Regulations Amending the Canada Grain Regulations: SOR/2020-63
Canada Gazette, Part II, Volume 154, Number 9
Registration
SOR/2020-63 April 7, 2020
CANADA GRAIN ACT
P.C. 2020-216 April 3, 2020
The Canadian Grain Commission, pursuant to section 83.2 footnote a and subsection 116(1) footnote b of the Canada Grain Act footnote c, makes the annexed Regulations Amending the Canada Grain Regulations.
Her Excellency the Governor General in Council, on the recommendation of the Minister of Agriculture and Agri-Food, pursuant to section 83.2footnote a and subsection 116(1)footnote b of the Canada Grain Act footnote c, approves the making of the annexed Regulations Amending the Canada Grain Regulations by the Canadian Grain Commission.
Winnipeg, March 25, 2020
Patti Miller
Chief Commissioner
Doug Chorney
Assistant Chief Commissioner
Lonny McKague
Commissioner
Regulations Amending the Canada Grain Regulations
Amendments
1 Paragraphs 9(a) and (b) of the Canada Grain Regulations footnote 1 are replaced by the following:
- (a) in the case of grain inspected on discharge from terminal elevators, in the document entitled Certificate Final for Grain, published by the Commission, as amended from time to time; and
- (b) in the case of all other grain in the document entitled Certificate for Grain, published by the Commission, as amended from time to time.
2 Paragraph 48(b) of the Regulations is replaced by the following:
- (b) it is imported grain; or
3 The Regulations are amended by adding the following after section 64:
Declaration Respecting Grain
65 (1) The declaration respecting grain referred to in section 83.1 of the Act is set out in the document entitled Declaration of Eligibility for Delivery of Grain, published by the Commission, as amended from time to time.
(2) The declaration must be made and provided for every kind of grain and, if there are classes of that kind of grain, for each class of that grain.
(3) The declaration must be provided to the person who receives the grain delivery.
(4) The declaration must be made and provided at least once for every crop year, no later than the date of the first delivery of grain to which the declaration applies and no earlier that the start of the crop year during which the grain to which the declaration applies is harvested.
4 (1) Paragraphs 70(1)(a) and (b) of the Regulations are replaced by the following:
- (b) any grain for export to a final destination in the United States on condition that the Commission is presented, in an electronic format acceptable to the Commission, with a report respecting any grain exports that took place during the preceding week; and
(2) Paragraph 70(1)(c) of the French version of the Regulations is replaced by the following:
- c) tout grain destiné à l’exportation par conteneur, à condition de présenter à la Commission un rapport sur les exportations de grain de la semaine précédente sur tout support électronique accepté par celle-ci.
5 (1) The portion of item 1 of Schedule 1 to the French version of the Regulations in column 3 is replaced by the following:
| Article |
Colonne 3 |
|---|---|
1 |
Tonne métrique |
(2) The portion of item 4 of Schedule 1 to the French version of the Regulations in column 3 is replaced by the following:
| Article |
Colonne 3 |
|---|---|
4 |
Tonne métrique |
(3) The portion of item 7 of Schedule 1 to the Regulations in column 3 is replaced by the following:
| Item |
Column 3 |
|---|---|
7 |
Trip |
(4) The portion of item 8 of Schedule 1 of the Regulations in column 3 is replaced by the following:
| Item |
Column 3 |
|---|---|
8 |
Employee reporting to work |
(5) The portion of item 12 of Schedule 1 to the French version of the Regulations in column 2 is replaced by the following:
| Article |
Colonne 2 |
|---|---|
12 |
Inspection d’un échantillon de grain ou de criblures et établissement d’un certificat |
6 Forms 12 and 13 of Schedule 4 to the Regulations are repealed.
Coming into Force
7 These Regulations come into force on the day on which section 67 of the Canada–United States–Mexico Agreement Implementation Act, chapter 1 of the Statutes of Canada, 2020, comes into force but, if they are registered after that day, they come into force on the day on which they are registered.
REGULATORY IMPACT ANALYSIS STATEMENT
(This statement is not part of the Regulations.)
Issues
The Canada-United States-Mexico Agreement (CUSMA), done at Buenos Aires, Argentina, on November 30, 2018, required amendments to the Canada Grain Act (CGA) to bring it into conformity with Canada’s obligations under CUSMA. An Act to implement the Agreement between Canada, the United States of America and the United Mexican States (the Act) contains amendments to the CGA. Upon the Act coming into force, consequential amendments are required to the Canada Grain Regulations (CGR) to align it with the legislative changes. Minor amendments from the Standing Joint Committee on the Scrutiny of Regulations, unrelated to CUSMA, are also included in this regulatory package.
