Source: http://gazette.gc.ca/rp-pr/p2/2018/2018-12-12/html/sor-dors243-eng.html
Timestamp: 2019-11-17 04:42:05
Document Index: 667211752

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Canada Gazette, Part 2, Volume 152, Number 25: Regulations Amending the Agriculture and Agri-Food Administrative Monetary Penalties Regulations Respecting the Pest Control Products Act and Regulations (Penalties and Schedules)
Regulations Amending the Agriculture and Agri-Food Administrative Monetary Penalties Regulations Respecting the Pest Control Products Act and Regulations (Penalties and Schedules): SOR/2018-243
SOR/2018-243 November 22, 2018
The Minister of Health, pursuant to subsection 4(1) footnote a of the Agriculture and Agri-Food Administrative Monetary Penalties Act, footnote b makes the annexed Regulations Amending the Agriculture and Agri-Food Administrative Monetary Penalties Regulations Respecting the Pest Control Products Act and Regulations (Penalties and Schedules).
1 Section 5 of the Agriculture and Agri-Food Administrative Monetary Penalties Regulations Respecting the Pest Control Products Act and Regulations footnote 1 is replaced by the following:
2 The portion of item 1 of Part 1 of Schedule 1 to the Regulations in column 2 is replaced by the following:
Manufacture, possess, handle, store, transport, import, distribute or use a pest control product that is not registered or otherwise authorized
3 The portion of item 3 of Part 1 of Schedule 1 to the Regulations in column 2 is replaced by the following:
Store, import, export or distribute a pest control product not packaged or labelled in accordance with the regulations or, if it is registered, the conditions of registration
4 The portion of item 6 of Part 1 of Schedule 1 to the Regulations in columns 2 and 3 is replaced by the following:
Package, label or advertise a pest control product in a way that is false, misleading or likely to create an erroneous impression
5 Items 8 to 11 of Part 1 of Schedule 1 to the Regulations are replaced by the following:
Alter, destroy or falsify a document required to be kept, maintained or provided
Alter a document issued or made — or in any manner given — under the Pest Control Products Act
Have in possession or use a document issued or made — or in any manner given — under the Pest Control Products Act that has been altered
Have in possession or use any document not issued or made — or in any manner given — under the Pest Control Products Act that so resembles a document issued or made — or in any manner given — under that Act that is likely to be mistaken for such a document
6 Part 1 of Schedule 1 to the Regulations is amended by adding the following after item 13:
Fail to comply with a condition imposed by the Minister under subsection 21(4) of the Pest Control Products Act
Fail to comply with a condition imposed by the Minister under paragraph 21(5)(a) of the Pest Control Products Act with respect to the continued possession, handling, storage, distribution or use of stocks of a pest control product in Canada at the time of cancellation of its registration
Fail to comply with the requirement to recall and dispose of a pest control product, the registration of which is cancelled, in the manner specified by the Minister under paragraph 21(5)(b) of the Pest Control Products Act
Fail to comply with a condition imposed by the Minister under subsection 22(3) of the Pest Control Products Act
7 The portion of item 14 of Part 1 of Schedule 1 to the Regulations in column 2 is replaced by the following:
Resist or obstruct an inspector or make a false or misleading statement to an inspector who is exercising powers or performing duties or functions under the Pest Control Products Act
8 The portion of item 15 of Part 1 of Schedule 1 to the Regulations in column 3 is replaced by the following:
9 Part 1 of Schedule 1 to the Regulations is amended by adding the following after item 15:
Fail to comply with an order to present any pest control product or other thing for inspection in any manner and under any conditions that the inspector considers necessary to conduct an inspection
Fail to comply with an order to move a means of transport to a place where the inspector can enter it
Fail to comply with an order to move the pest control product or other thing or, for any time that may be necessary, not to move it or to restrict its movement
Fail to comply with an order given to any person in the place being inspected to establish their identity to the inspector’s satisfaction
10 Part 1 of Schedule 1 to the Regulations is amended by adding the following after item 16:
Fail to comply with an order to provide, on the date, at the time and place and in the manner specified by the inspector, the document, information or sample specified by the inspector
Fail to comply with an order to store or move a pest control product
Fail to comply with an order to dispose of a seized pest control product or other thing that is perishable
Fail to comply with an order to dispose of a seized pest control product or other thing that endangers human health or safety or the environment
11 The portion of item 18 of Part 1 of Schedule 1 to the Regulations in column 2 is replaced by the following:
Remove, alter or interfere with, without an inspector’s authorization, a pest control product or other thing seized and detained
Fail to comply with an order to remove a non-compliant pest control product from Canada, or, if removal is not possible, to destroy it
