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Vol. 137, No. 5 — February 1, 2003
Passenger Information (Customs) Regulations
Statutory Authority
Customs Act
Sponsoring Department
Canada Customs and Revenue Agency
REGULATORY IMPACT ANALYSIS STATEMENT
Description
The Passenger Information (Customs) Regulations (the Regulations) bring into force the Advance Passenger Information/Passenger Name Record (API/PNR) initiative introduced in the 2000-2004 Customs Action Plan. These Regulations were drafted under the authority of section 107.1 of the Customs Act and provide the legal basis for the API/PNR program. Under the Regulations, commercial carriers and charterers, travel agents, and owners and operators of a reservation system are required to provide the Minister of National Revenue with, or provide access to, specific information on all passengers and crewmembers en route to Canada at the time of their departure. The specific API information that must be provided for all persons on board a commercial conveyance is:
full name;
date of birth;
gender;
citizenship or nationality;
type of travel document, the country of issue, and the number; and the
reservation record locator number if any. Access must be provided to all PNR information relating to the person in a reservation system.
Passenger information that is to be provided to the Canada Customs and Revenue Agency (CCRA) must be provided by way of a passenger manifest. The Regulations also specify that passenger information or passenger reservation information that is maintained in an electronic format must be provided to a customs officer or other representative of the Minister in that format.
As a result of the events of September 11, 2001, the implementation of the API/PNR initiative was accelerated to address border security issues. The proposed Passenger Information (Customs) Regulations made under section 107.1 of the Customs Act have legal effect as of October 4, 2002, through the use of the retroactive regulation - making authority in paragraph 167.1(b) of the Act and the issuance of customs notice, N-472, on that date giving public notice of the Regulations. The collection of API information began on October 7, 2002 and the collection of PNR will be phased in commencing in March 2003.
The CCRA performs a critical role in the protection of Canadians and Canadian society. These Regulations will greatly assist the CCRA in its ability to interdict people that are inadmissible to Canada and goods, the movement into Canada of which is controlled, regulated, or prohibited. They will also assist the CCRA in providing a more effective and efficient service to the thousands of passengers who pass daily through our borders by allowing it to identify and focus customs resources on potentially high-risk passengers.
Alternatives
Because of the need to ensure that advance passenger information and reservation information is provided to Customs in a consistent and timely manner, and that carriers and others are legally able to provide this information, there is no alternative to these Regulations.
Benefits and Costs
These Regulations will enable the CCRA to use risk management techniques to provide greater efficiencies in passenger clearance procedures while maintaining a safe border environment for all Canadians.
The API/PNR information will be used for short-term front line selection for secondary examination on arrival in Canada, and for longer-term trend analysis and the development of risk factors. The information will support the customs investigative and intelligence programs that provide customs officers with the required information to protect Canadian society against the illegal movement of goods and people crossing our borders.
Treasury Board funding has been secured for the development of the API/PNR program and an automated system that will allow Customs to receive the prescribed information from commercial carriers and agents via electronic means.
Consultation
Canadian travellers were consulted during the consultation phase of the Customs Blueprint and it was clearly indicated they want a safe border environment.
Consultation is ongoing with the Office of the Privacy Commissioner to address privacy concerns associated with the API/PNR program. In addition, the CCRA has worked closely with the Department of Justice and has received their advice since the inception of the API/PNR Program and will continue to work with them to address privacy and Charter issues. The CCRA has undertaken significant consultations with air carriers affected by the new program requirements. Our approach with the carriers has been to meet with each carrier to discuss any legal or technical issues and to develop an implementation plan.
Consultations with other key stakeholders, such as other government departments, commercial carriers, and the tourism industry, are ongoing and will continue.
The 30-day pre-publication period will allow for additional comments to be considered.
Compliance and Enforcement
The Minister of National Revenue will establish standard guidelines for the electronic transmission of advance information to Customs. In addition, the administration of the API/PNR program will be fully explained in a Customs Departmental Memorandum.
The existing resources of the CCRA are adequate to ensure compliance with the terms of the Regulations. Administrative Monetary Penalties will be established for non-compliance.
