Precursor Control Regulations

17 (1) Subject to subsection (2), the Minister shall, in accordance with subsection 84(1), refuse to issue, renew or amend a licence if

• (a) the applicant is not eligible under section 12;

• (b) the Minister has reasonable grounds to believe that any information or document included in the application is false or misleading;

• (c) additional information required under section 15 has not been provided or is insufficient to enable the Minister to process the application;

• (d) the issuance, renewal or amendment of the licence would permit an activity that would not be in compliance with an international obligation of Canada;

• (e) information received from a competent authority, the United Nations or a peace officer raises a reasonable belief that the applicant has been or will be involved in the diversion of a controlled substance or precursor to an illicit market or use;

• (f) the applicant does not have in place the security measures required under subsection 9(2), section 83 and subsection 85(3) with respect to the precursors sought to be licensed;

• (g) the applicant is not, or within the previous 10 years has not been, in compliance with

  • (i) a provision of the Act or any regulation made or continued under the Act, or

  • (ii) a term or condition of a licence, registration or import or export permit issued to the applicant under any regulation made or continued under the Act;

• (h) the senior person in charge for the site, the responsible person in charge or the alternate responsible person in charge, if any, has been convicted, as an adult, within the previous 10 years, of

  • (i) a designated drug offence,

  • (ii) a designated criminal offence, or

  • (iii) an offence committed outside of Canada that, if committed in Canada, would have constituted an offence referred to in subparagraph (i) or (ii);

• (i) the proposed internal controls referred to in paragraph 14(1)(i) are not sufficient to

  • (i) support a reliable system of record-keeping in respect of Class A precursor activities and Class A precursor inventory at the site, or

  • (ii) permit the Minister to audit these precursor activities; or

• (j) the issuance, renewal or amendment of the licence would likely create a risk to public health, safety or security, including the risk of a Class A precursor being diverted to an illicit market or use.

(2) The Minister is not required to refuse to issue, renew or amend a licence under paragraph (1)(b) or (g) if the applicant

• (a) does not have a history of non-compliance with the Act and any regulation made or continued under the Act; and

• (b) has carried out, or signed an undertaking to carry out, specified corrective measures to ensure compliance with the Act and these Regulations.