Precursor Control Regulations (SOR/2002-359)

Additional Information

15 The Minister may, on receiving an application made under this Part, require the submission of any additional information that pertains to the information contained in the application and that is necessary for the Minister to process the application.

Pre-licence Inspection

15.1 The Minister may, in respect of an applicant or a licensed dealer, at any reasonable time,

• (a) require the inspection of the site used or intended to be used in producing, packaging, selling or providing a Class A precursor or to or from which a Class A precursor has been or is to be imported or exported;

• (b) examine, as part of the inspection, the security measures used or put in place at the site and in respect of the sending, transportation or delivery of precursors;

• (c) examine, as part of the inspection, the internal controls used or put in place at the site with respect to precursor activities; and

• (d) examine, as part of the inspection, the books, registers, electronic data and other records held or put in place in accordance with section 85.

Issuance of Licence

16 Subject to section 17, if the requirements of section 14 are met, the Minister shall issue or renew a licence that indicates

• (a) the licence number;

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

• (c) the names of all Class A precursors to which the licence applies;

• (d) for each precursor to which the licence applies, the Class A precursor activities authorized by the licence;

• (e) the address of the licensed site where the authorized activities are to be conducted;

• (f) the effective date of the licence;

• (g) the date of expiry of the licence, which may not be later than three years after the effective date; and

• (h) any conditions that are necessary to

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

  • (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.

Grounds for Refusal

• 17 (1) Subject to subsection (2), the Minister shall, in accordance with subsection 84(1), refuse to issue, renew or amend a licence if

  • (a) the applicant is not eligible under section 12;

  • (b) the Minister has reasonable grounds to believe that any information or document included in the application is false or misleading;

  • (c) additional information required under section 15 has not been provided or is insufficient to enable the Minister to process the application;

  • (d) the issuance, renewal or amendment of the licence would permit an activity that would not be in compliance with an international obligation of Canada;

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

  • (f) the applicant does not have in place the security measures required under subsection 9(2), section 83 and subsection 85(3) with respect to the precursors sought to be licensed;

  • (g) the applicant is not, or within the previous 10 years has not been, in compliance with

    • (i) a provision of the Act or any regulation made or continued under the Act, or

    • (ii) a term or condition of a licence, registration or import or export permit issued to the applicant under any regulation made or continued under the Act;

  • (h) the senior person in charge for the site, the responsible person in charge or the alternate responsible person in charge, if any, has been convicted, as an adult, within the previous 10 years, of

    • (i) a designated drug offence,

    • (ii) a designated criminal offence, or

    • (iii) an offence committed outside of Canada that, if committed in Canada, would have constituted an offence referred to in subparagraph (i) or (ii);

  • (i) the proposed internal controls referred to in paragraph 14(1)(i) are not sufficient to

    • (i) support a reliable system of record-keeping in respect of Class A precursor activities and Class A precursor inventory at the site, or

    • (ii) permit the Minister to audit these precursor activities; or

  • (j) the issuance, renewal or amendment of the licence 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 refuse to issue, renew or amend a licence under paragraph (1)(b) or (g) if the applicant

  • (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.

Expiration

18 A licence is valid until the earlier of

• (a) the expiry date set out in the licence; or

• (b) the suspension or revocation of the licence under section 22, 23 or 24.

Amendment of Licence

• 19 (1) A licensed dealer proposing to amend the information on their licence shall provide the following documents to the Minister

  • (a) an application in writing describing the proposed amendment, accompanied by any supporting documents mentioned in section 14 that are relevant to the proposed amendment; and

  • (b) the original licence.

• (2) The application must

  • (a) be signed by the senior person in charge for the site; and

  • (b) include a statement that the information and documents provided in the application are correct and complete to the best of the knowledge of the signatory.

• (3) Subject to section 17, if the application complies with subsections (1) and (2), the Minister shall amend the licence accordingly and may add any condition necessary to ensure

  • (a) that the international obligations of Canada are respected, or

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

Amendment of Application Information

• 20 (1) A licensed dealer must obtain the Minister’s approval before

  • (a) designating a replacement for the senior person in charge;

  • (b) designating a replacement for either the responsible person in charge or the alternate responsible person in charge, or designating an individual to be the alternate responsible person in charge;

  • (b.1) making a change to the security measures used at the site with respect to Class A precursors kept there or described in the licence application under paragraph 14(1)(h) or in a request for approval under this section; or

  • (c) making a change to the internal controls applicable to the Class A precursor activities conducted at the site, as described in the licence application or a request approved under this section.

• (2) With a request for approval under paragraph (1)(a) or (b), the licensed dealer must provide the Minister with the following information and documents with respect to the proposed designation:

  • (a) in the case of a replacement designation for the senior person in charge,

    • (i) the information specified in paragraph 14(1)(f), and

    • (ii) the declaration specified in paragraph 14(4)(a) and, subject to subsection 14(5), the documents specified in paragraphs 14(4)(b) and (c); and

  • (b) in the case of a replacement designation for either the responsible person in charge or the alternate responsible person in charge, or the designation of an individual to be the alternate responsible person in charge,

    • (i) the information specified in paragraph 14(1)(g), and

    • (ii) the declaration specified in paragraph 14(4)(a) and, subject to subsection 14(5), the documents specified in paragraphs 14(4)(b) and (c).

