Interpretation

1 The definitions in this section apply in these Regulations.

Act

Act means the Canadian Environmental Protection Act, 1999. (Loi)

authorized sector

authorized sector means, in respect of the use of an HCFC, one of two categories of use, namely,

• (a) for cooling, whether in refrigeration or air-conditioning; and

• (b) for use in any other application. (domaine autorisé)

baseline consumption allowance

baseline consumption allowance, in respect of a group of controlled substances set out in column 1 of an item of Schedule 1 and any one of the years set out in column 2 of that item, means the quantity of those controlled substances that is determined in accordance with subsection 10(4) or (6) with respect to a person. (allocation de consommation de base)

bromofluorocarbon

bromofluorocarbon means a fully halogenated bromofluorocarbon each molecule of which contains one, two or three carbon atoms and at least one atom each of bromine and fluorine. (bromofluorocarbure)

calculated level

calculated level means,

• (a) in respect of a controlled substance that is produced, imported, exported or consumed during a given period, the quantity of the controlled substance, determined in accordance with one of the following formulas, namely,

  • (i) in the case of production, P × ODP,

  • (ii) in the case of importation, I × ODP,

  • (iii) in the case of exportation, E × ODP, and

  • (iv) in the case of consumption, (P × ODP) + (I × ODP) - (E × ODP)

  where

  P

  is the quantity manufactured during the period,

  I

  is the quantity imported during the period,

  E

  is the quantity exported during the period, and

  ODP

  is the ozone-depleting potential, set out in column 3 of Schedule 2, for the controlled substance set out in column 2, and

• (b) in respect of a group of controlled substances set out in column 1 of Schedule 2 that are produced, imported, exported or consumed during a given period, the sum of the calculated levels of production, importation, exportation or consumption, as the case may be, of the controlled substances within that group during that period, determined in accordance with the applicable formula set out in paragraph (a). (niveau calculé)

Canada's maximum consumption

Canada's maximum consumption, in respect of a group of controlled substances set out in column 1 of an item of Schedule 1 and any one of the years set out in column 2 of that item, means Canada's total allowable calculated level of consumption of those controlled substances according to the Protocol multiplied by the percentage set out in column 3 of that item. (consommation canadienne maximale)

chlorofluorocarbon

chlorofluorocarbon or CFC means a fully halogenated chlorofluorocarbon each molecule of which contains one, two or three carbon atoms and at least one atom each of chlorine and fluorine. (chlorofluorocarbure ou CFC)

consumption

consumption, in respect of a given period and a controlled substance or group of controlled substances, means the sum of the quantities produced and imported during that period less the quantity exported and, for the purpose of determining a calculated level of consumption, excludes any quantity of a controlled substance that, when imported or exported, was a recovered, recycled, reclaimed or used controlled substance. (consommation)

consumption allowance

consumption allowance means an initial consumption allowance or baseline consumption allowance, whether or not increased or decreased under sections 11 to 14. (allocation de consommation)

controlled substance

controlled substance means a substance that is set out in column 2 of an item of Schedule 2, whether existing alone or in a mixture, and including their isomers unless otherwise indicated. (substance contrôlée)

critical use

critical use means a use of methyl bromide that is agreed by the Parties, by a Decision, to be critical. (utilisation critique)

Decision

Decision means a decision taken at a meeting of the Parties under Article 11 of the Protocol. (Décision)

emergency use

emergency use means a use of methyl bromide that is agreed by the Parties, by a Decision, to be required in response to an emergency event. (utilisation d'urgence)

essential purpose

essential purpose means, with respect to the use of a controlled substance or of a product that contains a controlled substance, a use

• (a) that is necessary for health and safety or is critical for the good functioning of society, encompassing its cultural and intellectual aspects; and

• (b) for which there are no technically or economically feasible alternatives or substitutes that are acceptable from the standpoint of the environment and of health. (fin essentielle)

essential use

essential use means a use that is agreed by the Parties, by a Decision, to be essential. (utilisation essentielle)

feedstock

feedstock means any controlled substance that is used and the molecular structure of which is transformed in the manufacture of another chemical substance. (matière première)

foam insulation product

foam insulation product[Repealed, SOR/2001-2, s. 1]

foaming agent

foaming agent means any chemical that is added to any plastic during the process of manufacturing plastic foam so that gas cells are formed throughout the plastic. (agent de gonflement)

heel

heel, in respect of a controlled substance, means the residual quantity left in a container after it has been emptied and that does not exceed 10% of the total capacity in weight of the container for that controlled substance. (quantité résiduelle)

hydrobromofluorocarbon

hydrobromofluorocarbon means a hydrobromofluorocarbon each molecule of which contains one, two or three carbon atoms and at least one atom each of hydrogen, bromine and fluorine. (hydrobromofluorocarbure)

hydrochlorofluorocarbon

hydrochlorofluorocarbon or HCFC means a hydrochlorofluorocarbon each molecule of which contains one, two or three carbon atoms and at least one atom each of hydrogen, chlorine and fluorine. (hydrochlorofluorocarbure ou HCFC)

industrial cleaning

industrial cleaning means the use of a solvent for cold cleaning or vapour degreasing, whether for electrical or electronic equipment cleaning, metal cleaning or precision cleaning, and excludes wipe cleaning and cleaning during the maintenance of equipment. (nettoyage industriel)

initial consumption allowance of HCFCs

initial consumption allowance of HCFCs means the quantity of hydrochlorofluorocarbon that is determined in accordance with subsection 10(1), (3) or (3.01) with respect to a person. (allocation de consommation initiale de HCFC)

metered-dose inhaler

metered-dose inhaler does not include a nasal spray. (inhalateur-doseur)

