Basic information
Outline of the system
The outline of system (reflects NEB Act amendments, but not the regulations being updated). Clarification to all below: The CER Act will remove the requirement for importation licences in the future, either after 28 August 2022, or after regulations prescribing what importation information is to be submitted to the Regulator and the frequency of submission. Currently the import order regime remains in place as a transitional provision.
On 28 August 2019, the National Energy Board Act (the NEB Act) was repealed and replaced with the Canadian Energy Regulator Act (the CER Act). The CER Act establishes a new Canada Energy Regulator (CER), replacing the National Energy Board (NEB). The CER comprises a Board of Directors to provide oversight and strategic direction and a Chief Executive Officer (CEO), who is responsible for day-to-day operations, and is separate from the Chair of the Board.
The new CER also includes a group of independent Commissioners who are responsible for timely, inclusive and transparent project reviews and decision-making. The Commission has all the powers, rights and privileges vested in a superior court of record with respect to any matters within its jurisdiction. The CER Act also allows for regulations permitting the CEO to designate officers of the CER to perform certain powers, duties and functions of the Commission, some of which may potentially relate to importation.
A major consequence of the CER Act is that licenses and orders will no longer be required for the importation of oil and gas into Canada on or before 28 August 2022.
The Canadian Energy Regulator Act and the National Energy Board Act Part VI (Oil and Gas) Regulations (Part VI Regulations) made under the predecessor NEB Act control imports of natural gas, whether in gaseous or liquid state, by pipeline, railway tank cars and tank trucks or tankers. Imports are authorized by both licences and orders. Licences are issued for long-term imports while orders are used in the case of long-term small volume imports, emergency imports or and short-term large volume imports. An application is made to the Board for import authorization. No licence is effective until approved by the Governor-in-Council. The issuance of an import order requires the approval of the Board and does not require a public hearing or Governor in Council approval. The new Canadian Energy Regulator Act removes the requirement to obtain a license or order before importing oil and gas into Canada subject to changes to the Part VI Regulations).
Product coverage
Under the CER Act, licenses or orders will no longer required for the importation of oil or gas as of 28 August 2019. The import license and order requirements of the Part VI Regulations will remain in effect until the earlier of the date they are amended or replaced, or 28 August 2022.
Nature of licensing
Automatic
If Automatic, administrative purpose
Non-Automatic
If Non-Automatic, description of the notified Non-Automatic Licensing regime
Products under restriction as to the quantity or value of imports
The import license and order requirements of the Part VI Regulations will remain in effect until the earlier of the date they are amended or replaced, or 28 August 2022.
Questions for products under restriction as to the quantity or value of imports
Not applicable.
The system applies to products originating from which country?
The system described applies to gas originating in and coming from any country.
Expected duration of licensing procedure
Legal requirements
Is the licensing statutorily required?
The authorization of imports is maintained under the Canadian Energy Regulator Act for all new import activities on or after 28 August 2019. For imports authorizations initiated prior to 28 August 2019, the National Energy Board Act, a statute of the Parliament of Canada, and the National Energy Board Act Part VI (Oil and Gas) Regulations continue to apply.
Does the legislation leave designation of products to be subject to licensing to administrative discretion?
The term "gas" is defined in the Act and is not subjected to administrative discretion.
Is it possible for the government to abolish the system without legislative approval?
Legislative action would be required to abolish the system.
Eligibility of applicants
Is there a system of registration of persons or firms permitted to engage in importation?
What persons or firms are eligible to apply for a licence?
Any person is eligible to apply for an import licence.
Is there a registration fee?
Is there a published list of authorized importers?
Contact point for information on eligibility
Ministry/Authority
Address
Telephone
Fax
E-mail address
Website
Contact officer
Submission of an application
Administrative body(ies) for submission of an application
Documentation requirements
What information is required in applications?
The Governor-in-Council may make regulations respecting the information to be furnished by applicants and the procedures to be followed in applying for import authorization. Section 5 of the Part VI Regulations entitled "Information to be Furnished by Applicant for Licence to Import Gas" sets out the information required to be filed by an applicant for a licence to import gas. These Regulations will be updated to reflect changes to the import/export regime under the CER Act. In addition, the Canada Energy Regulator may require further information about import activities. With respect to import orders, applicants must file such information as the Canada Energy Regulator may require. However, no specific information requirements for order applications are set out in the Act or in the Part VI Regulations.
