Highlights

  • The Canadian government has made legislative changes to increase the minimum age of employment in federally regulated industries to 18 years, aligning with international labor standards.
  • Amendments to the Canada Labour Code and related regulations will enforce restrictions on hazardous work and night hours for young workers.
  • The CDIC has updated its by-laws to include the Tax-Free First Home Savings Account for separate insurance coverage.
  • The Canadian Hatching Egg Producers and the Canadian Egg Marketing Agency have adjusted levy rates for producers in various provinces.
  • The Canadian Securities Regulation Regime Transition Office is being dissolved, with its functions and knowledge transferred to the Department of Finance Canada.
  • Amendments to the CCOFTA Rules of Origin Regulations have been made to facilitate trade with Colombia and reflect updates to the international goods classification system.
  • The critical habitat for the threatened Silver Shiner species in Ontario is legally protected to prevent habitat destruction.
  • Corrections and adjustments to the Customs Tariff Schedule have been made, including a remission order for certain tobacco products to correct an unintended duty increase.
  • Changes to the Domestic Substances List include the addition of new substances and the updating of organism names.
  • The Kinistin Saulteaux Nation has transitioned to the First Nations Elections Act for its electoral system.
  • A remission order has been issued for anti-dumping duties on large diameter line pipe imports needed for natural gas projects due to domestic short supply.
  • Overpayments to beneficiaries of the Public Service Income Benefit Plan for Survivors of Employees Slain on Duty have been forgiven due to administrative errors.
  • Canada has banned the import of steel and aluminum goods from Russia as part of its sanctions in response to the invasion of Ukraine.
  • The CRTC has updated the Telecommunications Fees Regulations to align with current accounting standards and streamline the annual reporting process for service providers.

Canada Raises Minimum Employment Age to 18 in Federally Regulated Industries

The Canadian government has set June 12, 2023, as the date for sections 447 to 449 and 517 of the Budget Implementation Act, 2018, No. 2 to come into force. These sections will amend the Canada Labour Code to raise the minimum age of employment in federally regulated industries from 17 to 18 years. This change aligns with the International Labour Organization’s Minimum Age Convention, which Canada ratified in 2016, and addresses recommendations from the Federal Labour Standards Review to prohibit hazardous work for those under 18.

The amendments will affect Division II of Part III of the Code, which currently allows employment of persons under 17 in specified occupations under regulatory conditions. The new provisions will not only increase the minimum age but also correct a grammatical error in the French version of the Code and expand the regulation-making authority to include classes of employees. A transitional provision will also be implemented, allowing 17-year-olds employed at the time of the change to continue working in their current positions as if they were 18.

No consultations were held regarding these amendments as they were part of the process to comply with the International Labour Organization’s convention. The changes, including the transitional provision, will be enforced starting on the specified date in June 2023. [Source]

CDIC By-law Amended to Include Tax-Free First Home Savings Account

The Canada Deposit Insurance Corporation (CDIC) Board of Directors has amended the Co-owned and Trust Deposit Disclosure By-law to include the Tax-Free First Home Savings Account as a special income arrangement. This amendment aligns the By-law with changes to the CDIC Act brought about by the Fall Economic Statement Implementation Act, 2022, which added the first home savings account to the list of accounts eligible for separate insurance coverage. The amendment does not impose additional regulatory costs or administrative burdens on CDIC member institutions beyond those resulting from the legislative change itself. The amended By-law is set to come into force on April 1, 2023, or on the day it is registered if that occurs after April 1. No consultation was required for this amendment as it is a direct consequence of the changes made by Parliament. [Source]

Canada Raises Minimum Employment Age to 18 in Federally Regulated Industries

The Canadian government has amended the Canada Labour Standards Regulations to raise the minimum age of employment in federally regulated industries from 17 to 18 years. This change aligns with the International Labour Organization’s Minimum Age Convention, 1973 (C138), which Canada ratified in 2016, and the legislative amendments made through the Budget Implementation Act, 2018, No. 2. The amendments specify that individuals under 18 cannot be employed in hazardous work, which includes underground mines and other environments likely to harm their health or safety. Additionally, employers are prohibited from allowing employees under 18 to work between 11 p.m. and 6 a.m.

