This article is part 2 of our series on regulatory compliance, and we will be looking at shipping  and health and safety. In part 1 we looked at product safety compliance, which you can find here.

Shipping Compliance

Countries regulate how goods are shipped and received within their borders for a variety of reasons, including to facilitate the orderly and secure transportation of goods, to ensure safety and security of borders and citizens, and to collect economic data.

As a result, international organizations such as the World Trade Organization (WTO) have developed guidelines such as the UN Recommendations on the Transport of Dangerous Goods. These guidelines assist governments in developing their own regulations, while still facilitating international trade. Packing, marking and the transportation of dangerous goods are part of distribution activities.

Packing refers to the way in which a load of products is prepared for shipment, and can include how products are crated, placed on pallets or put into containers.

The main concern is that the goods are transported to their destination safely and without damage as agreed to in the sales contract and in accordance with any regulations affecting transportation.

Packing is an important cost element and should represent a reasonable trade-off between a minimum level of protection and a greater level of risk mitigation. It is better to invest in adequate packing than to have to deal with the consequences of damaged goods. The characteristics of the product and the physical aspects of distribution must be taken into consideration when packing goods for transportation.

Companies must also be aware of international packing regulations concerning the specific type of packing materials that are allowed, and the proper disposal of packing materials and environmental regulations associated with them. It is best to investigate any controls, obligations or materials that are prohibited in the country prior to engaging in trade. For example, exports to the United States require specifically treated pallets used for shipments of goods.

Proper marking helps avoid customs difficulties and potential damage from mishandling or improper storage, as well as ensuring that packages conform to international transport regulations and requirements. Companies should follow standardized procedures for marking shipments during the packing process, to ensure that nothing significant is missed.

Such procedures might include:

• Ensuring that marks are clearly visible on at least two external sides of the package
• Making all marks legible, large and prominent against the surface of the package
• Identifying fragile goods with the word “fragile” or with the symbol of a broken wine glass
• Removing all previous markings on recycled packing materials
• Marking dangerous materials clearly, according to regulations prescribing symbols to indicate the nature of the danger
• Stating any special handling instructions, such as storage in cool or dry conditions

To be effective, markings must be prominent, simple, clear and distinct. They should be applied by brush or stencil using waterproof ink or paint. Whenever possible, universally recognized International Organization for Standardization (ISO) symbols should be used.

Seven categories of markings are used for shipments:

• Customer identification code (shipper’s mark): An importing firm makes up a personal mark that all exporters shipping to it must use on their packages.
• Country of origin: May be required by the importing customs and border security agency.
• Ports of entry: The names of the destinations. If the goods are being shipped through one port to an ultimate destination, both must be marked (for example, “OTTAWA VIA HALIFAX”).
• Pack numbers: The importer should provide instructions on how the units being shipped are to be numbered. Each pack or container is marked accordingly.
• Special cautionary markings: Special markings such as “fragile” or “use no hooks” can appear on the packages.
• Component numbers: When components for large projects are being exported, containers should be given an indicator number. This number enables the project manager to ensure storage and opening in the sequence required by the project-implementation schedule.
• Dangerous goods labels: If the contents of the freight are hazardous, it must be clearly labelled using the International Maritime Organization and IATA recognized universal symbols. Text related to the handling of the hazardous material should also be in the language of the destination country.

Want to dive deeper into the regulations and requirements for selling in international markets? Check out the FITTskills Products and Services for a Global Market online course.

Health and Safety Compliance

Health and safety compliance is required for the protection of consumers. Hazardous goods, such as many chemicals, food products and pharmaceutical products, are strictly governed by health and safety regulations in most jurisdictions. Rigorous rules apply to how different types of food are produced, processed, packaged, stored and transported. Similarly, there are regulations governing the production, licensing and testing of pharmaceuticals, chemical products and any other goods that have the potential for being hazardous.

