Precursor Control Regulations (SOR/2002-359)

Grounds for Refusal

27 The Minister shall refuse to issue a Class A import permit if

• (a) a circumstance described in any of paragraphs 17(1)(b) to (g) and (j), with any modifications that the circumstances require, exists with respect to the permit application;

• (b) the applicant does not hold a licence that applies to the Class A precursor sought to be imported or the applicant’s licence will expire before the proposed date of entry to Canada;

• (c) the applicant has been informed that one of the following applications made by the applicant with regard to the licence pertaining to the Class A precursor sought to be imported is to be refused under section 17, namely,

  • (i) an application under section 14 to issue or renew the licence, or

  • (ii) an application under section 19 to amend the licence; or

• (d) the Minister has reasonable grounds to believe that the import shipment to which the permit would apply would contravene the laws of the country of export or any country of transit or transhipment.

Surrender of Import Permit

28 The holder of a Class A import permit shall ensure that an official copy of the permit is surrendered to a customs officer at the port of entry at the time of import.

Declaration

• 28.1 (1) Within 15 days after a shipment containing a Class A precursor is released under the Customs Act, the holder of the Class A import permit for the shipment shall provide the Minister with a declaration containing the following information:

  • (a) the name of the holder and permit number for the shipment;

  • (b) the port of entry into Canada for the shipment;

  • (c) the date the shipment was released under the Customs Act;

  • (d) the name of the precursor being shipped or a description of its chemical composition, as stated in the permit; and

  • (e) the quantity of the precursor being shipped and, if it is a preparation or mixture, the quantity of all of the precursors set out in Part 1 of Schedule VI to the Act that it contains.

• (2) The declaration must

  • (a) be signed by the responsible person in charge or the alternate responsible person in charge for the licensed site to which the shipment will be transported after being released under the Customs Act; and

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

Revocation or Suspension of Permit

29 The Minister shall revoke a Class A import permit at the request of the holder or if the holder informs the Minister that the permit has been lost or stolen.

• 30 (1) Subject to subsection (2), the Minister shall revoke a Class A import permit in accordance with subsection 84(1) if

  • (a) a circumstance described in any of paragraphs 23(1)(a) to (f) exists with respect to the licence pertaining to the Class A precursor to be imported; or

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

• (2) The Minister is not required to revoke a Class A import permit under subsection (1) if the holder of the permit meets the conditions referred to in subsection 23(2).

• (3) The Minister may revoke a Class A import permit if the holder fails to comply with the decision of the Minister to suspend the permit under section 31 or if the situation giving rise to the suspension is not rectified.

31 The Minister shall suspend a Class A import permit without prior notice if

• (a) the licence pertaining to the Class A precursor sought to be imported has expired or has been suspended or revoked;

• (b) the Minister has reasonable grounds to believe that the suspension is necessary to protect public health, safety or security;

• (b.1) 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; or

• (c) it is discovered that the import would contravene the laws of the country of export or a country of transit or transhipment.

Exportation

Application for Export Permit

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

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

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

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

    • (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 exported, 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 importer and their address in the country of final destination;

  • (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 through the port of exit;

  • (g) the proposed port of exit from Canada;

  • (h) the proposed date of export;

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

  • (j) a statement by the licensed dealer that to the best of their knowledge the export would not contravene the laws of the country of final destination or any country of transit or transhipment; and

  • (k) 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 import 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 from which the Class A precursor will be transported to the port of exit; 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 Export Permit

• 33 (1) Subject to section 34, if the requirements of section 32 are met, the Minister shall issue to the licensed dealer a Class A export permit that indicates

  • (a) the permit number;

  • (b) the information referred to in paragraphs 32(1)(a) to (i);

  • (c) the effective date;

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

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

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

    • (iii) the expiry date of any import authorization pertaining to the Class A precursor shipment that has been issued by the competent authority in the country of final destination; and

  • (e) any conditions that are necessary to

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

    • (ii) ensure compliance with any requirement of the country of final destination or any country of transit or transhipment, or

    • (iii) 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 export 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 36, 37 or 38.