Employers are also required to keep records of the age of employees under 18. The changes aim to protect young workers by potentially reducing occupational injuries and ensuring Canada meets its international obligations. The cost-benefit analysis suggests that the benefits, including compliance with international standards and reduced risk of accidents, outweigh the costs if the historical average of injuries is maintained or reduced. The regulations will come into force on June 12, 2023, alongside the related amendments to the Canada Labour Code. Compliance will be enforced through inspections, voluntary compliance, compliance orders, or administrative monetary penalties. [Source]

Adjustment of Levies on Broiler Hatching Eggs in Canada

The Canadian Hatching Egg Producers have amended the Canadian Broiler Hatching Egg Marketing Levies Order. The amendments adjust the levies imposed on producers in Manitoba and those in non-signatory provinces. Specifically, the levy for producers in Manitoba is set at $0.013670 per broiler hatching egg marketed in interprovincial or export trade. For producers, dealers, and hatchery operators in non-signatory provinces, the levy is set at $0.014737 per broiler hatching egg when marketed in interprovincial trade into signatory provinces. These changes also involve the replacement of subsection 2(2) of the original Order. The Order comes into effect on the day it is registered. [Source]

Adjustment of Egg Levy Rates in Canadian Provinces by CEMA

The Canadian Egg Marketing Agency has amended the Canadian Egg Marketing Levies Order to adjust the levy rates paid by egg producers in several provinces. The new rates are set as follows: $0.2945 in Ontario, $0.3537 in British Columbia, $0.3215 in Prince Edward Island, and $0.3487 in Alberta. These changes are made under the authority of the Farm Products Agencies Act and are approved by the National Farm Products Council. The amendments are necessary for the implementation of the marketing plan that the Agency is authorized to implement. The Order comes into effect on the day it is registered. [Source]

Dissolution of Canadian Securities Regulation Regime Transition Office

The Canadian Securities Regulation Regime Transition Office, established in July 2009 to assist in creating a unified Canadian securities regulation regime and regulatory authority, is being dissolved as of March 30, 2023. The office’s operations ceased on March 31, 2022, and its dissolution will eliminate administrative expenses and reporting obligations. Remaining funds will be transferred to the federal government after all debts and liabilities are settled.

Initially, the Transition Office worked on a draft Canadian Securities Act and a plan for a national regulatory authority, but the Supreme Court of Canada ruled in 2011 that the Act was not constitutionally valid. However, the Court recognized federal jurisdiction over aspects of securities regulation related to systemic risk.

Post-2011, the office supported the development of a cooperative system between federal, provincial, and territorial governments, leading to the creation of the Capital Markets Authority Implementation Organization (CMAIO) to merge existing provincial and territorial regulators. Despite some progress, legislative delays led to CMAIO pausing operations in March 2021 and being dissolved in January 2022.

The Transition Office then focused on building capacity to manage systemic risk under the proposed federal Capital Markets Stability Act (CMSA), which was confirmed as constitutional by the Supreme Court in 2018. However, after a failed attempt to secure additional funding in 2021, the office began winding down.

The Canadian government remains committed to working with provinces and territories on the Cooperative System to enhance investor protection, reduce costs for companies, and support financial stability. The knowledge and work of the Transition Office have been transferred to the Department of Finance Canada for future use. No external consultations were conducted regarding the dissolution, but updates were provided to participating provinces and territories. [Source]

Canada Updates CCOFTA Rules of Origin Regulations in Line with HS Amendments

The Canadian government has amended the CCOFTA Rules of Origin Regulations to reflect updates agreed upon with Colombia. These changes are based on the 2012 and 2017 updates to the Harmonized System (HS), which is an international goods classification system. The amendments will allow Canadian traders to continue benefiting from preferential tariffs under the CCOFTA. Additionally, the amendments include a provision that future updates to the rules of origin agreed upon by Canada and Colombia will automatically come into force in Canada, streamlining the process and avoiding the need for separate regulatory approval.

The updates to the rules of origin are technical and revenue-neutral, designed to facilitate trade and provide clarity on the interpretation of the rules between Canada and Colombia. There is no expected change in the level of preferential trade as a result of these updates. The amendments will not impact small businesses or increase administrative burdens. They are not part of a regulatory cooperation forum but are necessary for Canada to fulfill its international commitments under the CCOFTA.

