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Vol. 136, No. 45 — November 9, 2002
Regulations Amending the Income Tax Regulations (Part LXXXIX)
Statutory Authority
Income Tax Act
Sponsoring Department
Department of Finance
REGULATORY IMPACT ANALYSIS STATEMENT
Description
These amendments to Part LXXXIX of the Income Tax Regulations (the Regulations) effect three things.
First, as part of the Department of Finance's Miscellaneous Regulations program, section 8900 of the Regulations is broken into two subsections to update the wording of the section, to mention with more precision the provisions of the Income Tax Act (the Act) under which certain international organizations and international non-governmental organizations are prescribed and to replace the reference to the International Society of Aeronautical Communications with a reference to the Société internationale de télécommunications aéronautiques (SITA), SITA's legal name. SITA is headquartered in Geneva, Switzerland.
Second, a reference to an international non-governmental organization, the World Anti-doping Agency (WADA) is added in new subsection 8900(2). As a result, certain employees of WADA may not have to pay tax on their employment income derived from WADA, if the conditions set out in paragraph 110(1)(f) of the Act are met. This addition is relieving in nature and applies to the 2001 and subsequent taxation years.
Third, new section 8901 of the Regulations is added. Under this section, the Gaz Métropolitain and Company, Limited Partnership (Gaz Métropolitain), is a "prescribed partnership" for the purpose of paragraph (b) of the definition "fiscal period" in subsection 249.1(1) of the Act. As a result, the fiscal period of the Gaz Métropolitain may end no more than 12 months after it began in a year rather than at the end of December of each calendar year. This addition is relieving in nature. It applies to fiscal periods that begin after 1994, as did the amendment to the Act that enabled the enactment of section 8901 (see section 189 of the Income Tax Amendments Act, 2000, S.C. 2001, c. 17).
Alternatives
No alternatives were considered.
Benefits and Costs
These amendments are relieving in nature, and their fiscal impact is minimal.
Consultation
SITA alone was consulted with respect to the miscellaneous program amendments.
The Canada Customs and Revenue Agency, the Department of Foreign Affairs and International Trade, Sports Canada, Montreal International, and WADA were consulted with respect to the amendments to section 8900 affecting WADA's employees.
Gaz Métropolitain and the Canada Customs and Revenue Agency were consulted with respect to the enactment of section 8901.
Compliance and Enforcement
The Income Tax Act provides the necessary compliance mechanisms for the Income Tax Regulations.
Contacts
With respect to section 8900: Ryan Hall, Tax Legislation Division, Department of Finance, L'Esplanade Laurier, 140 O'Connor Street, Ottawa, Ontario K1A 0G5, (613) 996-5155. With respect to section 8901: Kerry Harnish, Tax Legislation Division, Department of Finance, L'Esplanade Laurier, 140 O'Connor Street, Ottawa, Ontario K1A 0G5, (613) 992-4385.
PROPOSED REGULATORY TEXT
Notice is hereby given that the Governor in Council, pursuant to section 221 (see footnote a) of the Income Tax Act (see footnote b) , proposes to make the annexed Regulations Amending the Income Tax Regulations (Part LXXXIX).
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 Ryan Hall or Kerry Harnish, Tax Legislation Division, Department of Finance, 17th Floor, East Tower, L'Esplanade Laurier, 140 O'Connor Street, Ottawa, Ontario K1A 0G5.
Ottawa, November 7, 2002
EILEEN BOYD
Assistant Clerk of the Privy Council
REGULATIONS AMENDING THE INCOME TAX REGULATIONS (PART LXXXIX)
AMENDMENTS
1. Section 8900 of the Income Tax Regulations (see footnote 1) and the heading "PRESCRIBED ORGANIZATIONS" before it are replaced by the following:
ENTITIES PRESCRIBED WITH RESPECT TO CERTAIN RULES
International Organizations
8900. (1) For the purpose of subparagraph 110(1)(f)(iii) of the Act, the following international organizations are prescribed:
(a) the United Nations; and
(b) each international organization that is a specialized agency brought into relationship with the United Nations in accordance with Article 63 of the Charter of the United Nations.
