Part 1, Volume 157 #48
Highlights
- Second Foundation US Trading, LLC seeks authorization to export electricity to the U.S., with a call for public input on the potential impact and conditions offered to Canadian buyers.
- Several charities have voluntarily relinquished their charitable status in Canada.
- Weatherlogics Inc. has filed a complaint with the Canadian International Trade Tribunal, alleging improper evaluation of its proposal by the Department of the Environment.
- The Tribunal has upheld a finding on the unfair trade practices involving copper pipe fittings from Vietnam.
- The CRTC has issued decisions on broadcasting licenses for various services.
- New instructions for study permit applications in Canada require identification of a Designated Learning Institution and timely acceptance confirmation.
- Amendments to the Non-domestic Substances List involve the addition and deletion of specific substances.
- Health Canada announces fee increases for drug-related services, with adjustments based on the CPI.
- Opportunities for Governor in Council positions are open, highlighting a merit-based selection process.
- Alan CA Inc. intends to become a federally regulated life insurance company, and MD Private Trust Company plans to amalgamate with The Bank of Nova Scotia Trust Company.
- The CBSA proposes fee amendments for the removal of foreign nationals, aiming to better reflect costs and encourage voluntary compliance.
- Re:Sound Tariff 8 sets royalty rates for music streaming services for the years 2013-2018, with specific rates and reporting requirements.
Regulatory Updates on Electricity Export, Charity Status, Trade Complaints, and Broadcasting Licenses
Second Foundation US Trading, LLC has applied to the Canada Energy Regulator for authorization to export up to 200,000 MWh of electricity to the United States annually for five years. Interested parties are invited to submit their views on the application, particularly regarding the impact of the export on other provinces and whether the applicant has offered electricity to Canadian buyers under favorable conditions. Submissions are due by January 1, 2024, with the applicant’s response to submissions due by January 16, 2024.
The Canada Revenue Agency has announced the revocation of charitable status for numerous charities at their request. The revocation is effective upon publication in the Canada Gazette.
The Canadian International Trade Tribunal has received a complaint from Weatherlogics Inc. concerning a procurement by the Department of the Environment for updating Canadian precipitation datasets. Weatherlogics alleges that the department incorrectly evaluated its proposal and that certain experience requirements were not essential. The Tribunal has decided to conduct an inquiry into the complaint.
The Canadian International Trade Tribunal has continued its finding on the dumping and subsidizing of copper pipe fittings from Vietnam following a review.
The Canadian Radio-television and Telecommunications Commission has posted decisions and administrative decisions regarding various broadcasting undertakings, including license renewals and approvals for community channels and on-demand services. [Source]
Recent Updates on Canadian Immigration, Environmental, Health, and Governance Regulations
The Minister of Citizenship and Immigration has issued new ministerial instructions for the processing of study permit applications. Applicants must now identify a Designated Learning Institution on their application, which must confirm the acceptance of the foreign national within 10 days using the Letter of Acceptance Verification Tool. An extension of up to 30 days may be granted in cases of infrastructure failure, natural disaster, public health emergency, or labor dispute. Unprocessed applications will be returned, and fees refunded.
The Minister of the Environment has amended the Non-domestic Substances List, adding a new substance (Carbamic acid, N-[3-(trimethoxysilyl)propyl]-, alkanediyl ester) and deleting another (2041102-78-5), with the changes coming into effect upon publication in the Canada Gazette.
Health Canada has announced an annual 2% increase in fees for Drug Master Files and Certificate of Pharmaceutical Product services, effective April 1, 2024. Similarly, fees for dealer’s licenses for human and veterinary drugs will increase by 2% and by the Consumer Price Index (CPI) of 4.4%, respectively. The Fees in Respect of Drugs and Medical Devices Order will also be adjusted based on the CPI, with most fees currently being phased in over several years.
The fee for a Certificate of Supplementary Protection under the Patent Act will increase by 2% as of April 1, 2024.
The Privy Council Office has listed current opportunities for Canadians to apply for various Governor in Council positions across different organizations, emphasizing a merit-based, transparent process that seeks to reflect Canada’s diversity. [Source]
Proposed Corporate Reorganizations Under Canadian Financial Legislation
Alan CA Inc., a company incorporated under Ontario’s laws, plans to apply for continuance as a life insurance company under the federal Insurance Companies Act (Canada), specifically in the accident and sickness insurance and life insurance sectors. Its parent company is Alan SA, based in France. Objections to this proposal can be submitted to the Superintendent of Financial Institutions by a specified deadline.
