Precursor Control Regulations (SOR/2002-359)

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 section 67, if the requirements of subsections (1) to (3) are met, the Minister shall amend the registration certificate accordingly and may add any condition necessary to

  • (a) ensure that the international obligations of Canada are respected; or

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

• (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.

Changes to Conditions of Registration

• 65.1 (1) The Minister may, at any time other than at registration, renewal of a registration or amendment of a registration certificate, add a condition to, or modify a condition of, the registration certificate if the Minister gives prior written notice to the registered dealer and has reasonable grounds to believe that the addition or modification is necessary to

  • (a) ensure that the international obligations of Canada are respected; or

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

• (2) However, the Minister may add a condition to, or modify a condition of, the registration certificate without prior notice if the Minister has reasonable grounds

  • (a) to believe that it is necessary to do so to protect public health, safety or security; or

  • (b) to suspect that it is necessary to do so to prevent a Class B precursor from being diverted to an illicit market or use.

65.2 The Minister may delete from the registration certificate a condition that the Minister determines is no longer necessary. Any such deletion takes effect as soon as the Minister notifies the registered dealer in writing of the deletion.

Revocation or Suspension

66 The Minister shall revoke a registration at the request of the registered dealer or if the registered dealer informs the Minister that the certificate has been lost or stolen.

• 67 (1) Subject to subsection (2), the Minister shall revoke a registration 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 failed to comply with a provision of the Act or any regulation made under the Act or with a condition of a registration certificate, licence or import or export permit issued under any regulation made or continued 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 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 if the registered dealer fails to comply with a decision of the Minister to suspend the registration under subsection 68(1) or if the situation giving rise to the suspension is not rectified.

• 68 (1) The Minister shall, without prior notice, suspend a registration in respect of any authorized activities in relation to any Class B precursor 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 activities presents a risk of a Class B precursor being diverted to an illicit market or use.

• (2) The Minister shall reinstate the registration in respect of any activities affected by the suspension if the reasons for the suspension no longer exist or the holder demonstrates that the suspension is unfounded.

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 Table 2 of Part 2 of Schedule V or 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 Table 2 of Part 2 of Schedule V or 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.

Issuance of Export Permit

• 70 (1) Subject to section 71, if the requirements of section 69 are met, the Minister shall issue to the applicant a Class B export permit that indicates

  • (a) the permit number;

  • (b) the information referred to in paragraphs 69(1)(a) to (i);

  • (c) the effective date;

  • (d) the date of expiry, being the earliest of

    • (i) a date determined by the Minister that is not more than 180 days after the effective date,

    • (ii) the date of expiry of the registration certificate of the applicant, and

    • (iii) the date of expiry for any import authorization issued by the competent authority in the country of final destination in respect of the importation of the Class B precursor; and

  • (e) any conditions that are necessary to

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

    • (ii) ensure compliance with a requirement of the country of final destination or any country of transit or transhipment, or

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

• (2) A Class B export permit is valid until the earliest of

  • (a) the expiry date set out in the permit;

  • (b) the day on which the registration is revoked or suspended under section 66 or 67 or subsection 68(1); and

  • (c) the day on which the export permit is revoked or suspended under section 73 or 74 or subsection 75(1).

Grounds for Refusal

71 The Minister shall refuse to issue a Class B export permit if

• (a) the applicant is not a registered dealer or is a registered dealer whose registration certificate will expire prior to the proposed date of export;

• (b) a circumstance described in any of paragraphs 63(1)(b) to (f) and (h), with any modifications that the circumstances require, exists with respect to the permit application;

• (c) the Minister has reasonable grounds to believe that the export shipment to which the permit would apply would contravene the laws of the country of final destination or any country of transit or transhipment;

• (d) within seven days after the Minister sends pre-export notification of the proposed export to the competent authority in the country of final destination, the Minister has received written notice from the authority that it has refused to authorize the proposed import or that it objects to the import; or

• (e) the proposed shipment would not be in conformity with an import authorization or letter of non-objection issued by the competent authority in the country of final destination.

Surrender of Export Permit

72 The holder of a Class B export permit shall ensure that

• (a) an official copy of the permit is attached to the Class B precursor shipment; and

• (b) an official copy of the permit is surrendered to a customs officer at the customs office at the port of exit set out in the permit.

Declaration

• 72.1 (1) Within 15 days after a shipment containing a Class B precursor is exported, the holder of a Class B export permit for the shipment shall provide the Minister with a declaration containing the following information:

  • (a) the name of the holder and permit number for the shipment;

  • (b) the port of exit from Canada for the shipment;

  • (c) the date of export;

  • (d) the name of the precursor being shipped or a description of its chemical composition, as stated in the permit; and

  • (e) the quantity of the precursor being shipped and, if it is a preparation or mixture, the quantity of all precursors set out in Table 2 of Part 2 of Schedule V or in Part 2 of Schedule VI to the Act that it contains.

• (2) The declaration must

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

  • (b) include a statement that all information set out in the declaration is correct and complete to the best of the knowledge of the signatory.

Revocation or Suspension of Permit

73 The Minister shall revoke a Class B export permit at the request of the holder or if the holder informs the Minister that the permit has been lost or stolen.

• 74 (1) Subject to subsection (2), the Minister shall revoke a Class B export permit if

  • (a) a circumstance described in any of paragraphs 67(1)(a) to (f) exists with respect to the registration of the holder of the permit; or

  • (b) the export permit was issued on the basis of false or misleading information or false or falsified documents.

• (2) The Minister is not required to revoke a Class B export permit under subsection (1) if the holder of the permit meets the conditions referred to in subsection 63(2).

• (3) The Minister may revoke a Class B export permit if the holder fails to comply with the decision of the Minister to suspend a permit under subsection 75(1) or if the situation giving rise to the suspension is not rectified.