International Non-governmental Organizations
(2) For the purpose of subparagraph 110(1)(f)(iv) of the Act, the following international non-governmental organizations are prescribed:
(a) the International Air Transport Association;
(b) the Société internationale de télécommunications aéronautiques; and
(c) the World Anti-Doping Agency.
2. The Regulations are amended by adding the following after section 8900:
Partnership
8901. For the purpose of paragraph 249.1(1)(b) of the Act, Gaz Métropolitain and Company, Limited Partnership is a prescribed partnership.
APPLICATION
3. Section 1 applies to the 2001 and subsequent taxation years.
4. Section 2 applies to fiscal periods that begin after 1994.
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Order Amending the Export Control List
Statutory Authority
Export and Import Permits Act
Sponsoring Department
Department of Foreign Affairs and International Trade
REGULATORY IMPACT ANALYSIS STATEMENT
Description
The amendment to the Export Control List (ECL) consists of three changes.
First, the definition of "Guide" in section 1 is replaced and now refers to the latest version of A Guide to Canada's Export Controls dated April 2002. This does not imply that the Guide attains the status of a regulation.
Second, Canada is party to several international arrangements and commitments. Since the last edition of the Guide, some commitments undertaken under these agreements have been modified. In order to implement these international commitments, including both additions to and deletions from the control lists, changes are required to various groups of the Guide.
Specifically, changes have been made to Groups 1 and 2 due to Wassenaar Arrangement commitments, notably, the removal of the control limits on microprocessor integrated circuits (ECL Category 1030), microcomputers and digital computer external interconnect equipment and other computer-related equipment (ECL Category 1040), the removal of controls on telecommunication equipment (ECL Category 1050), and the removal of controls on mass market cryptographic products and relaxation of control limits on bit lengths (ECL Category 1150); the addition of hybrid inertial navigation systems (ECL Category 1070) and of unmanned aerial vehicles (ECL Category 1090). As well, Group 2 was further modified to delete permit exemptions as a result of commitments under the Inter-American Convention Against the Illicit Manufacturing of and Trafficking in Firearms, Ammunition, Explosives, and other Related Materials. It should be noted that item 5500, which controlled prohibited firearms, has been rolled into item 2001. Amendments to Groups 3 and 4 are due to changes in the Information Circular 254 of the Nuclear Suppliers' Group commitments. Group 6 has undergone a comprehensive rewrite to mirror the changes in the Missile Technology Control Regime. These changes reflect the structure of the other international regimes to specifically identify equipment, assemblies and components, test and production equipment, materials, software and technology for each category. Finally, minor changes to Groups 7 and 8 are due to Australia Group commitments and Chemical Action Task Force commitments, respectively. These modified commitments are reflected in the wording of the amendment to section 2 of the ECL.
Third, since the last edition of the Guide, additional items have been added to Group 5. These additions include blinding laser weapons, nuclear fusion reactors, anti-personnel mines, other strategic goods and goods for certain uses (catch-all).
Alternatives
The alternative is to keep the status quo. However, in order for Canada to live up to its international commitments and for Canada's export policies to be effectively implemented, the ECL and the Guide must both reflect current commitments and policies. To retain goods on the lists, when other countries have removed such items from control, would place Canadian exporters at a disadvantage. Canadian industry would continue to be subject to export controls, whereas their foreign competitors would not. As well, for items that have been newly added to the multilateral control lists, to fail to place these under Canadian export controls at an early date could affect Canadian and international security.
Benefits and Costs
The amendment would allow Canada to better observe its international and multilateral commitments with other like-minded countries. The amendment reflects the current status of Canada's commitments and should improve efficiencies for permit applications.
The substantive portion of the amendment reflects Canada's international commitments.
The costs associated with these amendments for the Government are limited to the administrative cost of the amendment and subsequent circulation of the new Regulations. At the same time, the impact on exporters will be minimal as the amendments will only impose export permit requirements on a limited number of exporters.
Consultation
As is customary when dealing with potential changes to Canada's export controls, the Department consulted with private industry, industry associations, various divisions within the Department of Foreign Affairs and International Trade, and various Canadian departments and agencies in the elaboration of its positions prior to entering into international negotiations.