MD Private Trust Company and The Bank of Nova Scotia Trust Company are intending to amalgamate into one entity named “The Bank of Nova Scotia Trust Company,” with the amalgamated company’s head office in Toronto, Ontario. The proposed effective date for this amalgamation is set for a future date, or another date as determined by the letters patent of amalgamation. The issuance of letters patent for both cases is subject to the standard review process and the discretion of the Minister of Finance. [Source]
Canada Proposes Updated Fees for Removal of Foreign Nationals to Reflect Actual Costs and Encourage Compliance
The Canada Border Services Agency (CBSA) is proposing amendments to the Immigration and Refugee Protection Regulations to update the fee structure for recovering removal costs of foreign nationals from Canada. The current fees, unchanged since 1993, do not reflect the actual costs associated with removals. The amendments aim to incentivize voluntary compliance with removal orders, as individuals who leave voluntarily are not subject to these fees.
The new fee structure would consolidate existing fees into a single fee with different amounts for unescorted and escorted removals. The proposed fees are $3,739 for unescorted removals or escorted removals not by air, and $12,541 for escorted removals by air. An additional fee of $1,495 would be added if the individual was detained for removal. Exceptions are made for minors and medical cases, who would only be charged the unescorted fee, and the detention fee would not apply to minors.
Consultations with stakeholders raised concerns about the significant increase in fees, the impact on vulnerable individuals, and the potential impediment to family reunification. In response, the CBSA adjusted the proposal to exempt certain groups from some fees and maintained existing mechanisms for those unable to pay, such as Temporary Resident Permits and humanitarian considerations.
The amendments are expected to increase government revenue by $11.2 million over ten years and encourage compliance with immigration laws. The new regulations are planned to come into force on April 8, 2024, and will not apply retroactively. They will also be adjusted annually for inflation. The CBSA will monitor the impact of these changes and assess their effects on various groups. Non-compliance with the new fee structure could result in denial of entry to Canada or issuance of a removal order. [Source]
Re:Sound Tariff 8: Royalty Rates and Regulations for Music Streaming (2013-2018)
The Re:Sound Tariff 8 sets the royalties for non-interactive and semi-interactive streaming of copyrighted music for the years 2013-2018. Services, excluding non-commercial webcasters, must pay royalties for streaming published sound recordings within Re:Sound’s repertoire. The tariff does not apply to simulcasts by the Canadian Broadcasting Corporation, Canadian commercial radio stations, satellite radio services, or pay audio services, nor to on-demand streams, downloads, podcasts, or background music services.
Royalty rates vary by time period and type of service. For January 1, 2013, to August 12, 2014, the CBC pays $0.000131 per file for non-interactive and semi-interactive streams, while other services pay $0.000102 for non-interactive and $0.000089 for semi-interactive streams. From August 13, 2014, to December 31, 2017, all services, including the CBC, pay $0.000193 per file. For January 1, 2018, to December 31, 2018, the rate is $0.000208 per file. A minimum annual fee of $100 applies, with no royalties due for a single free trial period of up to 31 days.
Royalties are due 45 days after the end of the month, with minimum fees payable by January 15 each year. Services must provide Re:Sound with detailed monthly reports of music usage, including titles, performers, record labels, and other available metadata. Adjustments to reports or payments must be made in the next monthly report.
Services are required to keep records for six years, which Re:Sound can audit. If an audit reveals an understatement of royalties by more than 10%, the service must cover the audit costs and pay the owed amount within 30 days. Information provided to Re:Sound is confidential, with exceptions for royalty collection, legal requirements, and other specified circumstances.
Late payments accrue interest calculated daily at 1% above the Bank of Canada’s Bank Rate. Notices and payments to Re:Sound must be sent to their specified address, with electronic submissions for music use information.
Transitional provisions state that any amounts owed under this tariff as of the knowledge cutoff date are due by March 4, 2024, with interest calculated based on specified factors. Reports required under the tariff must also be filed by this date. [Source]