Safety certifications required for imports also exist to protect consumers. For example, health or sanitary certificates are quite common. These are government to government certificates that include information about the product, its health status (according to the government in the exporting country) and the exporter. The information on an export certificate varies, but includes such things as the country of origin, the ingredients, microbial status and/or its status as it relates to plant/animal diseases.

Similarly, inspection certificates are available in many countries to attest that the product complies with government and/or industry standards (e.g. certificates of hygiene, product grading certificates, standard meat product certificates, etc.). In some countries these certificates are routinely issued by government departments (to support exporting companies) and in other instances, third-party commercial certification may be required.

Examples of product safety regulations also include the safety standards for power tools, requirements for automobile speedometer designations for specific markets, and types of paint used for children’s toys and furniture. These requirements will vary for each foreign market.

Some countries have recall legislation that provides governments with the power to force organizations to recall products that are deemed public safety hazards. These recalls can have a devastating effect on an organization’s brand and image. In fact, many companies will issue their own recalls to mitigate public backlash and replace parts. This action helps to position quality control and customer service as positively viewed components of their corporate image.

Stay tuned for part 3 of our series, where we will be looking at environmental compliance.

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Product compliance is a constantly evolving process. Because laws, standards and regulation continuously change, manufacturers, retailers and suppliers are pressed to innovate quickly in order to create compliant products and substances. Whether an organization manufactures the product or resells it, the responsibility to comply makes the manufacturer, suppliers and the reseller legally accountable.

The role of product compliance increases in scenarios of product proliferation, complex supply chains and multiple markets. With a recent increase in compliance-related penalties, fines and recalls, there is no room for non-compliance. The challenge for your company lies not only in producing a compliant product, but also in declaring it as compliant by placing it on store shelves.

Legal issues and risks—particularly product liability—are increased by production activities in multiple foreign markets, off-shore manufacturing and off-shore contracts. Some of these legal risks can be mitigated through regulatory compliance and meeting product standards.

What is Product Compliance?

In the simplest terms, product compliance means adhering to all the regulatory requirements and standards that products and services need to meet to be lawfully marketed in a given jurisdiction. These requirements vary depending on the product and the market, covering areas such as electrical safety, chemical composition, and children’s safety, to name a few. Compliance can be a complex area with multiple laws and regulations for suppliers and buyers to consider. Regulatory authorities ensure that products and substances are in compliance and can authorize regulatory approval.

It’s important as a manufacturer or distributor to have a comprehensive understanding of the different aspects of product compliance to avoid costly mistakes. Since different laws regulate various aspects of products, manufacturers need to understand not just one regulation, but possibly multiple regulations to bring their products to market in a compliant way.

Want to learn more about regulatory compliance and getting your products ready for global markets? Check out the FITTskills Products & Services for a Global Market online course.

Regulatory Compliance

Manufacturing compliance is comprised of technical, legal and corporate requirements, as well as regulations and practices manufacturers must comply with in order to produce and market products.

The risk of non-compliance has become an increasingly major concern in recent years, particularly for manufacturers with operations in multiple countries and jurisdictions that have their own compliance requirements.

This development has been further heightened by the increasing role of governmental regulatory bodies in certain industry sectors, along with the emergence of global standards to address the increasingly global nature of manufacturing. Regulatory compliance can impact every stage of the manufacturing process from product design to the end product.

Product Safety Compliance

Product safety compliance requires products to conform to regulations that ensure the product does not harm consumers, property or the environment throughout the product life cycle from inception to disposal. Regulations govern product concept/design, manufacturing, labelling, packaging, use and disposal (see Figure 2 1)

Safety regulations can cover the characteristics of a product, as well as its technical specifications, safety features, functionality, quality and durability. Product safety regulations may also apply to production processes, such as the way in which a product is manufactured. These regulations can also apply to the product life cycle, including how returns and disposals are managed, illustrated below.

Each company must research the regulations that apply to its products within its target markets, and ensure that its products, production processes and packaging comply with those requirements.

