Part 1, Volume 157 #43
Highlights
- The Canada Border Services Agency is addressing concerns about dumping and subsidizing of wind towers from China, with the Canadian International Trade Tribunal assessing potential industry injury.
- Oiko Energy Inc seeks authorization to export electricity to the U.S., prompting a call for public input on the potential impact.
- The Canada Revenue Agency is considering revoking the charitable status of organizations that have not met filing requirements.
- The Canadian International Trade Tribunal is holding a hearing on the classification of protective helmets for motorsport racing.
- Parks Canada is designating critical habitat for the Golden-winged Warbler for protection under the Species at Risk Act.
- Health Canada has released guidelines for recreational water quality and is taking steps to control fentanyl precursor derivatives.
- The Canadian government is proposing updates to occupational health and safety regulations, including exposure to nanomaterials and other hazards.
- Transport Canada is proposing fees for services related to the Navigation Protection Program to alleviate taxpayer burden.
- The SOCAN Tariff 22.B outlines royalties for internet broadcasting by commercial and satellite radio providers.
- The Copyright Board has set royalties for the communication of works on audio-only websites, with specific reporting and payment requirements.
Recent Decisions and Actions by Canadian Agencies on Trade, Energy, Taxation, Wildlife Protection, and Public Service Election Participation
The Canada Border Services Agency (CBSA) has made final determinations of dumping and subsidizing of wind towers from China, classified under tariff numbers 7308.20.00.00 and 8502.31.00.00. The Canadian International Trade Tribunal (CITT) is continuing its inquiry into the potential injury to the Canadian industry and will decide by November 17, 2023, whether to impose anti-dumping and countervailing duties.
Oiko Energy Inc has applied to the Canada Energy Regulator (CER) for authorization to export up to 7.6 million MWh of electricity to the United States annually for ten years. The CER seeks public input on the application, particularly regarding the impact of the exportation on other provinces and whether Canadian buyers were given an opportunity to purchase electricity under similar conditions.
The Canada Revenue Agency (CRA) has announced its intention to revoke the charitable status of various organizations for failing to meet the filing requirements of the Income Tax Act.
The Canadian International Trade Tribunal (CITT) has announced a public hearing for appeals concerning the classification of protective helmets for motorsport racing. The hearing will address whether the helmets should be classified under tariff item 6506.10.10 as “other protective headgear, athletic” or under 6506.10.90 as determined by the CBSA.
The CITT has also initiated an expiry review of its 2018 finding on the dumping and subsidizing of sucker rods from China. The CBSA will determine if the expiry of the finding is likely to result in continued dumping or subsidizing, and the CITT will assess if this could injure the Canadian industry.
Parks Canada has identified critical habitat for the Golden-winged Warbler within Thousand Islands National Park of Canada, which will be protected under the Species at Risk Act after a 90-day notice period.
The Public Service Commission of Canada has granted Sam Johnston, Team Lead at Correctional Service Canada, permission to seek nomination and be a candidate in the provincial election for Miramichi Bay-Neguac, New Brunswick, and has granted a leave of absence during the election period. [Source]
Canadian Environmental and Health Regulatory Updates and Appointments
The Canadian Environmental Protection Act, 1999 (CEPA) has assessed 13 titanium-containing substances and proposes no further action as they do not meet the criteria for environmental or health risks. The public can comment on this within 60 days. These substances are used in various industries and products, including mining, textiles, and consumer goods. Ecological risks were assessed using the ecological risk classification of inorganic substances (ERC-I), which found them unlikely to cause ecological harm. Human exposure to titanium, mainly through food, was considered low risk based on blood biomonitoring data. For inhalation exposure, the margins were adequate to address health risks.
Health Canada has finalized the Guidelines for Canadian Recreational Water Quality, focusing on microbiological pathogens and biological hazards. The guidelines provide values and strategies for managing risks in recreational waters, excluding treated facilities like pools.
Health Canada intends to control derivatives and analogues of the fentanyl precursor 4-piperidone under the Controlled Drugs and Substances Act (CDSA) due to their use in illegal fentanyl production. These substances have no known legitimate uses in Canada and have been found in illegal drug production. Public comments are invited within 30 days.