12 Item 1 of Part 2 of Schedule 1 to the Regulations is renumbered as item 1.5.
13 Part 2 of Schedule 1 to the Regulations is amended by adding the following before item 1.5:
Fail to ensure that the required documents accompany the shipment of the pest control product during transport through Canada or during any short-term storage in Canada in the prescribed manner
3.2(2) to (8)
Fail to ensure that the required documents accompany the shipment of the pest control product during transport through Canada or during any short-term storage in Canada
Fail to ensure that the packaging of the pest control product is constructed in the prescribed manner
Fail to store or transport the pest control product separately from food or feed or in such a way as to avoid the possible contamination of the food or feed
Fail to provide information to the Minister on request and in the manner requested
14 (1) These Regulations, except sections 12 and 13, come into force on the day on which they are published in the Canada Gazette, Part II.
(2) Sections 12 and 13 come into force on the day on which sections 2 and 3 of the Pest Control Products Regulations (Goods not intended for the Canadian Market) come into force but, if these Regulations are registered after that day, those sections come into force on the day on which these Regulations are registered.
The Agriculture and Agri-Food Administrative Monetary Penalties Regulations Respecting the Pest Control Products Act and Regulations (the AMPs Regulations) do not correctly reference the new offences and the amended provisions of the 2016 Pest Control Products Act (PCPA).
Compliance and enforcement officers have indicated that the existing monetary penalties established in the regulation 17 years ago no longer serve as an effective deterrent for non-compliance with the PCPA.
In December 2013, Canada agreed with other World Trade Organization members to adopt the new Trade Facilitation Agreement (TFA). The TFA was formally adopted by the General Council on November 27, 2014, enabling the domestic implementation process to begin. Canada committed to implementing the legislative changes necessary to meet its obligations under the TFA.
Amendments to the Food and Drugs Act, Hazardous Products Act, Radiation Emitting Devices Act, Pest Control Products Act, Canada Consumer Product Safety Act and consequential amendments to the Agriculture and Agri-Food Administrative Monetary Penalties Act as well as regulatory amendments under some of the above-mentioned statutes, were identified by Health Canada as necessary to implement articles 10.8.1 (Rejected Goods) and 11.8 (Freedom of Transit) of the TFA. Amendments to these statutes were proposed in Bill C-13 and also included amendments to the Canadian Environmental Protection Act, 1999 administered by Environment and Climate Change Canada. Bill C-13 received royal assent on December 12, 2016.
The amendments to the PCPA restructured the compliance and enforcement provisions and included new offences related to compliance with inspectors’ orders, such as the failure to remove non-compliant products from Canada.
The AMPs Regulations were first established in 2001 and were updated in 2010 to include contraventions of the Pest Control Products Sales Information Reporting Regulations and the Pest Control Products Incident Reporting Regulations. The AMPs Regulations serve as an enforcement tool to address non-compliance with the PCPA.
The monetary penalty regime can address a range of compliance issues: some relatively minor (such as incorrectly filling out paperwork), and some more severe (such as misuse of a pest control product).
Part 1 of Schedule 1 of the AMPs Regulations will add the new offences as eligible violations for monetary penalties and update the existing provision references to reflect the TFA-related changes to the PCPA, including their short-form descriptions and violation classifications. The updated AMPs Regulations will allow the use of the administrative monetary penalties (AMPs) to address non-compliance with the TFA-related provisions of the PCPA.
The Regulations will increase the monetary penalties to a level that would make them an effective deterrent to non-compliance as was done by the Canadian Food Inspection Agency in 2010.
The AMPs Regulations also include administrative corrections to four items in the schedule that are not related to the TFA. These are necessary to ensure that non-compliance with the conditions established by the Minister during the cancellation of a registration can be proceeded with by way of monetary penalties.
TFA-related amendments to existing items in Part 1 of Schedule 1
The following changes to existing items of Part 1 of Schedule 1 of the Regulations will update the short-form descriptions or provision references to the recently amended PCPA. The change to the classification of the item referencing subsection 46(2) is not directly related to the TFA, but was done to ensure consistency with similar violations under the PCPA.
Short-form description amended to reflect the updated language in the PCPA.
Short-form description amended to reflect the updated language in the PCPA. Classification changed from "minor" to "serious" to be consistent with subsection 6(3).
While not directly related to the changes made to the PCPA by the TFA, to ensure consistency in the application of the AMPs program, the classification of this item has been changed from "serious" to "very serious" to be consistent with the classification of 48(1)(c) in this schedule. Providing records to an inspector is considered integral to the regulatory program.
New TFA-related additions to Part 1 of Schedule 1
The Regulations will add the new items listed below to Part 1 of Schedule 1. The new items have been classified based on the following definitions and determinations made by Health Canada’s pesticide compliance and enforcement program to ensure consistent application of the monetary penalty program and to ensure the regulatory integrity of the legislation.