Many industries also have voluntary industry standards and best practices for packaging that often exceed regulatory expectations to reassure consumers and the general public with respect to the safety and integrity of that industry.

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One of the defining traits of Abdulrahman Alrifai’s nearly 30-year career has been a strong and consistent commitment to high-quality standards.

He started his career working in the United Arab Emirates (UAE), in the food division at Al Ghurair Group (later Al Ghurair Investment), one of the largest industrial conglomerate companies in the Middle East. His responsibilities included evaluating the quality of incoming wheat, pulses and cereals shipments, and the exported processed product, implementing plant sanitation procedures and ensuring proper pest control treatment, as well as setting up daily lab procedures and inspecting ships and trucks before and after loading. This involved him and his expertise in every step of the quality control process and production.

After seven years, he became chief miller at the region’s largest flour mills, with primary responsibility for operational optimizations of intake, cleaning, the milling lines, packaging, shipment, evaluating lab results and implementing ISO and international food standards.

This work experience led to new worldwide connections, which started to lead Abdulrahman towards a more international trade-focused and entrepreneurial career path.

“While working in quality inspection, my interactions with different standards, groups, and organizations led me to build relations with people from all around the world. It was also a source of inspiration and my starting point towards me creating my own business.”

Standing out in his field as a successful consultant and business owner

In 2001, Abdulrahman started his own company, Jana Development, and continues to run it today from his new home in Windsor, Ontario, Canada. Frequently still working for food companies, he helps them monitor and improve their standard operating procedures, comply with or improve health and safety regulations, perform internal assessments and audits, and various other areas from risk management to business continuity, leading them through their journey of excellence.

One of his career highlights involved the first shipment of Canadian wheat to the Middle East for the first time.

“A favorite story of mine was watching the first Canadian wheat shipment to the Middle East approaching port, and going through the inspection process using Canadian Wheat Board Standard. Even with the warm weather at the Jebel Ali port, the wheat maintained the same low temperature that it was loaded and sealed at, which was rewarding to see.”

He also offers training and audits for several ISO management systems and other international regulations programs related to health and safety, working with major organizations including the Abu Dhabi Pension Fund, Ajman Ports and Customs and the Abu Dhabi Statistics Center.

One of the most rewarding parts about his work is seeing the direct impact on the people working at these businesses and the community around them.

“I was proud to guide one UAE firm to update its infrastructure to be more accommodating to those with special needs, based on specific standards set by a German consultant and audited by a Canadian institute. I love to help businesses develop and better serve their communities.”

One important lesson he tries to reinforce when working with others is the importance of getting your business agreements on paper and signed by all parties before the start.

“Keep a well-written contract, even if it’s a tempting deal you want to accept right away. A handshake and a promise don’t always work, and you need to make sure your rights and ideas are on paper.”

Spreading both joy and knowledge to those around him

On top of his consulting business, one of Abdulrahman’s major accomplishments in the past few years has been starting and co-owning Gifty, a series of stores primarily located in Syria that are dedicated to improving cultural impact through importing and distributing educational toys items.

“I had the vision to elevate the youth of the future through learning with joy, which started this new professional journey. We now spread quality toys and educational products, for newborns up to teenagers.”

“I felt so proud when I had the opportunity to give an opening speech in front of the first gathering of the Gifty stores, inviting about 1,000 customers to celebrate 5 years of successful business. We’ve reached 13 branches in such a short time, changed the level of competition in that market, and elevated the types and quality of available products to better serve the community.”

The store also thrives online, where its Facebook page currently has about 125,000 followers.

In 2017, Abdulrahman also decided to go back to school to build his international trade skills further, earning his FITT Diploma through the International Business Management program at St. Clair College in Windsor.

He found the FITTskills courses helpful in a variety of areas of his business, and now has a broader understanding he can bring to his future dealings.