Compliance and Enforcement
The ECL defines the goods and conditions under which exporters are required to obtain export permits. Canada Customs and Revenue Agency enforces the Regulations, including the examination of export documents on all exports. Failure to possess the required export permit can result in prosecution and conviction under the Export and Import Permits Act.
Contact
Mr. Thomas E. Jones, Deputy Director (Technology), Export Controls Division, Export and Import Controls Bureau, 125 Sussex Drive, Ottawa, Ontario K1A 0G2, (613) 996-0197 (Telephone), (613) 996-9933 (Facsimile).
PROPOSED REGULATORY TEXT
Notice is hereby given that the Governor in Council, pursuant to paragraph 3(d) and section 6 of the Export and Import Permits Act, proposes to make the annexed Order Amending the Export Control List.
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 Thomas Jones, Deputy Director, Export Controls Division, Department of Foreign Affairs and International Trade, 125 Sussex Drive, Ottawa, Ontario K1A 0G2.
Ottawa, November 7, 2002
EILEEN BOYD
Assistant Clerk of the Privy Council
ORDER AMENDING THE EXPORT CONTROL LIST
AMENDMENTS
1. The definition "Guide" in section 1 of the Export Control List (see footnote 2) is replaced by the following:
"Guide" means A Guide to Canada's Export Controls, published in April 2002 by the Department of Foreign Affairs and International Trade. (Guide)
2. Section 2 of the List is replaced by the following:
2. The following goods, when intended for export to the destinations specified, are subject to export control for the purposes set out in section 3 of the Export and Import Permits Act:
(a) goods referred to in Groups 1, 2, 6, 7 and 8 of the schedule, except for goods set out in items 2001, 2002(a) and (b), 2003 and 2004(a), Categories 6010 and 6020 and items 7002, 7003, 7012 and 7013 of the Guide, that are intended for export to any destination other than the United States;
(b) goods referred to in Groups 3 and 4 of the schedule and goods set out in items 2001, 2002(a) and (b), 2003 and 2004(a), Categories 6010 and 6020 and items 7003, 7012, 7013, 8011.1 (Ephedrine) and 8011.6 (Pseudoephedrine) of the Guide that are intended for export to any destination;
(c) goods referred to in Group 5 of the schedule that are intended for export to any destination referred to in the item in which the goods are described; and
(d) goods set out in item 7002 of the Guide that are intended for export to any destination other than those destinations referred to in the item in which the goods are described.
COMING INTO FORCE
3. This Order comes into force on the day on which it is registered.
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Regulations Amending the Food and Drug Regulations (1340 — Imidacloprid)
Statutory Authority
Food and Drugs Act
Sponsoring Department
Department of Health
REGULATORY IMPACT ANALYSIS STATEMENT
Description
Imidacloprid is registered under the Pest Control Products Act as an insecticide for the control of Colorado potato beetles, flea beetles, aphids and other insect pests on apples, cucumbers, lettuce, mustard, potatoes, rapeseed (canola) and tomatoes. Maximum Residue Limits (MRLs) have been established under the Food and Drugs Act for residues of imidacloprid and its metabolites resulting from these uses at 6 parts per million (p.p.m.) in tomato paste, 3.5 p.p.m. in lettuce, 3 p.p.m. in tomato purée, 1 p.p.m. in tomatoes, 0.5 p.p.m. in apples and cucumbers, 0.3 p.p.m. in potatoes and 0.05 p.p.m. in rapeseed (canola) and mustard seed. MRLs have also been established at 3.5 p.p.m. in brassica crops, 1.5 p.p.m. in grapes, 1 p.p.m. in citrus fruits and peppers, 0.6 p.p.m. in pears, 0.2 p.p.m. in mangoes and 0.05 p.p.m. in cottonseed oil and pecans imported into Canada, in order to permit the sale of food containing these residues. By virtue of subsection B.15.002(1) of the Food and Drug Regulations, the MRL for other foods is 0.1 p.p.m.