Party

Party means

• (a) a Party to the Protocol; or

• (b) any State not party to the Protocol but that meets the conditions referred to in paragraph 8 of Article 4 of the Protocol. (Partie)

pest

pest means pest as defined in section 2 of the Pest Control Products Act and includes any organism that could cause disease in humans or animals. (parasite)

plastic foam

plastic foam means a plastic the weight per unit of volume of which is decreased substantially by the use of a foaming agent during the manufacturing process. (mousse plastique)

pre-shipment application

pre-shipment application means the treatment, with methyl bromide, within 21 days prior to export, of a commodity or product that is to be entirely exported to another country, or of a means of conveyance, where such treatment is required by the importing country or in support of Canada's sanitary or phytosanitary export programs. (traitement préalable à l'expédition)

production

production, in respect of a controlled substance or group of controlled substances, means the quantity manufactured. (production)

Protocol

Protocol means The Montreal Protocol on Substances that Deplete the Ozone Layer, published by the United Nations Environment Programme, signed by Canada on September 16, 1987, as amended from time to time. (Protocole)

quarantine application

quarantine application means the treatment, with methyl bromide, of a commodity, product, facility or means of conveyance where the treatment is intended to prevent the spread of, or to control or eradicate, pests of quarantine significance and is required by the laws of an importing country as a condition of entry or by or under Canadian law. (traitement en quarantaine)

reclaimed

reclaimed, in respect of a controlled substance, means recovered, re-processed and upgraded, through processes such as filtering, drying, distillation and chemical treatment, in order to restore the controlled substance to industry-accepted re-use standards. (régénérée)

recovered

recovered, in respect of a controlled substance, means collected, after the substance has been used, from machinery, equipment or a container during servicing or before disposal of the machinery, equipment or container. (récupérée)

recycled

recycled, in respect of a controlled substance, means recovered, cleaned by a process such as filtering or drying, and re-used, including re-used to recharge equipment. (recyclée)

rigid foam product

rigid foam product means a product that contains or consists of any of the following types of foam:

• (a) closed cell rigid polyurethane foam, including one- and two-component froth, pour, spray, injected or bead-applied foam and polyisocyanurate foam;

• (b) closed cell rigid polystyrene boardstock foam;

• (c) closed cell rigid phenolic foam; and

• (d) closed cell rigid polyethylene foam when such foam is suitable in shape, thickness and design to be used as a product that provides thermal insulation around pipes used in heating, plumbing, refrigeration or industrial process systems. (produit en mousse rigide)

transferee

transferee means a person who acquires or proposes to acquire from a transferor all or a portion of the transferor's consumption allowance. (cessionnaire)

transferor

transferor means a person who transfers or proposes to transfer to a transferee all or a portion of the person's consumption allowance. (cédant)

unexpended consumption allowance

unexpended consumption allowance means the portion of a consumption allowance that has not been used during a year. (allocation de consommation restante)

year

year means a calendar year. ((année))

Non-Application

2 These Regulations do not apply to a controlled substance if

• (a) the controlled substance is produced incidentally in the manufacture of substances other than controlled substances; or

• (b) the controlled substance is incidentally present in a mixture, a product or equipment.

2.1 Subject to section 2.2, these Regulations do not apply where a controlled substance is in transit through Canada from a place outside Canada to another place outside Canada, or where the controlled substance is in transit through another country from a place in Canada to another place in Canada, where

• (a) the address of the destination is known at the time of import into or export from Canada, as applicable; and

• (b) while in transit, the controlled substance is not stored other than in the normal course of transport, re-packaged, sorted or otherwise changed in condition or sold.

• 2.2 (1) A person who proposes, for the purpose of transit, to import into or export from Canada a controlled substance shall provide a notice to the Minister, in the form approved by the Minister, at least 15 days prior to the import or export, as applicable.

• (2) The Minister shall acknowledge receipt of the notice in writing.

PART 1Controlled Substances

Application

3 This Part applies to

• (a) a controlled substance within the meaning of the definition in paragraph 4 of Article 1 of the Protocol, as clarified by Decision I/12A, as amended from time to time; and

• (b) methyl bromide, whether or not contained in a manufactured product.

Prohibition

4 No person shall import or export a controlled substance from or to a State that is not a Party.

Restrictions

• 5 (1) No person shall import, without a permit issued under paragraph 33(1)(a), a controlled substance that is recovered, recycled, reclaimed, used or for destruction.

• (2) A person who imports for reclamation a recovered, recycled, reclaimed or used controlled substance, other than methyl bromide, an HCFC, a bromofluorocarbon or bromochlorodifluoromethane, shall within six months after its importation export it back to the country of origin.

• (3) No person shall import a recovered, recycled, reclaimed or used bromofluorocarbon or bromochlorodifluoromethane except if

  • (a) the bromofluorocarbon or bromochlorodifluoromethane will be used for an essential purpose in another country; and

  • (b) the bromofluorocarbon or bromochlorodifluoromethane will be exported to its country of destination within six months after its importation.

