LICENSING OF SUFFERANCE WAREHOUSES
Issuance of Licence
3. (1) Subject to subsection (3), the Minister may, where the Minister deems it necessary or desirable to do so, issue a licence to any person who makes an application for a licence in accordance with subsection (2), gives such security as may be required under section 4 and pays the fees required under section 5.
(2) Any person who wishes to apply for a licence, shall submit a completed application therefor in the prescribed form, together with a detailed plan of the proposed sufferance warehouse, to the chief officer of customs.
(2.1) The plan referred to in subsection (2) must indicate
(a) whether the place proposed to be operated as a sufferance warehouse exists or is to be constructed;
(b) the type of construction of the place, whether or not it already exists; and
(c) the area, within the place, that is to be used for the storage of goods.
(3) The Minister shall not issue a licence to an applicant unless
(a) the applicant is of good character;
(b) [Repealed, SOR/95-177, s. 1]
(c) the applicant has sufficient financial resources to enable him to provide the facilities, equipment, personnel and services required under sections 11 to 13 and to lease or purchase the proposed sufferance warehouse;
(d) the volume and nature of business in the area in which the applicant proposes to operate a sufferance warehouse is such that a sufferance warehouse is needed to serve the importers in that area;
(e) the site of the proposed sufferance warehouse is within a reasonable distance from major transportation routes and a customs office;
(f) the proposed sufferance warehouse contains adequate space for the storage of imported goods;
(g) the structure of the proposed sufferance warehouse will be suitable for the operation of a sufferance warehouse; and
(h) the Agency is able to provide customs services with respect to the proposed sufferance warehouse.
(4) [Repealed, SOR/95-177, s. 1]
- SOR/88-85, s. 1(F);
- SOR/95-177, s. 1;
- SOR/96-38, s. 1;
- SOR/2005-211, s. 6.
4. (1) An applicant shall, before a licence is issued to the applicant, give security in an amount determined by the Minister.
(2) The Minister may at any time require a licensee to increase the amount of security given under subsection (1) to an amount sufficient to ensure the payment of any duties payable in respect of goods stored in the sufferance warehouse.
(3) The security given under subsection (1) shall be deposited with the chief officer of customs and shall be in the form of
(b) a certified cheque;
(c) a transferable bond issued by the Government of Canada; or
(d) a bond issued by
(i) a company that is licensed or otherwise authorized under the laws of Canada or of a province to carry on the fidelity or surety class of insurance business and that is recommended to the Treasury Board by the Office of the Superintendent of Financial Institutions as a company whose bonds may be accepted by the Government of Canada,
(ii) a member of the Canadian Payments Association referred to in section 4 of the Canadian Payments Association Act,
(iii) a corporation that accepts deposits insured by the Canada Deposit Insurance Corporation or the Régie de l’assurance-dépôts du Québec to the maximum amounts permitted by the statutes under which those institutions were established,
(iv) a credit union as defined in subsection 137(6) of the Income Tax Act, or
(v) a corporation that accepts deposits from the public, if repayment of the deposits is guaranteed by Her Majesty in right of a province.
- SOR/91-274, Part III;
- SOR/95-177, s. 2;
- SOR/96-38, s. 2;
- SOR/2001-197, s. 5.
- Date modified: