Precursor Control Regulations (SOR/2002-359)

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 by 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 revoke an authorization certificate if it was issued on the basis of false or misleading information or false or falsified documents.

• (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.

82.1 The Minister shall reinstate a suspended authorization certificate if the reasons for the suspension no longer exist or the holder demonstrates that the suspension is unfounded.

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

84 The following decisions of the Minister do not take effect until the Minister has provided the applicant or holder of an affected licence, certificate or permit with a written notice that sets out the reasons for the decision and the applicant or holder has been given an opportunity to be heard within the period specified in the notice:

• (a) a decision to revoke or to refuse to issue, amend or renew a licence;

• (b) a decision to revoke or to refuse to renew a registration or to refuse to issue or amend a registration certificate;

• (c) a decision to revoke or to refuse to issue an authorization certificate; and

• (d) a decision to revoke or to refuse to issue an import or export permit or a permit for transit or transhipment.

• 84.1 (1) The following decisions of the Minister take effect as soon as the Minister provides the holder of an affected licence, certificate or permit with a written notice that sets out the reasons for the decision:

  • (a) a decision to suspend a licence in respect of any authorized activities in relation to any Class A precursor;

  • (b) a decision to suspend a registration in respect of any authorized activities in relation to any Class B precursor;

  • (c) a decision to suspend an authorization certificate; and

  • (d) a decision to suspend an import or export permit or a permit for transit or transhipment.

• (2) The written notice must specify a period within which the holder is given an opportunity to be heard, as well as any corrective measures to be carried out and the date by which they must be carried out.

84.2 A decision of the Minister under subsection 21.1(1) or 65.1(1) to add a condition to, or modify a condition of, a licence or registration certificate does not take effect until the Minister has provided the holder with a written notice that sets out the reasons for the decision and the holder has been given an opportunity to be heard within the period specified in the notice.

• 84.3 (1) A decision of the Minister under subsection 21.1(2) or 65.1(2) to add a condition to, or modify a condition of, a licence or registration certificate takes effect as soon as the Minister provides the holder with a written notice that sets out the reasons for the decision.

• (2) The written notice must specify a period within which the holder is given an opportunity to be heard, as well as any corrective measures to be carried out and the date by which they must be carried out.

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) The licensed dealer shall

  • (a) keep any record referred to in subsections (1) and (3) for at least two years after the day on which information was last recorded in the record; and

  • (b) keep an end-use declaration for at least two years after the end of the calendar year for which it was obtained.

• (6) The registered dealer shall keep any record referred to in subsection (4) for at least two years after the day on which information was last recorded in the record.

• (7) The licensed dealer and registered dealer shall

  • (a) keep the record referred to in section 86 for at least two years after the day on which it is made;

  • (b) keep the notice referred to in paragraph 90(2)(a) for at least two years after the day on which it is provided to a member of a police force;

  • (c) keep the notice referred to in paragraph 90(2)(b) for at least two years after the day on which it is provided to the Minister; and

  • (d) keep the notice referred to in subsection 90(3) for at least two years after the day on which it is provided to the Minister.

• (8) The licensed dealer and registered dealer shall make the records that they are required to keep under this Part available for examination by the Minister.

• (9) The licensed dealer and registered dealer, if requested by the Minister in writing, shall provide to the Minister a copy of any record that they are required to keep under this Part.

85.1 If a licence or a registration certificate expires without being renewed or is revoked, the former holder shall

• (a) retain the records that they were required to keep under section 85 for at least two years after the expiry or revocation; and

• (b) at the written request of the Minister, provide the Minister with a copy of any record required to be retained under paragraph (a).

Suspicious Transactions

• 86 (1) A licensed dealer and a registered dealer shall, on becoming aware of the transaction, make a record of every transaction occurring in the course of their activities in respect of which there are reasonable grounds to suspect that the transaction is related to the diversion of a precursor to an illicit market or use.

• (2) For the purpose of subsection (1), the factors to be considered in assessing if a transaction or group of transactions give rise to reasonable grounds to suspect that the transaction or group of transactions is related to the diversion of a precursor to an illicit market or use include

  • (a) the composition and chemical properties of the precursor involved, the illicit use that may be made of it and the risk of its diversion to an illicit market or use having regard to those factors;

  • (b) the quantity of the precursor involved and, in the case of a preparation or mixture, the quantity of all precursors set out in Parts 1 or 2 of Schedule VI to the Act that it contains;

  • (c) the intended use of the precursor stated by the other party to the transaction;

  • (d) the proposed means of transportation, route of delivery, place of origin or place of destination;

  • (e) the method of payment involved; and

  • (f) in the case of prior dealings between the dealer and the other party to the transaction, any suspicious departure from the pattern of the prior dealings.

• (3) A suspicious transaction record shall include

  • (a) the name, address, telephone number and position with the dealer of the individual making the record;

  • (b) the identification of the other party to the transaction;

  • (c) details of the transaction involved, including

    • (i) the date and time of the transaction,

    • (ii) the type of transaction, and

    • (iii) the name and quantity of the precursor and, in the case of a preparation or mixture, the quantity of all precursors set out in Parts 1 or 2 of Schedule VI to the Act that it contains; and

  • (d) a detailed description of the reasons for suspecting that the transaction is related to the diversion of a precursor to an illicit market or use.

• (4) No licensed dealer or registered dealer shall disclose that they have made a suspicious transaction record under this section or disclose the contents of the record, with the intent to prejudice a criminal investigation, whether or not a criminal investigation has begun.

• (5) No criminal or civil proceedings lie against a licensed dealer or registered dealer for making a suspicious transaction record under this section in good faith.

• (6) The Minister is authorized to receive information that is provided voluntarily by a dealer referred to in subsection (1) in respect of a transaction mentioned in that subsection.

Annual Report

87 A licensed dealer shall make a written report to the Minister, within three months after the end of each calendar year, showing

• (a) the name and total quantity of each Class A precursor purchased, received, produced, used for their own purposes, sold, provided, imported, exported or destroyed during the calendar year;

• (b) the quantity of each Class A precursor in physical inventory taken at the site at the end of the calendar year; and

• (c) the name and quantity of any Class A precursor that has been lost or wasted in the course of conducting authorized activities during the calendar year.