“The courses enlightened me about many of the mistakes I have made while working. I now know which strategies my suppliers used to sell me their old stocks, how costing affects product promotion, how to better use financial forecasting, and I better understand the legal aspects of trade. I recommend the FITTskills courses for all of my friends. I even found many of the same management and business theories in the courses are used in other domains like health and safety.”

As soon as he graduated from his program, he knew he also wanted to add the CITP (Certified International Trade Professional) designation to his list of accomplishments as well.

“I applied to become a CITP based on the recommendation of my professors. This is a special designation to have; in addition, I wanted to show in return my loyalty and appreciation to the faculty as they guided me and my colleagues through the path to success.

Now that I have my CITP designation, I am very happy and proud and hoping to be engaged and make a difference. I am keen and looking forward to helping services from Canada spread through geographical areas, and help other products to establish a place in Canadian markets.”

With a long record of global achievements and clear goals for his future, Abdulrahman is ready to help Canadian businesses excel and to help new businesses compete in the Canadian market.

The post Abdulrahman Alrifai, CITP|FIBP – QEHS and Food Specialist Advisor appeared first on Trade Ready.

A dispute over meat imports and exports between the U.S. and trading partners Canada and Mexico is starting to heat up, following a decision in late May by the World Trade Organization.

The U.S. passed a law in 2002 which would require all meat sold in the U.S. to carry country-of-origin-labeling (COOL) to indicate where the livestock was born, raised, and slaughtered.

Canada and Mexico contend that this regulation is protectionist, as the regulations impose costs on non-American meat vendors.

The WTO had ruled in favour of Canada and Mexico in 2014, and then again in their favor in May.

Trade penalties against the U.S. proposed

In response to the latest ruling, Mexico and Canada have asked the WTO to authorize sanctions on the U.S. amounting to US$3 billion. Canada is seeking a US$2.4 billion penalty on the U.S., while Mexico would like the WTO to impose a US$653 million penalty.

Canada is also aiming to impose a 100% tariff on the following U.S. products: furniture, liquor, wine, jewelry, prepared food, baked goods, chocolates, pasta, grains, vegetables and fruits.

Canada’s agriculture minister Gerry Ritz is pressuring the U.S. to repeal the COOL legislation.

The only way for the United States to avoid billions [of dollars] in immediate retaliation is to repeal the COOL law,

CBC News quoted Ritz June 4.

The WTO is scheduled to address the request for these penalties in a June 17 meeting.

The U.S. Trade Representative spokesperson hit back, saying: “It is notable that neither Canada nor Mexico provided any justification for the numbers they asserted.”

Food quality organizations have attacked Canada and Mexico, arguing that the U.S. should be able to impose the regulations in the interests of the health and safety of meat customers.

The U.S. is already feeling the costs of COOL

The Canadian consul in Dallas, Texas, Sara Wilshaw, argues that the rules are punitive not only for Canadian and Mexican meat exporters but also for those in the meat-raising and processing industry in the U.S.

“The measures have led to losses of over US$8.5 billion to the U.S. beef industry and US$1.7 billion to the U.S. pork industry over 10 years, according to a 2015 U.S. Department of Agriculture study,” she wrote in The Dallas Morning News on June 5.

An estimated 6,000 American jobs have already been lost due to plant closures associated with the rules.

Should the costly retaliations threatened by Canada and Mexico come into existence, she said, it could have an even larger impact on the sector.

Is the end of COOL near?

Several representatives to the U.S. House of Representatives have quickly put together a bill, HR 2393, that would repeal the COOL measures applying to the labeling of beef, chicken and pork. A vote on the measure is expected on July 11.

The house is expected to vote for bill, in an effort to bypass the billions in punitive measures threatened by Canada and Mexico.

The Product Marketing Association in the U.S. estimates that approximately US$1 billion in annual produce exports could be lost should Congress fail to pass the bill.

Canada and Mexico first voiced their objections to the COOL legislation in December 2008.

Do you think the COOL law is unfair?

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