The Canada Border Services Agency (CBSA) will oversee compliance with the updated regulations as part of its standard customs and tariff administration. Importers will be informed of the changes through a Customs Notice. The amendments are non-discretionary and have no identified impacts on gender or the environment. [Source]

The Silver Shiner (Notropis photogenis), a threatened freshwater minnow species in southwestern Ontario, has had its critical habitat identified in a recovery strategy posted on the Species at Risk Public Registry. The Minister of Fisheries and Oceans Canada has issued an order to legally protect this critical habitat under the Species at Risk Act (SARA). The order prohibits the destruction of any part of the Silver Shiner’s critical habitat, which includes specific stream areas with varying flow rates suitable for different life stages of the fish.

The Silver Shiner faces threats from contaminants, nutrient and sediment loading, flow modification, barriers to movement like dams, and invasive species. The critical habitat encompasses the bankfull channel width, meander belt width, and adjacent riparian vegetation, which is essential for the species’ feeding and survival.

Consultations during the recovery strategy development included various stakeholders and Indigenous groups, particularly those with reserve lands near rivers containing critical habitat. The order complements existing habitat protections under the Fisheries Act, which already prohibits harmful alterations to fish habitats.

The regulatory impact of the order is expected to be negligible, as it aligns with current management practices under the Fisheries Act. The order does not impose new administrative costs on businesses, and any activities that might affect the critical habitat would require authorization under existing processes. Compliance and enforcement will be managed by Fisheries and Oceans Canada, with penalties for offences outlined in SARA. [Source]

Canada Corrects Duty Rate for Heated Tobacco Products and Offers Refunds

The Canadian government has made amendments to the Customs Tariff Schedule to correct an unintended increase in the customs duty rate for electronically heated tobacco products (EHTPs). The original update to the Customs Tariff, which was meant to be revenue-neutral and reflect changes in technology and trade patterns, inadvertently raised the duty rate for EHTPs from 9.5% to 13%. The new Order Amending the Schedule to the Customs Tariff, 2022-2, restores the customs duty rate for EHTPs to 9.5%. Additionally, the Electronic Heated Tobacco Products Remission Order has been introduced to allow importers to claim refunds for the excess customs duties they have paid since the original update took effect on January 1, 2022. The amendments ensure that the tariff rates remain neutral and consistent with the original intent of the Customs Tariff update. The Canada Border Services Agency (CBSA) will inform clients of the changes and process refund claims for eligible transactions dating back to January 1, 2022. [Source]

Canada Updates Domestic Substances List with Renamed Bacillus Polymyxa Strains

The Minister of the Environment of Canada has issued an amendment to the Domestic Substances List under the Canadian Environmental Protection Act, 1999. The amendment involves the deletion of two entries for the organism Bacillus polymyxa with the specific strains ATCC 842 and ATCC 55407 from Part 5 of the list. These entries are replaced with the new names for the same strains, now identified as Paenibacillus polymyxa ATCC 842 and Paenibacillus polymyxa ATCC 55407, respectively. The changes are made in alphabetical order under the “Organisms” section. The order takes effect on the day it is registered. [Source]

Canada Expands Domestic Substances List with 17 New Entries Under CEPA

The Minister of the Environment has approved the addition of 17 substances to the Domestic Substances List (DSL) under the Canadian Environmental Protection Act, 1999 (CEPA), as they have met the necessary criteria. This amendment includes 12 chemicals and polymers and 5 living organisms. Additionally, identifiers for two living organisms already on the DSL have been updated based on new information.

The DSL is an inventory of substances that are considered existing in the Canadian marketplace. Substances not listed are deemed new and are subject to assessment and notification requirements to ensure they do not pose risks to the environment or human health. The DSL is divided into eight parts, with Parts 1, 3, and 5 being relevant to these amendments, listing chemicals, polymers, and living organisms, respectively.

The addition of substances to the DSL is a routine process that occurs when a substance has been manufactured or imported into Canada in a significant quantity and has been assessed for safety. Once added to the DSL, substances are no longer subject to the same notification regulations, which facilitates their use in the marketplace.