Several appointments have been made to various judicial and administrative positions across Canada, including judges for different courts, a lieutenant governor, and board members for various organizations.
The Minister of Transport has issued supplementary letters patent to the Montreal, Québec, Saguenay, Sept-Îles, and Trois-Rivières Port Authorities, allowing them to exclude certain government-reimbursed borrowings from their borrowing limits. These borrowings are for projects under contribution agreements with the Government of Quebec and are subject to long-term payment schedules.
The Privy Council Office has announced opportunities for Canadians to apply for various Governor in Council positions across different organizations, emphasizing a merit-based, transparent process that reflects Canada’s diversity. [Source]
Annual Shareholders’ Meeting of the Canadian Transit Company Scheduled for November 22, 2023
The Canadian Transit Company is holding its annual shareholders’ meeting at the Detroit International Bridge Company’s offices in Warren, Michigan, on November 22, 2023, at 3:00 p.m. The agenda includes electing the company’s directors and addressing other authorized business matters. Dan Stamper, the President, has issued the notice. [Source]
Canada Proposes OHS Regulation Amendments for Hazardous Substance Protections in Workplaces
The Canadian government is proposing amendments to five occupational health and safety (OHS) regulations under the Canada Labour Code to update and clarify protections against hazardous substances in federally regulated workplaces. These updates include new regulatory requirements for exposure to nanomaterials, thermal stress, non-solar ultraviolet (UV) radiation, and radon. The amendments aim to establish exposure limits, harmonize record-keeping requirements, and clarify air-sampling requirements.
The proposed changes will introduce a requirement for employers to establish an engineered nanomaterial exposure and prevention control program in line with the CSA Standard Z12885. For thermal stress, employers will need to develop and implement procedures for monitoring and control, including protective clothing, work rest cycles, and employee training. Non-solar UV radiation protections will be established, requiring employees to be kept free from exposure above certain levels. Radon exposure limits will be harmonized with Health Canada guidelines, setting the acceptable level at 200 Bq/m3.
The amendments also propose updating references to standards from static to ambulatory, meaning the most recent version of a standard will automatically apply without needing to amend the regulations. Record-keeping for air sampling reports will be extended to 30 years to facilitate investigations into occupational illnesses.
The total estimated cost of these regulatory changes is $70M over 20 years, with estimated benefits of $96.4M, resulting in a net positive impact of $26.4M. The changes are expected to support regulatory cooperation and alignment across Canada and with the United States, particularly in areas where occupational exposure limits vary.
Consultations have been extensive, with broad support from unions and some concerns from employers regarding the adoption of new standards and the technical burden of new maximum exposure limits. The proposed regulations will be enforceable through administrative monetary penalties, and compliance will be achieved using existing approaches such as education, voluntary compliance, and compliance orders. [Source]
Proposed Fees for Navigable Waters Services by Transport Canada
Transport Canada (TC) is proposing the Canadian Navigable Waters Act Fees Regulations to introduce fees for services provided by the Navigation Protection Program (NPP). These services include assessing and processing applications for approvals of works in navigable waters and exemptions from prohibited activities. The fees aim to shift some of the financial burden from taxpayers to the beneficiaries of these services, promoting a balanced approach to financing government programs.
The proposed regulations establish three fee categories for works approvals based on complexity, ranging from $500 to $4,300 per application review. A fixed fee of $66,000 is proposed for applications seeking exemption from prohibited activities. The fees are designed to recover a portion of the service costs and will be phased in over three years, with full fees payable by 2027. Annual adjustments based on the Consumer Price Index will begin in 2024 for exemptions and in 2028 for works approvals.
The NPP is responsible for ensuring Canada’s navigable waters remain open for transport and recreation by regulating works that may interfere with navigation. The program currently provides services without charge, which has put pressure on TC resources and resulted in taxpayer subsidization.
