Precursor Control Regulations (SOR/2002-359)

85.1 If a licence or a registration certificate expires without being renewed or is revoked, the former holder shall

• (a) retain the records that they were required to keep under section 85 for at least two years after the expiry or revocation; and

• (b) at the written request of the Minister, provide the Minister with a copy of any record required to be retained under paragraph (a).

Suspicious Transactions

• 86 (1) A licensed dealer and a registered dealer shall, on becoming aware of the transaction, make a record of every transaction occurring in the course of their activities in respect of which there are reasonable grounds to suspect that the transaction is related to the diversion of a precursor to an illicit market or use.

• (2) For the purpose of subsection (1), the factors to be considered in assessing if a transaction or group of transactions give rise to reasonable grounds to suspect that the transaction or group of transactions is related to the diversion of a precursor to an illicit market or use include

  • (a) the composition and chemical properties of the precursor involved, the illicit use that may be made of it and the risk of its diversion to an illicit market or use having regard to those factors;

  • (b) the quantity of the precursor involved and, in the case of a preparation or mixture, the quantity of all precursors set out in Table 1 or 2 of Part 2 of Schedule V or in Part 1 or 2 of Schedule VI to the Act that it contains;

  • (c) the intended use of the precursor stated by the other party to the transaction;

  • (d) the proposed means of transportation, route of delivery, place of origin or place of destination;

  • (e) the method of payment involved; and

  • (f) in the case of prior dealings between the dealer and the other party to the transaction, any suspicious departure from the pattern of the prior dealings.

• (3) A suspicious transaction record shall include

  • (a) the name, address, telephone number and position with the dealer of the individual making the record;

  • (b) the identification of the other party to the transaction;

  • (c) details of the transaction involved, including

    • (i) the date and time of the transaction,

    • (ii) the type of transaction, and

    • (iii) the name and quantity of the precursor and, in the case of a preparation or mixture, the quantity of all precursors set out in Table 1 or 2 of Part 2 of Schedule V or in Part 1 or 2 of Schedule VI to the Act that it contains; and

  • (d) a detailed description of the reasons for suspecting that the transaction is related to the diversion of a precursor to an illicit market or use.

• (4) No licensed dealer or registered dealer shall disclose that they have made a suspicious transaction record under this section or disclose the contents of the record, with the intent to prejudice a criminal investigation, whether or not a criminal investigation has begun.

• (5) No criminal or civil proceedings lie against a licensed dealer or registered dealer for making a suspicious transaction record under this section in good faith.

• (6) The Minister is authorized to receive information that is provided voluntarily by a dealer referred to in subsection (1) in respect of a transaction mentioned in that subsection.

Annual Report

87 A licensed dealer shall make a written report to the Minister, within three months after the end of each calendar year, showing

• (a) the name and total quantity of each Class A precursor purchased, received, produced, used for their own purposes, sold, provided, imported, exported or destroyed during the calendar year;

• (b) the quantity of each Class A precursor in physical inventory taken at the site at the end of the calendar year; and

• (c) the name and quantity of any Class A precursor that has been lost or wasted in the course of conducting authorized activities during the calendar year.

• 87.1 (1) If a licence expires without being renewed or is revoked and the expiry or revocation occurs within the first three months of a calendar year, the former licensed dealer shall

  • (a) in respect of the portion of the three calendar months during which the licence was valid, make the report to the Minister referred to in section 87 within three months after the expiry or revocation; and

  • (b) in respect of the preceding calendar year, make the report to the Minister referred to in section 87 within three months after the end of that calendar year.

• (2) If a licence expires without being renewed or is revoked and the expiry or revocation occurs after the first three months of the calendar year, the licensed dealer shall, in respect of the portion of the calendar year during which the licence was valid, make the report, referred to in section 87, to the Minister within three months after the expiry or revocation.

