Precursor Control Regulations (SOR/2002-359)

Issuance of Export Permit

• 70 (1) Subject to section 71, if the requirements of section 69 are met, the Minister shall issue to the applicant a Class B export permit that indicates

  • (a) the permit number;

  • (b) the information referred to in paragraphs 69(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 date of expiry of the registration of the applicant, and

    • (iii) the date of expiry for any import authorization issued by the competent authority in the country of final destination in respect of the importation of the Class B precursor; and

  • (e) any conditions that are necessary to

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

    • (ii) ensure compliance with a 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 B precursor being diverted to an illicit market or use.

• (2) A Class B export permit is valid until the earliest of

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

  • (b) the suspension or revocation under section 66, 67 or 68 of the registration; or

  • (c) the suspension or revocation under section 73, 74 or 75 of the export permit.

Grounds for Refusal

71 The Minister shall refuse to issue a Class B export permit if

• (a) the applicant is not a registered dealer or is a registered dealer whose registration will expire prior to the proposed date of export;

• (b) a circumstance described in any of paragraphs 63(1)(b) to (f) and (h), with any modifications that the circumstances require, exists with respect to the permit application;

• (c) 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;

• (d) 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 has received written notice from the authority that it has refused to authorize the proposed import or that it objects to the import; or

• (e) the proposed 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.

Surrender of Export Permit

72 The holder of a Class B export permit shall ensure that

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

• (b) an official copy of the permit is surrendered to a customs officer at the customs office at the port of exit set out in the permit.

Declaration

• 72.1 (1) Within 15 days after a shipment containing a Class B precursor is exported, the holder of a Class B 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 2 of Schedule VI to the Act that it contains.

• (2) The declaration must

  • (a) be signed by the senior person in charge designated by the registered dealer; 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

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

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

  • (a) a circumstance described in any of paragraphs 67(1)(a) to (f) exists with respect to the registration of the holder of the permit; 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 B export permit under subsection (1) if the holder of the permit meets the conditions referred to in subsection 63(2).

• (3) The Minister may revoke a Class B export permit if the holder fails to comply with the decision of the Minister to suspend the permit under section 75 or if the situation giving rise to the suspension is not rectified.

75 The Minister shall suspend a Class B export permit without prior notice if

• (a) the registration certificate of the holder of the permit 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 B 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.

Preparations and Mixtures

Application for Authorization Certificate

• 76 (1) With respect to a Class B precursor that is a preparation or mixture, a person who produces for the purpose of sale or provision, or imports, or desires to do either, may apply for an authorization certificate for the preparation or mixture, by submitting an application to the Minister containing the following information and statements:

  • (a) the applicant’s name or, if the applicant is a corporation, their corporate name;

  • (b) if the applicant is a registered dealer, the number of their registration certificate;

  • (b.1) if the person is not the producer of the preparation or mixture, the name of the producer or, if the producer is a corporation, its corporate name;

  • (b.2) the address and the telephone number and facsimile transmission number, if any, of the producer of the preparation or mixture;

  • (c) in respect of the preparation or mixture for which the application is made

    • (i) its name, if any, otherwise a description of its chemical composition, and its brand name, if any,

    • (ii) its qualitative and quantitative composition including all chemical ingredients,

    • (iii) its physical and chemical properties and any difference between those properties and the physical and chemical properties of the chemical ingredients that are precursors set out in Part 2 of Schedule VI to the Act,

    • (iv) the type of analyses used to evaluate its purity and stability, and

    • (v) its intended use;

  • (d) a statement, by the producer of the preparation or mixture, that the preparation or mixture is made in such a way that no precursor set out in Part 2 of Schedule VI to the Act contained in it can be readily extracted, having regard to the complexity and cost of extraction, and that the preparation or mixture cannot be used in the production of a controlled substance; and

  • (e) a statement, by the producer of the preparation or mixture, justifying the application for the certificate, and identifying the scientific principles and any other information in support of the statement under paragraph (d).

• (2) The application must

  • (a) be signed by

    • (i) a person working for the applicant having supervisory responsibilities pertaining to the preparation or mixture and sufficient knowledge to confirm the information set out in the application, or

    • (ii) the senior person in charge for the site, if the applicant is a registered dealer; 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.

Issuance of Authorization Certificate

• 77 (1) Subject to section 78, if an application complies with the requirements of section 76, the Minister shall issue to the applicant an authorization certificate that indicates

  • (a) the certificate number;

  • (b) the name, if any, of the preparation or mixture that is the subject of the certificate, otherwise a description of its chemical composition, and its brand name, if any;

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

  • (d) the effective date; and

  • (e) any conditions that are necessary to

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

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

• (2) The holder of an authorization certificate shall, on request, provide a copy of the certificate to any person conducting an activity in relation to the preparation or mixture to which the certificate applies.

Grounds for Refusal

78 The Minister shall refuse to issue an authorization certificate if, according to the information provided and scientific data or other information or evidence available, a precursor set out in Part 2 of Schedule VI to the Act can be readily extracted from the preparation or mixture that is the subject of the application, having regard to the complexity and cost of extraction, or the preparation or mixture can be used in the production of a controlled substance.

