Precursor Control Regulations (SOR/2002-359)

Authorization Concerning Preparations and Mixtures

57.1 Despite section 57, with respect to a Class B precursor that is a preparation or mixture, a person may import, export or possess for those purposes if

• (a) the preparation or mixture is the subject of an authorization certificate under section 77; and

• (b) no notice indicating that the certificate has been revoked or is under suspension appears on a Government of Canada website.

Registration

Eligibility

58 To be eligible to apply for registration, a person must be

• (a) an individual who ordinarily resides in Canada; or

• (b) a corporation that has its head office or a branch office in Canada.

• 59 (1) A registered dealer must designate a senior person in charge, who may, if appropriate, be the registered dealer, to have overall responsibility for management of the registered dealer’s Class B precursor activities.

• (2) A registered dealer must designate a contact person, for each site where the registered dealer conducts Class B precursor activities, to work at the site, who may, if appropriate, be the senior person in charge, and who has good knowledge of the Class B precursor activities carried out at the site and the use and handling of the relevant precursors including the risk of those precursors being diverted to an illicit market or use.

• (3) The senior person in charge

  • (a) must be familiar with the provisions of the Act and these Regulations that apply to the registered dealer’s Class B precursor activities and have sufficient knowledge concerning the use and handling of the Class B precursors dealt with by the registered dealer to which the registration applies, including the risk of those precursors being diverted to an illicit market or use, to enable them to properly perform their responsibilities; and

  • (b) must not have 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).

Application

• 60 (1) An application for registration or to renew a registration shall be made to the Minister and contain the following information and statement:

  • (a) the applicant’s name or, if the applicant is a corporation, their corporate name and any other name registered with a province, under which the applicant will carry out the activities set out in the application or will identify itself;

  • (b) the applicant’s address or, if the applicant is a corporation, their head office address in Canada, if applicable;

  • (c) the applicant’s precursor activity profile concerning Class B precursors, being

    • (i) the name, if any, of each Class B precursor that the applicant intends to produce for sale or provision, import, export or have in possession for export, otherwise a description of its chemical composition,

    • (ii) if a Class B precursor referred to in subparagraph (i) is a preparation or mixture, its product classification having regard to its intended use and the names of all precursors set out in Part 2 of Schedule VI to the Act that it contains;

    • (iii) the Class B precursor activity mentioned in section 57 that the applicant intends to carry out in respect of each precursor identified under subparagraphs (i),

    • (iv) the address of each site where the applicant intends to conduct Class B precursor activities, and

    • (v) the postal address of each site to which subparagraph (iv) applies, if different,

  • (d) the name, date of birth and gender of the senior person in charge and their telephone number, facsimile transmission number and e-mail address;

  • (e) for each site referred to in subparagraph (c)(iv), the name, telephone number, facsimile transmission number and e-mail address of the contact person to be reached to obtain information concerning precursor activity at the site;

  • (f) in the case of an application to renew a registration, the number of the registration to be renewed; and

  • (g) a statement that the internal controls pertaining to Class B precursors are sufficient to support a reliable system of record-keeping in respect of the precursor activities and precursor inventory applicable to the registered dealer’s precursor activity profile and to permit the Minister to verify those activities.

• (2) The application must

  • (a) be signed by the senior person in charge for the applicant; and

  • (b) include a statement by the signatory that

    • (i) the information and documents provided in the application are correct and complete to the best of the knowledge of the signatory, and

    • (ii) the senior person in charge has the authority to bind the applicant.

• (3) The application must be accompanied by

  • (a) a statement signed by the senior person in charge stating that they have not, as an adult, been convicted 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);

  • (b) a statement signed by the senior person in charge

    • (i) consenting to having a criminal record check carried out for them, as an adult, in respect of the offences mentioned in paragraph (a) during the preceding 10 years,

    • (ii) agreeing to provide all information and to submit to any means of identification required to obtain the criminal record check, and

    • (iii) to pay the fee established by the Royal Canadian Mounted Police, Criminal Record Verification for Civil Purposes Fee Regulations; and

  • (c) if applicable, a copy of

    • (i) the certificate of incorporation or other constituting instrument for the applicant, and

    • (ii) any document filed with a province in which there is a site referred to in subparagraph (1)(c)(iv) that states the applicant’s corporate name and any other name registered with the province under which the applicant will carry out activities in respect of precursors or will identify itself.

Additional Information

61 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.

Registration and Certificate

62 Subject to section 63, if the requirements of section 60 are met, the Minister shall register the applicant or renew the applicant’s registration, and issue a registration certificate indicating

• (a) the registration number;

• (b) the name of the registered dealer or, if the registered dealer is a corporation, its corporate name;

• (c) the applicant’s address or, if the applicant is a corporation, its head office address in Canada, if applicable;

• (d) the effective date of the certificate;

• (e) the date of expiry of the certificate; and

• (f) 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 B precursor being diverted to an illicit market or use.