• (4) Any person who fails to comply with subsection (2) or (3), despite being subject to the applicable subsection, shall destroy the controlled substance at a destruction facility that is operated in accordance with the Regulatory Standards for Destruction Facilities set out in the Handbook for the International Treaties for the Protection of the Ozone Layer, as amended from time to time, published by the Ozone Secretariat, United Nations Environment Programme, or export it for destruction no later than three months after the end of the six-month period referred to in the applicable subsection.

• 6 (1) No person shall export a controlled substance without a permit issued under paragraph 33(1)(b).

• (2) Subsection (1) does not apply to a controlled substance that is a heel.

• (3) Subsection (1) does not apply to a controlled substance that is sold in Canada to a foreign ship for the refilling or servicing of its refrigeration, air-conditioning or fire-extinguishing equipment, in a quantity that does not exceed the total capacity of the equipment.

• 7 (1) No person shall manufacture, use, sell, offer for sale, import or export a controlled substance within a group of controlled substances set out in column 1 of an item of Schedule 4, on or after the date of prohibition set out in column 2 of that item.

• (2) Subsection (1) does not apply if

  • (a) the controlled substance is recovered, recycled, reclaimed, used or for destruction;

  • (b) the person uses, sells or offers for sale

    • (i) a controlled substance that was manufactured or imported before the date of its prohibition,

    • (ii) a controlled substance that is set out in column 2 of an item of Schedule 3 for a purpose set out in column 3 of that item, if

      • (A) the substance was manufactured or imported under a permit issued under paragraph 33(1)(c), and

      • (B) the person has completed a declaration, in the form approved by the Minister, in which the person undertakes to use the substance for that purpose only and to sell or otherwise supply any of the substance only to another person who has also completed such a declaration, or

    • (iii) tetrachloromethane that was manufactured or imported in 1995 for either of the following applications and that is used only for that application:

      • (A) in chlor-alkali plants as diluent for nitrogen trichloride to prevent explosions, or

      • (B) in laboratories, as feedstock or as an analytical standard;

  • (c) the person manufactures or imports, under a permit issued under paragraph 33(1)(c), a controlled substance set out in column 2 of an item of Schedule 3 for a purpose set out in column 3 of that item;

  • (d) the person exports for a purpose set out in column 3 of Schedule 3, under a permit issued under paragraph 33(1)(b), a controlled substance that was previously manufactured or imported under a permit issued under paragraph 33(1)(c);

  • (e) the person exports, under a permit issued under paragraph 33(1)(b), a controlled substance that the person imported by mistake or without consenting to its importation;

  • (f) the person exports a controlled substance that is a heel; or

  • (g) the person exports, under a permit issued under paragraph 33(1)(b), a CFC, a bromofluorocarbon or bromochlorodifluoromethane.

• 8 (1) Subject to subsections (3) and (5), no person shall manufacture HCFCs or methyl bromide.

• (2) Subject to subsections (3) to (5), no person shall import HCFCs or methyl bromide unless it is recovered, recycled, reclaimed, used or for destruction.

• (3) A person may manufacture or import HCFCs in any year if

  • (a) the person has been informed in writing by the Minister of their initial consumption allowance of HCFCs and of the authorized sector for the allowance for that year;

  • (b) the person has been issued a permit for the year under paragraph 33(1)(d) and has been informed in writing by the Minister of the authorized sector;

  • (c) the person has been informed in writing by the Minister of their baseline consumption allowance of HCFCs and of the authorized sector for the allowance for that year; or

  • (d) the person has been informed in writing by the Minister that a transfer to them of unexpended consumption allowance of HCFCs for the year is allowed under subsection 12(3).

• (3.1) No person shall use, sell or offer for sale any HCFC imported or manufactured under a consumption allowance or a permit issued under paragraph 33(1)(d) for any sector other than the authorized sector set out in the consumption allowance or the permit.

• (4) A person may import methyl bromide during any year if

  • (a) the person

    • (i) during 1991, 1992 or 1993, applied methyl bromide as a fumigant, used methyl bromide for non-fumigant purposes or used the services of a foreign applicator who applied the methyl bromide as a fumigant on the person's behalf, and

    • (ii) has been informed in writing by the Minister of their baseline consumption allowance of methyl bromide for the year; or

  • (b) the person has been informed in writing by the Minister that a transfer to them of unexpended consumption allowance of methyl bromide for the year is allowed under subsection 12(3).

• (5) A person may manufacture or import a controlled substance referred to in column 2 of item 5 or 6 of Schedule 3 for a purpose set out in column 3 of that item if the person has been issued a permit under paragraph 33(1)(c).

9 A person in possession of a quantity of a controlled substance that is set out in column 2 of an item of Schedule 3, that was manufactured or imported under a permit issued under paragraph 33(1)(c) and that is no longer needed for a purpose set out in column 3 of that item shall

• (a) within 6 months

  • (i) destroy that quantity at a facility operated in accordance with the standards referred to in subsection 5(4), or

  • (ii) export that quantity for destruction or for a purpose set out in column 3 of that item; or

• (b) include that quantity as part of their calculated level of consumption, where doing so would not result in their consumption allowance being exceeded.

Consumption Allowances

• 10 (1) Subject to subsection (2), a person's initial consumption allowance of HCFCs for an authorized sector for each year that falls within the period that begins January 1, 1996 and ends December 31, 1999 is the sum of

  • (a) the person's calculated level of consumption of HCFCs for that sector for 1994, and

  • (b) the calculated level of the quantity of HCFCs that is equivalent to the person’s consumption of CFCs for that sector for 1994 for which it was determined by the Minister, based on the information received in response to a notice published or sent under section 16 or 18 of the Canadian Environmental Protection Act, chapter 16 of the 4th Supplement to the Revised Statutes of Canada, 1985, or, when appropriate, section 71 of the Act, that those CFCs will be replaced by HCFCs.

