Adjustments to Consumption Allowances
11. (1) Subject to subsection (2), the Minister shall, on application for an adjustment in the form approved by the Minister by a person who has a consumption allowance for a group of controlled substances, increase that consumption allowance for any year and inform the person in writing of the increase, if
(a) during the year, a quantity of a controlled substance within the group has been exported by a person who does not have a consumption allowance for that group;
(b) the controlled substance exported was not a recovered, recycled, reclaimed or used controlled substance;
(c) the increase will not affect Canada’s ability to meet its obligations under Article 2 of the Protocol; and
(d) the controlled substances within the group are needed for use in Canada.
(2) The amount by which a person’s consumption allowance is increased for any year under subsection (1), or the total of all such amounts where more than one person’s consumption allowance is increased, shall not exceed the sum of the calculated levels of exportation of all controlled substances within the group that are exported during the year by persons who do not have a consumption allowance for that group.
11.1 Any allowance adjustment granted under these Regulations shall expire at the end of the year for which it is granted.
- SOR/2004-315, s. 8.
Transfers of Consumption Allowances
12. (1) No person who has a consumption allowance for a group of controlled substances shall transfer all or any portion of their consumption allowance unless the Minister allows the transfer under subsection (3) and so informs the transferor and transferee in writing.
(2) Where a transfer is proposed, the transferor and transferee shall apply to the Minister in the form approved by the Minister.
(2.1) The transferor and transferee shall indicate in the proposed transfer that
(a) in the case of a temporary transfer, the transfer expires at the end of the year for which it is allowed; or
(b) in the case of a permanent transfer, the transferor transfers all or any portion of their consumption allowance for the year for which it is allowed and for any subsequent year.
(3) The Minister shall allow a transfer
(a) if the transferor’s unexpended consumption allowance is not less than the quantity of the proposed transfer;
(b) in the case of HCFCs, if the transferee undertakes to use the consumption allowance for the same authorized sector as the transferor used it; and
(c) in the case of HCFCs, if the transferor has
(i) an initial consumption allowance, or
(ii) a baseline consumption allowance that replaces their initial consumption allowance.
(3.1) A temporary transfer allowed under these Regulations shall expire at the end of the year for which it has been allowed.
(4) Where the Minister has allowed a transfer and discovers that the transferor did not comply with paragraph (3)(a) or (c) or that the transferee breached the undertaking referred to in paragraph (3)(b), the Minister shall transfer from the transferee back to the transferor any of the unexpended consumption allowance unused by the transferee, not exceeding the calculated level of consumption originally transferred.
- SOR/2004-315, s. 9.
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