Pest Control Products Fees and Charges Regulations (SOR/2017-9)

Marginal note:Definitions

• 8 (1) The following definitions apply in this section.

  actual gross revenue

  actual gross revenue means the amount that the person who makes an application to register a pest control product referred to in subsection 2(1) collects during the fee verification period from the sales in Canada of that product. (recettes brutes réelles)

  anticipated gross revenue

  anticipated gross revenue means the amount that the person who makes an application to register a pest control product referred to in subsection 2(1) expects to collect during the fee verification period from the sales in Canada of that product. (recettes brutes prévues)

  fee verification period

  fee verification period, in respect of a pest control product for which an application for a fee reduction is approved under subsection (3), means the period that begins on the day on which the pest control product is first sold in Canada as a registered pest control product or as an active ingredient in a registered pest control product and that ends three years after that day. (période de vérification des droits)

  sales in Canada

  sales in Canada means

  • (a) in the case of an application to register an active ingredient, the sales in Canada of all pest control products that contain that active ingredient and that became registered during the fee verification period;

  • (b) in the case of an application to register a pest control product that is not an active ingredient, the sales in Canada of that product during the fee verification period; and

  • (c) in the case of more than one application that includes a common component set out in Schedule 1 and that is filed at the same time to register pest control products that contain the same active ingredient, the sales in Canada of those pest control products during the fee verification period. (ventes au Canada)

• Marginal note:Application for fee reduction

  (2) A person who files an application to register a pest control product referred to in subsection 2(1) may apply at the same time to the Minister for a reduction of the fee.

• Marginal note:Conditions

  (3) The Minister must approve a fee reduction if the following conditions are met:

  • (a) the person provides to the Minister with their application

    • (i) a statement signed by an individual who is designated by the person for the purpose that indicates the person’s anticipated gross revenue and that certifies that the fee is greater than 10% of that anticipated gross revenue, and

    • (ii) information that establishes that that fee is greater than 10% of the person’s anticipated gross revenue; and

  • (b) the Minister determines, on the basis of the information provided under paragraph (a) and any other information that is available to the Minister, that the fee is likely to be greater than 10% of the person’s actual gross revenue.

• Marginal note:Recalculation of fee

  (4) If the Minister approves a fee reduction, the fee that is payable at the end of the fee verification period is the lesser of

  • (a) the total fee payable under this Part, and

  • (b) the higher of

    • (i) 10% of the fee referred to in paragraph (a), and

    • (ii) 10% of the actual gross revenue, based on the records of the sales in Canada provided to the Minister in accordance with subsection (6).

• Marginal note:Payment when application is filed

  (5) A person who applies for a fee reduction under subsection (2) must, at the time of filing the application, pay, in accordance with subsection 7(2) or (3), the higher of

  • (a) 10% of their anticipated gross revenue, and

  • (b) 10% of the total fee payable under this Part.

• Marginal note:Records of sales in Canada

  (6) Within 60 days after the end of the fee verification period, the person must provide the Minister with the records of the sales in Canada, prepared in accordance with generally accepted accounting principles and certified by the individual responsible for the person’s financial affairs.

• Marginal note:Reconciliation — balance owing

  (7) If the records of the sales in Canada establish that the amount that the person paid under subsection (5) is less than the amount of the fee calculated in accordance with subsection (4), the person must pay the balance within 60 days after the day on which the fee verification period ends.

• Marginal note:Reconciliation — overpayment

  (8) If the records of the sales in Canada establish that the amount that the person paid under subsection (5) is more than the amount of the fee calculated in accordance with subsection (4), the Minister must repay the amount of the overpayment to the person.

• Marginal note:Audited records

  (9) If the Minister determines, on the basis of any information that is available to him or her, that the certified records of the sales in Canada are not adequate to determine the person’s actual gross revenue, the Minister may require that the person provide records of the sales in Canada that have been audited by a qualified independent auditor.

• Marginal note:When records inconsistent

  (10) If there is any inconsistency between the certified records and the audited records, the fee is to be based on whichever records show the higher amount of sales in Canada.

• Marginal note:When records not submitted

  (11) If the person does not submit the records in accordance with subsections (6) and (9), the fee payable is the total fee calculated under subsections 2(1) and (2) and section 3, minus any portion of the fee that the person paid under subsection (5).