January 2010 Edition

                                          What's Happening at the FCC

EU Catch Certificate

As of January 1, 2010, the European Union’s regulation on Illegal, Unreported, and Unregulated (IUU) fishing is effective and products derived from catches landed after this date will require a DFO-validated catch certificate in order for you to access the EU market.

You can now apply for these catch certificates via DFO’s Catch Certification Office (CCO) using the Fisheries Certificate System (FCS).

Ukraine: Possible Restrictions Withdrawn

After considerable lobbying and representations, the Ukraine has formally withdrawn its Order No. 14 which would have allowed imports of food products from only plants that have been visited and approved by Ukraine food inspection officials. As such, seafood exports to the Ukraine will continue according to the current regulations.

Capelin-Taiwan

In testing imported capelin from Canada, Taiwan food safety officials detected trace amounts of formalin. Formalin is a watery solution of formaldehyde, a non-approved preservative used in some aquaculture operations. In response, Taiwan threatened to halt further imports of Canadian capelin.

The Canadian Food Inspection Agency (CFIA) was able to quickly confirm to the Taiwan authorities that Canadian capelin (i) is not an aquaculture product; (ii) that formalin in capelin is a naturally occurring substance; and (iii) Capelin products are fully acceptable for human consumption.

Fisheries Property Rights/Catch Shares

Following a presentation by a consultant of the World Bank to the Federal, Provincial, and Territorial Fisheries & Aquaculture Minister in June, 2009, the Ministers instructed their Deputy Ministers to establish a task group to bring forward a comprehensive discussion paper on property right/catch shares in the fisheries so that Ministers can engage in a discussion on the issue and its applicability in the Canadian fisheries beginning with their next meeting in June 2010. Michael Gardner, Gardner Pinfold Consulting Economists ltd., Halifax has been contracted to develop the discussion paper.

The initiative is timely – land claim settlements in BC will provide native groups with tangible property rights regarding their share of BC fisheries; the Supreme Court’s Saulnier ruling identified a fishing licence as property in specific circumstances; the new US Magnuson- Stevens Fishery Conservation and Management Reauthorization Act (2006) specifically provides in legislation ‘Limited Access Privileges (i.e. ITQ’s) which provide exclusive percentages of an annual catch limit (ACL i.e. TAC) among participants; influential environmental groups (Environmental Defence, etc) and academe (Boris Worm, etc) are public in their support of catch share fisheries management regimes; the World Bank is promoting the approach, particularly in developing countries.

DFO Response to the Saulnier Supreme Court Ruling

In response to the Supreme Court Saulnier decision, the Department of Fisheries and Oceans (DFO) has developed procedures for working with trustees in bankruptcy and secured creditors and their receivers. These procedures apply to licences issued in all regions of the country for commercial fishing activities.

Bankruptcy

In the case of a bankruptcy, DFO will accept requests respecting licences from a trustee in bankruptcy upon submission of a “certificate of appointment” of trustee in bankruptcy.

DFO’s licensing policy and eligibility criteria continue to apply, and the Minister retains the discretion to approve or deny the request.

Performance of a Security Interest in Canada except Quebec

In the case of performance of a security interest, DFO will provide information and policy advice relating to specific licences subject to a security agreement registered under the appropriate provincial legislation, upon submission of the following information and documents:

• A copy of the Security Agreement and a Search Report of the appropriate provincial registry, and
• A copy of the Notice of Appointment of a Receiver or a copy of the Court Order appointing the Receiver.

In Quebec in the exercise of Hypothecary Rights

In the context of exercise of hypothecary rights, DFO will provide information and policy advice relating to specific licences subject to a deed of hypothec registered under provincial legislation upon submission of the following information and documents:

• A copy of the deed of hypothec and an extract of the provincial registry, and
• A copy of the prior notice to exercise a hypothecary right and a copy of the proof of service to the licence holder.

In all provinces

In the case of performance of a security interest (in Canada except Quebec) or exercise of hypothecary rights (in Quebec), DFO will accept requests respecting licences from a secured creditor and/or its receiver, where the fishing licence is subject to a security agreement or to a deed of hypothec registered under the appropriate provincial legislation upon submission of the following information and documents:

• Written consent of the license holder, who will personally sign the request for the transaction requested, or
• A court document outlining and confirming that the secured creditor’s claim for the transaction is valid and enforceable. These include court documents appointing a receiver or a court order confirming the secured creditor’s rights.

Each situation will be handled on a case-by-case basis. DFO’s licensing policy and eligibility criteria continue to apply, and the Minister retains the discretion to approve or deny the request.

This process complements the Notice and Acknowledgment System, implemented in 2007. The Notice form allows the Recognized Financial Institution (RFI) to notify DFO that they have a financial arrangement with a licence holder in respect of a particular licence. When a Notice is on file, an Acknowledgement form, signed by a representative of the RFI is required when a request for “licence re-issuance” or “quota transfer” is submitted to DFO.

CFIA Short-Weight Initiative

Following a meeting in November 2009 between CFIA and the FCC’s Short-Weight Working Group, CFIA will be launching shortly a 3 month dedicated short-weight survey: pulling 300 samples for net weight inspection of shrimp, squid, Alaska Pollock, and basa from China, Vietnam, India, Indonesia, Taiwan, and Thailand. The survey will include inspections at public storage and unannounced visit to private storage.

For this round, CFIA will focus on importers. However, they will look for repacking at private storage facilities. With respect to squid, they will issue a new guidance to the inspectors to ensure all ice is removed.

Canadian Centre for Fisheries Innovation (CCFI) – New Managing Director

Bob Verge has been appointed the new Managing Director of CCFI, replacing Carey Bonnell who now is Head, School of Fisheries, Fisheries & Marine Institute, Memorial University.

Bob has an extensive background in the fisheries as well as research and development. Bob takes up his position on January 18.

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