The Pest Management Regulatory Agency (PMRA) of Health Canada has recently approved an application to amend the registration of imidacloprid in order to allow its use for the control of aphids on blueberries, and western cherry fruit flies and black cherry fruit flies on sour cherries and sweet cherries. This proposed regulatory amendment would establish MRLs for residues of imidacloprid and its metabolites resulting from this use in blueberries, sour cherries and sweet cherries, in order to permit the sale of food containing these residues.
Before making a registration decision regarding a new use of a pest control product, the PMRA conducts the appropriate assessment of the risks and value of the product specific to its proposed use. The registration of the pest control product will be amended if: the data requirements for assessing value and safety have been adequately addressed; the evaluation indicates that the product has merit and value; and the human health and environmental risks associated with its proposed use are acceptable.
The human health risk assessment includes an assessment of dietary risks posed by expected residues of the pest control product, as determined through extensive toxicological studies. An acceptable daily intake (ADI) and/or acute reference dose (ARD) is calculated by applying a safety factor to a no observable adverse effect level or, in appropriate cases, by applying a risk factor which is calculated based on a linear low-dose extrapolation. The potential daily intake (PDI) is calculated from the amount of residue that remains on each food when the pest control product is used according to the proposed label, and the intake of that food from both domestic and imported sources in the diet. PDIs are established for various Canadian subpopulations and age groups, including infants, toddlers, children, adolescents and adults. Provided the PDI does not exceed the ADI or ARD for any subpopulation or age group, and the lifetime risk is acceptable, the expected residue levels are established as MRLs under the Food and Drugs Act to prevent the sale of food with higher residue levels. Since, in most cases, the PDI is well below the ADI and lifetime risks are very low when MRLs are originally established, additional MRLs for the pest control product may be added in the future.
After the review of all available data, the PMRA has determined that an MRL for imidacloprid, including its metabolites, of 3 p.p.m. in sour cherries and sweet cherries and of 1 p.p.m. in blueberries would not pose an unacceptable health risk to the public.
Alternatives
Under the Food and Drugs Act, it is prohibited to sell food containing residues of pest control products at a level greater than 0.1 p.p.m. unless a higher MRL has been established in Table II, Division 15, of the Food and Drug Regulations. In the case of imidacloprid, the establishment of MRLs for blueberries, sour cherries and sweet cherries is necessary to support the additional use of a pest control product which has been shown to be both safe and effective, while at the same time preventing the sale of food with unacceptable residues.
As a means to improve the responsiveness of the regulatory system, an Interim Marketing Authorization (IMA) was issued on August 24, 2002, to permit the immediate sale of sour cherries and sweet cherries containing residues of imidacloprid with an MRL of 3 p.p.m. while the regulatory process to formally amend the regulation is undertaken.
Benefits and Costs
The use of imidacloprid on blueberries, sour cherries and sweet cherries will provide joint benefits to consumers and the agricultural industry as a result of the improved management of pests. In addition, this proposed regulatory amendment will contribute to a safe, abundant and affordable food supply by allowing the importation and sale of food commodities containing acceptable levels of pesticide residues.
Some costs may be incurred related to the implementation of analytical methods for analysis of imidacloprid and its metabolites in the foods mentioned above. Resources required are not expected to result in significant costs to the Government.
Consultation
Registration decisions, including dietary risk assessments, made by the PMRA are based on internationally recognized risk management principles, which are largely harmonized among member countries of the Organization for Economic Cooperation and Development. Individual safety evaluations conducted by the PMRA include a review of the assessments conducted at the international level as part of the Joint Food and Agriculture Organization of the United Nations/World Health Organization Food Standards Programme in support of the Codex Alimentarius Commission, as well as MRLs adopted by other national health/ regulatory agencies.
Compliance and Enforcement
Compliance will be monitored through ongoing domestic and/or import inspection programs conducted by the Canadian Food Inspection Agency when the proposed MRLs for imidacloprid are adopted.