• (3) For the purpose of paragraph (1)(a) and subsection (2), the information to be furnished is that pertaining to operations for the portion of the calendar year during which the licence was valid and pertaining to the quantity in physical inventory on the date of expiry or revocation.

Notice of Precursor Removal

87.2 If a licensed dealer or registered dealer intends to close a site at which one or more precursors are kept, or to remove all precursors from the site, the dealer shall, at least 30 days before the closure or removal, notify the Minister in writing of

• (a) the date of the intended closure or removal;

• (b) the site to which the precursors will be moved; and

• (c) the quantity of each precursor to be moved.

Unauthorized Changes

88 No one may add to, delete or obliterate from, or alter in any other way, a licence, a registration or authorization certificate, an import or export permit or a permit for transit or transhipment, issued under these Regulations.

Return of Documents

• 89 (1) If a licence or a registration or authorization certificate is renewed, the holder shall, as soon as possible after the effective date of the replacing document, return the replaced document to the Minister.

• (2) If a licence, a registration or authorization certificate, an import or export permit or a permit for transit or transhipment issued under these Regulations expires without being renewed or is revoked, the former holder shall, within 30 days after the expiry or revocation, return the document to the Minister.

Security and Reporting of Loss or Theft

• 90 (1) The holder of a licence, a registration or authorization certificate or an import or export permit issued under these Regulations shall take all reasonable measures to ensure the security of any precursor in their possession, as well as of the licence, certificate or permit.

• (2) If a licensed dealer or registered dealer experiences a theft of a precursor or an unusual waste or disappearance of a precursor that cannot be explained on the basis of normally accepted business activities, the licensed dealer or registered dealer

  • (a) shall provide notice of the occurrence to a member of a police force within 24 hours after becoming aware of the occurrence; and

  • (b) shall provide notice of the occurrence to the Minister, in writing, within 72 hours after becoming aware of the occurrence and confirm that the notice required under paragraph (a) has been provided.

• (3) If a licence, a registration or authorization certificate, an import or export permit or a permit for transit or transhipment issued under these Regulations is lost or stolen, the holder of the document shall provide notice of the occurrence to the Minister, in writing, within 24 hours after becoming aware of the occurrence.

Disclosure of Information by the Minister

• 91 (1) The Minister may, for the purpose of verifying whether an import or export of a Class A precursor or an export of a Class B precursor complies with an import or export permit issued under these Regulations, communicate the following information to a customs officer in Canada:

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

  • (b) the type of permit;

  • (c) the business registration number assigned to the holder of the permit by the Minister of National Revenue;

  • (d) in respect of the precursor that may be imported or exported under the permit

    • (i) its name, if any, otherwise a description of its chemical composition,

    • (ii) if it is a salt, the name of the salt,

    • (iii) if it is a preparation or mixture, its brand name, if any, and the name of all precursors set out in Table 1 or 2 of Part 2 of Schedule V or in Part 1 or 2 of Schedule VI to the Act that it contains,

    • (iv) the quantity sought to be imported or exported and, if the precursor is a preparation or mixture, the quantity of all precursors set out in Table 1 or 2 of Part 2 of Schedule V or in Part 1 or 2 of Schedule VI to the Act that it contains, and

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

  • (e) the duration of validity of the permit;

  • (f) the name and address of the importer in the country of final destination or of the exporter in the country of origin;

  • (g) the port of entry into or exit from Canada mentioned in the permit;

  • (h) the proposed date of import or export;

  • (i) the proposed means of transportation;

  • (j) the name of the proposed carrier that is to bring the precursor to the port of entry or the port of exit in Canada, whichever applies;

  • (k) the name and address of the proposed customs broker involved, if any;

  • (l) any conditions that apply to the permit; and

  • (m) whether the permit has been revoked or suspended.

• (2) The Minister may, for the purpose of the administration of these Regulations, communicate to a customs officer in Canada the name of an applicant who has been refused a permit to export a precursor, the precursor involved and the date of the refusal.

