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Wednesday, April 12, 2017Regulation

Canada ratified the WTO ATF: implications for cosmetics

© CosmeticOBS-L'Observatoire des Cosmétiques

As Bill C-13 was enacted in December 2016, Canada ratified the World Trade Organization (WTO) Trade Facilitation Agreement (TFA) on December 16, 2016, which makes it possible, inter alia, to simplify the import / export of goods between the various signatory countries. 

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The TFA, which came into force on February 22, 2017, contains binding commitments for the 164 WTO Members to modernize and simplify border procedures. The legislative amendments contained in this Act relate to two specific provisions of the TFA :

Article 10.8.1 : Importers may return to exporters goods rejected on account of their failure to meet certain health and technical requirements, unless an alternate way is provided for in laws and regulations.
Article 11.8 : Technical regulations may not be applied to goods moving through the territory of a WTO Member from a point outside its territory to another foreign point (i.e. goods in transit).

As regards the cosmetics sector, the application of these two articles should be as follows:
• Under Article 10.8.1 of the TFA, an importer of cosmetics may be offered the option of returning those products to the sender or re-consigning them to a third-party outside of Canada. If the products pose a risk of injury to health or safety, then the products could be subject to measures, including seizure.
• Under Article 11.8 of the TFA, it is possible to exempt cosmetics manufactured or prepared outside of Canada, which may not comply …

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