Contact
Geraldine Graham, Alternative Strategies and Regulatory Affairs Division, Pest Management Regulatory Agency, Health Canada, Address Locator 6607D1, 2720 Riverside Drive, Ottawa, Ontario K1A 0K9, (613) 736-3692 (Telephone), (613) 736-3659 (Facsimile), geraldine_graham@hc-sc.gc.ca (Electronic mail).
PROPOSED REGULATORY TEXT
Notice is hereby given that the Governor in Council, pursuant to subsection 30(1) (see footnote c) of the Food and Drugs Act, proposes to make the annexed Regulations Amending the Food and Drug Regulations (1340 — Imidacloprid).
Interested persons may make representations with respect to the proposed Regulations within 75 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 Geraldine Graham, Alternative Strategies and Regulatory Affairs Division, Pest Management Regulatory Agency, Department of Health, Address Locator 6607D1, 2720 Riverside Drive, Ottawa, Ontario K1A 0K9 (tel.: (613) 736-3692; fax: (613) 736-3659; e-mail: geraldine_graham@hc-sc.gc.ca).
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, November 7, 2002
EILEEN BOYD
Assistant Clerk of the Privy Council
REGULATIONS AMENDING THE FOOD AND DRUG REGULATIONS (1340 — IMIDACLOPRID)
AMENDMENT
1. The portion of item I.2.1 of Table II to Division 15 of Part B of the Food and Drug Regulations (see footnote 3) in columns II to IV is replaced by the following:
Item No. |
II Chemical Name of Substance |
III Maximum Residue Limit p.p.m. |
IV Foods |
|---|---|---|---|
| I.2.1 | 1-[(6-chloro-3-pyridinyl)methyl]- 4,5-dihydro-N-nitro-1H-imidazol-2-amine, including metabolites containing the 6-chloropicolyl moiety |
6 | Tomato paste |
| 3.5 | Brassica crops, lettuce | ||
| 3 | Sour cherries, sweet cherries, tomato purée | ||
| 1.5 | Grapes | ||
| 1 | Blueberries, citrus fruits, peppers, tomatoes | ||
| 0.6 | Pears | ||
| 0.5 | Apples, cucumbers | ||
| 0.3 | Potatoes | ||
| 0.2 | Mangoes | ||
| 0.05 | Cottonseed oil, mustard seed, pecans, rapeseed (canola) |
COMING INTO FORCE
2. These Regulations come into force on the day on which they are registered.
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Regulations Prescribing Alternative Means of Publication (Foreign Companies)
Statutory Authority
Insurance Companies Act
Sponsoring Agency
Office of the Superintendent of Financial Institutions
REGULATORY IMPACT ANALYSIS STATEMENT
Description
The proposed Regulations Prescribing Alternative Means of Publication (Foreign Companies) are made pursuant to subsection 1015(1) of the Insurance Companies Act (the "Act"). These Regulations prescribe that the information referred to in section 585 of the Act may be published on the Web site of the Office of the Superintendent of Financial Institutions (OSFI) at www.osfi-bsif.gc.ca instead of being published in the Canada Gazette.
Section 585 of the Act requires OSFI to publish quarterly in the Canada Gazette certain information on foreign insurance companies. This information includes a list of the foreign companies, the classes of insurance specified in the orders of the Superintendent approving the insurance of risks by them, their chief agents and the place where their chief agencies are situated. Currently, this information is published, on a quarterly basis, in a Supplement to the Canada Gazette (the "Supplement"). This costs OSFI approximately $20,000 per year.
OSFI recently started to post the above information on its Web site on a monthly basis in the same format as that of the Supplement. The information published in the Supplement is therefore now redundant. In addition, the information published in the Supplement is not as timely as the information available on the OSFI Web site.
Subsection 1015(1) of the Act provides authority for the Government to prescribe alternative means of publication for anything that is required by the Act to be published in the Canada Gazette. The proposed Regulations prescribe that the information referred to in section 585 of the Act may be published on the OSFI Web site instead of in the Canada Gazette.
The elimination of the paper Supplement will reduce OSFI's publishing costs. It will also provide a more timely service to stakeholders since the information will, in most instances, be posted and updated monthly (rather than quarterly) on the OSFI Web site, even though, by law, it is only required to be updated quarterly. In addition, upon request, OSFI will provide a hard copy of the information required to be published under section 585 of the Act, free of charge, to members of the public who do not have access to the Web site.