• (3) When requesting an approval under paragraph (1)(b.1) or (c), the licensed dealer must provide the Minister with the information that permits the Minister to make an evaluation required under paragraphs 17(1)(f) and (i).

• (4) If a senior person in charge ceases to act in that capacity due to death or other unforseen circumstance, the licensed dealer may authorize another person who satisfies the requirements of subsection 13(4) to act as the interim senior person in charge until approval is granted by the Minister pursuant to paragraph (1)(a) concerning the designation of a replacement for the senior person in charge.

• 21 (1) A licensed dealer shall advise the Minister within 10 days if the senior person in charge, responsible person in charge or alternate responsible person in charge for the site ceases to act in that capacity.

• (2) A licensed dealer shall advise the Minister not later than the next business day if the responsible person in charge for the site ceases to act in that capacity and there is no person designated to act in the capacity of alternate responsible person in charge for the site.

Revocation or Suspension of Licence

22 The Minister shall revoke a licence at the request of the holder or if the holder informs the Minister that the licence has been lost or stolen.

• 23 (1) Subject to subsection (2), the Minister shall revoke a licence in accordance with subsection 84(1) if

  • (a) the holder is no longer an eligible person under section 12;

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

  • (c) the licensed dealer has failed to comply with a provision of the Act or any regulation under the Act or a term or condition of a licence, a registration or an import or export permit issued under any regulation made or continued under the Act;

  • (d) it is discovered that the senior person in charge, the responsible person in charge or the alternate responsible person in charge has been convicted, as an adult, within the previous 10 years of

    • (i) a designated drug offence,

    • (ii) a designated criminal offence, or

    • (iii) an offence committed outside of Canada that, if committed in Canada, would have constituted an offence referred to in subparagraph (i) or (ii); or

  • (e) 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

  • (f) the continuation of the licence 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 licence under paragraph (1)(b) or (c) if the licensed dealer

  • (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 licence if the licensed dealer fails to comply with the decision of the Minister to suspend the licence under section 24 or if the situation giving rise to the suspension is not rectified.

24 The Minister shall suspend a licence without prior notice if the Minister has reasonable grounds

• (a) to believe that the suspension is necessary to protect public health, safety or security; or

• (b) to suspect that the continuation of the licence presents a risk of a Class A precursor being diverted to an illicit market or use.

Importation

Application for Import Permit

• 25 (1) To apply for a Class A import permit, a licensed dealer shall make an application to the Minister that contains the following information and statement:

  • (a) the licensed dealer’s name and address and the number of their licence;

  • (b) the licensed dealer’s business registration number assigned by the Minister of National Revenue;

  • (c) for the Class A precursor sought to be imported

    • (i) its name or a description of its chemical composition, as stated in the licence, and Harmonized System Code,

    • (ii) if it is a salt, the name of the salt,

    • (iii) if it is a preparation or mixture, its brand name, if any, and the names of all precursors set out in Part 1 of Schedule VI to the Act that it contains,

    • (iv) the quantity sought to be imported, and, if it is a preparation or mixture, the quantity of all precursors set out in Part 1 of Schedule VI to the Act that it contains, and

    • (v) in the case of a raw material, its purity;

  • (d) the name of the exporter from whom the precursor is being obtained and their address in the country of export;

  • (e) the proposed means of transportation;

  • (e.1) the name of any proposed country of transit or transhipment;

  • (f) the name of the carrier that is proposed to transport the precursor into Canada;

  • (g) the proposed port of entry into Canada;

  • (h) the proposed date of entry into Canada;

  • (i) the name and address of the proposed customs broker for the licensed dealer, if any; and

  • (j) a statement that the licensed dealer consents to the disclosure of information contained in the application to the INCB and the competent authority in the country of export for the purpose of verifying information contained in the application.

• (2) The application must

  • (a) be signed by the responsible person in charge or the alternate responsible person in charge, if any, for the site to which the Class A precursor will be transported after being released under the Customs Act; 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.

• (3) The application may deal with more than one Class A precursor for the same shipment.

Issuance of Import Permit

• 26 (1) Subject to section 27, if the requirements of section 25 are met, the Minister shall issue to the licensed dealer a Class A import permit that indicates

  • (a) the permit number;

  • (b) the information referred to in paragraphs 25(1)(a) to (i);

  • (c) the effective date;

  • (d) the date of expiry, being the earlier of

    • (i) a date determined by the Minister that is not more than 180 days after the effective date, and

    • (ii) the expiry date set out in the applicant’s licence; and

  • (e) any conditions that are necessary to

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

    • (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) A Class A import permit is valid until the earliest of

  • (a) the expiry date set out in the permit,

  • (b) the suspension or revocation under section 22, 23 or 24 of the licence pertaining to the permit, and

  • (c) the suspension or revocation of the permit under section 29, 30 or 31.