Precursor Control Regulations (SOR/2002-359)

Issuance of a Permit for Transit or Transhipment

40 Subject to section 41, if the requirements of section 39 are met, the Minister shall issue to the applicant a permit for transit or transhipment that contains the following information:

• (a) the permit number;

• (b) the information referred to in paragraphs 39(1)(a) to (h);

• (c) 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; and

• (d) the effective date and the expiry date of the permit.

Grounds for Refusal

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.

Surrender of Permit

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.

Notice of Transit or Transhipment

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.

Revocation or Suspension of Permit

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.

Destruction

• 47 (1) No licensed dealer may destroy a Class A precursor except in accordance with subsections (2) to (4).

• (2) A licensed dealer may destroy, at the site set out in their licence, a Class A precursor named in it if

  • (a) prior to the destruction, the licensed dealer makes a record showing;

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

    • (ii) the quantity of the precursor to be destroyed and, in the case of a preparation or mixture, the quantity of all precursors set out in Part 1 of Schedule VI to the Act that it contains;

  • (b) the destruction is conducted in accordance with a method that complies with all federal, provincial and municipal environmental protection legislation applicable to the place of destruction;

  • (c) the licensed dealer makes a record of the date and method of destruction;

  • (d) the destruction occurs in the presence of at least two qualified witnesses who work for the licensed dealer, one of whom is the responsible person in charge or the alternate responsible person in charge, if any, for the licensed site; and

  • (e) once the destruction is completed, the person carrying out the destruction and each person mentioned in paragraph (d) sign and date a joint declaration certifying that the precursor was completely destroyed, to which each signatory shall add their name in printed letters.

• (3) A person is qualified to witness the destruction of a Class A precursor if

  • (a) the person is the responsible person in charge for the site or, if applicable, the alternate responsible person in charge for the site set out in the licence; or

  • (b) the person works for or provides services to the licensed dealer and acts in a senior position.

• (4) If a Class A precursor is to be destroyed elsewhere than at the licensed site, the licensed dealer must ensure that

  • (a) appropriate measures are taken to ensure security of the precursor during transit in order to prevent the diversion of a Class A precursor to an illicit market or use;

  • (b) the destruction is carried out by a business that specializes in the destruction of dangerous goods;

  • (c) the destruction is conducted in accordance with a method that complies with all federal, provincial and municipal environmental protection legislation applicable to the place of destruction; and

  • (d) once the destruction is completed, the individual within the business carrying out the destruction provides the licensed dealer with a declaration attesting to the complete destruction of the precursor, showing

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

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

    • (iii) the date of destruction,

    • (iv) the method of destruction, and

    • (v) their name and signature as well as the name and signature of another person within the business who witnessed the destruction.

Preparations and Mixtures

Application for Authorization Certificate

• 48 (1) With respect to a Class A precursor that is a preparation or mixture, a person who produces or imports, or desires to do so, may apply for an authorization certificate with respect to the preparation or mixture by submitting an application to the Minister containing the following information and statements:

  • (a) the applicant’s name or, if the applicant is a corporation, their corporate name;

  • (b) if the applicant is a licensed dealer, the number of their licence;

  • (b.1) if the applicant is not the producer of the preparation or mixture, the name of the person who produced the precursor or, if the person is a corporation, its corporate name;

  • (b.2) the address, telephone number and facsimile transmission number, if any, of the person who produced the preparation or mixture;

  • (c) in respect of the preparation or mixture for which the application is made

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

    • (ii) its qualitative and quantitative composition including all chemical ingredients,

    • (iii) its physical and chemical properties and any difference between those properties and the physical and chemical properties of the chemical ingredients that are precursors set out in Part 1 of Schedule VI to the Act,

    • (iv) the type of analyses used to evaluate its purity and stability, and

    • (v) its intended use;

  • (d) a statement, by the person who produced the preparation or mixture, that the preparation or mixture is made in such a way that no precursors set out in Part 1 of Schedule VI to the Act can be readily extracted, having regard to the complexity and cost of extraction, and that the preparation or mixture cannot be used in the production of a controlled substance; and

  • (e) a statement, by the person who produced the preparation or mixture, justifying the application for the certificate, and identifying the scientific principles and any other information in support of the statement under paragraph (d).