Grounds for Refusal

34 The Minister shall refuse to issue a Class A export permit if

• (a) a circumstance described in any of paragraphs 17(1)(b) to (g) and (j), with any modifications that the circumstances require, exists with respect to the permit application;

• (b) the applicant does not hold a licence that applies to the Class A precursor sought to be exported or the applicant’s licence will expire before the proposed date of export;

• (c) the applicant has been informed that one of the following applications made by the applicant with regard to the licence pertaining to the Class A precursor sought to be exported is to be refused under section 17, namely,

  • (i) the application under section 14 to issue or renew the licence, or

  • (ii) an application under section 19 to amend the licence;

• (d) the Minister has reasonable grounds to believe that the export shipment to which the permit would apply would contravene the laws of the country of final destination or any country of transit or transhipment;

• (e) within seven days after the Minister sends pre-export notification of the proposed export to the competent authority in the country of final destination, the Minister receives written notice from the authority that it has refused to authorize the proposed import or that it objects to the import; or

• (f) the shipment would not be in conformity with the import authorization or letter of non-objection issued by the competent authority in the proposed country of final destination.

Surrender of Export Permit

35 The holder of a Class A export permit shall ensure that

• (a) an official copy of the permit is attached to the Class A precursor shipment; and

• (b) an official copy of the permit is surrendered to a customs officer at the port of exit at the time of export.

Declaration

• 35.1 (1) Within 15 days after a shipment containing a Class A precursor is exported, the holder of a Class A export permit for the shipment shall provide the Minister with a declaration containing the following information:

  • (a) the name of the holder and permit number for the shipment;

  • (b) the port of exit from Canada for the shipment;

  • (c) the date of export;

  • (d) the name of the precursor being shipped or a description of its chemical composition, as stated in the permit; and

  • (e) the quantity of the precursor being shipped 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.

• (2) The declaration must

  • (a) be signed by the responsible person in charge or the alternate responsible person in charge for the licensed site from which the shipment will be transported to the port of exit; and

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

Revocation or Suspension of Permit

36 The Minister shall revoke a Class A export permit at the request of the holder or if the holder informs the Minister that the permit has been lost or stolen.

• 37 (1) Subject to subsection (2), the Minister shall revoke a Class A export permit in accordance with subsection 84(1) if

  • (a) a circumstance described in any of paragraphs 23(1)(a) to (f) exists with respect to the licence pertaining to the Class A precursor to be exported; or

  • (b) the export permit was issued on the basis of false or misleading information or false or falsified documents.

• (2) The Minister is not required to revoke a Class A export permit under subsection (1) if the holder of the permit meets the conditions referred to in subsection 23(2).

• (3) The Minister may revoke a Class A export permit if the holder fails to comply with the decision of the Minister to suspend the permit under section 38 or if the situation giving rise to the suspension is not rectified.

38 The Minister shall suspend a Class A export permit without prior notice if

• (a) the licence pertaining to the Class A precursor sought to be exported has expired or has been suspended or revoked;

• (b) the Minister has reasonable grounds to believe that the suspension is necessary to protect public health, safety or security;

• (b.1) 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;

• (c) the shipment would not be in conformity with an import authorization or letter of non-objection issued by the competent authority in the country of final destination; or

• (d) it is discovered that the export would contravene the laws of the country of final destination or a country of transit or transhipment.

In Transit and Transhipment

Application for a Permit for Transit or Transhipment

• 39 (1) If a Class A precursor is to be shipped from one country to another country by a route that requires it to be in transit through Canada or to be transhipped in Canada, the exporter in the country of export or an agent or mandatary in Canada of that exporter must apply to the Minister for a permit for transit or transhipment by providing the following information:

  • (a) the name of the exporter and their address and telephone number in the country of export;

  • (b) the name of the importer and their address and telephone number in the country of final destination;

  • (c) the name, address and telephone number of the person who will be responsible for the precursor while it is in Canada;

  • (d) with respect to the Class A precursor for which the permit is requested,

    • (i) its name, if any, otherwise a description of its chemical composition, 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 shipped 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;

  • (e) the expected date of transit or transhipment in Canada;

  • (f) the proposed ports of entry into and exit from Canada;

  • (g) each proposed means of transportation that is to be used in Canada for the precursor; and

  • (h) in the case of a transhipment, the address, if applicable, of every place in Canada at which the precursor will be stored during the transhipment and the expected duration of each storage.

• (2) The application must be accompanied by

  • (a) a copy of the export authorization issued by the competent authority in the country of export, if applicable; and

  • (b) a copy of the import authorization issued by the competent authority in the country of final destination, if applicable.

• (3) The application must

  • (a) be signed by a person who is authorized for that purpose by the exporter, who may be an agent or mandatary in Canada of the exporter; and

  • (b) state that all the information submitted in support of the application is correct and complete to the best of the knowledge of the signatory.