Processed Egg Manual - Chapter 12 – Cost Recovery
This page is part of the Guidance Document Repository (GDR).
Looking for related documents?
Search for related documents in the Guidance Document Repository
Table of Contents
- 12.1 Objective of Activity
- 12.2 References
- 12.3 Required Forms
- 12.4 Activities That Incur Cost Recovery Fees
- 12.4.1 Import Inspection
- 12.4.2 Export Inspection
- 12.4.3 Plans and Specifications (Blueprint) Review
- 12.4.4 Re–Inspection Fee
- 12.4.5 Inspection of Registered Processed Egg Stations
- 12.4.6 Overtime
- 12.5 Fees
- 12.6 Invoicing
- 12.7 Methods of Payment
- 12.8 National Accounts Receivable Centre (NARC) References
12.1 Objective of Activity
Sharing costs with industry helps the Canadian Food Inspection Agency (CFIA) meet its fiscal obligations by fairly charging clients who benefit from services provided under the processed egg inspection program. This approach is consistent with the Agency's goal of meeting budgetary allocations while maintaining a sound food inspection system. Charging industry for government services encourages clients to re–examine their service needs and limit their requests to essential services only.
For inspection staff:
12.3 Required Forms
Canadian Food Inspection Agency Invoice (CFIA/ACIA 0527) - (Internal access only) – Completed with Stand Alone Electronic Invoicing system (STEL)
12.4 Activities That Incur Cost Recovery Fees
12.4.1 Import Inspection
CFIA's Import Service Centre (ISC) charges a fee for each import shipment. Invoicing for imports is done by the ISC.
All imports of processed egg are charged on a per shipment basis. Different fees apply for the following:
- Import shipments of heat treated (pasteurized), ready to use liquid, frozen or dried processed eggs that are not for further processing;
- Imports of processed egg intended for further processing;
- Imports of processed eggs conveyed to a registered processed egg station for further processing prior to being exported.
12.4.2 Export Inspection
Export fees in the processed egg program include:
- Fees for the inspection of a shipment of processed eggs for export. This would include those instances when a shipment intended for export has been assembled in a warehouse away from a registered processed egg station. The inspector would travel to the location, stamp the load if required, and issue an Export Certificate. Fees would be charged per hour to a maximum as outlined in the Processed Egg Fees (Appendix II). Travel time is not chargeable.
- Fees for the continuous inspection supervision of the processed egg for export, charged on an hourly basis.
12.4.3 Plans and Specifications (Blueprint) Review
There is an hourly fee for the CFIA review of blueprints submitted by individual operators to assess compliance with federal registration requirements. If several CFIA staff members examine a blueprint, only the time of the person who makes the final decision is charged. Time is calculated based on the actual time to the nearest quarter of an hour, not including travelling time.
12.4.4 Re–Inspection Fee
The re–inspection fee is to be applied when CFIA inspectors are required to visit a processed egg station more often than the regular frequency; spending extra time over and above their regular work, to ensure that a contravention of the Processed Egg Regulations has been corrected. Time is calculated based on the actual time to the nearest quarter of an hour, not including travelling time. Common examples of when a re–inspection fee may apply are:
- When there is a product release from detention, the time it takes to carry out the release and thus ensure that the contravention has been corrected will be charged to the processed egg station. The inspector may be at the station doing other duties or called back specifically to conduct the release, but in either case, the actual time for the release is to be charged.
- When an environmental follow–up is required at a processed egg station, the actual time taken to perform this follow–up is to be charged. This includes the time to select the sites, swab the sites, package the swabs for shipment to the lab and complete necessary paperwork.
12.4.5 Inspection of Registered Processed Egg Stations
The fee for the inspection of a registered processed egg station is the combination of a hourly inspection fee and a fee per kilogram of product prepared in the station (calculated on a liquid basis). The hours of inspection required for a registered station are calculated as a percentage of plant operating time.
The definition of operating time is: 0.5 hours startup, breaking, mixing, transferring, pasteurizing, drying yellows, drying whites (time divided by 10), packaging, 0.5 hours shut down. Operating time does not include: hot room heat treatment, holding of liquid in a tank, holding of shell eggs, inedible processing.
18.104.22.168 Inspection Hours Fees
Stations Producing Domestic Product Only
The inspection requirement for a processed egg station producing domestic product is 50% of their operating time. The stations operating time and CFIA inspection time is recorded and tracked daily so that the 50% coverage target can be achieved. At the end of the quarter, the operating time and inspection times are totalled to determine the station's inspection fee. Stations may only be charged for the inspections hours provided, up to the 50% level.