Alternatives
I. Continue to publish the information required by section 585 of the Act in the Supplement.
II. Enact Regulations under subsection 1015(1) of the Act to prescribe that information referred to in section 585 may be published on the OSFI Web site instead of being published in the Canada Gazette.
Analysis
Prescribing alternative means of publication to permit OSFI to publish this information on the OSFI Web site instead of in the Canada Gazette would reduce OSFI's publishing costs by approximately $20,000 per year. Stakeholders would also receive better service as the information would be updated more frequently and would be more accessible. As a result, OSFI has chosen to enact the Regulations (Alternative II).
Benefits and Costs
Benefits
OSFI will save approximately $20,000 per year if the information contained in the Supplement is no longer required to be published in the Canada Gazette. Any savings would serve to reduce OSFI's expenses that are assessed to the industry. Users would also benefit from more timely service (monthly rather than quarterly updates) and better access to the information (currently there are, on average, 4 000 individual visits to this particular information on OSFI's Web site every month). This would be consistent with the federal government's "Government On-Line" initiative.
Costs
The costs of enacting regulations prescribing that the information be published on the OSFI Website will be minimal. The information contained in the Supplement is currently posted and updated monthly on OSFI's Web site. OSFI maintains an updated list of this information on a daily basis and therefore the work involved in posting this information on the Web site would involve little additional resources.
Consultation
A notice was posted in the January, April and July 2002 Supplements informing stakeholders that a monthly update of the information contained in the Supplement is also available on OSFI's Web site at www.osfi-bsif.gc.ca.
OSFI sent a letter to the Canadian Life and Health Insurance Association Inc., the Insurance Bureau of Canada and members of the Canadian Council of Insurance Regulators informing them of the proposed Regulations and asking for comments. No objections were received.
In the October 2002 Supplement, OSFI published a notice informing stakeholders of the intent to proceed with regulations prescribing alternative means of publication. Readers were given an opportunity to comment on the proposed regulations. This notice also indicated that OSFI would provide a hard copy of this information, free of charge, to members of the public who do not have access to the Web site.
Compliance and Enforcement
These amendments will not require any change in OSFI procedures and no additional personnel resources are required.
Contact
Luc Morin, Access Advisor, Office of the Superintendent of Financial Institutions, Ottawa, Ontario K1A 0H2, (613) 990-7495 (Telephone), (613) 952-5031 (Facsimile).
PROPOSED REGULATORY TEXT
Notice is hereby given that the Governor in Council, pursuant to section 1015 (see footnote d) and paragraph 1021(a) (see footnote e) of the Insurance Companies Act (see footnote f) , proposes to make the annexed Regulations Prescribing Alternative Means of Publication (Foreign Companies).
Interested persons may make representations with respect to the proposed Regulations within thirty (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 Nancy Sauvé, Regulations Officer, Legislation and Precedents Division, Office of the Superintendent of Financial Institutions, 255 Albert Street, Ottawa, Ontario, K1A 0H2.
Ottawa, November 7, 2002
EILEEN BOYD
Assistant Clerk of the Privy Council
REGULATIONS PRESCRIBING ALTERNATIVE MEANS OF PUBLICATION (FOREIGN COMPANIES)
PUBLICATION ON THE INTERNET
1. The information concerning foreign companies that is required to be published quarterly in the Canada Gazette pursuant to section 585 of the Insurance Companies Act may, instead of being published in that way, be published on the Web site of the Office of the Superintendent of Financial Institutions.
COMING INTO FORCE
2. These Regulations come into force on the day on which they are registered.
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S.C. 2000, c. 12, s. 142 (Sch. 2, par. 1(z.34))
R.S., c. 1 (5th Supp.)
C.R.C., c. 945
SOR/89-202
S.C. 1999, c. 33, s. 347
C.R.C., c. 870
S.C. 2001, c. 9, s. 465
S.C. 2001, c. 9, s. 465
S.C. 1991, c. 47
NOTICE:
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