The orders to amend the DSL do not introduce new regulatory requirements and therefore do not impact modern treaty rights or obligations. They are administrative actions that do not impose compliance costs on businesses or enforcement costs on the government. The orders are consistent with international obligations and do not require a strategic environmental assessment or a gender-based analysis plus (GBA+).

For compliance and enforcement inquiries, individuals can contact the Substances Management Information Line. Non-compliance with CEPA is addressed according to the Canadian Environmental Protection Act: compliance and enforcement policy. [Source]

Canada Amends Domestic Substances List to Include New Genetically Modified Viruses

The Canadian Minister of the Environment has issued an order to amend the Domestic Substances List to include several new living organisms. These organisms are recombinant adeno-associated viruses and live-attenuated dengue viruses that have been genetically modified. The addition to the list follows the provision of information from the manufacturers or importers of these organisms, as required under the Canadian Environmental Protection Act, 1999. The assessment period for these organisms has passed, and no restrictions have been placed on them. Consequently, the order to amend the list has been made, and it will take effect on the day it is registered. [Source]

Remission of Customs Duties for Certain Imported Tobacco Products

The Electronic Heated Tobacco Products Remission Order grants a remission of customs duties for certain imported tobacco products. Specifically, it applies to goods that were classified under a new tariff item upon importation after January 1, 2022, but would have fallen under a different tariff item with a potentially lower duty rate if imported on December 31, 2021. The remission covers the difference in customs duties that were paid under the new classification and what would have been paid under the previous classification. To receive this remission, a claim must be made to the Minister of Public Safety and Emergency Preparedness within two years of the goods’ importation date. The Order takes effect on the day it is registered. [Source]

Modernization of Canada’s Fiscal Stabilization Program Regulations

The Canadian government has amended the Federal-Provincial Fiscal Arrangements Regulations to modernize the Fiscal Stabilization Program (FSP), which provides financial assistance to provinces experiencing significant revenue declines. The changes include updating the definitions and calculations for personal and corporate income tax revenues to align with recent legislative updates, and specifying the data to be used in determining fiscal stabilization payments. The timeline for finalizing claims has been shortened from 32 to 21 months after the fiscal year’s end, allowing for earlier payment determinations. Additionally, the indexation of personal income tax systems will no longer be considered a policy change, making it easier for provinces to qualify for the program. The regulations also allow the Minister of Finance to use alternative data sources when necessary information is incorrect or missing, ensuring more accurate and timely determinations. These regulatory changes are expected to improve the operation of the FSP without significantly impacting its cost, except in the case of an extraordinary economic downturn where a province qualifies for the program. The amendments are designed to enhance the responsiveness of the FSP and streamline its administration. [Source]

Kinistin Saulteaux Nation to Hold First Election Under First Nations Elections Act

The Kinistin Saulteaux Nation’s council has passed a resolution requesting their inclusion in the schedule to the First Nations Elections Act. In response, the Minister of Indigenous Services has issued an order to amend the schedule, officially adding the Kinistin Saulteaux Nation. Consequently, the first election for the council of the Kinistin Saulteaux Nation under this Act is set for May 1, 2023. This order will take effect on the day it is registered. [Source]

Kinistin Saulteaux Nation Adopts New Electoral System Under First Nations Elections Act

The Kinistin Saulteaux Nation in Saskatchewan has decided to change its electoral system for selecting its Chief and Council. The Nation’s council passed a resolution to transition from the election regime under the Indian Act to the First Nations Elections Act. Consequently, the Minister of Indigenous Services has made an order to remove the Kinistin Saulteaux Nation from the Indian Bands Council Elections Order and to add it to the schedule under the First Nations Elections Act. This change is intended to enhance the Nation’s governance autonomy and better serve the community’s needs.

The new electoral system under the First Nations Elections Act will allow the Kinistin Saulteaux Nation to hold general elections every four years instead of every two, leading to potential cost savings and more stable governance. The transition was requested by the Nation itself, following consultations with community members. The change does not have any modern treaty implications and does not require additional consultations as it is a response to the Nation’s expressed interests.