Very serious violation — is one in which the potential or the probability for causing any harm (i.e. to human health or safety, or to the environment or the integrity of the regulatory system) is significant.
Serious violation — is one in which the potential or the probability for causing any harm (i.e. to human health or safety, or to the environment or the integrity of the regulatory system) is moderate.
Minor violation — is one in which the potential or the probability for causing any harm (i.e. to human health or safety, or to the environment or the integrity of the regulatory system) is low.
Altering, falsifying or destroying documents that are required to be kept under the PCPA is considered to be an egregious contravention of the legislation. Classified as "very serious" because official documents are considered integral to the regulatory program.
Altering documents issued under the PCPA is considered to be an egregious contravention of the legislation. Classified as "very serious" because official documents are considered to be integral to the regulatory program.
Possession or use of official documents issued under the PCPA is considered to be integral to the regulatory program. Classified as "serious" because a person may not knowingly be in possession of an altered document.
Possession or use of official documents issued under the PCPA is considered to be integral to the regulatory program. Classified as "serious" because a person may not knowingly be in possession of unofficial documents.
Compliance with an inspector’s order is considered to be integral to the regulatory program. Classified as "very serious" for purposely not complying with an inspector’s order during an inspection.
Compliance with an inspector’s order is considered to be integral to the regulatory program. Classified as "very serious" for purposely not complying with an inspector’s order to move a means of transport to a place to facilitate an inspection.
Compliance with an inspector’s order is considered to be integral to the regulatory program. Classified as "very serious" due to the potential risks to human health or the environment and purposely not following an inspector’s orders.
Compliance with an inspector’s order is considered to be integral to the regulatory program. Classified as "serious" rather than "very serious" because there is a lower risk to human health or the environment for failure to comply with an order to a person to establish their identity.
Compliance with an inspector’s order is integral to the regulatory program. Classified as "serious" rather than "very serious" because there is a lower risk to human health or the environment for non-compliance with an order to provide documentation or samples.
Compliance with an inspector’s order is considered to be integral to the regulatory program. Classified as "very serious" due to the potential risks to human health or the environment for non-compliance with an order to store or move a pest control product.
Compliance with an inspector’s order is considered to be integral to the regulatory program. Classified as "very serious" due to the potential risks to human health or the environment for non-compliance with an order to dispose of a seized pest control product.
Compliance with an inspector’s order is considered to be integral to the regulatory program. Classified as "very serious" due to the potential risks to human health or the environment for non-compliance with an order to dispose of a seized pest control product that poses an immediate threat to people or the environment.
Compliance with an inspector’s order is considered to be integral to the regulatory program. Classified as "very serious" due to the potential risks to human health or the environment for non-compliance with an order to remove a non-compliant pest control product from Canada.
Administrative changes to Part 1 of Schedule 1
Subsections 21(4) and 22(3) and paragraphs 21(5)(a) and (b) authorize the Minister to impose conditions during the cancellation of a registration. The reference to the offence for violations of these provisions is found in subsection 31(2). The Regulations will correctly reference subsection 31(2) as the violation for non-compliance with subsections 21(4) and 22(3) and paragraphs 21(5)(a) and (b).
Corrected the reference to the offence for violations of these provisions.
New TFA-related additions to Part 2 of Schedule 1
the PCPR
Compliance with the requirement to provide information for use by Canadian workers and for use in response to accidents involving in-transit pest control products is integral to the regulatory program. Classified as "very serious" due to the potential risks to human health or the environment for non-compliance with this requirement.
Compliance with the requirement to provide safety information for use by Canadian workers and for use in response to accidents involving in-transit pest control products is integral to the regulatory program. Classified as "very serious" due to the potential risks to human health or the environment for non-compliance with this requirement.
Classified as "very serious" due to the potential risks to human health or the environment.
Fail to store or transport the pest control product separately from food or feed or in such a way as to avoid the possible contamination of the food and feed
Classified as "very serious" due to the potential risks to human or animal health.
Classified as "very serious" due to non-compliance with the ministers’ request for information that is considered to be integral to the regulatory program.
Increase in monetary penalties
The AMPs Regulations assign monetary penalties for the contravention of certain provisions of the PCPA and the Pest Control Products Regulations (PCPR). The AMPs Regulations set out the violations in respect of which provisions of the PCPA or PCPR the penalty is issued, the maximum amount of the penalty, and the options for payment. Specifically, AMPs can be issued in response to contraventions of provisions of the PCPA and PCPR that are established in the schedules of the AMPs Regulations or in contravention of any order made by the Minister under the PCPA. These orders are written notices that direct a person to take specific actions. Furthermore, AMPs can also be issued to persons who refuse or neglect to perform any duty imposed by or under the PCPA.
