Section 40 of the Regulations (US export inspections) Inspection of produce inspected pursuant to subsection 40(2) of the Regulations (non compulsory shipping point inspections) 64 per 100 kg (29 per 100 pounds) of produce inspected, subject to a minimum fee of $68 (except in the case of inspection of onions, potatoes or field tomatoes exported to the United States / Puerto Rico which have a minimum fee of $30).

8 2 Inspection of produce to ensure compliance with subsection 40(2) of the Regulations for inspections at a place other than shipping point (in transit inspections) $1.37 per 100 kg (62 per 100 pounds) of produce inspected, subject to a minimum fee of $68. Inspection of imported produce for compliance with the requirements under Part III of the Regulations (customs clearance inspection) 3 Appeal inspection granted under subsection 43(2) of the Regulations 4 Issuance of a release permit referred to in paragraph 29(2)(c) of the Regulations The fee payable is the applicable fee set out in item 1 or 2 unless the results of the original inspection are not confirmed by the appeal inspection, in which case no fee is payable. $15 per release permit 5 Grading of produce at a processing establishment 6 Monitoring of produce quality, packaging or labelling. This could be a quality control function for an individual company which we are not currently providing, but could provide in the future. 7 Registration of an establishment, or the renewal of an existing registration, under Part X of the Regulations 8 Services provided by an inspector, upon request from a person, for the purpose of helping that person to meet the requirements of the Act or the Regulations, for example, providing defect training for employees of a $17 per quarter hour, the grading time being rounded off to the nearest quarter hour, subject to a minimum fee of $68. $68 per hour or 60 per 100 kg (27 per 100 pounds) of monitored produce, whichever the applicant chooses. $825 per year $17 per quarter hour, the time being rounded off to the nearest quarter hour, subject to a minimum fee of $68.

9 packing establishment and witness of transfer loads. Overtime Overtime fees are payable in addition to the above fees as detailed in Section 5 of the CFIA Fees Notice.

10 CFIA Inspection Area Evaluation Facility Location Date Contact Mandatory Inspection Area Requirements adequate inadequate lacking Corrective Actions by: (date) A sturdy grading table with an adequate size surface with a retaining border on the sides and rear. (42. (1)) Lighting of 540 lux at table top level (41. (1)(a)) A suitable environment with adequate temperature to allow the inspector to determine the condition of produce. (42. (1)) Inspection location is to be free from vehicular traffic or other possible safety hazards (41. (1)(b)) Inspection area is to be kept clean and accessible for inspectors upon arrival (42. (1)) Refuse container provided and kept in hygienic condition. (42. (1)) Three pronged electrical outlet within 2 metres of the inspection area. (41. (1)(b.1)) Requested Items for Inspection Area Paper towels and/or wipes for clean up Chair and desk with lamp Foot mat Notes Evaluated by Facility Signature Date

CHAPTER 1 - ESTABLISHMENT REGISTRATION

CHAPTER 1 - ESTABLISHMENT REGISTRATION 1.0 Products Covered by this Manual...1 1.1 Registration and Trade Requirements...1 1.1.1 Exclusive grading right of registered establishments...1 1.1.2 Types of