Elizabeth Childers, Manager, Policy and Communications, API/PNR Project, Major Project Design & Development Directorate, Customs Branch, Sir Richard Scott Building, 17th Floor, 191 Laurier Avenue W, Ottawa, Ontario K1A 0L5, (613) 952-1261 (Telephone), (613) 948-1243 (Facsimile), Elizabeth.Childers@ccra-adrc.gc.ca (Electronic mail).
Notice is hereby given that the Governor in Council, pursuant to section 107.1 (see footnote a) and paragraphs 164(1)(i) (see footnote b) and 167.1(b) (see footnote c) of the Customs Act (see footnote d) proposes to make the annexed Passenger Information (Customs) Regulations.
Interested persons may make representations with respect to the proposed Regulations within 30 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part I, and the date of publication of this notice, and be addressed to the Minister of National Revenue, Connaught Building, 7th Floor, 555 MacKenzie Avenue, Ottawa, Ontario, K1A 0L5.
Persons making representations should identify any of those representations the disclosure of which should be refused under the Access to Information Act, in particular under sections 19 and 20 of that Act, and should indicate the reasons why and the period during which the representations should not be disclosed. They should also identify any representations for which there is a consent to disclosure for the purposes of that Act.
Ottawa, January 30, 2003
EILEEN BOYD
Assistant Clerk of the Privy Council
| item | PASSENGER INFORMATION (CUSTOMS) REGULATIONS |
|---|---|
| Interpretation | 1. The following definitions apply in these Regulations. |
| "Act" « Loi » |
"Act" means the Customs Act. |
| "commercial carrier" « transporteur commercial » |
"commercial carrier" means the owner or operator of a commercial conveyance. |
| "commercial conveyance" « moyen de transport commercial » |
"commercial conveyance" means any conveyance that is used for the commercial transportation of persons or goods by air, water or land. |
| "Minister's representative" « représentant du ministre » |
"Minister's representative" means a person authorized by the Minister to obtain information referred to in section 3. |
| "reservation system" « système de réservation » |
"reservation system" means any system, whether electronic or manual, that contains information relating to persons on board a commercial conveyance. |
| Prescribed classes of persons | 2. The following are the prescribed classes of persons for the purposes of section 107.1 of the Act:
(a) commercial carriers and charterers who undertake to carry persons or goods to Canada and the representatives of those carriers and charterers; |
| Prescribed information | 3. The following is, for the purposes of section 107.1 of the Act, the prescribed information in respect of a person on board a commercial conveyance: (a) their surname, first name and any middle names; |
| Prescribed condition — manifest | 4. (1) If the Minister requires a member of a prescribed class to provide prescribed information referred to in paragraphs 3(a) to (f), it is a prescribed condition that the member provide the information in the form of a manifest to a Minister's representative at the time of the departure of the commercial conveyance from the last place that persons boarded the conveyance before arriving in Canada. |
| Prescribed condition — reservation system | (2) If the Minister requires a member of a prescribed class to provide, or provide access to, prescribed information referred to in paragraph 3(g), it is a prescribed condition that the member provide the information to a Minister's representative or provide a Minister's representative with access to the member's reservation system, as the case may be. |
| Prescribed condition — electronic or non-electronic format | (3) If the Minister requires a member of a prescribed class to provide, or provide access to, prescribed information referred to in section 3, it is a prescribed condition
(a) when the member maintains the information in an electronic format, that the member provide, or provide access to, as the case may be, the information in the electronic format; and |
| Coming into force | 5. These Regulations are deemed to have come into force on October 4, 2002. |
|
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Regulations Respecting Excise Licences and Registrations
Statutory Authority
Excise Act, 2001
Sponsoring Agency
Canada Customs and Revenue Agency
REGULATORY IMPACT ANALYSIS STATEMENT
Description
The Excise Act, 2001, an Act respecting the taxation of spirits, wine and tobacco and the treatment of ships' stores received Royal Assent on June 13, 2002 (Bill C-47). The Act authorizes the Governor in Council to make regulations respecting the requirements and conditions that must be met by a person to be issued or to hold a licence or registration. The Regulations Respecting Excise Licences and Registrations bring into effect the prescribed requirements for applicants wishing to produce and distribute spirits, wine and tobacco.