• (2) The application must

  • (a) be signed by

    • (i) a person working for the applicant having supervisory responsibilities pertaining to the preparation or mixture and sufficient knowledge to confirm the information set out in the application, or

    • (ii) the senior person in charge for the site, if the applicant is a licensed dealer; and

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

Issuance of Authorization Certificate

• 49 (1) Subject to section 50, if an application complies with the requirements of section 48, the Minister shall issue to the applicant an authorization certificate that indicates

  • (a) the certificate number;

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

  • (c) the name of the applicant or, if the applicant is a corporation, their corporate name;

  • (c.1) if the applicant is not the producer of the preparation or mixture, the name of the person who produced the precursor or, if the person is a corporation, its corporate name;

  • (d) the effective date; and

  • (e) any conditions that are necessary to

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

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

• (2) The holder of an authorization certificate shall, on request, provide a copy of the certificate to any person conducting an activity in relation to the preparation or mixture to which the certificate applies.

Grounds for Refusal

50 The Minister shall refuse to issue an authorization certificate if, according to the information provided and scientific data or other information or evidence available, a precursor set out in Part 1 of Schedule VI to the Act can be readily extracted from the preparation or mixture that is the subject of the application, having regard to the complexity and cost of extraction, or the preparation or mixture can be used in the production of a controlled substance.

Document Accompanying Shipment

51 A person who imports or exports a Class A precursor that is a preparation or mixture mentioned in an authorization certificate shall ensure that the shipment is accompanied by a document containing:

• (a) a statement that the preparation or mixture is subject to an authorization certificate under section 49; and

• (b) the certificate number for the preparation or mixture.

Revocation or Suspension of Certificate

52 The Minister shall revoke an authorization certificate at the request of the holder.

• 53 (1) The Minister shall, in accordance with subsection 84(1), revoke an authorization certificate if the certificate

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

  • (b) has been the subject of a suspension under paragraph 54(a) and subsection 84(2) and the suspension has not been complied with.

• (2) The Minister may revoke an authorization certificate if the holder fails to comply with a decision of the Minister to suspend the certificate under section 54, or if the situation giving rise to the suspension is not rectified.

54 The Minister shall, without prior notice, suspend an authorization certificate if

• (a) new scientific evidence or other new information demonstrates that a precursor set out in Part 1 of Schedule VI to the Act can be readily extracted from the preparation or mixture mentioned in the certificate, having regard to the complexity and cost of extraction, or demonstrates that the preparation or mixture may be or has been used in the production of a controlled substance;

• (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 certificate presents a risk of a Class A precursor being diverted to an illicit market or use.

PART 2Class B Precursors

Exemption

55 With respect to a Class B precursor that is a preparation or mixture, a person who conducts an activity mentioned in section 57 is exempt from the requirements of these Regulations, except requirements applying to production for the purpose of sale or provision, if the preparation or mixture contains a precursor set out in Part 2 of Schedule VI to the Act and the contained precursor, either alone or with any other precursor of the same type, does not constitute more than 30% of the preparation or mixture by weight or volume, in the case of a solid or liquid, respectively.

56 A person who uses a Class B precursor that is described in section 55 or is the subject of an authorization certificate under section 77, to produce another Class B precursor that is a preparation or mixture, is exempt from the requirements of these Regulations in respect of that production.

Limitation on Activities

• 57 (1) No person other than a registered dealer may produce a Class B precursor for the purpose of sale or provision.

• (2) A registered dealer may import a Class B precursor.

• (3) Subject to subsection (4), a registered dealer may export a Class B precursor and may possess the precursor for the purpose of the export.

• (4) In the case of a country named in a table referred to in paragraph (a) or (b) and a Class B precursor identified in the table as one requiring notice of pre-exportation to that country, a registered dealer may only export the Class B precursor to the country if the registered dealer holds a Class B export permit in respect of the precursor and complies with the terms and conditions of the permit:

  • (a) the table entitled “Governments that have requested pre-export notifications pursuant to article 12, paragraph 10(a), of the 1988 Convention”, contained in the most recent INCB annual report concerning the implementation of article 12 of the United Nations Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances of 1988; or

  • (b) the table entitled Supplementary Table of Countries Requiring Pre-Export Notification With Regard to Class B Precursors, published by the Department of Health, as amended from time to time, listing the countries that, according to notification from the INCB to the Minister since publication of the most recent annual report referred to in paragraph (a), have made a formal request to the United Nations to receive notice of pre-exportation in respect of the shipment to the country of Class B precursors.