Background
An Act to implement the Agreement between Canada, the United States of America and the United Mexican States includes amendments to the CGA that allow wheat grown in the United States (U.S.) to receive a statutory grade if it is of a registered variety under the Seeds Act; remove the requirement of a country of origin statement for U.S. wheat on a quality certificate; establish that U.S. grain delivered into the Eastern and Western Divisions is eastern and western grain; and clarify that imported grain refers to any grain grown outside of Canada or the U.S. In addition to the CGA amendments required to comply with Canada’s obligations under CUSMA, several other CGA amendments were necessary to ensure that the integrity of the Canadian grain quality assurance system is maintained, account for different regulatory environments in Canada and the U.S., and ensure that Canadian and U.S. grain are treated in the same manner.
Definitions
The Act repealed, amended, added relevant definitions, and clarified terms in the CGA. The definition of “foreign grain” was repealed and a new definition, “imported grain,” was added to clarify that imported grain means any grain grown outside Canada or the U.S. Consequently, the term “foreign grain” must be replaced with the new term “imported grain” in the CGR.
Inspection certificates – Country of origin
The Act amended the CGA to remove the requirement that country of origin or imported grain be stated on inspection certificates for U.S. origin grain, but maintained the requirement for imported grain. As a consequence of these changes, section 9 of the CGR and the prescribed forms for inspection certificates require updating to align with the CGA amendments.
Transport of grain
The Act amended CGA section 84 to improve its application, make it less prescriptive, and align it with current grain sector transportation and operating practices. Consequential amendments to section 70 of the CGR (Transport of Grain) are required to align it with the legislative changes, but at the same time continue to ensure reliable information on U.S. grain is provided to grain handlers.
Delivery declaration forms – Incorporation by reference
The Act amended the CGA to establish the authority for the CGC to incorporate by reference any document in the same manner as other Agriculture and Agri-Food portfolio partners. The Act also amended the CGA to establish an obligation for licensees or persons who sell grain to a licensee to sign a declaration regarding specified characteristics of the delivered grain, and provided the Commission authority to make regulations with respect to the making of declarations. Taken together, these changes improve flexibility and facilitate responsiveness to grain sector needs and help to preserve the integrity of the Canadian grain quality system. Currently, the CGR does not contemplate delivery declarations or any associated requirements. Regulatory amendments are needed to define the requirements for making declarations, and to incorporate by reference a “delivery declaration form” for persons who sell grain, including licensees.
Standing Joint Committee for the Scrutiny of Regulations – Miscellaneous amendments
In June 2018, the Standing Committee for the Scrutiny of Regulations advised the CGC of several discrepancies between French and English terminology in the items in Schedule I, Fees of the Commission, of the CGR. Amendments to Schedule I are required to improve consistency of language, terminology and interpretation.
Objective
The objectives of these regulatory amendments are to
- update the CGR to align with the amendments to the CGA contained in the Act;
- ensure that the CGC can continue to meet its mandate “to ensure a dependable commodity for domestic and export markets”; and
- improve consistency of language between English and French text.
Description
The regulatory amendments
- replace the term “foreign grain” with the term “imported grain” in paragraph 48(b).
- amend paragraphs 9(a) and (b) to remove the word “Canadian.” Repeal the associated Form 12 (Certificate for Canadian Grain) and Form 13 (Certificate Final for Canadian Grain) in Schedule IV. Incorporate by reference a “Certificate for Grain” and a “Certificate Final for Grain.”
- repeal paragraph 70(a). Amend paragraph 70(b) after the word “Commission” to include the phrase “is presented, in an electronic format acceptable to the Commission, with a report respecting any grain exports that took place during the preceding week.”
- incorporate by reference the delivery declaration form, for persons and/or licensees who sell grain, established by the Commission.
- prescribe that delivery declaration forms must be provided to the recipient of a grain delivery.
- prescribe that a delivery declaration form must be made and provided no later than the date of first delivery of grain, no earlier than the start of the crop year of harvest of that delivery, and at least once for every crop year for every type and/or class of grain delivered, except where permission of the Commission is given under section 28 of the CGA.
- update Schedule I (Fees of the Commission):
- for items 1 and 4 (French text only) under column heading “Unité”: replace “Tonne” with “Tonne métrique.”
- for Item 7 (English and French text), under column heading “Unit”: replace “Actual” with “Trip” and “Coûts réels” with “Voyage.”
- for Item 8 (French text only), under the column heading “Unité”: replace “Déclaration de l’employé” with “Employé se présentant au travail.”
- for Item 12 (French text only), under column heading “Description du service”: replace the phrase “délivrance d’un certificat” with “établissement d’un certificat.”
