Pest Control Products Fees and Charges Regulations (SOR/2017-9)

PART 1Fees for the Examination of an Application in Respect of a Pest Control Product

Non-Application

Marginal note:Section 2

1 Section 2 does not apply in respect of

• (a) an application filed by a user of a pest control product or by a user group, to amend the registration of the pest control product by adding a minor use of the product to the label, and that meets the following criteria:

  • (i) some of the information that is required to accompany the application is generated either by the applicant or for the applicant by another person who is not the registrant, and

  • (ii) the application is accompanied by a statement by the registrant that they agree to add the new use to the label of the pest control product if the application is approved;

• (b) a request for a determination of equivalency made under section 38 of the Pest Control Products Regulations;

• (c) an application for an authorization to use a foreign product under subsection 41(1) of the Pest Control Products Regulations; and

• (d) except in the case of a type of application set out in Schedule 2 or 3, an application to register, or to amend the registration of, a pest control product whose active ingredient is

  • (i) an organism that is not a microbial agent, or

  • (ii) any of the following substances referred to in the Food and Drug Regulations:

    • (A) a food additive that is set out in a list in accordance with a marketing authorization issued by the Minister under subsection 30.3(1) of the Food and Drugs Act,

    • (B) a nutritive substance that is used, recognized or commonly sold as food or as an ingredient of food,

    • (C) a vitamin, mineral nutrient or amino acid,

    • (D) a flavouring preparation, natural extractive, oleoresin, seasoning or spice,

    • (E) a food packaging material or any substance of which such a material is composed, or

    • (F) a drug for veterinary use in animals that may be used as food for human consumption.

Fees

Marginal note:Registration or amendment — Schedule 1

• 2 (1) The fee for the examination by the Minister of an application to register a pest control product — other than a type of application set out in Schedule 2 or 3 — or to amend such a registration that includes a component set out in column 1 of Schedule 1 is the fee set out in column 2.

• Marginal note:More than one component — Schedule 1

  (2) If an application referred to in subsection (1) includes more than one component set out in column 1 of Schedule 1, the fee is the sum of the applicable fees set out in column 2 for all of the included components.

• Marginal note:Semiochemicals and microbial agents — Schedule 2

  (3) The fee for the examination by the Minister of an application in respect of a pest control product that is a semiochemical or microbial agent for each type of application set out in column 1 of Schedule 2 is the fee set out in column 2.

• Marginal note:Applications filed together — Schedule 2

  (4) If more than one type of application set out in column 1 of Schedule 2 is filed in respect of the same pest control product at the same time, the fee for the examination by the Minister is the highest of the applicable fees set out in column 2 in respect of those applications.

• Marginal note:Other applications — Schedule 3

  (5) The fee for the examination by the Minister of an application in respect of a pest control product for each type of application set out in column 1 of Schedule 3 is the fee set out in column 2.

• Marginal note:Applications filed together — Schedule 3

  (6) If more than one type of application set out in column 1 of Schedule 3 is filed in respect of the same pest control product at the same time, the fee for the examination by the Minister is the highest of the applicable fees set out in column 2 in respect of those applications.

Marginal note:Processing

3 The fee for the processing by the Minister of any of the following applications, other than an application to renew a registration, is $1,133:

• (a) an application in respect of a pest control product that is described in paragraph 1(d);

• (b) an application that includes a component set out in column 1 of Schedule 1; and

• (c) an application in respect of a pest control product that does not include any component set out in Schedule 1, that is not mentioned in Schedule 2 or 3 and for which no information other than what is already available to the Minister is required to conduct an evaluation.

Marginal note:Applications not mentioned in schedules

4 The fee for the examination by the Minister of an application in respect of a pest control product, other than an application to renew a registration, that does not include any component set out in Schedule 1, that is not mentioned in Schedule 2 or 3 and that does not require an evaluation is $247.

Marginal note:Renewal

5 The fee for the examination by the Minister of an application to renew the registration of a pest control product is $80.

Annual Adjustment of Fees

Marginal note:Fee adjustment

6 Every fee set out in this Part is to be increased on April 1 of each year by 2%, rounded up to the nearest dollar.

Timing of Payment

Marginal note:Meaning of preliminary review

• 7 (1) In this section, preliminary review means a review by the Minister of the information that is submitted with an application to determine whether the information is sufficient to enable the Minister to conduct an evaluation of the pest control product.

• Marginal note:Payment — $2,500 or less

  (2) If the total fee for an application under this Part is $2,500 or less, it must be paid when the application is filed.

• Marginal note:Payment — more than $2,500

  (3) With the exception of fees for applications made in respect of paragraphs 1(a), 1(b), and 3(a) of Schedule 3, which must be paid in full at the time the application is filed, when the total fee for an application under this Part is more than $2,500,

  • (a) 10% must be paid when the application is filed;

  • (b) 25% is payable on receipt of a notice from the Minister that the application has been accepted for a preliminary review; and

  • (c) 65% is payable on receipt of a notice from the Minister that the application has been accepted for evaluation.

• Marginal note:Preliminary review and evaluation

  (4) The preliminary review and the evaluation begin on receipt of the relevant payments.

