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Reference Manual for the WHMIS Requirements of the Hazardous Products Act and Controlled Products Regulations

CPR Section 8.2 - Secondary Supplier Exemptions

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Secondary Supplier Exemptions

8.2 The sale of a controlled product by a supplier, in this section referred to as the secondary supplier, is exempt from the application of paragraph 13(a) of the Act in respect of the requirement to disclose on a material safety data sheet the chemical identity or concentration of an ingredient of the controlled product if

  1. the ingredient is sold either directly or indirectly by another supplier, in this section referred toas the primary supplier, who has filed a claim for exemption or is exempted from disclosing thechemical identity or concentration of the ingredient under the Hazardous Materials Information Review Act;
  2. the chemical identity or concentration of the ingredient is
    1. unknown to the secondary supplier, or
    2. known to the secondary supplier and the secondary supplier has obtained the information inconfidence, express or implied, and is obligated by contract or trust, express or implied, or otherwise by law or equity to maintain the confidentiality of the information;

  3. the material safety data sheet for the controlled product transmitted by the secondary supplier in respect of the sale discloses, in place of the chemical identity or concentration of the ingredient,
    1. the information referred to in section 26 or 27 in respect of
      1. where the secondary supplier has filed a claim for exemption or is exempted from disclosing information that could be used to identify the primary supplier, that claim or exemption, or
      2. in any other case, the primary supplier's claim or exemption with the words "other supplier" in parentheses after that information,
    2. where the primary supplier has filed a claim for exemption or is exempted from disclosing the chemical identity of the ingredient, the generic chemical identity of the ingredient as disclosed by the primary supplier, and
    3. where the primary supplier has filed a claim for exemption or is exempted from disclosing the concentration of the ingredient, the concentration of the primary supplier's controlled product in the secondary supplier's controlled product; and
  4. the secondary supplier transmits with the material safety data sheet for the controlled product the material safety data sheet transmitted by the primary supplier in respect of the sale to the secondary supplier.

Interpretation / Discussion of Section 8.2

Section 8.2 provides an exemption for secondary manufacturers (i.e., 2° suppliers) from disclosure requirements for ingredients purchased from a primary (1° ) supplier if the 1° supplier has filed a claim for exemption or is exempt from disclosing that information under the Hazardous Materials Information Review Act (HMIRA).

Section 8.2 was added to the CPR through Amendment No. 1. This section removes the burden from 2° suppliers of determining the chemical identity or concentration of these ingredients by eliminating the cost that would otherwise be incurred by these suppliers should they be required to determine the chemical identity or concentration of ingredients withheld from them by their suppliers through exemption under the HMIRA.

The term "indirectly", as used in paragraph 8.2(a), is meant to include those situations where there may be more than one supplier incorporating a 1° supplier's ingredient which is the subject of a claim for exemption (CFE) under the HMIRA. Therefore, even if a manufacturing process included 3° and 4° manufacturers, for the purposes of section 8.2, all parties incorporating the 1° supplier's trade secret ingredient into their own product are considered to be 2° suppliers and thereby exempt from disclosure of the applicable information.

The addition of this section also eliminated the economic burden which industry would have otherwise incurred had every firm involved in the manufacturing of the end product been required to file a CFE accompanied by the associated fee for an ingredient which was already the subject of a CFE filed by their 1° supplier.