Document Accompanying Shipment

79 A person who exports a preparation or mixture mentioned in an authorization certificate shall ensure that the shipment is accompanied by a document containing:

• (a) a statement that the preparation or mixture is subject to an authorization certificate under section 77; and

• (b) the certificate number for the preparation or mixture.

Revocation and Suspension

80 The Minister shall revoke an authorization certificate at the request of the holder.

• 81 (1) The Minister shall, in accordance with subsection 84(1), revoke an authorization certificate if the certificate

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

  • (b) has been the subject of a suspension under paragraph 82(a) and subsection 84(2) and the suspension has not been complied with.

• (2) The Minister may revoke an authorization certificate if the holder fails to comply with a decision of the Minister to suspend the certificate under section 82, or if the situation giving rise to the suspension is not rectified.

82 The Minister shall, without prior notice, suspend an authorization certificate if

• (a) new scientific evidence or other new information demonstrates that a precursor set out in Part 2 of Schedule VI to the Act can be readily extracted from the preparation or mixture mentioned in the certificate, having regard to the complexity and cost of extraction, or demonstrates that the preparation or mixture may be or has been used in the production of a controlled substance;

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

• (c) the Minister has reasonable grounds to suspect that the continuation of the authorization certificate presents a risk of a Class B precursor being diverted to an illicit market or use.

PART 3General Provisions

Restricted Access to Class A Precursors

83 Every licensed dealer shall restrict access to locations at the licensed site where Class A precursors are kept to persons whose presence is required by their work responsibilities.

Notice of Refusal, Revocation or Suspension

• 84 (1) If the Minister proposes to refuse to issue, amend or renew, or proposes to revoke, a licence, a registration and the corresponding registration certificate, an authorization certificate, an import or export permit or a permit for transit or transhipment, issued under these Regulations, the Minister shall provide the applicant or the holder with

  • (a) a notice of the intended action and a written report that sets out the reasons for the proposed refusal or revocation; and

  • (b) an opportunity to be heard within a reasonable time in respect of the proposed refusal or revocation.

• (2) A decision of the Minister to suspend a licence, a registration and the corresponding registration certificate, an authorization certificate, an import or export permit or a permit for transit or transhipment, issued under these Regulations, takes effect as soon as the Minister notifies the holder of the decision and provides a written report of the reasons for the suspension.

• (3) A person who receives a notice of suspension referred to in subsection (2) may, within 10 days after receiving the notice, provide the Minister with reasons why the suspension is unfounded.

Books, Registers, Electronic Data and Other Records

• 85 (1) A licensed dealer shall keep at the licensed site books, registers, electronic data and other records pertaining to each Class A precursor brought to the site, produced or packaged at the site, used at the site for their own purposes, destroyed at the site or removed from the site, showing

  • (a) in respect of the precursor

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

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

    • (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;

  • (b) the type of activity pertaining to the precursor, whether purchase, receipt, production, packaging, use for their own purposes, sale, provision, sending, delivering, transporting, importation, exportation or destruction;

  • (c) the quantity of precursor and, in the case of a preparation or mixture, the quantity of all precursors set out in Part 1 of Schedule VI to the Act that it contains;

  • (d) the date the activity occurred; and

  • (e) in the case of a precursor

    • (i) purchased or otherwise acquired, the name, address and telephone number of the person from whom the precursor was purchased or acquired,

    • (ii) sold or provided, sent, delivered or transported, the name and address of the purchaser or recipient,

    • (iii) that is imported, the name and address of the exporter in the country of export and the name of any country of transit or transhipment, or

    • (iv) that is exported, the name and address of the importer in the country of final destination and the name of any country of transit or transhipment.

• (2) A licensed dealer shall keep in their books and registers all end-use declarations obtained under section 8.

• (3) A licensed dealer shall keep, at the licensed site, a record showing, for each day on which a person has access to a place at the site where a Class A precursor is kept, the person’s name and the date of access.

• (4) With respect to each Class B precursor brought to a site following import, produced at the site or removed from the site for export, a registered dealer shall keep at the site books, registers, electronic data and other records showing

  • (a) in respect of the precursor,

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

    • (ii) if it is a preparation or mixture, its brand name, if any, and the name of all precursors set out in Part 2 of Schedule VI to the Act that it contains;

  • (b) the type of activity pertaining to the precursor, whether production for sale or provision, import or export;

  • (c) the date the activity occurred; and

  • (d) in the case of a precursor

    • (i) that is imported, the name and address of the exporter in the country of export and the name of any country of transit or transhipment, or

    • (ii) that is exported, the name and address of the importer in the country of final destination and the name of any country of transit or transhipment.

• (5) Information referred to in subsections (1) to (4) and a record referred to in section 86 shall be retained for at least two years after the information was recorded or the record was made, except that an end-use declaration shall be kept for at least two years after the calendar year in which it was obtained.

• (6) A licensed dealer and a registered dealer shall make the records and documents required to be kept under this Part available for inspection by an inspector.

• (7) A licensed dealer and a registered dealer, if requested by the Minister in writing, shall provide to the Minister a copy of any record or document required to be kept under this Part.