What documents is the importer required to supply with the application?
Window of submission of an application
How far in advance of importation must application for a licence be made?
Application for a licence should be made in advance of importation by a reasonable length of time, depending on the size and complexity of the importation arrangement.
Are there any limitations as to the period of the year during which application for licence can be made? If so, explain
There are no limitations as to the period of the year during which application for import authorization may be made.
Issuing the license
Can a licence be granted immediately on request?
An order can be granted very quickly by the Commission. A licence may, at the discretion of the CER require that a public hearing be held.
While the requirement to obtain a license remains in effect, for processing license applications a public hearing may be required and is at the discretion of the CER. The length of time to process a licence application is approximately four months or longer depending on whether a public hearing is deemed necessary. Applications for orders can be approved very quickly. Typical processing time for emergency and short-term imports is 48 hours, while processing time for long-term import orders is two to six weeks or more.
Can licences be obtained within a shorter time-limit or for goods arriving at the port without a licence
In some cases, imports commence immediately upon issuance of the authorization, or, depending on the requirements of the import arrangement, there may be some interval between the authorization and the commencement of the import.
Which administrative body is responsible for approving application of licences?
The prospective importer has to approach one administrative organ only, the Canada Energy Regulator.
Must the applications be passed on to other organs for visa, note or approval?
Are there any other conditions attached to the issue of a licence?
Conditions attached to the issue of orders may include those matters prescribed by the Part VI Regulations, including: duration of the order, the period within which the import must commence, the quantities of import, points of importation into Canada, environmental requirements and the granting of export authorization by the appropriate foreign government agency.
Fees and other administrative charges
Is there any licensing fee or administrative charge?
There is no fee or administrative charge in respect of an application at present.
What is the amount of the fee or charge?
Is there any deposit or advance payment required associated with the issue of licences?
There is no deposit or advance payment requirement associated with the issue of the import authorization.
Amount or rate?
Is it refundable?
What is the period of retention?
What is the purpose of this requirement?
Refusal of an application
Under what circumstances may an application for a licence be refused other than failure to meet the ordinary criteria?
An application for a licence may be refused for failure to meet criteria set out in the Part VI Regulations or where the import is not in the public interest.
Are the reasons for any refusal given to applicants?
An applicant, in the event of refusal to issue a licence, may resubmit his application to the Canada Energy Regulator with appropriate amendments or may request a review.
Have applicants a right of appeal in the event of refusal to issue a licence?
Appeal can be made.
If so, to what bodies and under what procedures?
Appeal can be made to the Federal Court of Appeal on a question of law or jurisdiction, on leave being obtained from the Court. The import license and order requirements of the Part VI Regulations will remain in effect until the earlier of the date they are amended or replaced, or 28 August 2022.
Importation
Are there any limitations as to the period of year during which importation may be made?
What documents are required upon actual importation?
No documents are required upon actual importation. However, the holder of an import authorization is required to provide the Canada Energy Regulator with information as required, including the actual volumes imported during the term of the authorization, and their value in Canadian currency.
Are there any other administrative procedures, apart from import licensing and similar administrative procedures, required prior to importation?
Apart from procedures defined in the Regulations made pursuant to the Act, including requirements associated with inspection, metering and reporting, no additional administrative procedures are required.
Conditions of licensing
What is the period of validity of a licence? Can the validity be extended? How?
No import license may be issued for a term in excess of 25 years. The validity of an order cannot be extended beyond this period without an amendment to the Act by Parliament.
Is there any penalty for the non-utilization of a licence or a portion of a licence?
There is no penalty for the non-utilization of an order or a portion of an order. Orders are permissive only.
Are licences transferable between importers? If so, are any limitations or conditions attached to such transfer?
Yes. They are transferable subject to Canada Energy Regulator and Governor-in-Council approval.
Foreign Exchange
Is foreign exchange automatically provided by the banking authorities for goods to be imported?
Not applicable.
Is a licence required as a condition to obtaining foreign exchange?
Not applicable.
Is foreign exchange always available to cover licences issued?
Not applicable.
What formalities must be fulfilled for obtaining the foreign exchange?
Not applicable.