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Implementation of ISPM 15 for Wood Packaging moving between Canada and the United States

Border Commercial Consultative Committee

Gregory Wolff, Chief Plant Health Officer

Plant Biosecurity & Forestry Division

February 12th, 2014

Importance of forest resources to Canada

• Canada exported $25.1 billion in forest products in 2012

• The forest industry contributed ~1.1% to Canada’s GDP

• In 2012, direct employment of the Canadian forest industry accounted for 235,900 jobs while indirect employment was estimated at 363,700 jobs

• For 200 communities across Canada, the forest sector accounts for ~50% of the economic base

• There were 12.7 million visitors to Canada’s National Parks in 2012

• The Asian long horned beetle eradication program in Vaughn, Ontario cost ~ $35 million between 2003-2013

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What we are trying to avoid…

Background

• Untreated wood packaging (WP) is a key pathway for the introduction and spread of economically and environmentally damaging quarantine pests

• ISPM 15 is an International Standard for Phytosanitary Measures that provides for:

• Treatment and marking of WP prior to movement

• Establishment of monitoring systems to verify compliance

• ISPM 15 is a very effective and successful standard and has resulted in significant reduction in the international movement of quarantine pests.

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History of ISPM 15 in North America

ISPM 15 compliance for off-shore shipments inspected at Canadian Marine Ports

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History of ISPM 15 in North America

• Between 2004 and 2006, Canada and the U.S. implemented ISPM

15 for off-shore WP. An exemption was maintained for WP

moving between Canada and the U.S.

• In 2007, the United States and Canada began discussions for

implementing ISPM 15 for WP produced in North America and

moving between Canada and the United States.

• Both the U.S. and Canada have completed Pest Risk Assessments

which indicate that quarantine pests such as emerald ash borer

and Asian long horned beetle would be better managed through

ISPM 15.

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Implementation of ISPM 15 between

Canada and the U.S.

• Based on the scientific information and experiences with

quarantine pests, the U.S. and Canada will jointly implement ISPM

15 at the U.S.-Canada border

• Once the USDA-APHIS publishes a regulation (“rule”) requiring

Canadian shipments to be carried only on ISPM 15-compliant WP,

the CFIA plans to revise its WP import policy, D-98-08, to

harmonize with U.S. regulations.

• Consultation with industry stakeholders is a critical component of

the Canadian import policy revision

• CFIA and USDA-APHIS are proposing an 18 month-to-two year

phased-in approach in order to:• minimize trade impacts and border disruptions• allow sufficient time for supplies of ISPM 15 compliant WP to be produced• ensure that importers and exporters have time to adapt to new requirements

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Considerations • The CFIA’s plant health mandate is to mitigate risks to Canada's plant

resource base

• Canada and the U.S. share the world’s largest bilateral trade relationship− $1.2 billion in goods crosses the border daily

− potentially 387 million pallets are used annually to transport goods from Canada into the United States

• WP accompanies most non-bulk consignments

• Trade disruption must be minimized or avoided during implementation

• A proactive communications and outreach campaign will be pursued to bring about broad compliance

• Since 2003, compliance with ISPM 15 from offshore origins has increased from c. 20% to c. 90%

• Implementation of ISPM 15 in North America facilitates the ongoing use of WP regardless of destination

• Canadian WP producers are generally ready to comply with ISPM 15, however treatment capacity requires sufficient time for saturation of the market

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Communicating the changes

• Targeted communications products distributed and sent to affected stakeholders during the phased-in implementation period

• CFIA Programs staff will work through the CBSA’s Border Commercial Consultative Committee in order to achieve widespread dissemination of information

• Targeted notifications will be made to traders as they cross the Canada-U.S. border

• We will utilize electronic media as far as possible (websites, etc.) to provide ongoing updates

• We seek support from large importers to include ISPM 15 compliance requirements within their business contracts

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Enforcement of ISPM 15 Requirements

• Full enforcement of the requirements will occur after an 18-24 month “phase-in” period

• Enforcement actions have been planned with the objective of minimizing trade impacts and border disruptions

• The CFIA, in collaboration with CBSA, plans to carry out some targeted WP inspections at the border through “Blitzes”

• The CFIA also plans to carry out inspections at inland destinations

• Enforcement actions may include:

• Refused entry into Canada• Removal from Canada, destruction or disposal• Monetary Penalties may be applicable in the future, depending on the

situation

• If a Canadian importer exists, they are responsible for the cost associated with enforcement actions, including any monetary penalties that may eventually be applied. If no importer is identified, the person with care and control of the shipment is responsible

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Readiness

• An export certification system is in place - developed by the CFIA that facilitates the production of compliant WP

• Similar certifications systems also exist in the U.S.

• The CFIA will collaborate with the U.S. on an intensive communication strategy to seek a widespread and uniform understanding of requirements

• Establishing a multi-agency enforcement and compliance promotion approach consistent with that proposed by the U.S. will encourage broad, early and ongoing compliance

• Ongoing industry feedback through consultation fora will allow for adjustment as Canada and the U.S. move through the phase-in period

• Monitoring of compliance during phase-in will allow CFIA to work with industry and U.S. to ensure up-take is progressing smoothly

• Further communication by stakeholders to business contacts will facilitate readiness

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