Grounds for Refusal

• 63 (1) Subject to subsection (2), the Minister shall refuse to register an applicant or renew an applicant’s registration if

  • (a) the applicant is not eligible under section 58;

  • (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 61 has not been provided or is insufficient to process the application;

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

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

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

  • (g) the senior person in charge mentioned in the application 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); or

  • (h) the registration would likely create a risk to public health, safety or security, including the risk of a Class B precursor being diverted to an illicit market or use.

• (2) The Minister is not required to refuse to register an applicant or renew an applicant’s registration under paragraph (1)(b) or (f) 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.

Length of Validity

64 A registration is valid for a maximum of five years from the effective date of the registration.

Notice of Change of Information

• 65 (1) A registered dealer shall give notice to the Minister in writing of any change of information provided in the application for registration or any subsequent notice of change given under this subsection.

• (2) Subject to subsection (5), the notice shall be given not later than 10 days after the change takes effect.

• (3) If the change deals with information shown on the registration certificate, the registered dealer shall include the original certificate with the notice given under subsection (1).

• (4) Subject to paragraphs 67(1)(e) and (f), if the requirements of subsections (1) to (3) are met, the Minister shall amend the registration certificate accordingly.

• (5) If the change deals with the designation of a replacement for the senior person in charge, the registered dealer shall

  • (a) apply for the approval of the Minister before making the change; and

  • (b) include with the application the information mentioned in paragraph 60(1)(d) and the statements mentioned in paragraphs 60(3)(a) and (b).

• (6) If the senior person in charge ceases to act in that capacity due to death or an unforseen circumstance, the registered dealer may authorize another person who satisfies the requirements of subsection 59(3) to act as the interim senior person in charge until approval is granted by the Minister concerning the designation of a replacement for the senior person in charge.

• (7) A registered dealer shall advise the Minister within 10 days if the senior person in charge for the site ceases to act in that capacity.

Revocation or Suspension

66 The Minister shall revoke a registration and the corresponding registration certificate if the registered dealer so requests or notifies the Minister that the certificate has been lost or stolen.

• 67 (1) Subject to subsection (2) and subsection 84(1), the Minister shall revoke a registration and the corresponding registration certificate if

  • (a) the registered dealer is no longer an eligible person under section 58;

  • (b) the registration was made on the basis of false or misleading information or false or falsified documents;

  • (c) the registered dealer has contravened the Act or any regulation under the Act, a condition of the registration or a provision of a registration certificate, a licence or an import or export permit issued under any regulation under the Act;

  • (d) it is discovered that the senior person in charge 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);

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

  • (e.1) the continuation of the registration would likely create a risk to public health, safety or security, including the risk of a Class B precursor being diverted to an illicit market or use; or

  • (f) the registration would permit, having regard to an activity mentioned in a notice of change of information, an activity that would not be in compliance with an international obligation of Canada.

• (2) The Minister is not required to revoke a registration and the corresponding certificate under paragraph (1)(b) or (c) if the registered dealer

  • (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, corrective measures to ensure compliance with the Act and these Regulations.

• (3) The Minister may revoke a registration and the corresponding certificate if the registered dealer fails to comply with the decision of the Minister to suspend the registration and certificate under section 68 or if the situation giving rise to the suspension is not rectified.

68 The Minister shall suspend a registration and the corresponding certificate without prior notice if the Minister has reasonable grounds

• (a) to believe that the suspension is necessary to protect public health, safety or security; or

• (b) to suspect that the continuation of the registration and the certificate presents a risk of a Class B precursor being diverted to an illicit market or use.

Export

Application for Export Permit

• 69 (1) An application for a Class B export permit shall be made by a registered dealer to the Minister in writing and contain the following information and statements:

  • (a) the registered dealer’s name and address and the number of their registration certificate;

  • (b) the business number assigned to the registered dealer by the Minister of National Revenue;

  • (c) for the Class B precursor sought to be exported

    • (i) its name or a description of its chemical composition, and its Harmonization System Code,

    • (ii) if it is a preparation or mixture, its brand name, if any, and the names of all precursors set out in Part 2 of Schedule VI to the Act that it contains,

    • (iii) the quantity sought to be exported, and in the case of a preparation or mixture, the quantity of all precursors set out in Part 2 of Schedule VI to the Act that it contains, and

    • (iv) in the case of a raw material, its purity;

  • (d) the name of the importer and their address in the country of final destination;

  • (e) the proposed means of transportation;

  • (e.1) the name of any proposed country of transit or transhipment;

  • (f) the name of the carrier that is proposed to transport the precursor through the port of exit;

  • (g) the proposed port of exit from Canada;

  • (h) the proposed date of export;

  • (i) the name and address of the proposed customs broker for the registered dealer, if any;

  • (j) a statement by the registered dealer that to the best of their knowledge the shipment would not contravene the laws of the country of final destination or any country of transit or transhipment; and

  • (k) a statement that the registered dealer consents to the disclosure of information contained in the application to the INCB and the competent authority in the country of final destination for the purpose of verifying information contained in the application.

• (2) The application must

  • (a) be signed by the senior person in charge; and

  • (b) include a statement that the information and statements provided in the application are correct and complete to the best of the knowledge of the signatory.

• (3) The application may deal with more than one Class B precursor for the same shipment.