Currently, the penalties for violations committed in the course of business for which a Notice of Violation (NOV) is issued are $500 for a minor violation, $2,000 for a serious violation, and $4,000 for a very serious violation. In the case of individuals committing violations, otherwise than in the course of business, the penalties in the AMPs Regulations are currently set at $100 for a minor violation, $200 for a serious violation and $400 for a very serious violation.
When determining the penalty for a particular case of non-compliance, compliance history, the degree of intent or negligence and the harm that was or could be done by the violation are considered. Once a penalty has been determined and issued through an NOV, it must be paid within the time frame specified by the AMPs Regulations. Persons who submit payment within 15 days of receiving the NOV only have to pay half of the original penalty. The majority of violators have been benefiting from this incentive and paying maximum penalties of only $2,000.
On average, Health Canada issues 11 penalties per year under these Regulations. In certain instances, multiple NOVs have been issued for repeat violations. Given the low monetary value of the applicable penalties for today’s environment (when inflation is accounted for) compared to when the Regulations first came into force in 2001, the penalty may not be significant enough to deter people from violating the PCPA and its requirements.
Consequently, the AMPs Regulations will raise these penalties for violations committed in the course of business to $1,300 for a minor violation, $6,000 for a serious violation, and $10,000 for a very serious violation. For an individual committing a violation as defined under this Act, the Regulations will increase the penalties to $500 for a minor violation, $800 for a serious violation and $1,300 for a very serious violation.
These Regulations are expected to assist Health Canada in promoting compliance with the PCPA and its requirements, which will in turn benefit the health of Canadians and their environment. Over the longer term, it is expected that the increased penalties will act as a deterrent for non-compliance and persuade persons and businesses to comply with the PCPA.
Furthermore, Canadians will benefit from this increase because they can expect more responsive actions to non-compliance. The experiences of other agencies and branches within the health portfolio administering similar AMPs regimes have demonstrated that significant penalties contribute to increasing compliance over time.
Regulatory changes that amend penalties or implement an AMPs regime are considered out of scope of the “One-for-One” Rule. footnote 2 Small business lens
The small business lens does not apply to this proposal, as there are no administrative or implementation costs imposed on small business resulting from the proposed amendments.
Health Canada consulted with stakeholders on the proposal during a webinar on December 5, 2017. No comments on the proposal were received from stakeholders during the consultation or during the comment period.
The proposed Regulations were prepublished in the Canada Gazette, Part I, on June 2, 2018, for a 75-day consultation period, which ended on August 16, 2018. During the Canada Gazette, Part I, consultation period, Health Canada received only one stakeholder comment expressing concern regarding the increased penalties for a contravention of the PCPA and its Regulations. The stakeholder commented that increased penalties could impose an undue financial burden on the agriculture industry. However, monetary penalties are only used when a violation of the PCPA or its Regulations occurs; it does not impose any financial burden on stakeholders. As a result, Health Canada is not proposing to make any changes to the Regulations.
AMPs are an effective compliance and enforcement tool that assists Health Canada to promote compliance with the requirements of the PCPA, which, in turn, benefits the health and safety of Canadians.
To enable the use of monetary penalties for contraventions of the new TFA-related provisions in the PCPA and PCPR, the AMPs Regulations will
(1)	add the new TFA-related offences in the PCPA as eligible violations for monetary penalties;
(2)	update the existing provision references to reflect the TFA-related changes to the PCPA;
(3)	increase the monetary penalties to a level that would make them an effective deterrent to non-compliance; and
(4)	correct four items to ensure that non-compliance with the conditions established by the Minister during the cancellation of a registration can be proceeded with by way of monetary penalties.
Under the AMPs Regulations, Health Canada may issue administrative monetary penalties as an alternative enforcement measure to encourage compliance with the PCPA. The AMPs Regulations apply to violations of the PCPA, the PCPR, the Pest Control Products Incident Reporting Regulations and the Pest Control Products Sales Information Reporting Regulations.
Health Canada will use its existing compliance promotion tools to communicate the proposed amendments to regulated parties. This amendment does not change any requirements for regulated parties. There will be no adjustments to the current compliance and enforcement strategy and no additional resources will be required.
2016, c. 9, s. 70
Treasury Board of Canada, Controlling Administrative Burden That Regulations Impose on Business: Guide for the ‘One-for-One’ Rule, https://www.canada.ca/en/treasury-board-secretariat/services/federal-regulatory-management/guidelines-tools/controlling-administrative-burden-guide-one-for-one-rule.html#appB.