Registration requirements will apply to persons who are not subject to paying excise duty but who carry on activities involving excisable goods, such as the transportation of spirits. The Act will also require all commercial vintners to be licensed and will replace the existing excise levy on wine imposed under the Excise Tax Act with an equivalent excise duty under the Excise Act, 2001.
The current Excise Act has remained largely unchanged since 1883, with periodic amendments to address specific issues. These Regulations will require certain conditions to be met to obtain and maintain a licence or registration, including age and sufficient financial resource requirements, which will provide a more comprehensive but strengthened licensing framework. The Regulations will also allow for the licensing of the applicant rather than the current requirement to licence each premise. This approach is consistent with the Canada Customs and Revenue Agency's (CCRA) initiative to provide a unique client identifier to replace the various account numbers a business was obliged to hold for GST, corporate income tax, excise tax, and excise duty. Furthermore, while the Minister will retain the power to cancel or suspend a licence, the criteria for exercising that power will be formalized.
Government officials (Finance and CCRA) committed, during consultations with industry, to bring these Regulations into force four to 6 months prior to the Act's implementation date of July 1, 2003. This will allow the affected industries and the CCRA the time to prepare for the implementation of the new framework.
Alternatives
There is no practical alternative to this proposal. The Regulations are necessary to implement the provisions of the new Act, which will replace the current Excise Act.
Benefits and Costs
The requirement and cost to licence each premise will be removed and replaced by the licensing of the applicant. This will allow a licence holder to operate from a number of premises under one licence and will also provide consistency with other statutes administered by the CCRA. The Regulations will provide the CCRA with more flexibility to meet the requirements of a modern Excise compliance policy by replacing a number of onerous requirements while maintaining a structure that allows for the screening of applicants and the regulation of industries that impact the social welfare of Canadians.
There will be initial systems-related implementation costs to some of the affected industries, but it is anticipated that savings that result from the administration of the new legislation will offset such costs. There will be implementation costs incurred by the CCRA.
Consultation
The CCRA carried out extensive consultations with the affected industries. Draft regulations were released in December 2001, and a Notice distributed in April of 2002 to all current and potential licence and registration holders, drawing their attention to the draft regulations and asking for submissions by June 30, 2002. Personal presentations and meetings were also held with industry groups expressing interest, and their comments and suggestions were actively sought and taken into consideration.
Compliance and Enforcement
The CCRA has resources in place dedicated to the implementation of the Excise Act, 2001. To promote compliance, affected parties will be provided with licensing packages four to six months prior to the Act's implementation date of July 1, 2003 and guidelines will be made available to the public. The licensing and registration requirements and the existing administrative framework within the CCRA will be sufficient for the purposes of enforcing the provisions of these Regulations and the relevant sections of the Excise Act, 2001. The continued practice of posting security for spirits licensees and tobacco licensees will also complement the proposed collection tools.
A comprehensive training program is being developed to prepare Excise officials in all regions of the country for the implementation of the Excise Act, 2001.
Mark Hartigan, Manager, Excise Act, 2001 — Implementation, Excise Duties and Taxes Division, Excise and GST/HST Rulings Directorate, Policy and Legislation Branch, Place de Ville, 20th Floor, 320 Queen Street, Ottawa, Ontario K1A 0L5, (613) 954-5894 (Telephone), (613) 954-2226 (Facsimile).
Notice is hereby given that the Governor in Council proposes, pursuant to subsection 304(1) of the Excise Act, 2001 (see footnote e) , to make the annexed Regulations Respecting Excise Licences and Registrations.
Interested persons may make representations with respect to the proposed Regulations within 15 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part I, and the date of publication of this notice, and be addressed to Mr. Mark Hartigan, Policy and Legislation Branch, Canada Customs and Revenue Agency, 20th Floor, Tower A, Place de Ville, 320 Queen Street, Ottawa, Ontario K1A 0L5.
Persons making representations should identify any of those representations the disclosure of which should be refused under the Access to Information Act, in particular under sections 19 and 20 of that Act, and should indicate the reasons why and the period during which the representations should not be disclosed. They should also identify any representations for which there is consent to disclosure for the purposes of that Act.