Fee Reduction

Marginal note:Definitions

• 8 (1) The following definitions apply in this section.

  actual gross revenue

  actual gross revenue means the amount that the person who makes an application to register a pest control product referred to in subsection 2(1) collects during the fee verification period from the sales in Canada of that product. (recettes brutes réelles)

  anticipated gross revenue

  anticipated gross revenue means the amount that the person who makes an application to register a pest control product referred to in subsection 2(1) expects to collect during the fee verification period from the sales in Canada of that product. (recettes brutes prévues)

  fee verification period

  fee verification period, in respect of a pest control product for which an application for a fee reduction is approved under subsection (3), means the period that begins on the day on which the pest control product is first sold in Canada as a registered pest control product or as an active ingredient in a registered pest control product and that ends three years after that day. (période de vérification des droits)

  sales in Canada

  sales in Canada means

  • (a) in the case of an application to register an active ingredient, the sales in Canada of all pest control products that contain that active ingredient and that became registered during the fee verification period;

  • (b) in the case of an application to register a pest control product that is not an active ingredient, the sales in Canada of that product during the fee verification period; and

  • (c) in the case of more than one application that includes a common component set out in Schedule 1 and that is filed at the same time to register pest control products that contain the same active ingredient, the sales in Canada of those pest control products during the fee verification period. (ventes au Canada)

• Marginal note:Application for fee reduction

  (2) A person who files an application to register a pest control product referred to in subsection 2(1) may apply at the same time to the Minister for a reduction of the fee.

• Marginal note:Conditions

  (3) The Minister must approve a fee reduction if the following conditions are met:

  • (a) the person provides to the Minister with their application

    • (i) a statement signed by an individual who is designated by the person for the purpose that indicates the person’s anticipated gross revenue and that certifies that the fee is greater than 10% of that anticipated gross revenue, and

    • (ii) information that establishes that that fee is greater than 10% of the person’s anticipated gross revenue; and

  • (b) the Minister determines, on the basis of the information provided under paragraph (a) and any other information that is available to the Minister, that the fee is likely to be greater than 10% of the person’s actual gross revenue.

• Marginal note:Recalculation of fee

  (4) If the Minister approves a fee reduction, the fee that is payable at the end of the fee verification period is the lesser of

  • (a) the total fee payable under this Part, and

  • (b) the higher of

    • (i) 10% of the fee referred to in paragraph (a), and

    • (ii) 10% of the actual gross revenue, based on the records of the sales in Canada provided to the Minister in accordance with subsection (6).

• Marginal note:Payment when application is filed

  (5) A person who applies for a fee reduction under subsection (2) must, at the time of filing the application, pay, in accordance with subsection 7(2) or (3), the higher of

  • (a) 10% of their anticipated gross revenue, and

  • (b) 10% of the total fee payable under this Part.

• Marginal note:Records of sales in Canada

  (6) Within 60 days after the end of the fee verification period, the person must provide the Minister with the records of the sales in Canada, prepared in accordance with generally accepted accounting principles and certified by the individual responsible for the person’s financial affairs.

• Marginal note:Reconciliation — balance owing

  (7) If the records of the sales in Canada establish that the amount that the person paid under subsection (5) is less than the amount of the fee calculated in accordance with subsection (4), the person must pay the balance within 60 days after the day on which the fee verification period ends.

• Marginal note:Reconciliation — overpayment

  (8) If the records of the sales in Canada establish that the amount that the person paid under subsection (5) is more than the amount of the fee calculated in accordance with subsection (4), the Minister must repay the amount of the overpayment to the person.

• Marginal note:Audited records

  (9) If the Minister determines, on the basis of any information that is available to him or her, that the certified records of the sales in Canada are not adequate to determine the person’s actual gross revenue, the Minister may require that the person provide records of the sales in Canada that have been audited by a qualified independent auditor.

• Marginal note:When records inconsistent

  (10) If there is any inconsistency between the certified records and the audited records, the fee is to be based on whichever records show the higher amount of sales in Canada.

• Marginal note:When records not submitted

  (11) If the person does not submit the records in accordance with subsections (6) and (9), the fee payable is the total fee calculated under subsections 2(1) and (2) and section 3, minus any portion of the fee that the person paid under subsection (5).

PART 2Annual Charge

Marginal note:Payable annually

• 9 (1) A registrant must pay each year, in respect of every pest control product that is registered in their name on April 1 of the year, an annual charge that is the lesser of

  • (a) $3,600, and

  • (b) 4% of the actual gross revenue during the registrant’s preceding fiscal year, but not less than $100.

• Marginal note:Timing of payment

  (2) The annual charge is payable

  • (a) on receipt of a notice from the Minister requiring payment; or

  • (b) in four equal quarterly payments, the first of which is payable on receipt of a notice from the Minister requiring payment.

• Marginal note:Certified records

  (3) When the annual charge is paid under paragraph (1)(b), the registrant must, when paying it in full or when making the first quarterly instalment, provide the Minister with the records of the sales in Canada for the fiscal year referred to in that paragraph, prepared in accordance with generally accepted accounting principles and certified by the individual responsible for the registrant’s financial affairs.

• Marginal note:Audited records

  (4) If the Minister determines, on the basis of any information available to him or her, that the certified records are not adequate to calculate the annual charge, the Minister may require that the registrant provide records of the sales in Canada that have been audited by a qualified independent auditor.

• Marginal note:When records inconsistent

  (5) If there is any inconsistency between the certified records and the audited records, the calculation of the annual charge is to be based on whichever records show the higher amount of sales in Canada.

• Marginal note:When records not submitted

  (6) If the registrant does not submit the records in accordance with subsections (3) and (4), the annual charge that is payable by the registrant is $3,600.

PART 3Repeal and Coming into Force

Repeal

10 [Repeal]

Coming into Force

Marginal note:Registration

• 11 (1) These Regulations, except section 6, come into force on the day on which they are registered or on April 1, 2017, whichever is later.

• Marginal note:Section 6

  (2) Section 6 comes into force on April 1 of the year after the year in which these Regulations are registered.