Precursor Control Regulations (SOR/2002-359)

15. The Minister may, on receiving an application made under this Part, require the submission of any additional information that pertains to the information contained in the application and that is necessary for the Minister to process the application.

15.1 The Minister may, in respect of an applicant or a licensed dealer, at any reasonable time,

• (a) require the inspection of the site used or intended to be used in producing, packaging, selling or providing a Class A precursor or to or from which a Class A precursor has been or is to be imported or exported;

• (b) examine, as part of the inspection, the security measures used or put in place at the site and in respect of the sending, transportation or delivery of precursors;

• (c) examine, as part of the inspection, the internal controls used or put in place at the site with respect to precursor activities; and

• (d) examine, as part of the inspection, the books, registers, electronic data and other records held or put in place in accordance with section 85.

16. Subject to section 17, if the requirements of section 14 are met, the Minister shall issue or renew a licence that indicates

• (a) the licence number;

• (b) the name of the licensed dealer or, if the applicant is a corporation, their corporate name;

• (c) the names of all Class A precursors to which the licence applies;

• (d) for each precursor to which the licence applies, the Class A precursor activities authorized by the licence;

• (e) the address of the licensed site where the authorized activities are to be conducted;

• (f) the effective date of the licence;

• (g) the date of expiry of the licence, which may not be later than three years after the effective date; and

• (h) any conditions that are necessary to

  • (i) ensure that the international obligations of Canada are respected, or

  • (ii) ensure compliance with the Act and these Regulations, including reducing the risk of a Class A precursor being diverted to an illicit market or use.

• 17. (1) Subject to subsection (2), the Minister shall, in accordance with subsection 84(1), refuse to issue, renew or amend a licence if

  • (a) the applicant is not eligible under section 12;

  • (b) the Minister has reasonable grounds to believe that any information or document included in the application is false or misleading;

  • (c) additional information required under section 15 has not been provided or is insufficient to enable the Minister to process the application;

  • (d) the issuance, renewal or amendment of the licence would permit an activity that would not be in compliance with an international obligation of Canada;

  • (e) information received from a competent authority, the United Nations or a peace officer raises a reasonable belief that the applicant has been or will be involved in the diversion of a controlled substance or precursor to an illicit market or use;

  • (f) the applicant does not have in place the security measures required under subsection 9(2), section 83 and subsection 85(3) with respect to the precursors sought to be licensed;

  • (g) the applicant is not, or within the previous 10 years has not been, in compliance with

    • (i) a provision of the Act or any regulation made or continued under the Act, or

    • (ii) a term or condition of a licence, registration or import or export permit issued to the applicant under any regulation made or continued under the Act;

  • (h) the senior person in charge for the site, the responsible person in charge or the alternate responsible person in charge, if any, has been convicted, as an adult, within the previous 10 years, of

    • (i) a designated drug offence,

    • (ii) a designated criminal offence, or

    • (iii) an offence committed outside of Canada that, if committed in Canada, would have constituted an offence referred to in subparagraph (i) or (ii);

  • (i) the proposed internal controls referred to in paragraph 14(1)(i) are not sufficient to

    • (i) support a reliable system of record-keeping in respect of Class A precursor activities and Class A precursor inventory at the site, or

    • (ii) permit the Minister to audit these precursor activities; or

  • (j) the issuance, renewal or amendment of the licence would likely create a risk to public health, safety or security, including the risk of a Class A precursor being diverted to an illicit market or use.

• (2) The Minister is not required to refuse to issue, renew or amend a licence under paragraph (1)(b) or (g) if the applicant

  • (a) does not have a history of non-compliance with the Act and any regulation made or continued under the Act; and

  • (b) has carried out, or signed an undertaking to carry out, specified corrective measures to ensure compliance with the Act and these Regulations.