Customs Bonded Warehouses Regulations (SOR/96-46)

Regulations are current to 2016-06-06 and last amended on 2015-03-27. Previous Versions

Customs Bonded Warehouses Regulations

SOR/96-46

CUSTOMS TARIFF

Registration 1996-01-01

Regulations Respecting Customs Bonded Warehouses

P.C. 1995-2254  1995-12-28

His Excellency the Governor General in Council, on the recommendation of the Minister of Finance and the Minister of National Revenue, pursuant to subsection 81(4)Footnote *, paragraphs 95(1)(f)Footnote **, (q)Footnote ** and (r)Footnote ** and subsection 95(3)Footnote *** of the Customs TariffFootnote ****, is pleased hereby to make the annexed Regulations respecting customs bonded warehouses, effective on the day on which section 55 of An Act to amend the Customs Act and the Customs Tariff and to make related and consequential amendments to other Acts, being chapter 41 of the Statutes of Canada, 1995, comes into force.

Short Title

 These Regulations may be cited as the Customs Bonded Warehouses Regulations.

Interpretation

 In these Regulations,

applicant

applicant means a person who applies for a licence; (demandeur)

beer

beer means beer or malt liquor as defined in section 4 of the Excise Act; (bière)

bonded warehouse

bonded warehouse means a place that is licensed as a bonded warehouse by the Minister of Public Safety and Emergency Preparedness under subsection 91(1) of the Customs Tariff; (entrepôt de stockage)

bulk

bulk has the same meaning as in section 2 of the Excise Act, 2001; (en vrac)

chief officer of customs

chief officer of customs, with respect to a bonded warehouse or a proposed bonded warehouse, means the manager of the customs office or customs offices that serve the area in which the bonded warehouse is located or is proposed to be located; (agent en chef des douanes)

cigar

cigar has the same meaning as in section 2 of the Excise Act, 2001; (cigare)

Department

Department[Repealed, SOR/2003-241, s. 1]

excise bonding warehouse

excise bonding warehouse[Repealed, SOR/2003-241, s. 1]

intoxicating liquor

intoxicating liquor has the same meaning as in subsection 2(1) of the Importation of Intoxicating Liquors Act; (boissons enivrantes)

licence

licence means a licence to operate a place as a bonded warehouse; (agrément)

licensee

licensee means a person who is the operator of a bonded warehouse and to whom a licence has been issued; (exploitant)

manufactured tobacco

manufactured tobacco has the same meaning as in section 2 of the Excise Act, 2001; (tabac fabriqué)

Minister

Minister[Repealed, SOR/2015-70, s. 1]

packaged

packaged has the same meaning as in section 2 of the Excise Act, 2001; (emballé)

preserving

preserving means the preserving of goods by the application of preservative, including lubricants, protective encapsulation and preservation paint, and, if the condition of the goods is not changed, by other means such as freezing, drying and freeze-drying. (préservation)

stamped

stamped has the same meaning as in section 2 of the Excise Act, 2001; (estampillé)

  • SOR/99-106, s. 1;
  • SOR/2003-241, s. 1;
  • SOR/2015-70, s. 1.

PART ILicensing of Bonded Warehouses

Issuance of Licence

  •  (1) Subject to subsection (4), the Minister of Public Safety and Emergency Preparedness may issue a licence to any person who

    • (a) makes an application in accordance with subsection (2); and

    • (b) provides such security as may be required under subsection 91(4) of the Customs Tariff and in accordance with section 4.

    • (c) [Repealed, SOR/2015-70, s. 2]

  • (2) Any person who wishes to apply for a licence in respect of a proposed bonded warehouse shall submit a completed application in the prescribed form, together with a detailed plan of the proposed bonded warehouse, to the chief officer of customs.

  • (3) The plan referred to in subsection (2) must indicate

    • (a) whether the place proposed to be operated as a bonded 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.

  • (4) The Minister of Public Safety and Emergency Preparedness shall not issue a licence to an applicant unless

    • (a) the applicant is of good character;

    • (b) the site of the proposed bonded warehouse is within an area served by a customs office;

    • (c) the applicant has sufficient financial resources

      • (i) to meet the requirements set out in sections 11 and 12, and

      • (ii) to lease or purchase the place proposed to be operated as a bonded warehouse;

    • (d) the applicant will provide conditions suitable for the safekeeping of goods; and

    • (e) the Canada Border Services Agency is able to provide customs services with respect to the proposed bonded warehouse.

  • (5) The terms and conditions under which a licence may be issued include the extent to which and circumstances in which, in accordance with section 20, goods may be manipulated, unpacked, packed, altered or combined with other goods while in bonded warehouses.

  • SOR/99-106, s. 2;
  • SOR/2002-130, s. 1(F);
  • SOR/2003-241, s. 2;
  • SOR/2007-181, s. 3;
  • SOR/2015-70, ss. 2, 6.

Security

 For the purposes of subsection 91(4) of the Customs Tariff, security shall be deposited with the chief officer of customs and shall be in the form of

  • (a) cash;

  • (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/99-106, s. 2;
  • SOR/2001-197, s. 9.

 [Repealed, SOR/2015-70, s. 3]

Amendment of Licence

 The Minister of Public Safety and Emergency Preparedness may amend a licence only where the name of the licensee has been changed legally.

  • SOR/2015-70, s. 6.

Cancellation or Suspension of Licences

 The Minister of Public Safety and Emergency Preparedness may cancel a licence where the licensee

  • (a) no longer owns or leases the place that is licensed as a bonded warehouse;

  • (b) makes a request in writing to that Minister that the licence be cancelled; or

  • (c) is bankrupt.

  • SOR/2015-70, ss. 4(E), 6.
  •  (1) Subject to section 9, the Minister of Public Safety and Emergency Preparedness may suspend or cancel a licence where the licensee

    • (a) is the subject of a receivership in respect of the licensee’s debts;

    • (b) fails to comply with any Act of Parliament, or any regulation made pursuant to an Act of Parliament, that prohibits, controls or regulates the importation or exportation of goods;

    • (c) has, in the course of operating the bonded warehouse, acted dishonestly in business dealings with customs brokers, importers, carriers, Her Majesty or servants of Her Majesty;

    • (d) has not met any of the requirements set out in sections 11 and 12; or

    • (e) has been incompetent in the operation of the bonded warehouse.

  • (2) Subject to section 9, the Minister of Public Safety and Emergency Preparedness may cancel a licence where

    • (a) the volume of goods being received in the bonded warehouse is no longer sufficient to warrant the continued operation of the bonded warehouse;

    • (b) there is no longer a need for a bonded warehouse in the area in which the bonded warehouse is located;

    • (c) the Canada Border Services Agency is no longer able to provide customs services with respect to the bonded warehouse;

    • (d) the licensee manipulates, unpacks, packs, alters or combines the goods with other goods while in the bonded warehouse other than in accordance with the terms and conditions set out in the licence; or

    • (e) the licensee contravenes section 20.

  • (3) Where a licence is suspended, an officer may lock and seal the bonded warehouse and keep it locked and sealed during the period of suspension.

  • SOR/2002-130, s. 2;
  • SOR/2003-241, s. 3;
  • err.(E), Vol. 138, No. 6;
  • SOR/2007-181, s. 3;
  • SOR/2015-70, s. 6.
 
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