If a station's domestic operating time for a given quarter is 200 hours, and the inspection coverage time is 120 hours, the plant is charged for 100 hours of inspection (200 x 50%)
If the station's domestic operating time for a given quarter is 200 hours and the inspection coverage is 90 hours, the plant is charged for 90 hours of inspection.
Stations Producing Domestic and Export Product
For processed egg stations that produce domestic product and export product, the tracking of operating times and inspection times becomes much more important for inspection fee calculations. These fee calculations are carried out at the end of each quarter.
The production of domestic product and export product for any country other than the USA requires 50% inspection coverage.
The production of export product for the USA requires 100% inspection coverage. (Some exceptions exist – see Less than Continuous Inspection of Product for the USA in 9.6.1 of the Export Chapter of this manual)
Some processed egg stations have albumen driers. When the albumen drier is operating and no other production is occurring, the drier operating time is recorded as 10% of the actual drying time. Example: The albumen drier was operating for 20 hours. 10% of 20 hours is 2 hours of operating time used for calculations purposes.
22.214.171.124 Production Fees
The second part of the fee that is charged to a processed egg station is a charge per kilogram of product prepared calculated on a liquid basis. Product prepared includes finished packaged product including ingredients, and product sold for further processing in a pail, tote or tanker.
Weekly egg production figures can be obtained from the weekly processed egg market report that every registered processed egg station must submit to Agriculture and Agrifood Canada in Ottawa. These reports are given to the CFIA inspector in the station for verification before they are sent to Ottawa. While verifying this report, the production volumes of each product prepared are obtained and are tallied by quarter. These figures are used for the fee calculations.
Production fees are based on kilograms of liquid prepared, therefore Dried Egg Product production figures must be converted back to their liquid equivalents. This is accomplished by using a yield co‑efficient for each type of product. These yield co‑efficients are:
If a processed egg station reports that it has prepared 5,000 kgs of Dried Whole Egg over the course of the quarter, the yield co–efficient of 4 is used to calculate the liquid equivalent of this product.
5,000 kgs of powder x 4 = 20,000 kgs of liquid
The liquid volume of all product prepared over the course of the quarter is added and multiplied by the per kilogram charge in Appendix II to determine a Production Fee Total.
The Inspection Charges and Production Charges are printed on a CFIA invoice and are sent to Operator of the Processed Egg station at the end of each quarter.
When overtime is requested or required to perform an activity, an overtime fee will apply. Time is calculated based on the actual time to the nearest quarter of an hour, not including travelling time. There are occasions when inspectors are requested to be on stand–by. A flat rate is charged per 8 hour period.
The authority to charge fees falls under the Canadian Food Inspection Agency Act . From time to time, the Agency may review fees and services with affected industry groups, for the charges identified in the Processed Egg Fees Notice. For inspection staff, the list of all cost recovery egg commodity codes and overtime codes with their associated fee rates are available in the Processed Egg Inspection Fee Schedule (Intended for internal use) and the Fee–Schedule – Overtime Services (Intended for internal use), respectively:
Invoicing is currently carried out using Invoice (CFIA/ACIA 0527). Inspectors are to complete this form using the Stand Alone Electronic Invoicing system (STEL).
New users may be required to submit a Request for Systems Accessform (CFIA/ACIA 5190) through their supervisor in order to gain access to the system. The form can be found in Desktop eForms.
12.7 Methods of Payment
All fees are subject to applicable taxes. Payment can be made in the form of cash, cheque, or credit card. Credit account privileges may be used if the client has an account in good standing; program regulations allow for payment to be put on account.
Annual fees of $300 or less will be payable in full on receipt of an invoice in April; quarterly payments are not an option.
12.8 National Accounts Receivable Centre (NARC) References
The National Accounts Receivable Service Centre is responsible for:
- Monitoring and control of invoicing and the related systems used by operational staff.
- Granting of credit and the management of receivables for the agency's cost recovery initiatives.
- Collection of outstanding debt and determination of allowances for doubtful accounts.
- Management of a 1–800 line for external client inquiries regarding invoices issued under agency cost recovery initiatives.
- Control of revenue collected and deposited at financial institutions.
- Recovery of monies owed from other government departments.
- Management of the Sales and Distributions and Accounts Receivable Modules in SAP.
- Development of Agency policies and procedures for revenue management.
- Ongoing studies to improve the Revenue Management cycle.
- Providing counsel in all areas of revenue management.
- Preparation of reports for managers and central agencies.
- Participation at central agency committees.
- Date modified: