Commercial Information Circulars

24-hour hotline : 23 922 922

e-mail address : enquiry@tid.gov.hk

Ref : EIC 191/2

24 January 2011

Dear Sirs,

Commercial Information Circular No. 60/2011

Canada : Canada Consumer Product Safety Act

Canada enacted the Canada Consumer Product Safety Act (CCPSA) on 15 December 2010 to modernize and strengthen the regulatory regime for consumer products in Canada. The CCPSA replaces Part I and Schedule I to the Hazardous Products Act (HPA), which deals with consumer products. The Canadian Department of Health (Health Canada) is currently developing an implementation plan to facilitate the CCPSA coming into effect within the next few months.

2.The full text of the CCPSA is available at
http://www2.parl.gc.ca/Sites/LOP/LEGISINFO/index.asp?Language=E&query=7037&List=toc&Session=23. The Library of Parliament of Canada has also prepared a legislative summary for the CCPSA which is available at http://www2.parl.gc.ca/Content/LOP/LegislativeSummaries/40/3/c36-e.pdf.

DETAILS

3.The CCPSA creates prohibitions with respect to the manufacture, importation, sale, advertisement, packaging and labelling of consumer products that pose, or are likely to pose, an unreasonable danger to human health or safety and give power to the Canadian government to order recalls on products that are found to be unsafe. A summary of the main provisions is set out below.

Coverage of Consumer Products under CCPSA

4.The CCPSA defines consumer products as products, including its component, part or accessories, and packaging, that may reasonably be expected to be obtained by an individual to be used for non-commercial purposes, including for domestic, recreational and sports purposes. Types of consumer products exempted from the CCPSA are listed in Schedule 1 to the CCPSA, which are products already regulated under other existing status such as the Explosive Act, Food and Drugs Act, Controlled Drugs and Substances Act, and natural health products as defined in the Natural Health Product Regulations made under the Food and Drugs Act.

Prohibitions on Unsafe Consumer Products

5.The CCPSA prohibits the manufacture, importation, advertisement or sale of:

1. a consumer product as listed in Schedule 2 to the CCPSA. There are altogether 15 items listed in Schedule 2 and many are the same products that are currently banned from import, sale or advertisement in Canada under Part I of Schedule I to the HPA; and
2. a consumer product that does not meet the requirements set out in the regulations made under the CCPSA. Specifically, 29 product-specific Regulations currently under the HPA would be transferred to the CCPSA either without amendments, or would be amended or replaced to ensure the requirements and prohibitions are compatible with the CCPSA. This is to ensure that all the regulated items under Part II of Schedule I to the HPA would continue to be regulated and the requirements would be consistent with the provisions of the CCPSA.

6.The CCPSA also provides general prohibition against the manufacture, importation, advertisement or sale of any consumer products that:

1. is a danger to human health or safety (which is broadly defined to include any unreasonable existing and potential hazard posed by a consumer product during or resulting from normal or foreseeable product use and that may reasonably be expected to cause the death of an individual exposed to it or have an adverse effect occurs immediately after the exposure to the hazard, and includes any exposure to a consumer product that may reasonably be expected to have a chronic adverse effect on human health);
2. is the subject of a mandatory or voluntary recall by the Canadian Minister of Health; or
3. is the subject of a measure required to be carried out by an order made by the Canadian Minister of Health under the provisions of the CCPSA.

Prohibitions on Packaging and Labelling

7.The CCPSA prohibits false, misleading or deceptive packaging and labelling in respect of product safety or safety certification or compliance. The CCPSA also prohibits advertising and selling of consumer products packaged, labelled or advertised with such false, misleading or deceptive claims.

Requirements on Testing

8.The manufacturers or importers of consumer products may be required, by written notice issued by the Health Canada, to conduct tests or studies on the products in order to obtain information necessary to verify compliance or prevent non-compliance with the CCPSA or its Regulations. The Health Canada may also require the manufacturers or importers to compile and provide the documents that contain information and the results of the tests or studies.

Requirements on Record Keeping and Reporting

9.Under the CCPSA, any person who manufactures, imports, advertises, sells or tests a consumer product for commercial purposes shall prepare and maintain documents that indicate the name and address of the suppliers and the location and duration that they sold the products to their customers as well as other prescribed documents. These records are to be kept for at least six years at their place of business in Canada or at any prescribed place and must be made available upon written request by the Health Canada.

10.In cases of an "incident" (see definition in paragraph 11 below), the manufacturers, importers or sellers of a consumer product shall provide the Health Canada and, if applicable, the person from whom they received the consumer product with all the information in their control regarding any incident related to the product within 2 days after they become aware of the incident. The manufacturer of the consumer product or the importer, if the manufacturer carries business outside Canada, shall provide the Health Canada with a written report within 10 days after they become aware of the incident or within the period as specified by the Health Canada, containing information about:

1. the incident;
2. the product involved in the incident;
3. any products that they manufacture or import, as the case may be, that to their knowledge could be involved in a similar incident; and
4. any measures they propose be taken with respect to those product.

11.An "incident" with respect to a consumer product, is defined in the CCPSA to mean any:

1. occurrence in Canada or elsewhere that resulted or may reasonably have been expected to result in an individual's death or in serious adverse effects on their health, including a serious injury;
2. defect or characteristics that may reasonably be expected to result in an individual's death or in serious adverse effects on their health, including a serious injury;
3. incorrect or insufficient information on a label or in instructions, or a lack of label or instructions that may reasonably be expected to result in an individual's death or in serious adverse effects on their health, including a serious injury; or
4. recall or measure that is initiated for human health or safety reasons in Canada or elsewhere.

Power to Order Mandatory Recalls or other Measures

12.The CCPSA provides authority to the Canadian Minister of Health to order the manufacturers, importers or sellers to recall a consumer product if it is believed on reasonable grounds that the product poses a danger or a potential danger to human health or safety. The Minister may also order for other measures, including stopping the manufacturing, importation, packaging, storing, advertising, selling, labelling, testing or transportation of a consumer product, or any measure that the Minister considers necessary to remedy a non-compliance with the CCPSA or its Regulations. If any person does not comply with the order of recalls and/or measures by the Minister within the specified time, the Health Canada may carry out the recall and/or the required measures at the expenses of the person concerned.

13.Please refer to the full text of the CCPSA for details on the provisions, including those on inspections, border control measures on consumer products, etc. With the CCPSA coming into force, Part I and Schedule I to the HPA, which deals with consumer products, are repealed but Parts II and III of the HPA remain in force.

14.The Health Canada has developed a designated webpage for the CCPSA at http://hc-sc.gc.ca/cps-spc/legislation/acts-lois/ccpsa-lcspc/index-eng.php. Traders are advised to visit this website for information related to the CCPSA, including the proposals on the making of the Administrative Monetary Penalties (AMP) Regulations and the Exemptions Regulations under the CCPSA. Since the Health Canada is currently developing an implementation plan to facilitate the CCPSA coming into effect within the next few months, traders are also advised to check the latest development from the website.

15.Traders are strongly advised to seek clarifications with their importers in Canada in order to comply with the necessary requirements.

ENQUIRIES

16.For enquiries concerning this circular, please contact the undersigned at telephone number 2398 5682.

Yours faithfully,

(Miss Carmen CHAN)

for Director-General of Trade and Industry