Ottawa, January 30, 2003
EILEEN BOYD
Assistant Clerk of the Privy Council
REGULATIONS RESPECTING EXCISE LICENCES AND REGISTRATIONS
INTERPRETATION
1. The following definitions apply in these Regulations.
"Act" means the Excise Act, 2001. (Loi)
"licence" means a licence issued under section 14, 19, 20 or 22 of the Act. (licence)
"registration" means a registration issued under any of sections 15 to 18 of the Act. (autorisation)
ISSUANCE OF LICENCE
2. (1) In order to be issued a licence, a person must submit to the Minister a completed application, in the form authorized by the Minister, accompanied by a list of the premises in respect of which the application is being made.
(2) Subject to subsections (3) and (4), an applicant is eligible for a licence, other than a licence issued under section 22 of the Act, if
(a) they are not the subject of a receivership in respect of their debts;
(b) they have not, in the five years immediately before the date of the application,
(i) failed to comply with any Act of Parliament, other than the Act, or of the legislature of a province respecting the taxation of or controls on alcohol or tobacco products or any regulations made under it, or
(ii) acted to defraud Her Majesty;
(c) in the case of an applicant who is an individual, they
(i) are at least eighteen years of age, and
(ii) have sufficient financial resources to conduct their business in a responsible manner;
(d) in the case of an applicant that is a partnership or unincorporated body,
(i) where the partnership or unincorporated body is composed only of individuals, each of the individuals meets the requirement of subparagraph (c)(i) and the partnership or unincorporated body meets the requirement of subparagraph (c)(ii),
(ii) where the partnership or unincorporated body is composed only of corporations, each of the corporations meets the requirement of subparagraph (c)(ii), and
(iii) where the partnership or unincorporated body is composed of both individuals and corporations, each of the individuals meets the requirement of subparagraph (c)(i) and the partnership or unincorporated body and each of the corporations meet the requirement of subparagraph (c)(ii); and
(e) in the case of an applicant that is a corporation, the corporation meets the requirement of subparagraph (c)(ii).
(3) Subject to subsection (4), an applicant for a licence issued under section 19 of the Act authorizing them to possess in their excise warehouse non-duty-paid packaged alcohol must, in addition to meeting the requirements of subsection (2), where the province in which the warehouse is located has enacted legislation respecting the warehousing of packaged alcohol, be authorized by that province or its liquor authority to warehouse the alcohol at that warehouse.
(4) The additional requirement referred to in subsection (3) does not apply to an applicant who is an alcohol licensee that is producing or packaging alcohol in the province where the warehouse is located.
(5) An applicant who is licensed under paragraph 24(1)(c) of the Customs Act to operate a duty free shop is eligible for a licence issued under section 22 of the Act.
ISSUANCE OF REGISTRATION
3. (1) In order to be issued a registration, a person must submit to the Minister a completed application, in the form authorized by the Minister, accompanied by a list of the premises in respect of which the application is being made.
(2) An applicant is eligible for a registration if
(a) they are not the subject of a receivership in respect of their debts; and
(b) they have not, in the five years immediately before the date of the application,
(i) failed to comply with any Act of Parliament, other than the Act, or of the legislature of a province respecting the taxation of or controls on alcohol or tobacco products or any regulations made under it, or
(ii) acted to defraud Her Majesty.
DURATION OF LICENCE
4. A licence is valid for the period specified in the licence, which period shall not exceed two years.
SECURITY
5. (1) For the purposes of paragraph 23(3)(b) of the Act, the amount of security to be provided by an applicant for a spirits licence or a tobacco licence is an amount of not less than $5000 and
(a) in the case of a spirits licence, be sufficient to ensure payment of all amounts in respect of bulk spirits referred to in sections 104 to 112 of the Act for which the licensee is or will be responsible up to a maximum amount of $2 million; and
(b) in the case of a tobacco licence, be sufficient to ensure payment of the amount of duty referred to in paragraph 160(1)(b) of the Act up to a maximum amount of $2 million.