Regulatory development
Consultation
Throughout the CUSMA negotiations federal government officials engaged directly with sector stakeholders through meetings, round tables, teleconference calls, town halls across the country, and other means. The process was transparent, inclusive and open. Stakeholder views expressed during these consultations informed the Canadian government position on grain at the negotiating table, and are largely reflected in the CUSMA. The impact of the CUSMA on the grain sector was communicated widely and received extensive media coverage. In addition, following the CUSMA announcement, Agriculture and Agri-Food Canada and the CGC engaged with grain sector stakeholders as requested to discuss the impacts of the agreement, potential legislative and regulatory amendments, and implementation plans. Given that the regulatory amendments in this package are consequential and required to align the CGR with the CGA legislative changes, the regulatory changes have had minimal consultation.
In terms of the Delivery Declaration Form and its implementation, discussions are planned with the grain sector to determine how best to integrate the form into the existing grain delivery structure and industry-led declaration system.
Regulatory analysis
Small business lens
The small business lens does not apply to this proposal, as there are no costs on small business.
One-for-one rule
The one-for-one rule does not apply to this proposal, as there is no change in administrative costs to business.
Rationale
Definitions
The replacement of the term “foreign grain” with the term “imported grain” aligns the terminology in the CGR with the updated definitions in the CGA.
Inspection certificates – Country of origin
The removal of the word “Canadian” in CGR section 9, the repeal of the associated Form 12 (Certificate for Canadian Grain) and Form 13 (Certificate Final for Canadian Grain) in Schedule IV, and the incorporation by reference of the updated “Certificate for Grain” and a “Certificate Final for Grain” align the Regulations with the amended CGA legislation. Incorporating by reference the two inspection certificate forms will improve flexibility and facilitate responsiveness to potential changes in inspection certification requirements.
Transport of grain
The amendments to section 70 of the CGR parallel the amended legislation, improve its application, and align with current grain sector transportation and operating practices. The updated language in paragraph 70(b) reflects the current grain movement reporting practices by licensees and will ensure that reliable information on U.S. grain is provided to grain handlers.
Delivery declaration forms – Incorporation by reference
The amendment to incorporate by reference a “delivery declaration form” for persons who sell grain, including licensees, aligns the CGR with the updated CGA authorities regarding declarations. Market access issues, updates to variety information, and pest control product registration changes can occur rapidly, and the ability capitalize on the flexibility and responsiveness of incorporation by reference will help support Canadian grain quality and dependability.
Prescribing that declaration forms must be provided to recipients of grain deliveries, and the timing by which the forms must be provided, will help accommodate U.S. grain by ensuring that reliable information on seed registration and application of pesticides is provided at the time of delivery. This type of information is vital to grain handlers in order to reconcile the different regulatory systems in the two countries and make marketing decisions and/or certifications in respect of Canadian and U.S. grain. In addition, the availability of reliable information will ensure that producers receive the grain grade and payment for which they are eligible and improve the application of CGC enforcement provisions.
The delivery declaration form regulations build on the existing declaration process already used across much of the grain sector, and represent a practical and relatively low impact approach to certifying the dependability and quality of grain at entry into the grain-handling system. The CGC’s declaration form requires only the information necessary to ensure a dependable commodity for domestic and export markets and denotes the minimum requirement for industry declarations going forward, which typically include other factors. Declarations respecting additional information needed by grain handlers to facilitate marketing can continue to be required commercially.
Standing Joint Committee for the Scrutiny of Regulations – Miscellaneous amendments
The amendments to Schedule I, Fees of the Commission, align English and French terminology and improve interpretation and consistency of language. Specifically
- for items 1 and 4: Amending the French term under the column heading “Unité” to “tonne métrique” aligns the terminology with the English term “tonne” that means 1 000 kg.
- for Item 7: Amending both the English and French terms under the column heading “Unit” to “Trip” and “Voyage,” respectively, aligns the terminology for calculating the cost of a trip to be in accordance with the National Joint Council Travel Directive.
- for Item 8: Amending the French term under the column heading “Unité” to “Employé se présentant au travail” aligns the French interpretation with the English version that correctly identifies “Employee reporting” for employees who are reserved for service in situations where the customer subsequently cancels.
- for Item 12: Amending the portion of the phrase under the column heading “Description du service” to “établissement d’un certificat” is consistent with the terminology in items 1, 2, 4 and 5.
Implementation and compliance and enforcement
Implementation
These regulatory amendments are targeted to come into force following CUSMA implementing legislation.
As part of implementation, a communication strategy will involve notification to grain sector stakeholders and updates to the CGC website prior to the Regulations coming into force.
CGC program documentation and information technology will be updated to support the regulatory proposal.
Compliance and enforcement
The CGC will ensure compliance using its existing enforcement and compliance tools.
Contact
Melanie Gustafson
Policy Economist
Canadian Grain Commission
303 Main Street
Winnipeg, Manitoba
R3C 3G8
Telephone: 204‑292‑5721