The initiative is expected to have positive effects on the community, including increased legitimacy for elected leaders, which can attract partnerships and investments. It also aligns with the principles of self-determination and may restore traditional governance roles, including those of women, youth, and elders, which were affected by the Indian Act. The first election under the new system is scheduled for May 1, 2023. There are no costs associated with the change, and no compliance or enforcement requirements are directly associated with the amendment. The Kinistin Saulteaux Nation and the appointed electoral officer will be responsible for conducting elections and managing disputes, with the ability to contest elections in federal or provincial court if necessary. [Source]

The Large Diameter Line Pipe Anti-dumping Duty Remission Order, 2023, grants remission of anti-dumping duties paid on imports of large diameter line pipe from Japan by Coastal GasLink Pipeline Limited Partnership and NOVA Gas Transmission Ltd. These duties were originally imposed to protect Canadian industry from unfairly traded imports. However, at the time of importation, there was a domestic short supply of the specific dimensions of line pipe required for certain natural gas pipeline projects, and no Canadian producer could supply them. The remission is conditional upon claims being made within two years of the Order’s enforcement and the provision of necessary evidence to the Canada Border Services Agency (CBSA) upon request. The Order is not expected to have significant regulatory costs, does not impact small businesses, and does not require a strategic environmental assessment or a gender-based analysis plus. The CBSA will administer the Order as part of its regular duties. [Source]

Canada Forgives Overpayments to Families of Fallen Public Servants

The Canadian government has issued a remission order to forgive overpayments made to beneficiaries of the Public Service Income Benefit Plan for Survivors of Employees Slain on Duty. This decision was made because it was deemed unreasonable and unjust to collect the overpayments, which occurred due to administrative errors in tax and salary calculations since 2004, amounting to approximately $350,000. The remission applies to overpayments received before May 31, 2023. The plan provides financial support to the families of federal employees killed on duty, and the Treasury Board of Canada Secretariat is the sponsor, with funding from the Public Service Insurance. Employment and Social Development Canada administers the plan, handling claims, payments, and communication with survivors. The Treasury Board Secretariat, in consultation with Employment and Social Development Canada, will inform the affected recipients about the remission order. [Source]

Canada Bans Imports of Russian Steel and Aluminum in Response to Ukraine Conflict

Canada has amended its Special Economic Measures (Russia) Regulations to prohibit the import, purchase, or acquisition of steel and aluminum goods from Russia. This measure is in response to Russia’s actions that are considered a grave breach of international peace and security, particularly its invasion of Ukraine. The ban includes a wide range of steel and aluminum products, as detailed in the newly added Schedule 11, which references specific Harmonized Commodity Description and Coding System codes.

The amendments also make it illegal for any person in Canada or Canadian outside Canada to assist in any activity that violates these prohibitions. However, the import ban does not apply to contracts for the import of goods that were entered into before the amendments came into force.

The regulatory changes are part of Canada’s broader response to support Ukraine, which includes over $5 billion in various forms of assistance, sanctions on over 1,800 individuals and entities, and coordination with allies. The sanctions are linked to the peaceful resolution of the conflict and respect for Ukraine’s sovereignty and territorial integrity.

The amendments are expected to have minimal economic impact since Canadian imports of Russian aluminum and steel have already significantly decreased due to previous trade measures. The enforcement of these regulations falls under the jurisdiction of the Royal Canadian Mounted Police and the Canada Border Services Agency, with penalties for non-compliance including fines and imprisonment. [Source]

CRTC Amends Telecommunications Fees Regulations to Align with Current Accounting Standards

The Canadian Radio-television and Telecommunications Commission (CRTC), with Treasury Board approval, has amended the Telecommunications Fees Regulations, 2010. The amendments involve updating the definitions of “contribution-eligible revenues” and “related” within the regulations. The term “contribution-eligible revenues” now refers to revenues calculated according to the formula in the Telecom Information Bulletin CRTC 2019-396, which is intended to streamline the annual reporting process for telecommunications service providers by aligning the fees calculation with the telecommunications contribution regime. The definition of “related,” in relation to telecommunications service providers, is revised to match the meaning of “related party” as per the International Accounting Standard 24 in the CPA Handbook—Accounting. These changes are designed to keep the regulations in step with current accounting standards. The amendments come into force on the day they are registered. [Source]

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