Precursor Control Regulations (SOR/2002-359)

41. The Minister shall refuse to issue a permit for transit or transhipment if the Minister has reasonable grounds to believe that

• (a) the issuance of the permit

  • (i) would not be in conformity with an international obligation of Canada,

  • (ii) would not be in compliance with the Act, any regulation under the Act, or a law of the country of export, of the country of final destination or of a country of transit or transhipment, or

  • (iii) 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; or

• (b) the import authorization issued by a competent authority in the country of final destination has expired or has been suspended or revoked.

42. The holder of a permit for transit or transhipment shall surrender an official copy of the permit to a customs officer at the port of entry set out in the permit.

43. Within 15 days after a shipment departs from Canada, the holder of a permit for transit or transhipment that applies the shipment must notify the Minister in writing of the departure date.

44. The Minister shall revoke a permit for transit or transhipment at the request of the holder or if the holder informs the Minister that the permit has been lost or stolen.

• 45. (1) Subject to subsection (2), the Minister shall revoke a permit for transit or transhipment in accordance with subsection 84(1) if

  • (a) the permit was issued on the basis of false or misleading information or false or falsified documents;

  • (b) the holder of the permit has failed to comply with a provision of the Act or any regulation under the Act or a term or condition of a permit for transit or transhipment issued under these Regulations;

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

  • (d) the continuation of the permit 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 revoke a permit under paragraph (1)(a) or (b) if the holder of the permit

  • (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.

• (3) The Minister may revoke a permit if the holder fails to comply with the decision of the Minister to suspend the permit under section 46 or if the situation giving rise to the suspension is not rectified.

46. The Minister shall suspend a permit for transit or transhipment without prior notice if

• (a) there has been an expiration, suspension or revocation of

  • (i) the export permit issued by the competent authority in the country of origin, or

  • (ii) the import permit issued by the country of final destination;

• (b) the Minister has reasonable grounds to believe that the suspension is necessary to protect public health, safety or security; or

• (c) the Minister has reasonable grounds to suspect that the continuation of the permit presents a risk of a Class A precursor being diverted to an illicit market or use.