• (2) A person’s initial consumption allowance of HCFCs for a year referred to in subsection (1) is zero if the person has not provided, at any time before December 1 in a previous year, the information about the manufacture, importation and use of HCFCs and CFCs for 1994 as required by a notice published or sent under section 16 or 18 of the Canadian Environmental Protection Act, chapter 16 of the 4th Supplement to the Revised Statutes of Canada, 1985, or, when appropriate, section 71 of the Act.

• (3) A person’s initial consumption allowance of HCFCs for the authorized sector of cooling, whether in refrigeration or air-conditioning,

  • (a) for each year that falls within the period that begins on January 1, 2000 and ends on December 31, 2003, is the average of their calculated level of consumption of HCFCs for that sector for 1997 and 1998;

  • (b) for each year that falls within the period that begins on January 1, 2004 and ends on December 31, 2006, is the average of their calculated level of consumption of HCFCs for that sector for 2001 and 2002 multiplied by 65%;

  • (c) for each year that falls within the period that begins on January 1, 2007 and ends on December 31, 2009, is the average of their calculated level of consumption of HCFCs for that sector for 2004 and 2005;

  • (d) for each year that falls within the period that begins on January 1, 2010 and ends on December 31, 2014, is the average of their calculated level of consumption of HCFCs for that sector for 2007 and 2008 multiplied by 53.85%;

  • (e) for each year that falls within the period that begins on January 1, 2015 and ends on December 31, 2019, is the average of their calculated level of consumption of HCFCs for that sector for 2012 and 2013 multiplied by 28.57%; and

  • (f) for each year that falls within the period that begins on January 1, 2020 and ends on December 31, 2029, is the average of their calculated level of consumption of HCFCs for that sector for 2017 and 2018 multiplied by 5%.

• (3.01) A person’s initial consumption allowance of HCFCs for the authorized sector of any other application

  • (a) for each year that falls within the period that begins on January 1, 2000 and ends on December 31, 2003, is the average of their calculated level of consumption of HCFCs for that sector for 1997 and 1998;

  • (b) for the year that begins on January 1, 2004 and ends on December 31, 2004, is the average of their calculated level of consumption of HCFCs for that sector for 2001 and 2002 multiplied by 65%;

  • (c) for each year that falls within the period that begins on January 1, 2005 and ends on December 31, 2006, is their calculated level of consumption of HCFCs for that sector for the year preceding the year of calculation;

  • (d) for each year that falls within the period that begins on January 1, 2007 and ends on December 31, 2009, is the average of their calculated level of consumption of HCFCs for that sector for 2004 and 2005;

  • (e) for each year that falls within the period that begins January 1, 2010 and ends on December 31, 2014, is the average of their calculated level of consumption of HCFCs for that sector for 2007 and 2008 multiplied by 53.85%; and

  • (f) for each year that falls within the period that begins on January 1, 2015 and ends on December 31, 2019, is the average of their calculated level of consumption of HCFCs for that sector for 2012 and 2013 multiplied by 28.57%.

• (3.02) For the purpose of calculating, for a year that falls within a period referred to in subsection (3) or (3.01), the initial consumption allowance of HCFCs of a transferor who has permanently transferred during a year that falls within the period immediately preceding that period, all or any portion of their consumption allowance, the allowance transferred shall be subtracted from the transferor’s calculated level of consumption of HCFCs for each year used to calculate that initial consumption allowance that precedes the year in which the transfer occurred.

• (3.03) For the purpose of calculating, for a year that falls within a period referred to in subsection (3) or (3.01), the initial consumption allowance of HCFCs of a transferee who has received by permanent transfer during a year that falls within the period immediately preceding that period, all or any portion of a consumption allowance, the allowance transferred shall be added to the transferee’s calculated level of consumption of HCFCs for each year used to calculate that initial consumption allowance that precedes the year in which the transfer occurred.

• (3.1) For the purpose of calculating a person’s initial consumption allowance of HCFCs for a year referred to in subsections (3) and (3.01), a person’s calculated level of consumption for a year cannot be less than zero.

• (3.11) For the purpose of calculating a person’s initial consumption allowance of HCFCs for a year referred to in subsections (3) and (3.01), when the person’s calculated level of consumption for a year used for the calculation is equal to 90% or more of the person’s consumption allowance for the year used for the calculation, the calculated level of consumption for the year used for the calculation is equivalent to the person’s total consumption allowance of HCFCs.

• (3.12) For the purpose of this section, recipient means a person in Canada to whom the person who has the HCFC consumption allowance sold or otherwise supplied, based on the information submitted for 2002 as required by a notice published or sent under section 71 of the Act, an HCFC.

• (3.13) When a person’s calculated level of consumption for the authorized sector of any other application for a year that falls within the period that begins on January 1, 2005 and ends on December 31, 2006 is less than 90% of their consumption allowance for that year, the Minister shall provide to each recipient who submits an application the portion of the person’s unexpended consumption allowance for that year corresponding to the product obtained by multiplying the unexpended consumption allowance by the ratio of

  • (a) the quantity of HCFCs sold or otherwise supplied to that recipient

  to

  • (b) the total quantity of HCFCs sold or otherwise supplied to all the recipients.