(2) The types of security that are acceptable for the purposes of paragraph 23(3)(b) of the Act are
(a) cash;
(b) a certified cheque;
(c) a transferable bond issued by the Government of Canada; or
(d) a bond issued by
(i) an entity that is licensed or otherwise authorized under the laws of Canada or of a province to carry on the fidelity or surety class of insurance business in Canada and that is recommended to the Treasury Board by the Office of the Superintendent of Financial Institutions as an entity whose bonds may be accepted by the Government of Canada,
(ii) a member of the Canadian Payments Association referred to in section 4 of the Canadian Payments Act,
(iii) a corporation that accepts deposits insured by the Canada Deposit Insurance Corporation or the Régie de l'assurance-dépôts du Québec to the maximum permitted by the statutes under which those institutions were established,
(iv) a credit union as defined in subsection 137(6) of the Income Tax Act, or
(v) a corporation that accepts deposits from the public, if repayment of the deposits is guaranteed by Her Majesty in right of a province.
NOTIFICATION OF CHANGES
6. Every licensee and registrant shall, without delay, notify the Minister in writing of any changes to any of the information provided under these Regulations.
7. Every licensee shall, without delay, notify the Minister in writing of any changes to the licensee's fiscal months.
AMENDMENT OF LICENCE OR REGISTRATION
8. The Minister shall amend a licence or registration if the Minister receives a notification pursuant to section 6 that necessitates the amendment.
RENEWAL OF LICENCE
9. (1) In order to have a licence renewed, a licensee must submit to the Minister a completed renewal application, in the form authorized by the Minister, not less than thirty days before the day on which the licence expires.
(2) A licensee is eligible to have a licence renewed if they have not ceased to meet the applicable requirements of section 2.
SUSPENSION OF LICENCE OR REGISTRATION
10. (1) The grounds for the suspension of a licence or registration by the Minister are that the licensee or registrant fails to meet
(a) any of the applicable requirements of section 6, 7 or 13; or
(b) the conditions of the licence or registration.
(2) The Minister shall, immediately after suspending a licence or registration, notify the licensee or registrant in writing of the suspension and provide all relevant information concerning the grounds for the suspension.
(3) The licensee or registrant may, within 90 days after the day on which the licence or registration is suspended, make representations to the Minister respecting the reasons why the licence or registration should be reinstated.
11. The Minister shall reinstate a suspended licence or registration if the grounds for the suspension cease to exist.
CANCELLATION OF LICENCE OR REGISTRATION
12. (1) The grounds for the cancellation of a licence or registration by the Minister are that the licensee or registrant
(a) requests the Minister in writing to cancel the licence or registration;
(b) is bankrupt;
(c) ceases to meet the applicable requirements of section 2 or 3, as the case may be;
(d) ceases to carry on the business for which the licence or registration was issued;
(e) fails to comply with any Act of Parliament, other than the Act, or of the legislature of a province respecting the taxation of or controls on alcohol or tobacco products, or any regulations made under it; or
(f) acts to defraud Her Majesty.
(2) The Minister shall, before cancelling a licence or registration on any of the grounds referred to in paragraphs (1)(b) to (f), give the licensee or registrant 90 days notice of the proposed cancellation and provide them with all relevant information concerning those grounds.
(3) The licensee or registrant may, within 90 days after the day on which the notice referred to in subsection (2) is given, make representations to the Minister respecting the reasons why the licence or registration should not be cancelled.
FACILITIES, EQUIPMENT AND PERSONNEL
13. Every licensee and registrant shall provide, at the premises in respect of which the licence or registration is issued,
(a) adequate space for the examination of goods or records by an officer;
(b) the equipment and personnel necessary to ensure that the goods or records to be examined are made available to the officer; and
(c) the personnel necessary to furnish information, for audit purposes, to an officer with respect to the operations, inventory system and records system of the licensee or registrant.
COMING INTO FORCE
14. These Regulations take effect on April 1, 2003.
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S.C. 2001, c. 25, s. 61
S.C. 1992, c. 28, s. 30(1)
S.C. 1992, c. 28, s. 31(1)
R.S., c. (2nd Supp.)
S.C. 2002, c. 22
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