• (3) The Minister may, for the purpose of verifying whether the transportation of a Class A precursor in transit through Canada or the transhipment of a Class A precursor in Canada complies with a permit for transit or transhipment issued under these Regulations, communicate the following information to a customs officer in Canada:

  • (a) the number of the permit;

  • (b) the type of permit;

  • (c) the name and address of the exporter in the country of export;

  • (d) in respect of the Class A precursor that may be transported in transit or transhipped under the permit

    • (i) its name, if any, otherwise a description of its chemical composition,

    • (ii) if it is a salt, the name of the salt,

    • (iii) if the precursor is a preparation or mixture, its brand name, if any, and the names of all precursors set out in Table 1 of Part 2 of Schedule V or in Part 1 of Schedule VI to the Act that it contains,

    • (iv) the quantity sought to be transported in transit or transhipped and, if the precursor is a preparation or mixture, the quantity of all precursors set out in Table 1 of Part 2 of Schedule V or in Part 1 of Schedule VI to the Act that it contains; and

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

  • (e) the duration of validity of the permit;

  • (f) the countries of export and final destination and the numbers and expiry dates of the export and import authorizations issued by a competent authority in each of those countries, if applicable;

  • (g) the proposed ports of entry into and exit from Canada;

  • (h) the expected date of transit or transhipment in Canada;

  • (i) each means of transportation that is proposed to be used in Canada for the precursor;

  • (j) the name and address of the person who is responsible for the precursor while it is in Canada;

  • (k) in the case of a transhipment, for every place in Canada where the precursor will be stored during the transhipment, the address and the expected duration of storage; and

  • (l) whether the permit has been revoked or suspended.

• (4) The Minister may, for the purpose of verifying whether a precursor that is a preparation or mixture is the subject of an authorization certificate under these Regulations and may be imported, exported, transported in transit through Canada or transhipped in Canada without the appropriate permit under these Regulations, communicate the following information to a customs officer in Canada:

  • (a) the number of the certificate;

  • (b) the name of the preparation or mixture, if any, otherwise a description of its chemical composition, and its brand name, if any;

  • (c) the name of the person who applied for the authorization certificate, or, if the applicant is a corporation, its corporate name;

  • (d) the effective date of the certificate;

  • (e) any conditions that apply to the certificate; and

  • (f) whether the certificate has been revoked or suspended.

• (5) The Minister may, for the purpose of enabling Canada to fulfil its international obligations under section 12 of the United Nations Convention Against Illicit Traffic in Narcotic Drugs and Psychotropic Substances, 1988, communicate the following information to the INCB or a competent authority for the administration of these Regulations:

  • (a) information pertaining to an activity authorized by a licence, registration or authorization certificate or permit issued to a person under these Regulations, including the person’s name, the nature of the authorized activity and any applicable conditions; and

  • (b) information in respect of precursor activities pertaining to a precursor obtained under the Act or these Regulations, including

    • (i) information contained in the records mentioned in subsections 85(1) to (4),

    • (ii) information provided in an annual report made under section 87, and

    • (iii) information obtained by an inspector under section 31 of the Act.

• (6) The Minister is authorized to receive, for the purpose of the administration of these Regulations, information provided by the INCB, a competent authority, the United Nations or a peace officer.

Temporarily Scheduled Precursors

• 91.01 (1) The Minister may, by order, add to the schedule a temporarily scheduled precursor and the maximum quantity for it that the Minister considers appropriate.

• (2) The Minister may, by order, delete from the schedule any item for which a temporarily scheduled precursor is set out or any portion of such an item.

• (3) An item of the schedule to these Regulations for which a temporarily scheduled precursor is set out, or any portion of such an item, is deleted from that schedule on the day on which the corresponding item or portion of an item is deleted from Schedule V to the Act.

• (4) In this section, temporarily scheduled precursor means a precursor set out in column 1 of Table 1 or 2 of Part 2 of Schedule V to the Act.