• (3.14) A recipient may apply to the Minister, in the form approved by the Minister, for a portion of the person’s unexpended consumption allowance of a person referred to in subsection (3.13) before December 1 of the year preceding the one for which the recipient requires the portion of that person’s unexpended consumption allowance.

• (3.2) When a person's calculated level of consumption for a year exceeds the person's consumption allowance for that year, the excess shall not be included when calculating the person's initial consumption allowance for subsequent years.

• (3.3) A person’s initial consumption allowance of HCFCs is zero for any year following the year in which the person has, before December 1, provided to the Minister, a notice in writing in the form approved by the Minister in which the person states that they are retiring their allowance.

• (4) When the sum of all initial consumption allowances of HCFCs and all calculated levels of consumption allowed under permits issued under paragraph 33(1)(d) reaches 90% of Canada's maximum consumption of HCFCs for a year within one of the periods described in subsection (1) or (3), the baseline consumption allowance of HCFCs for a person for an authorized sector for the year and each subsequent year in that period is the sum of

  • (a) the person's initial consumption allowance of HCFCs for that sector for the year,

  • (b) the person's calculated level of consumption for the year allowed under permits issued under paragraph 33(1)(d) for that sector, and

  • (c) the result obtained by multiplying the sum of the remainder of Canada’s maximum consumption of HCFCs for the year and the retired allowances of HCFCs for the preceding year by the ratio of

    • (i) the sum of the person's initial consumption allowance of HCFCs for the year and the person's calculated level of consumption for the year allowed under permits issued under paragraph 33(1)(d) for that sector

    to

    • (ii) the sum of all initial consumption allowances of HCFCs and all calculated levels of consumption allowed under permits issued under paragraph 33(1)(d) for the year.

• (5) Where a person has an initial consumption allowance of HCFCs or a permit issued under paragraph 33(1)(d) for an authorized sector for any year, the baseline consumption allowance under subsection (4) for that sector for the year replaces that initial consumption allowance of HCFCs or that permit.

• (6) Subject to subsection (7), a person's baseline consumption allowance of methyl bromide for any year, not including any quantities used for quarantine applications, pre-shipment applications or feedstock, is the product obtained by multiplying Canada's maximum consumption of methyl bromide for that year by the ratio of

  • (a) the average amount of methyl bromide applied or used by that person or applied as a fumigant by a foreign applicator on that person's behalf in 1991, 1992 and 1993

  to

  • (b) the difference between

    • (i) the average amount of methyl bromide applied or used in Canada in the years referred to in paragraph (a), and

    • (ii) the average quantities applied or used by, or applied as a fumigant by foreign applicators on behalf of, persons referred to in subsection (7) in those years.

• (7) A person's baseline consumption allowance of methyl bromide for any year is zero if

  • (a) the person has not provided, before December 1 in the previous year, the information about the importation, distribution, application and use of methyl bromide for 1991, 1992 and 1993 as required by a notice published or sent under section 16 or 18 of the Canadian Environmental Protection Act, chapter 16 of the 4th Supplement to the Revised Statutes of Canada, 1985, or, when appropriate, section 71 of the Act; or

  • (b) the person has, before December 1 in any previous year, provided to the Minister, a notice in writing in the form approved by the Minister in which the person states that they are retiring their allowance.

• (8) For the purpose of calculating a person’s consumption allowance for a year, the person’s calculated level of consumption of a controlled substance shall not include their calculated level of consumption of a recovered, recycled, reclaimed or used controlled substance.

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.

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.

13 No person who has a consumption allowance for a group of controlled substances for any year shall transfer all or any portion of the person’s consumption allowance in excess of the person’s unexpended consumption allowance for the year.

• 14 (1) When the Minister allows the temporary transfer of a consumption allowance under subsection 12(3),

  • (a) the consumption allowance of the transferor for a group of controlled substances is the transferor’s consumption allowance before the transfer less the portion of consumption allowance transferred; and

  • (b) the consumption allowance of the transferee for a group of controlled substances is the sum of the transferee’s consumption allowance, if any, before the transfer and the portion of the consumption allowance transferred.

• (2) When the Minister allows the permanent transfer of a consumption allowance under subsection 12(3),

  • (a) the initial consumption allowance of HCFCs of a transferor who has permanently transferred all or any portion of their consumption allowance in a year that falls within a period referred to in subsection 10(3) or (3.01) is reduced for that year and each subsequent year that falls within that period by the consumption allowance transferred; and

  • (b) the initial consumption allowance of HCFCs of a transferee who has received by permanent transfer all or any portion of a transferor’s consumption allowance in a year that falls within a period referred to in subsection 10(3) or (3.01) is increased for that year and each subsequent year that falls within that period by the consumption allowance transferred.

Restrictions on Manufacture, Import and Export

• 15 (1) No person who has a consumption allowance or who holds a permit issued under paragraph 33(1)(d) for a group of controlled substances shall have, during any year, a calculated level of consumption for the group that exceeds the consumption allowance or the calculated level of consumption allowed under the permit for the year.

• (2) If a person destroys a controlled substance within a group at a facility operated in accordance with the standards referred to in subsection 5(4), or uses a controlled substance within a group as feedstock, the person’s calculated level of production for the group is reduced by the quantity so destroyed or used.