Consultations on the fee proposal were held, and feedback was received from various stakeholders, including the aquaculture industry, mining and energy sectors, and Indigenous communities. Adjustments were made to the proposal in response to concerns raised, such as reducing fees for certain aquaculture facilities and not applying fees for the removal or decommissioning of works.
The total cost of the proposed regulations to proponents is estimated at $11.84 million over ten years. The one-for-one rule does not apply as there is no change in administrative burden, and the small business lens applies, with an estimated cost of $0.40 million to small businesses over the same period.
The proposed regulations are part of TC’s Fee Modernization initiative, which seeks to improve client service experiences and align with the Service Fees Act and the Policy on Service and Digital. The initiative is part of a broader plan to modernize laws and regulations while upholding safety and supporting innovation in the transportation sector.
The proposed regulations would not give rise to modern treaty obligations and are not directly comparable to international jurisdictions’ fees for similar services. A strategic environmental assessment concluded that no significant environmental effects are anticipated. The regulations are expected to have a varied impact on different stakeholders, but no differential impacts based on identity factors such as gender or race are expected. Implementation details and service standards are being developed, and compliance will be enforced under existing CNWA provisions. [Source]
SOCAN Tariff 22.B: Royalty Framework for Internet Broadcasting by Commercial and Satellite Radio Providers (2007-2018)
The SOCAN Tariff 22.B establishes the royalties for the public communication of SOCAN’s repertoire works via telecommunication, including internet broadcasting by commercial and satellite radio providers, for the years 2007 to 2018. The tariff defines terms such as “audio page impression,” “Internet-related revenues,” and “on-demand stream,” among others, to clarify the scope of usage and reporting.
For commercial radio, royalties are calculated by multiplying the applicable rate by the broadcaster’s internet-related revenues and the ratio of audio page impressions to total page impressions. For satellite radio services, the formula is similar but includes a deduction for non-Canadian page impressions if applicable.
Service providers must identify themselves to SOCAN, providing detailed contact information and the URLs of their services. Monthly reports are required, detailing internet-related revenues, the ratio of audio to total page impressions, and specific data on each file played, including the number of plays and additional information about the musical work.
Royalties are due 20 days after the end of each month, and service providers must keep records for six years, which SOCAN can audit. If an audit reveals an understatement of royalties by more than 10%, the service provider must cover the audit costs.
Confidentiality is emphasized, with information obtained through the tariff to be kept private unless consent is given or required by law. Late payments will incur interest, and the tariff outlines the procedures for notices, deliveries, and payments.
Transitional provisions state that records must be kept following the tariff’s publication, and any owed amounts are due by January 28, 2024, with interest adjustments based on the Bank of Canada’s Bank Rate. [Source]
SOCAN Royalties for Audio-only Websites (2007-2018)
The Copyright Board has set the royalties for the communication to the public by telecommunication of works in SOCAN’s repertoire on audio-only websites from 2007 to 2018. Royalties are calculated as a percentage of a site’s Internet-related revenues, adjusted by the ratio of audio page impressions to total page impressions and the site’s SOCAN repertoire use. The rates vary depending on the extent of SOCAN repertoire use, with a minimum annual fee applicable based on the percentage of SOCAN repertoire use.
Site operators must identify themselves to SOCAN, providing detailed contact information and the URL of their site. They are also required to report monthly on their Internet-related revenues, the ratio of audio to total page impressions, non-Canadian page impressions, and detailed information about each musical work played, including the number of plays.
Royalties are due 20 days after the end of each month, and all payments are exclusive of taxes. Adjustments to information or royalties must be reported with the next relevant report, and any errors discovered through audits may result in the site operator covering the audit costs if the discrepancy exceeds 10%.
Records must be kept for six years and are subject to audit by SOCAN. Confidentiality is required for all information received, except under certain conditions such as legal requirements or proceedings before the Copyright Board. Late payments will incur interest calculated daily based on the Bank Rate plus 1%.
Notices and payments to SOCAN must be sent to their specified address, and there are provisions for the presumption of receipt based on the method of delivery. Transitional provisions apply to the record-keeping requirements and any amounts owed under the tariff are due with interest calculated using specified factors. [Source]