• (3) [Repealed, SOR/2004-315, s. 11]

• (4) No person shall, for any year, add to a consumption allowance any unexpended consumption allowance from a previous year.

Reporting

• 16 (1) Every person who in a year has a consumption allowance or a permit issued under these Regulations shall submit to the Minister, in the form approved by the Minister,

  • (a) in the case of a recovered, recycled, reclaimed or used controlled substance other than methyl bromide, a quarterly report and a copy of the declaration of imports or exports provided to the Canada Border Services Agency, if applicable; and

  • (b) in any other case, an annual report.

• (2) and (3) [Repealed, SOR/2001-2, s. 10]

• (4) An annual report referred to in subsection (1) shall be submitted within 30 days after the last day of the previous year whether or not manufacturing, importing or exporting took place during that year.

• (5) A quarterly report referred to in subsection (1) shall be submitted within 30 days after the last day of the previous quarter whether or not importing or exporting took place during that quarter.

• (6) A person who manufactures, uses, sells, offers for sale, imports or exports a controlled substance shall, if the Minister requests it, provide to the Minister any information required for the purpose of fulfilling Canada’s obligations under the Protocol within the time mentioned in the request.

Maintenance of Records

• 17 (1) Every person who, during any year, manufactures, imports or exports a controlled substance shall

  • (a) maintain records for the year containing the applicable information specified in Schedule 6; and

  • (b) keep the records at their principal place of business in Canada for a period of five years after the records are made.

• (2) Where a controlled substance set out in column 2 of an item of Schedule 3 was manufactured or imported under a permit issued under paragraph 33(1)(c) for a purpose set out in column 3 of that item, every person who, during any year, uses, sells or offers for sale that controlled substance for that purpose shall

  • (a) maintain records for the year containing the applicable information specified in Schedule 6; and

  • (b) keep the records at their principal place of business in Canada for a period of five years after the records are made.

• (2.1) The records referred to in paragraphs 17(1)(b) and (2)(b) may be kept at any other place in Canada if the person notifies the Minister in writing of the civic address of the place where the records are kept.

• (3) Every person who imports or exports a controlled substance during any year shall provide to the customs office where the substance is required to be reported under section 12 or 95 of the Customs Act a copy of their permit, the Minister’s written confirmation of their consumption allowance or an acknowledgement of their notice of shipment in transit.

• (4) Every person referred to in subsection (1) or (2) shall, on request from the Minister, submit to the Minister the applicable information specified in Schedule 6.

PART 2Specific Uses of Controlled Substances

Restrictions on CFCs, Bromofluorocarbons, Bromochlorodifluoromethane, Tetrachloromethane and 1,1,1 trichloroethane

• 18 (1) No person shall manufacture or import a product that contains or is designed to contain any CFC, bromofluorocarbon, bromochlorodifluoromethane, tetrachloromethane or 1,1,1 trichloroethane.

• (1.1) No person shall use, sell or offer for sale any CFC, bromofluorocarbon, bromochlorodifluoromethane, tetrachloromethane or 1,1,1 trichloroethane that is recovered from a product in which the substance was used for a purpose set out in column 3 of Schedule 3 for any other purpose.

• (2) No person shall manufacture or import plastic foam in which any CFC has been used as a foaming agent.

19 No person shall sell or offer for sale

• (a) a pressurized container that contains 10 kg or less of any CFC; or

• (b) a container or packaging material for food or beverages that is made of plastic foam in which any CFC has been used as a foaming agent.

• 20 (1) Subsection 18(1) does not apply in respect of

  • (a) a military ship before January 1, 2003;

  • (b) fire extinguishing equipment that contains or is designed to contain any bromofluorocarbon or bromochlorodifluoromethane and that is to be used in aircraft or military ships or vehicles if the equipment is imported from a Party; or

  • (c) a pest control product before January 1, 2000, provided that the product was registered under the Pest Control Products Act before January 1, 1999.

• (2) Subsection 18(1) does not apply in respect of aircraft, ships or any vehicle manufactured before the coming into force of these Regulations.

• (3) Section 18 does not apply in respect of products that are imported and that are personal or household effects intended for the importer’s personal use only.

• (4) Subsection 18(1) does not apply

  • (a) subject to paragraph (b), before July 1, 2002 to metered-dose inhalers whose active ingredient is salbutamol;

  • (b) before January 1, 2004 to metered-dose inhalers whose active ingredient is salbutamol, in respect of their manufacture for exportation to a Party operating under paragraph 1 of Article 5 of the Protocol;

  • (c) before January 1, 2004 to metered-dose inhalers whose active ingredient is a corticosteroid; and

  • (d) before January 1, 2005 to all other metered-dose inhalers, including those containing a mixture of active ingredients.

• (4.1) Paragraph 19(a) does not apply

  • (a) before July 1, 2002 to nasal sprays;

  • (b) subject to paragraph (c), before January 1, 2003 to metered-dose inhalers whose active ingredient is salbutamol;

  • (c) before January 1, 2004 to metered-dose inhalers whose active ingredient is salbutamol, in respect of their sale for exportation to a Party operating under paragraph 1 of Article 5 of the Protocol; and

  • (d) to all other metered-dose inhalers, including those containing a mixture of active ingredients.

• (5) Subsection 18(1) and paragraph 19(a) do not apply in respect of a CFC or a product, as the case may be, that is supplied in a container of 3 L or less and that is to be used for an essential use that is a laboratory or analytical use.

• (6) Subsection 18(1) and paragraph 19(a) do not apply in respect of a CFC contained in a pressurized container where the CFC is

  • (a) in any of the following azeotropic mixtures, namely,

    • (i) refrigerant 500 (CFC-12/HFC-152a),

    • (ii) refrigerant 501 (CFC-12/HCFC-22),

    • (iii) refrigerant 502 (HCFC-22/CFC-115), and

    • (iv) refrigerant 504 (HFC-32/CFC-115); or

  • (b) a recovered CFC that is sold to be recycled or reclaimed and that will be used as a refrigerant.

• 21 (1) No person shall export to a Party operating under paragraph 1 of Article 5 of the Protocol a product that contains or is designed to contain any CFC, bromofluorocarbon, bromochlorodifluoromethane, tetrachloromethane or 1,1,1 trichloroethane without a permit issued under paragraph 33(1)(e).

• (2) Subsection (1) does not apply in respect of fire extinguishing equipment that is to be used in aircraft, military ships or vehicles.

Restrictions on HCFCs

22 No person shall manufacture, use, sell, offer for sale or import any HCFC or any product that contains or is designed to contain any HCFC if the HCFC or the product is for a use for which a controlled substance has never been used in Canada.

• 23 (1) On or after July 1, 1999, no person shall manufacture or import a pressurized container that contains 2 kg or less of any HCFC.

• (2) On or after January 1, 2000, no person shall offer for sale or sell a pressurized container that contains 2 kg or less of any HCFC.

• (3) Subsections (1) and (2) do not apply in respect of an HCFC or a product that is

  • (a) a mold release agent used in the production of plastic and elastomeric materials;

  • (b) a spinnerette lubricant or cleaning spray used in the production of synthetic fibres;

  • (c) a document preservation spray;

  • (d) fire extinguishing equipment used for non-residential applications;

  • (e) a wasp and hornet spray;

  • (f) a rigid foam product;

  • (g) a lubricant, coating or cleaning fluid for commercial use on electrical or electronic equipment or for aircraft maintenance, before January 1, 2001;

  • (h) refrigerant 412A(HCFC-22/HCFC-142b/octafluoropropane);

  • (i) refrigerant 5O9A (HCFC-22/octafluoropropane); or

  • (j) a pest control product before January 1, 2001 provided that the product was registered under the Pest Control Products Act before January 1, 1999.

• (4) Subsections (1) and (2) do not apply in respect of a product that is intended to be used as an animal or human health care product, including any bronchial dilator, inhalable steroid, topical anaesthetic and veterinary powder wound spray.

• (5) Subsections (1) and (2) do not apply in respect of an HCFC or a product that is used in a laboratory or for analysis or for the calibration of a leak detection system.

• 24 (1) On or after July 1, 1999, no person shall manufacture or import plastic foam in which any HCFC has been used as a foaming agent.

• (2) Subsection (1) does not apply to a product that is

  • (a) a rigid foam product; or

  • (b) a flexible polyurethane boardstock foam product.

25 On or after January 1, 2000, no person shall manufacture or import any flexible polyurethane boardstock foam product in which any HCFC has been used as a foaming agent.

• 26 (1) On or after July 1, 1999, no person shall manufacture or import for use in industrial cleaning HCFC-141b or any product that contains HCFC-141b.

• (2) On or after January 1, 2000, no person shall

  • (a) use in industrial cleaning HCFC-141b or any product that contains HCFC-141b; or

  • (b) sell or offer for sale for use in industrial cleaning HCFC-141b or any product that contains HCFC-141b.

• 27 (1) On or after January 1, 2010, no person shall manufacture, use, sell, offer for sale or import HCFC-141b, HCFC-142b or HCFC-22.

• (2) Subsection (1) does not apply in respect of the manufacture, use, sale, offering for sale or import of HCFC-141b, HCFC-142b or HCFC-22 for exportation or for use as a refrigerant.

28 On or after January 1, 2010, no person shall manufacture or import any product that contains or is designed to contain HCFC-141b, HCFC-142b or HCFC-22.

• 29 (1) On or after January 1, 2015, no person shall manufacture, use, sell, offer for sale or import any HCFC.

• (2) Subsection (1) does not apply in respect of the manufacture or import of HCFC for exportation or for use as a refrigerant before January 1, 2020.

• (3) Subsections (1) and (2) do not apply in respect of the manufacture or import of HCFC-123 for exportation or for use as a refrigerant before January 1, 2030.

• (4) Subsection (1) does not apply in respect of the use, sale or offering for sale of any HCFC for use as a refrigerant.

30 On or after January 1, 2020, no person shall manufacture or import any product that contains or is designed to contain any HCFC.

Exemption

31 Despite any provision of this Part, a person may manufacture, use, sell, offer for sale, import or export a controlled substance or a product that contains or is designed to contain a controlled substance if the person has been issued a permit to do so under paragraph 33(1)(f).

PART 3Issuance of Permits

32 A person may apply to the Minister, in the form approved by the Minister, for

• (a) a permit to import a controlled substance that is for destruction as referred to in subsection 5(1);

• (a.1) a permit to import a controlled substance that is a recovered, recycled, reclaimed or used controlled substance as referred to in subsection 5(1);

• (b) a permit to export a controlled substance as referred to in section 6 or in paragraph 7(2)(d), (e) or (g);

• (c) a permit to manufacture or import a controlled substance set out in column 2 of an item of Schedule 3 for a purpose set out in column 3 of that item, as referred to in paragraph 7(2)(c) or subsection 8(5);

• (d) a permit to manufacture or import HCFCs, as referred to in paragraph 8(3)(b);

• (e) a permit to export a product referred to in subsection 21(1); and

• (f) a permit to manufacture, use, sell, offer for sale, import or export any controlled substance or product that contains or is designed to contain a controlled substance as referred to in section 31.

• 33 (1) The Minister shall

  • (a) issue the permit referred to in paragraph 32(a) if in the case of a recovered, recycled, reclaimed or used controlled substance, the applicant submits documentation confirming the nature of the substance and if

    • (i) the controlled substance is imported for reclamation in Canada and exportation back to the country of origin within six months after the importation,

    • (ii) the controlled substance is imported from a country to which it was previously exported for reclamation,

    • (iii) the controlled substance that is imported will be used as feedstock or for an essential purpose,

    • (iv) the controlled substance is methyl bromide or any HCFC, or

    • (v) the controlled substance that is imported is a bromofluorocarbon or bromochlorodifluoromethane that will be exported within six months after its importation to a country where it is to be used for an essential purpose;

  • (a.1) issue the permit referred to in paragraph 32(a) if the controlled substance is for destruction;

  • (b) issue the permit referred to in paragraph 32(b) but, in the following cases, only under the following conditions, namely,

    • (i) in the case of a controlled substance, other than a CFC, a bromofluorocarbon or bromochlorodifluoromethane, that is exported for destruction or that is recovered, recycled, reclaimed or used, the applicant submits documentation confirming the nature of the controlled substance,

    • (ii) in the case of a CFC, the applicant submits documentation confirming the nature of the controlled substance and the substance is exported for an essential purpose, for destruction, for reclamation or after its importation in accordance with a permit issued under subparagraph (a)(i), or

    • (iii) in the case of a bromofluorocarbon or bromochlorodifluoromethane, the applicant submits documentation confirming the nature of the controlled substance and the substance is exported for an essential purpose, for destruction, for reclamation or after its importation in accordance with a permit issued under subparagraph (a)(v);

  • (c) issue the permit referred to in paragraph 32(c) if the applicant undertakes not to sell or otherwise supply any of the controlled substance to any person who has not completed a declaration in the form approved by the Minister;

  • (d) issue the permit referred to in paragraph 32(d), allowing a calculated level of consumption of HCFCs for an authorized sector that does not exceed, for a quarter within any year, the greater of two tonnes and 33 per cent of the person's calculated level of consumption of HCFCs for that sector during the previous year, if the applicant has used all of their initial consumption allowance and any calculated level of consumption allowed under previous permits issued under this paragraph;

  • (e) issue the permit referred to in paragraph 32(e); and

  • (f) issue the permit referred to in paragraph 32(f) if the applicant provides evidence that the controlled substance or the product is to be used for an essential purpose.

• (2) The Minister shall not issue a permit under this section if its issuance contravenes the Protocol or a Decision, as amended from time to time.

• (3) The Minister may refuse to issue a permit if the Minister has reasonable grounds to believe that the applicant is not able to manufacture, use, sell, offer for sale, import or export a controlled substance or a product containing or designed to contain a controlled substance, as the case may be, in compliance with the Canadian law applicable to the substance, product or activity.

• (4) A permit issued under this section is effective for the period beginning on the date of the permit's issuance and ending at the end of the year in which it is issued.

PART 4Miscellaneous Provisions

Applications and Reports

• 34 (1) Any application for an adjustment, a transfer, a portion of an unexpended consumption allowance or a permit and any report or notice submitted under these Regulations shall

  • (a) in the case of a corporation, be signed by a person authorized to do so;

  • (b) in any other case, be signed by the person making the application or submitting the report or notice, or by a person authorized to act on behalf of that person; and

  • (c) contain the information set out in Schedule 5, as applicable, and, on request by the Minister, any other information that is reasonably necessary for the purposes of these Regulations.

• (2) If a person who submits an application or a report referred to in subsection (1) requests that the information contained in it be treated as confidential under subsection 313(1) of the Act, the person shall include the reasons for that request.

35 The Minister may refuse to increase a consumption allowance under section 11 or to allow a transfer under section 12 if the Minister has reasonable grounds to believe that the applicant is not able to manufacture, use, sell, offer for sale, import or export the controlled substance or product that contains or is designed to contain a controlled substance, as the case may be, in compliance with the Canadian law applicable to the substance, product or activity.

36 [Repealed, SOR/2004-315, s. 26]

Requirement to Provide Exact Information

37 [Repealed, SOR/2000-102, s. 29]

• 38 (1) The Minister may refuse to issue or may cancel a permit or authorization issued under these Regulations if any false or misleading information has been submitted in support of the application for the permit or authorization.

• (2) The Minister shall not cancel a permit unless the Minister

  • (a) has provided the permit holder with written reasons for the cancellation; and

  • (b) has given the permit holder an opportunity to be heard, either by written or oral representations, in respect of the cancellation.

Transitional Provisions

39 [Repealed, SOR/2001-2, s. 17]

40 A controlled substance imported or manufactured under any permit or authorization granted under the Ozone-depleting Substances Regulations is deemed to be imported or manufactured under a permit or authorization granted under these Regulations.

Repeals

41 [Repeal]

42 [Repeal]

43 [Repeal]

Coming into Force

44 These Regulations come into force on January 1, 1999.